ITU to convene 16th Plenipotentiary Conference in Marrakesh
Need for ITU reform heightened by turmoil in telecommunications industry

Geneva, 9 September 2002 — The ITU Plenipotentiary Conference, to be held in Marrakesh (23 September — 18 October), comes at a critical time for both the industry and the International Telecommunication Union. "There is a crisis of confidence in telecommunications," says Yoshio Utsumi, "however, it is important to provide a clear message that the long-term future of the industry is secure." While these may be difficult times for suppliers, especially equipment manufacturers and operators, Mr Utsumi adds, "Customers have never had it so good. Prices are falling, new services are becoming available and more and more people enjoy a choice of supplier." There is no single cause for the industry problems, which has seen many in the telecommunication sector struggle for survival in an economic downturn that has wiped out as much as 80% of the value of some companies and driven many more into bankruptcy. Contributing factors include overcapacity on major international and inter-city routes, the debt incurred by operators bidding for 3G licenses, and the time lag between the saturation of demand in the voice market and the slower than expected growth in revenue from data communications.

It’s within this context that ITU will take its first concrete steps towards a long awaited restructuring of the Union designed to ensure it becomes more relevant and responsive to the communication needs of all stakeholders. "When we gather for the Plenipotentiary conference in Morocco later this month, Members are going to have to summon their courage in order to push ahead with some of the more radical proposals now on the table," notes Mr Utsumi.

More than 80 Ministers, Deputy-Ministers and Secretaries of State will attend the ITU Plenipotentiary Conference. These high-level delegates are expected to propose global policy strategies that will breathe life back into the telecommunications sector and extend the benefits of ICTs to the more than half of the world’s population still struggling to get access to basic voice telephony. "This should be at the very top of the delegates priority list at the Plenipotentiary Conference," adds Mr Utsumi.

ITU Sounds Reform Bell

While government agencies once bore sole responsibility for their countries’ national phone networks, widespread ownership changes during the past decade has seen more than 60% of national operators worldwide fully or partially privatized. As well, the move away from networks dominated by large, costly infrastructure towards smaller, cheaper, more flexible systems has spurred the growth of new niche players eager to make their contribution to the Union’s activities and participate in ITU activities as members of one or more of the Union’s Sectors.

The need to reform many of ITU’s ageing regulations, working methods and decision-making structures has never been stronger as today’s industry moves forward in a climate of increasing uncertainty. With the Union’s sphere of activity broadening each year to reflect the evolution of the industry in which it operates, the organization is finding itself under increasing pressure to trim its budget and find better and less expensive ways of financing its services. ITU ‘reformers’ will be looking for this year’s Plenipotentiary delegates to take some tough decisions in the following key areas:

• Well-Developed Approach — The ITU reform process has identified the need for a more focused approach to activities and resources in the area of telecommunication development. The Istanbul Action plan, adopted at the last World Telecommunication Development Conference, outlines a comprehensive six-point programme aimed at improving access to information and communication technology in the world’s poorest nations. However, if this is to be achieved, areas need to be identified where constructive ITU-Government-Private Sector partnerships can provide practical solutions. At a time when resources are limited and the palette of services demanded from ITU continues to grow, reconciling the many often diverging priorities will be the source of much debate in Marrakesh.
• A Summit of Information — The World Summit on the Information Society (WSIS), a result of Resolution 73 of the Plenipotentiary Conference in Minneapolis 1998, presents both a challenge and an opportunity to redefine in a very public manner the role of ITU. The UN General Assembly, which endorsed the ITU resolution, describes the purpose of the Summit as being the "development of a common vision and understanding of the information society and the adoption of a declaration and plan of action for implementation by Governments, international institutions and all sectors of civil society". However, one challenge facing the Plenipotentiary conference in regards to WSIS centres on the need to ensure that the ITU mission, work and priorities are adequately reflected in the themes and outcomes of the Summit and are in line with its key role in Global ICT development.
• A new role for the Private Sector — ITU Member States now broadly welcome the idea of an enhanced role for industry, the sticking points revolve around the extent of new private sector powers, and the new responsibilities, including increased financial contributions, they should be expected to assume.
• Balancing the Budget — To improve accountability, transparency and a more efficient use of funds, industry members are expected to push for the adoption of results-based budgeting as the best-practice model for future financial planning. However, for many a stable balance between income and expenditure will only be possible through a decision to undertake a comprehensive prioritization of ITU activities in the context of available budget.
• Cutting Costs, Not Services — The introduction of a new cost-attribution system and an extended cost-recovery programme for specific ITU products and services are considered by many as an effective way of maintaining future funding for the Union’s increasingly vital activities without increasing the financial burden to ITU membership. But for others it begs the question of the use of their contribution to ITU operations.
• Streamlining the Sectors — The need to streamline and speed up technical standardization activity continues. More flexible working practices, increased online collaboration, specialized ‘focus groups’ to accelerate progress in difficult areas and closer cooperation between Study Group work programmes and industry needs, are among the proposals being considered.
• Sky-High Problem — The space services sector has attracted much interest at recent Plenipotentiary Conferences, partly because of the cost and complexity of coordinating satellite orbital ‘slots’ (essential before any new satellite can be launched) and partly because of the problem of ‘paper satellites’ – the registration of non-existent satellites for the purpose of hoarding desirable orbital positions for possible future use or resale. A backlog in processing requests and the lengthy timeframe (up to 2.5 years) for handling satellite applications has increased the pressure on ITU to address this issue, either through streamlined procedures, increased resources, or a higher application fee to applicants in order to deter frivolous applications and to better reflect the true cost to ITU of providing this critical service. But despite many proposals, no agreement has been reached on an effective mechanism for reform.
• The Top Jobs — The election of the Union’s five highest-ranking officials is expected to attract, as always, much interest at the Plenipotentiary.

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