The VSAT Industry / Regulatory Issues
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- Universal
Connectivity! This is no longer an academic
subject, thanks to the availability today of VSAT systems
that can cost-effectively provide telecommunications in
the most challenging applications. These include no less
than rural telecommunications, disaster recovery, telemedicine,
distance learning, corporate networks, and much more. But.
. .
- National
Disconnects: In many countries where such solutions
are most needed, outdated regulations stand in the way of
the economic progress that is faciliated through the use
of VSAT systems and services. These hurdles include:
- High
licensing fees
- Cumbersome
red tape
- Cost-prohibitive
customs duties
- Slow
response to license applications
-
International
Links: While there are more than 500,000 VSATs
operating in most of the world's countries, most are not
permitted for use in international applications. This
is an unfortunate - and expensive - waste of resources,
because VSATs are ideally suited not only to provide domestic
connectivity, but also to offer trans-border communications
for wide-area networks.
The Solution: The Gobal VSAT Forum Regulatory Working Group has developed
the 'International VSAT Policy Declaration' with regulatory
recommendations and guidelines. The document was created
to serve as a tool for regulators and policy makers, who
are interested in modifying regulation to facilitate the
use of VSAT-based services. To download this 18 page document,
click here for English,
French,
Russian,
or Spanish.
Regulators around the world already are taking these factors into
account and are implementing new policies that facilitate
the use of VSAT systems and services. Evidence of this
trend can be seen in numerous global and regional initiatives
being signed by scores of nations, including:
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1) Global
Mobile Personal Communication By Satellite (GMPCS) MoU:
The VSAT
industry through the Global VSAT Forum - has been officially
invited by the International Telecommunication Union (ITU)
to participate in a ground-breaking program that facilitates
the implementation and provision of fixed and mobile satellite
communications systems and services throughout the world.
Called the
Memorandum of Understanding for Global Mobile Personal Communications
via Satellite - or GMPCS-MOU - it has been signed by more
than 70 administrations intent on facilitating the use of
mobile and fixed terminals, with reduced customs, type approval,
and licensing requirements.
The key potential
advantages of the MOU to an economy are that effective, rapidly-deployable
VSAT- and mobile-satellite-based communications solutions
will more readily be available. This access to communications,
in turn, serves to stimulate local business thereby creating
jobs, new sources of revenue, and potentially attracting new
foreign investment to nations.
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2) The World
Trade Organization:
On 5 Feb.,
1998, the results of negotiations on market access for basic
telecommunications services formally entered into force, according
to the World Trade Organization. At close of the three-year
negotiations, in February 1997, the commitments of 69 governments
were annexed to the Fourth Protocol of the General Agreement
on Trade in Services.
The worlds
industrialized countries all participated in the deal. More
than 40 developing countries from virtually every region of
the world also took part, as did six of the Central and Eastern
European economies in transition.
The markets
of the participants accounted for more than 91% of global
telecommunications revenues. Moreover, since the negotiations,
two participants in the Protocol improved their commitments
and three WTO members who had not participated submitted commitments
on basic telecommunications to the Council for Trade in Services.
The Global
VSAT Forum would urge all governments to sign the WTO Trade
Agreement and open up the provision of all services via VSAT
on a technology-neutral basis and eliminate the limitation
on the number of suppliers that can offer such services.
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3) Information
Technology Agreement:
Forty governments
agreed, on 26 March, 1997, to implement the WTO Ministerial
Declaration on Trade in Information Technology Products (ITA)
that began cutting customs duties on computer and telecommunications
products on 1 July 1997 and eliminates them altogether by
the year 2000. These tariff reductions will apply to all WTO
members on an m.f.n. basis.
Speaking
on the occasion of the announcement, Renato Ruggiero, Director
General of the WTO, said, "The impact of these agreements
on improved living standards for the worlds citizens
should not be underestimated. The
telecoms hardware
that are included in the ITA are the conduit for the delivery
of information. By making such products more affordable, we
move one step closer to the vision of a telephone in every
village of the world. The ramifications of such an achievement
to the health and education of those in the poorest countries
are obvious."
The Global
VSAT Forum encourages all administrations to participate fully
in the ITA, particularly as it relates to VSAT systems.
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4)
Tampere Convention:
The international
community is moving to offer the VSAT industry and other telecoms
concerns an international legal instrument that will empower
nations requesting external assistance following a natural
or man-made disaster to waive normal licensing and importation
requirements.
Called the
"Tampere Convention on the Provision of Telecommunication
Resources for Disaster Mitigation and Relief Operations",
the treaty is significant because:
- It provides
for the reduction or removal of regulatory barriers that
currently impede the use of VSAT resources for disaster
recovery.
- For the
first time, privileges and immunities will be accorded to
private VSAT companies providing disaster assistance by
exempting them from taxation and duties, and granting them
immunity from arrest and detention. (Previously, such immunities
were accorded only to the UN and comparable multi-lateral
agencies.)
- Before
the arrival of telecoms assistance in a disaster zone, a
requesting nation will be obliged to set down in writing
the fees it expects to receive or have reimbursed, if any.
This applies to cases where non-disaster-relief communications
are provided in tandem with disaster-recovery services,
such as after the Kobe earthquake. To avoid excessive charges,
the fees will be based on an agreed model of payment and
reimbursement, as well as other factors such as the nature
of the disaster, natural hazards, etc.
Thus, the
Global VSAT Forum would encourage all governments to sign
the Tampere Convention and embrace it fully in the context
of facilitating communications service provision via VSAT-based
systems.
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5. Mutual
Recognition Agreement for Terminal Certifications:
A trend is
underway throughout the world, whereby regional groups of
countries are moving to boost foreign trade in telecoms terminal
equipment by streamlining terminal certification and test
procedures through the signing of regional Mutual Recognition
Agreements (MRAs).
For example,
streamlined test procedures for VSATs and other telecoms systems
are poised to boost Pacific-Rim trade by hundreds of millions
of dollars, following meetings held recently by the Asia-Pacific
Economic Cooperation (APEC) group.
The test
procedures, which could be implemented as early as July 1999,
represent the first phase of an MRA for conformity assessment
of satellite communications earth stations and other telecoms
terminals included in an agreement first signed by ministers
of the 18 APEC nations last summer.
Phase two
of the MRA calls for the APEC nations to accelerate equipment
certification procedures and reduce or eliminate redundant
testing of VSATs and other telecoms equipment. The gains eventually
are expected to affect more than $40 billion in trade among
all sectors of the telecoms industry.
The GVF supports
similar initiatives in other regions: The Inter-American Telecommunications
Commission (CITEL) is also moving toward completion of telecom
MRA text, which is expected in late 1999. And Europe is moving
toward implementation of its own version, called the Radio
and Telecommunications Terminal Equipment Directive (RTTE).
In the absence
of an MRA, certification and testing procedures of VSATs and
other telecoms equipment must often be repeated on a country-by-country
basis, because the regions nations and, indeed, economies
around the world each impose their own authorization schemes.
This redundancy ultimately forces end users to pay higher
prices and wait longer for delivery of solutions.
Thus, the
Global VSAT Forum recommends that all governments pursue such
programs.
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6.
Other General Considerations:
The Global
VSAT Forum has also observed progressive trends in policy
formation in various nations around the world, which we would
suggest that all governments consider. These include but are
not limited to the following:
Elimination
of Monopolies: In every market where a monopoly exists,
so too are found sub-standard services offered at above-market
prices - assuming any service is available at all. The Global
VSAT Forum recommends that monopoly privileges be eliminated,
because the people and business community of any nation are
entitled to high-quality, low-cost communications as a means
of improving standards of living.
Licensing
exclusions: VSATs are an ideal means of rapidly providing
cost-effective network solutions for a wide range of applications,
including distance learning, telemedicine, rural telecoms,
banking, retailing, stock exchanges, disaster recovery, and
other government, commercial and consumer-oriented solutions.
In recognition
of this, nations have begun moving toward policies that do
not require VSATs to undergo a licensing process of any kind,
provided they operate within certain pre-defined parameters.
The Global VSAT Forum would encourage all governments to investigate
this option, and we would be pleased to offer any information
that may be required by the administration.
More Yields
Less: In general, the Global VSAT Forum has observed in
every region of the world that the more regulation, fees,
and other requirements that are imposed on would-be providers
of VSAT systems and services, the less communications will
be provided in the country.
As a general
rule, eliminate fees and paperwork wherever and whenever possible;
numerous countries around the world are implementing new policies
which embrace this new approach to facilitating the provision
of telecommunications to a variety of end users. If more information
is sought related to this or any other policy trends, please
do not hesitate to contact the Global VSAT Forum for further
input.
Regional
Harmonization: Individual nations are increasingly interested
in formulating policies within the context of policies being
considered or used by other nations located within or proximate
to their own region. This can most clearly be seen in the
European Community, where harmonization of policies has been
mandated and is even now being acted upon. (Manifestations
of this also are evident in programs like the One Stop Shop
VSAT Licensing policy being formulated by Europes CEPT.)
But it is
also evident in other regions. Many African nations, for example,
have no policy to accommodate VSAT system and service provision.
So they are evaluating regional policy solutions that could
be used to advance the entire region, as well as each individual
nation. These may be adopted by PATU, SATCC, COMESA or other
African organizations.
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