2 nd Meeting on AIIS. Tonga in Focus 5 9 AUGUST 2002 NEGARA BRUNEI DARUSSALAM. By Mrs Kalisi Matoto Fine

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1 2 nd Meeting on AIIS Tonga in Focus 5 9 AUGUST 2002 NEGARA BRUNEI DARUSSALAM By Mrs Kalisi Matoto Fine

2 Main Developments: 2000 Reform communications sector Communications Policy Statement Policy Revision (on ICT) Work Plan achieving objectives Issues and Challenges 2

3 1. Towards the 2000 Reform Separate Local and International telecom operators Conclusion of the C & W Franchise Agreement Rapid change in ICT technology Benefits of this revolution to the overall economic development and prosperity 3

4 Reform Formation of TTIL (Tonga Telecommunications International Ltd) - international telecom operator Formation of DOMSAT by TTC (Tonga Telecommunications Commission local telecom provider Enactment of the Communications Act 2000 Enactment of the Tonga Communications Corporation Act

5 2000 Reform (continued in 2001) Appointment of the Minister of Communications Establishment of the TCC (Tonga Communications Corporation) Establishment of the Department of Communications Approval of the Communications Policy Statement 5

6 3. Communications Policy Statement i. Objectives and Principles Central Objective To improve sector performance to ensure domestic and global connectivity throughout the Kingdom of Tonga. This includes improving quality of service, geographic coverage, service affordability and access to new applications 6

7 This central objective is supported by the following underlying policy principles: Nurturing a sustainable, performing and financially viable communications sector To maximize infrastructure availability Support new industry investment and attraction Maximize strategic and economic benefits from communications assets 7

8 ii. Framework of Action Major Policy Initiatives Establishing administrative processes for appropriate commercial governance of TCC: Preparation of a corporate plan at least once a year Preparation of an annual report Maintenance of proper accounts and records Annual audit of accounts, and Provision of reports to shareholders 8

9 New ownership structure of TCC that reflects: majority Government shareholding participation of a potential new investor in the ownership and operation of TCC: Owner and operator of communications networks Experience in small and medium size markets to establish the Tongan Participation Scheme ; up to 10 percent of the issued shares in TCC 9

10 Introduction of sustainable competition and liberalization process through: the licensing of a second full service provider (carrier) opening of the customer equipment market segment Allow limited resale and Internet access services Provide new value added employment opportunities Provide customers with choice, thereby igniting market forces to work 10

11 Institutional Framework governing the communications sector; flexibility necessary to adjust to global industry developments appointment of the Minister establishment of the Department 11

12 Realigning Tonga s existing legislation and regulatory framework: Creation of the Communications Act 2000 and the TCC Act 2000 The repeal of the Tonga Telecommunications Commission Act, the Telephones Act and the Broadcasting Act 1989 The amendment of the Radiocommunications Act, the Telegraph Act and the Tonga Broadcasting Act. 12

13 iii. Regulatory Arrangements The Minister together with the Department have regulatory responsibilities concerning: Licensing and access arrangements Consumer and pricing protection Technical and frequency spectrum issues Social issues Economic matters 13

14 3. Policy Revision (ICT) 1. Policy Principles to include: Encourage the development of an information society (like online economic activities) Human Resource Development and Enhancement of ICT literacy Encourage the development of regional cooperation and global coordination 14

15 2. Framework of Action to include: Implementation of the Tongan Civil Service s Information Technology Strategic Plan 3. Considering Legislation on: electronic signatures and authentication of network user s identities International cooperation on security in cyberspace issues 15

16 Covering copyright, secrecy, privacy, intellectual property, freedom of information, interception, ICT standardization, and ICT tendering 4. Institutional Framework DoC and MoE will establish: ICT studies at primary school level Mandatory ICT studies at secondary school level Vocational training courses 16

17 Work exchange programs with regional countries Computer Society of Tonga Seek reciprocal arrangements with similar societies in the region Establish a National ICT Consultative Committee 17

18 4. Work Plan achieving objectives 1. Nurturing a sustainable and financially viable Communications Sector: DoC to conduct stock-take of the sector to: Ascertain current sustainability and viability of the sector Identify areas where infrastructure needs to be improved Identify socio-economic groups needing access to infrastructure Stock-take to be completed by end of December

19 2. Maximize Infrastructure Availability DoC to set targets for infrastructure penetration and affordability: Telephony penetration rates to equal the PI average within 5 years and Asia Pacific average within 10 years Access and local call rates to achieve PI average in 5 yrs Internet penetration rates to achieve PI average in 5 yrs Internet access rates to achieve PI average in 5 yrs 19

20 3. Support New Industry Investment and Attraction DoC to undertake survey of major operators in Asia Pacific region to ascertain most favourable environment for investment: Survey to be completed by December 2002 Survey results to be considered in developing a draft sector investment policy Draft policy paper - consultation to be completed by end June

21 4. Maximize Strategic and Economic Benefits from Communications Assets Proposed new organizational structure of the DoC to follow international precedents with respect to the management of assets such as frequency spectrum, numbering and electronic addressing To be implemented by the end of September

22 5. Issues and Challenges Availability of resources High access cost Vulnerability to natural and man-induced disasters Gap between information rich and information poor 22

23 MALO OFA ATU Kalisi Matoto Fine For more information please contact: Department of Communications Prime Minister s Office Nuku alofa Kingdom of Tonga 23

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