Regulation and Law

ROLE OF GOVERNMENT REGULATION

ICT is a new method of communicating and improving the welfare. It should be treated like any other industries and should be regulated, but if possible it should operate and function without high government intervention. A regulatory challenge is to develop consistent and relevant regulation that can promote growth of the sector, actively encourage innovation and serve the best interest of community.

Regulatory monitoring is desirable to remove barriers to ICT development, which is including the cost of service, basic infrastructure, service and transmission supply. ICT media, in particularly Internet Protocol (IP) based is likely to form the backbone for integrated voice & data service in the future that will create some added values.

The main issues

The main issues for every advanced country to attract FDI and increase this sector are:

• Not to defend the certainty pricing / tariff scheme.

Access to free competitive market will be necessary for both of operators & consumers to get the most efficient prices / tariff. Competition is essential to reduce cost and accelerate the spread of new technology.

• Serve the best interests of community.

Government should stimulate the best condition by promoting increased liberalization, harmonization of regulation and standard, and spread of best practice.

In general, the world is moving from an industrial to an information economy. The evidence is the rising of the ‘new economy’, driven by the information network.

The ‘new economy’ is a world in which:

• People work with their brains instead of their hands.

There are new ideas, concepts & innovations in all sectors for making all works will become easier and faster.

• Communication technology creates global competition.

It serves a global access and global market in the world, in which all producers and consumers can take the advantage.

• Innovation is more important.

It will offer added value and specialty rather than mass product.

• Investment buys new concept rather then new machines.

• Rapid change is a constant.

• ‘Light touch’ of government intervention to develop and serve the best interest of community.

Privately owned and operated to reduce the government intervention therefore public can get the efficient price and the best quality.

• IP based network. to develop greater connectivity and market in the world, and take the advantage of it, such as multi resources, new investment etc.

To take the more advantages from ICT media, advanced countries which have e-readiness condition, have to develop a good investment climate and strong network. Sometimes policy reviews must be done to perceive information exchange for extending the universal access.

Major challenges to e-readiness countries

• Strong infrastructure. It is the backbone for spreading the ICT usage in public and developing the strong ICT industry.

• Widespread access of information networks and services are the basic needs of the digital economy. It should be supported by the strong infrastructure.

• Competitive price for stimulating local ICT industry and offering the efficient price to consumer.

• It will offer the best choice for consumers. It makes all operators / producers giving the best quality to grab the market.

• Equal treatment of investment regulation and legal system should be set up for protecting both of local operators / producers and consumers as well as attracting FDI.

• Efficient Custom, taxation & natural resources usage fee. Simple & transparent administration procedure is needed for attracting new investors.

• Network access security should be set up in order to protect ICT resources from any illegal actions.

• Strong protection for IPR, copyrights and domain name is necessary for protecting original works and their creators and guaranteeing public interest and access.

• Content plays an important role to attract public interest in getting more information. It is also an effective way to introduce local resources to global market.

It is indisputable that Small and Medium size enterprises (SMEs) as group forms an important part of the business structure of any economy. It provides an essential structure supporting the bigger organization in providing all sorts of high value added services and intermediate products as well as supplying specialized product to meet specific niches of the market.

While large companies are able to develop by themselves cross-border trade and investment, SMEs lack information, financial and manpower resources and tend to focus on their domestic markets. E-commerce will be an effective media for SMEs to expand their activities.

There is potential for more trade and investment between these economies SMEs are encouraged to develop cross-border activities. To express this potential, there is a need for a deliberate and voluntary effort, which are undertaken by government and private sectors in order to implement practical and effective measures. To promote the SMEs development, the usage of Internet networks is needed to improve the relevancy and quality information. E-commerce usage also can give advantages for business community, in where business community can reach bigger market, more efficient resources and other opportunity.

Lack of manpower with required skill and expertise should be taken to set up more and strong education system, including training institution geared toward the specific needs. Improved educational and health standards in developing countries contribute to foster a positive investment climate.

Besides that, promoting cultural understanding from business perspective, such as building Culture Briefing Centers that can be accessed virtually provide a good basis. An official world wide home page would enhance availability of information, encourage transparency and provide a forum for business people to explore opportunities and to communicate with other potential partners. Lack of information about domestic market, opportunity and culture can reduce the interest level of foreign investor. Better communication leads to better business relationship.

Competition is essential to reduce cost and accelerate the technology adaptation. Some policy instruments to support private investment are needed. Government should stimulate this by promoting increased liberalization, harmonization of regulation and equal treatment with non-discriminatory policy. These includes better dissemination of information about investment opportunities, protection for IPR, non-discriminatory licensing arrangement and equal treatment of natural resources usage such as frequency usage.

The rule of law and the protection of IPR are underpinning a good investment climate. The adherence to the principals of transparency and non-discriminatory treatments by governments are essential conditions to attract Foreign Direct Investment (FDI).

Foreign Direct Investment plays an essential role in strengthening and stabilizing the economies, including the ICT industry. It can improve the better competition rate. An investment regulatory policy should be implemented to develop a good investment climate. Stable legal, political and security framework is acknowledged to be a pre-requisite to attract FDI flow.

Business community recognizes the importance of co-operating with governments to promote economic development based on sound and sustainable environment conditions. Political risk insurance schemes to encourage investment need to be further promoted by government as well as by private entities.

New and more effective programs for long-terms capital investment should be considered within existing international financing organizations. Bilateral and multilateral assistance programs could become more effective through a process of consultation and co-operation with the private sectors.

Liberal regulatory environment is needed to remove the obstacles of capital flows such as FDI transactions. Transparency and policy predictability is very important at the pre-investment decision stage. It is of vital importance that the prospective investor has complete confidence in the transparency and the policy predictability of the host country.

There should be greater enforcement of non-discriminatory laws, including:

• Equal access information.

• Common standard.

• Transparent regulation.

Measures should be taken to facilitate international trade and investment are including market access, streamlining of custom procedures, and encouraging co-operation in technology exchange. Further deregulation and liberalization of financial markets also have a vital role play in restoring the confidence of foreign investors.

Opening of investment regimes and removal or reduction of burdensome requirements and obstacles will attract more FDI. A variety of incentives, including tax breaks, R&D grants will facilitate better investment climate. An effective court-system with independent jurisdiction to which foreign investors have equal and impartial access is an important role for ensuring transparency and predictability. A well-educated labor force (including foreign language skills), low corporate taxes, tariffs and indirect taxes are needed to promote the perfect competition market structure.

The very first challenge is to expand access to the ICT media at affordable tariff. The high cost of service in many advanced countries remains one of the main barriers to Internet diffusion in addition to that of the shortage of phone lines. Legislative or regulatory measures as well as suitable pricing / tariff policies must be adopted so that the ICT media can be made available for all segments of society. The tariff monitoring system should be developed to keep the reasonable tariff that is based on cost orientation. Low cost Internet access should be provided to schools, universities, libraries, multipurpose community tele-centers or public service institutions to stimulate wider usage and ‘wire’ rural communities.

Strong programs should be developed to increase technology and computer skills among young people to fulfill the demand of ICT operators. Besides that, access to education will determine the wealth of nations and individuals. In the digital economy, people who do not know how to use electronic information networks and services will have difficulty facing the high competition, no matter what other skills they have.

Greater awareness of the benefits of on-line access to information, especially in this information and globalization age must be actively pursued throughout society and in particularly SMEs. Using the Internet access, traditional economic activities can be made more efficient and more profitable cause people can sell their product or service directly to other countries.

No government intervention on tariff in perfect competition market structure will increase the good competition climate among the player. Perfect competitive market will decide the reasonable tariff that always figures out the balance condition between demand and supply. The high competition rate will give many choices to end customer and the other side it will be improving the quality of product or service offered.

In general the roles of government are:

• Develop liberal regulatory environment in all ICT sectors. Implement equal and non-discriminatory treatment to attract more investors. Deregulation measures in ICT industry to open up the perfect competition climate. A supporting system and good investment climate is needed to attract FDI.

• Develop good competition system in domestic ICT market to serve the best interest to community. They must be prepared for a strong competitive rate in the global market.

• Develop better investment climate to attract Foreign Direct Investment (FDI), especially in ICT sector. It is an important step to accelerate the ICT development program.

• No government intervention in tariff structure. The market should decide it therefore all community can take the more advantage from this technology. It will offer the most efficient tariff for both operators and consumers.

• Open up all ICT market to a wider range of players and investors. Promote competition in Internet service provision market to improve the better service and price to community to serve the efficient price with the best quality. This is a necessary step towards participating in the global market place.

• Develop the strong ICT education program, including international language education program, in all education level to fulfill the demand of multinational company in ICT industries and improve the innovation, particularly in local content. Without good education system there can be no innovation and no growth in ICT industry. The government should prepare the strong education program to educate their people in the skills required in the information economy. High quality human resources program to attract FDI, including technical and managerial aspect should be set up.

• Develop the strong foreign language program in all education level therefore public can take the advantage of the Internet and communicate with other countries.

• Implement and enforce the legal framework to protect IPR, copyright, domain name and disputing problems for protecting the producers and authors, as well as for protecting the consumers. The strong legal framework and international standardization for electronic signing for electronic agreement (documentation) should be set up to facilitate the growth of e-commerce or e-business.

• Promote a public awareness campaign for high usage of e-commerce, particularly for SMEs and other home industries. E-commerce is an effective media to promote local product and resources for catching greater market in the world without high cost.

• Reduce tax for high technology equipment and also for importing end user (household) ICT equipment, such as Personal Computer that is categorized in expensive products to avoid higher tariff for the end consumers and to accelerate the ICT deployment program to all community.

• Set up a good incentive for private players that develop R&D activities to improve the innovation product or service. A transfer of technology program to improve the local employee skill should be developed to educate local employees and building the strong local industries.

• Provide ICT access to all productive citizens to improve the utilization rate and the competitive advantage of local employee.

• Simplify the licensing procedure and implement the efficient procedure for natural resource usage to stimulate the growth of ICT operators.

• Promote production of local content and the development of local part of ICT equipment to improve the competitive advantage. It is also important to promote the local resources to other countries for catching the greater market.

• Promote growth of Internet access market and universal access to reach global market and resources. It will be an effective way to stimulate all industries, particularly the competitive advantage of local industry.

INTELLECTUAL PROPERTY RIGHTS AND COPYRIGHT

The foundations and goals of copyright are, on one hand, to encourage creation by granting exclusive rights to the creator for a limited period of time and, on the other, to support and regulate the spread of cultural goods, knowledge, and ideas. Copyright therefore relies on balancing the interests of protecting original works and their creators and guaranteeing public interest and fundamental freedoms (such as access to culture and freedom of speech).

Present development in intellectual property, especially in the field of copyright and neighboring rights, could threaten this balance. It is also true however that new technologies represent a threat for the normal exploitation of copyright-protected works. The preservation of this balance between the legitimate interests of the right holders and the equally legitimate interests of users to have access to information and culture are of crucial importance in the framework of the Information Society.

Role of the Government  

Well implementation of intellectual property right and copyright law, including sanction and punishment to whom who violate it.