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THE FOURTH APEC MINISTERIAL MEETING OF THE
TELECOMMUNICATIONS AND INFORMATION INDUSTRY
(TELMIN4)
24-26 MAY 2000
CANCUN, MEXICO
CANCUN DECLARATION
We, the APEC Ministers responsible for the telecommunications and information industry, gathered at Cancun, Mexico, 24-26 May, 2000,
reaffirming the APEC Economic Leaders' Declaration, - The Auckland Challenge - at Auckland, 1999 which states that through APEC, we seek to expand opportunities for business and employment growth, build strong and open markets and ensure that our communities can participate successfully in the international economy.
responding to - The Auckland Challenge - in which the APEC Economic Leaders:
a. declared their intention to strengthen markets by:
- Providing greater transparency and predictability in corporate and public sector governance
- Enhancing the role of competition to improve efficiency and broaden participation by enterprises
- Improving the quality of regulation and the capacity of regulators to design and implement policies for sustainable growth
- Reducing compliance costs and facilitating business growth
- Building a favorable regional and international environment for free and fair competition.
b. emphasized the importance of continued multilateral and bilateral support reaffirming the Bogor Declaration to achieve free and open trade and investment by 2010/2020, and to set the course which will allow for sustainable development .
c. affirmed the need to strengthen our markets through regulatory reform and enhanced competition and by improving the international framework, especially the multilateral trading system to expand opportunities for business and employment growth,
d. noted that the effective development and application of knowledge will be a key driver of future economic success, especially when cooperation is strengthened in the fields of education, science and technology and life-long skills development.
e. recognized the key role that electronic commerce will play in linking APEC economies, considering that greater participation of the private sector, small, medium and large enterprises, will ensure success for our economies to innovate and create wealth,
reaffirming also our commitment to strengthen the Asia-Pacific Information Infrastructure to be able to respond effectively to the rapid pace of convergence and technological changes that are bringing new opportunities for education, health, finance, research, science and technology, commerce, economic and social development and entertainment.
inspiring our work on the promotion of an Asia Pacific Information Society (APIS) with love and caring, and in close collaboration with the private/business sector, by addressing in a cooperative manner those challenges posed by convergence through initiatives and projects developed within the Telecommunications Working Group (TEL);
recognizing that convergence may raise new and unprecedented complex issues which might require innovative approaches to respond effectively further facilitating businesses and to foster greater infrastructure development and access to telecommunications and information services;
highlighting that rapid technological developments and convergence may have a different impact on each economy’s growth and pace to adapt to the new environment, requires that special attention be paid to collaborate in order to avoid further dividing our region and our people between the information rich and information poor;
underlining our commitment to the objectives and principles outlined in the Seoul Declaration as the means for expanding the APII in a pro-competitive manner, to obtain the benefit and enormous potential of the global information economy for the people of the region;
acknowledging the importance of the information and telecommunications sector to the growth of electronic commerce; the convergence across industry sectors brought on by growth in electronic commerce; and, desirous of ensuring that the information and telecommunications infrastructure is ready, and that industry is prepared to play its part in supporting the growth of electronic commerce, thus, reaffirming our commitment to implementation of the Reference Framework for Action on Electronic Commerce agreed at TELMIN3 and the APEC E-Commerce Blueprint for Action;
reiterating our commitment to work cooperatively with the private/business sector with lifelong learning and skills development, benefiting from the cultural diversity of our region, to allow our communities, people and businessess access to a reliable and affordable Asia-Pacific Information Infrastructure and encouraging continuing cooperation on research and development to address the challenges that convergence may pose;
believing that APEC economies can contribute to lessening the digital divide and effectively address growth, access and connectivity with the active participation of the private/business sector as well as through regional cooperation;
emphasizing the need for sound and sustainable economic development in the region, and the essential role that TEL plays in promoting pro-competitive environment that will enhance the development of telecommunications and information infrastructure to achieve the APII and APIS;
confirming the importance of working with PECC and other business, academic, users and consumer groups to participate in both the planning and implementation of the APEC work so as to ensure timely consultation on policy priorities based on the evolution of the market and the needs of constituents for technical, human and financial resource development in the telecommunications and information fields; and,
supporting the various action plans endorsed by the previous Ministerial Declarations on Telecommunications and Information Industry at Seoul, Gold Coast and Singapore.
Ministers HEREBY ADOPT the Program of Action for TEL attached as Annex A . Ministers note that this Program of Action for the telecommunications and information sector will contribute to the Action Plan to be considered at the APEC Economic Leaders Meeting to be held at Bandar Seri Begawan, in November 2000.
Ministers ALSO ADOPT the APEC Principles on International Charging Arrangements for Internet Services attached as Annex B . Ministers also reaffirm the importance of cost sharing or other mutually beneficial arrangements of this issue for coninued expansion of the APII.
Ministers FURTHER ADOPT the APEC Principles of Interconnection attached as Annex C and recall their importance in establishing an environment that encourages in a multi-operator market.
APEC TELECOMMUNICATIONS WORKING GROUP (TEL)
PROGRAMME OF ACTION
General
1. TEL Self-Review
Minister’s recognise the growing impact of convergence and urge the TEL to review its functions, structure and activities in light of a converged information communications environment, including, where appropriate, widening the scope of its participation and functions.
Ministers urge the TEL to be flexible in responding to the challenges of convergence while adhering to the five objectives and ten core principles endorsed at TELMIN 1 in Seoul (1995).
2. Business/Private Sector Participation
Ministers recognise that efforts must be made by the TEL to further encourage the participation of the business/private sector in its work.
3. Outreach to other Organisations
Ministers urge the TEL to foster closer ties with other groups and organisations, both regional and international, so as to contribute to global debate on convergence and other info-communications issues.
Access
4. Asia Pacific Information Society (APIS)
Ministers recognise that there is still much to be done for our region to become the Asia Pacific Information Society (APIS). They acknowledge the need to accelerate its realisation by expanding co-operative development projects undertaken by the four pillars of the TEL: Liberalisation, Business Facilitation, Development Co-operation and Human Resource Development.
5. Digital Divide
Ministers direct that the TEL continue to place an emphasis on bridging the digital divide at the domestic, regional and international levels. Ministers emphasise the need to engage the business/private sector through co-operation and collaboration in this effort. In particular, Ministers encourage initiatives aimed at:
a. improving network access, especially in underserved urban, rural and remote areas;
b. assisting developing economies to reform their policy and regulatory structure to meet new environments;
c. reinforcing and enhancing human resource development activities through various measures such as utilising distance learning technologies;
d. promulgating knowledge and recognition of the digital divide by holding appropriate fora;
e. monitoring the fair and sustainable development of the Internet in the APEC region as an integral part of the Asia-Pacific Information Infrastructure (APII); and
f. pursuing explanatory work to define concepts, to measure the extent of domestic, regional and international digital divides, and to assess economic and cultural reasons for divides with a view to develop technology neutral, pragmatic approaches to encourage greater access.
6. Accessibility
Ministers recognise that the TEL has promoted several projects and initiatives for the APEC communities, people and businesses where they are encouraged to interact with different services, products, platforms and cultures. Ministers support additional initiatives, especially to enhance access to schools, hospitals and small and medium enterprises to ensure that the APEC communities, people and businesses as a whole benefits.
7. Infrastructure Development
Ministers note that the Asia-Pacific Information Infrastructure (APII) underpins the APIS. Given the different stages of development in most APEC economies, Ministers direct the TEL to promote collaboration with the business/private sector to expand their participation in infrastructure investment to upgrade access to networks, especially in rural and under-served areas. Refinement of universal access policies should be explored and competition encouraged in the extension of networks.
Similarly, Ministers ask the TEL to consider the opportunities and benefits arising from wireless technology in the expansion of both basic telephony and convergent services.
8. Information Sharing
Ministers urge the TEL to encourage information sharing and collaboration on electronic government initiatives, spectrum access issues, Internet services and critical information protection.
9. International Charging Arrangements for Internet Services (ICAIS)
Minister direct the TEL to continue to foster discussion between business/private sector and government parties on appropriate means to assess and reward the value of products and services exchanged in the provision of converged Internet services among APEC economies.
Ministers note that the TEL should take what has been learned from the ICAIS study and work on the larger development issues. TEL Steering Groups should encourage attention to the development of Internet systems and business models from the perspectives of liberalisation, business facilitation, development co-operation and human resource development.
Recognising that the Internet is a complex and evolving economic infrastructure, and that there may not be a single charging arrangement that can be universally applicable, the TEL should continue to discuss the international development of the Internet, including charging arrangements, noting the initial suggestions in the proposals made by the ICAIS Task Force that:
"1 Where measurement tools are available and acceptable, charging arrangements should be based on traffic flow patterns for each type of service, taking into account which side has generated the traffic.
2 In the absence of efficient measurement tools, charging arrangements for international links should be based on the ratio of inbound to outbound traffic flow."
As competitive markets and technologies develop rapidly, the TEL should discuss the kind of arrangements that will support high speed bandwidth connectivity in the APEC region.
This work should address, among other things, the relationship between charging arrangements and return on investments as it reflects the development of high speed bandwidth connectivity. It should also consider the application of the APEC Principles of Interconnection to internet services.
Progress should be recorded at each TEL meeting. Minister reaffirm that The TEL should report, as a matter of urgency, with appropriate recommendations on these issues to the next Ministerial Meeting on Telecommunications and Information Industries (TELMIN).
Empowerment
10. HRD in TEL Projects
Ministers reaffirm the necessity of continuing to encourage the development of APEC’s human resources in the digital economy. Noting the growing demand for info-communications skills, Ministers emphasise the encouragement of life-long learning and the training of individuals to be info-communications professionals.
Ministers direct the TEL to give priority to development of skills required to assist APEC members to establish a more pro-competitive policy and regulatory environment; develop skills standards to support electronic commerce; and encourage consideration of skills retention strategies for businesses reliant on information and communications technology.
11. Distance Learning Tools
Ministers direct the TEL to encourage the utilisation of distance learning tools and courses using info-communication technologies as a cost-effective way of addressing the development gap.
Ministers also note that as far as possible, such efforts should complement efforts of other international organisations, such as the ITU’s Centre of Excellence initiative.
Globalisation/Mobilisation
12. Liberalisation of Telecommunications Markets
Ministers urge the TEL to continue in its efforts to keep up the momentum of market liberalisation, keeping in mind any initiatives that may emerge from talks at the WTO. The TEL should focus on practical co-operative efforts that encourage greater competition in communications services and address non-tariff barriers to trade.
Recognising the trend towards convergence in the market place, Ministers note the increasing need for effective competition policies to be in place, and instruct the TEL to:
13. Mutual Recognition Arrangement on Conformity Assessment for Telecommunications Equipment (MRA)
Ministers direct the TEL to accelerate the pace of implementation of the Mutual Recognition Arrangement (MRA) on Conformity Assessment for Telecommunications Equipment. Ministers note that economies that are ready should take the lead and prepare the ground for the other economies to follow.
Ministers advise the TEL to reach out to other regional groupings and organisations interested in developing similar Arrangements.
14. E-Commerce
Recognising the valuable work the TEL has done to address e-commerce, including identification of current barriers to further uptake of e-commerce by SMEs, Ministers urge the TEL to continue work to ensure that policy and regulatory environments better foster the uptake of e-commerce, facilitate the electronic delivery of services and enhance the development of e-commerce infrastructure. Ministers also note the work done on APEC e-commerce Readiness Indicators to date and encourage all TEL members to actively support this initiative.
15. Electronic Authentication
Recognising the need to promote open technical platforms for e-commerce, Ministers note the work of the Electronic Authentication Task Group and endorse its statement on Issues in the Preparation of Electronic Authentication Policies ( Attachment A ). Ministers also encourage working level co-operation on these issues with the OECD.
16. Interconnection
Ministers encourage the TEL to continue discussions on the APEC Principles of Interconnection on a voluntary basis, recognising that 10 economies have already indicated timeframes for implementation. ( Annex C )
Ministers instruct the TEL to consult with member economies on the need for further discussions on interconnection and, if appropriate, to continue work in a manner that is collegial and of mutual benefit.
17. Interoperability
Ministers also call for more attention to be given to user requirements for open standards and systems to support interoperability noting that this will also support the Paperless Trading agenda endorsed at the 10 th APEC Ministerial Meeting in Kuala Lumpur (1998).
Reinventing Policy
18. Regulatory and Policy Challenges
Ministers urge the TEL to adopt a co-operative approach to discussing regulatory and policy challenges presented by issues such as convergence, market liberalisation and the implementation of the WTO Agreement on Basic Telecommunications.
Ministers note the importance of surveying possible regulatory and policy approaches to accommodate convergence and urge the Convergence Task Group to continue in its work.
19. Policy and Regulatory Dialogue
Noting the policy and regulatory challenges posed by convergence, Ministers task the TEL to encourage greater dialogue among policy and regulatory officials and, where appropriate, between officials and the business/private sector.
20. The Way Ahead for TEL
Ministers believe that convergence will bring new challenges and opportunities for the TEL to assist economies with concrete actions that will harness both domestic and regional policies, with special attention paid on the needs of developing economies.
Bearing in mind the need for the TEL to remain focused on the Bogor objectives and goals, Ministers hereby direct the TEL to accomplish the tasks set out in this Program of Action.
Attachment A
Issues for Consideration in the Preparation of
Electronic Authentication Policies
APEC Principles on International Charging Arrangements for Internet Services
1. Internet connectivity is an essential element of the global information infrastructure that should be encouraged to strengthen the Asia-Pacific Information Infrastructure.
2. Governments need not intervene in private business agreements on International Charging Agreements for Internet Services achieved in a competitive environment, but where there are dominant players or de facto monopolies, governments must play a role in promoting fair competition.
3. Internet charging arrangements between providers of network services should be commercially negotiated and, among other issues, reflect:a. The contribution of each network to the communication;
b. The use by each party of the interconnected network resources; and
c. The end to end costs of international transport link capacity.
APEC Principles of Interconnection
In the spirit of the commitments made by many APEC economies to the Reference Paper attached to the World Trade Organization (WTO) Basic Telecommunications Agreement, APEC WTO members and other interested member economies offer this statement of APEC Principles of Interconnection, with each economy voluntarily indicating expected time frames for implementation of each principle. The principles are not meant to replace or exceed commitments made by APEC WTO member economies under the Agreement on Basic Telecommunications and the related Reference Paper.
Interconnection in this set of Principles refers to linking with all suppliers providing public telecommunications transport networks or services in order to establish effective any-to-any connectivity and to allow the users of one supplier to communicate with users of another supplier and to access services provided by another supplier.
A major supplier is a supplier which has the ability to materially affect the terms of participation (having regard to price and supply) in the relevant market for basic telecommunications service as a result of: (a) control over essential facilities; (b) or use of its position in the market.
At the time of the Fourth APEC Ministerial for Telecommunications and Information, ten member economies offered information on the timeframe for the implementation of these principles in their economies: Australia; Canada; Hong Kong; China; Indonesia; Japan; New Zealand; Phillippines; Singapore; Chinese Taipei; USA.
Principles:
1. A major supplier has an obligation to provide interconnection at any technically feasible point in the network.
2. A major supplier has an obligation to provide interconnection under non-discriminatory and transparent terms, conditions, including technical standards and specifications.
3. A major supplier has an obligation to provide interconnection at non-discriminatory rates and of a quality no less favorable than that provided for its own like services or for like services of non-affiliated service suppliers or for its subsidiaries or other affiliates.
4. A major supplier has an obligation to provide interconnection in a timely fashion and to negotiate in good faith. The regulatory regime has dispute resolution mechanisms, which may include the application of general or sector specific competition law and associated penalties, if the major supplier delays in fulfilling its obligations.
5. A major supplier has an obligation to provide interconnection at cost-oriented rates.
5.1 The regulatory regime has processes to increase the transparency of these cost-oriented rates.
5.2 The reasonableness and the economic feasibility of the cost-oriented rates are enabled through costing methodologies or other mechanisms through broad consultation of interested parties.
5.3 A major supplier has an obligation to provide interconnection in a manner sufficiently unbundled so that another supplier need not pay for network components or facilities that it does not require for the service to be provided.
5.3.1. The essential ability of competing service operators to enter all segments of the market requires identifying critical, technically and economically feasible points of interconnection to the major supplier's network.
5.3.2. The regulatory regime requires provision of access, often from major suppliers, to key rights of way, such as poles, ducts and conduits, under reasonable terms and conditions in order to access unbundled elements.
5.4. A major supplier has an obligation to provide interconnection upon request, at points in addition to the network termination points offered to the majority of other interconnecting suppliers, subject to charges that reflect the justifiable costs associated with necessary additional facilities.
6. A major supplier is prevented from anti-competitive practices, such as engaging in anti-competitive cross-subsidization and anti-competitive subsidization from other suppliers.
6.1 A major supplier is prevented from anti-competitive practices such as abusing information obtained from competitors.
6.2. A major supplier is prevented from anti-competitive practices such as not making available to other services suppliers on a timely basis technical information about essential facilities and commercially relevant information which are necessary for them to provide services.
7. It is ensured that either interconnection agreements between a major supplier and other operators or a reference interconnection offer will be made publicly available.
7.1 . All procedures applicable for interconnection negotiations to a major supplier are made publicly available.
8. A service supplier requesting interconnection with a major supplier will have recourse, either: (a) at any time or (b) after a reasonable period of time which has been made publicly known, to the regulatory regime, to resolve disputes regarding appropriate terms, conditions and rates for interconnection within a reasonable period of time.
8.1 The regulatory regime clearly describes dispute resolution mechanisms in advance, in order to create strong incentives for parties to negotiate in good faith.
8.2 The regulatory regime has powers to penalize parties that fail to negotiate in a timely manner and good faith.
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