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Transformation of Universal Service for the Future

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Universal Service in WTO and EU law

Part of the book series: Legal Issues of Services of General Interest ((LEGAL))

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Abstract

This chapter discusses the evolution of ICT technology, markets and society over the past decade and describes the most significant changes. It further studies whether and how the existing WTO and EU frameworks cope with the challenges of the evolved surroundings. The central claim of this chapter is that the respective regulatory frameworks for universal service urgently need to be reformed in order to continue the effective social embedding of telecommunications market. The chapter suggests an idea of access to the network as a core element of the universal service concept that allows for a stronger congruence between the regulation and technological, social and market reality and possibilities.

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Notes

  1. 1.

    Webster 2004, p. 1.

  2. 2.

    Other terms include “knowledge society” by Peter Drucker, “post-industrial society” by Daniel Bell, “network society” by Manuel Castells, “the third wave” by Alvin Toeffler.

  3. 3.

    Webster 2003, especially at pp. 21–29.

  4. 4.

    Castells 2005.

  5. 5.

    Bell 1996; Kumar 2005.

  6. 6.

    As pointed out by Jordana, the term “information society” is used in a similar connotation in EU documents, namely as a “handy catch-all when considering the broad consequences of the spread of computing and electronic communications”. See Jordana 2002, p. 4.

  7. 7.

    Jouët and Coudray 1991, p. 7.

  8. 8.

    For a very brief overview of the technology for NGNs see Vogelsang 2013, p. 26.

  9. 9.

    A communications protocol is a system of standardised rules for the formatting and exchange of messages, including the management of traffic flow. Protocols allow parts of a network to interact in order to accomplish tasks on behalf of users. See the article “computer science”, subsection “network protocols” in Encyclopaedia Britannica Online Academic Edition, 2012, http://www.britannica.com/EBchecked/topic/130675/computer-science/168848/Network-protocols.

  10. 10.

    See Sect. 2.1.2.1 where the terminological questions are addressed and in particular the revision of the terminology in the EU legal framework.

  11. 11.

    An attempt to predict the development of telecommunications networks and services based on the current state of the art is undertaken in Saracco 2010.

  12. 12.

    Similarly Webster 2001, p. 23.

  13. 13.

    Castells 2006, p. 3.

  14. 14.

    See Global ICT trends for 2014. http://www.itu.int/ITU-D/ict/statistics/ and ITU, The World in 2014: Facts and Figures, p. 3. http://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2014-e.pdf.

  15. 15.

    ITU, The World in 2014: Facts and Figures, p. 5. http://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2014-e.pdf.

  16. 16.

    ITU, The World in 2014: Facts and Figures. http://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2014-e.pdf.

  17. 17.

    Idem, p. 108.

  18. 18.

    Idem, pp. 109–113.

  19. 19.

    ITU, Measuring the Information Society Report 2014, p. 114. https://www.itu.int/en/ITU-D/Statistics/Documents/publications/mis2014/MIS2014_without_Annex_4.pdf.

  20. 20.

    Data for 2008. See Beardsley et al. 2010, p. 61.

  21. 21.

    Dutta and Mia 2010, p. viii.

  22. 22.

    See Sect. 2.2.4.1.

  23. 23.

    Beardsley et al. 2010, pp. 63–64.

  24. 24.

    For the role of competition see ITU, Measuring the Information Society Report 2014. https://www.itu.int/en/ITU-D/Statistics/Documents/publications/mis2014/MIS2014_without_Annex_4.pdf.

  25. 25.

    ITU, The role of ICT in advancing growth in least developed countries: Trends, challenges and opportunities. Geneva: ITU, 2011, p. 63.

  26. 26.

    Abwao 2007.

  27. 27.

    For a description see the articles “The Mother of Invention” and “Beyond Voice” in The Economist’s Special Report “Telecommunications in Emerging Markets” of 24 September 2009.

  28. 28.

    This is technologically possible provided, of course, that a beneficial investment climate is created, while it needs to be pointed out that a number of new wireless telecommunications technologies are rather cheap. See Xavier and Ypsilanti 2007, pp. 19–20.

  29. 29.

    van Dijk 2006, pp. 157–161.

  30. 30.

    Idem, pp. 161–165.

  31. 31.

    Webster 2003, p. 19.

  32. 32.

    Castells 2011, pp. 54–55, 64.

  33. 33.

    Idem, pp. 54–55.

  34. 34.

    Rawls 1971, pp. 62, 90–95.

  35. 35.

    McKenna 2011, p. 83; van Dijk 2005, pp. 135–137.

  36. 36.

    Webster 2003, pp. 14–17.

  37. 37.

    For a definition of the public sphere see Habermas 2004, pp. 350–351. For a description of the possible transformation of the concept in the new communication environment see Splichal 2002.

  38. 38.

    Habermas 2006, p. 9.

  39. 39.

    Garnham 2007, pp. 209–210.

  40. 40.

    See, for instance, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. A Digital Agenda for Europe. COM(2010) 245 final/2 of 26 August 2010.

  41. 41.

    Fink and Kenny 2003, p. 2.

  42. 42.

    Norris 2001, pp. 3–25.

  43. 43.

    Report of the Independent Commission for World Wide Telecommunications Development of the International Telecommunications Union “The Missing Link”. December 1984, pp. 13–23.

  44. 44.

    See an overview in Bourdeau de Fontenay and Beltrán 2008.

  45. 45.

    Compaine 1986, 2001; Mueller and Schement 1996; Schement and Forbes 2000.

  46. 46.

    van Dijk 2005, p. 183.

  47. 47.

    ITU, Measuring the Information Society Report 2014, p. 1. https://www.itu.int/en/ITU-D/Statistics/Documents/publications/mis2014/MIS2014_without_Annex_4.pdf.

  48. 48.

    ITU, Measuring the Information Society 2011, p. 24. http://centreforcommunicationrights.org/cwww.itu.int/ITU-D/ict/publications/idi/index.html; ITU, Measuring the Information Society Report 2014, p. 55. https://www.itu.int/en/ITU-D/Statistics/Documents/publications/mis2014/MIS2014_without_Annex_4.pdf.

  49. 49.

    ITU, Measuring the Information Society 2011, p. 24. http://www.itu.int/ITU-D/ict/publications/idi/index.html.

  50. 50.

    ITU, Measuring the Information Society Report 2014, pp. 56–57. https://www.itu.int/en/ITU-D/Statistics/Documents/publications/mis2014/MIS2014_without_Annex_4.pdf.

  51. 51.

    See, for example, Puga et al. 2009; Study on the Development of the Information Society in EU Rural Development and Regional Policies, SMART 2007/0029, 28 November 2011; Zickuhr and Smith 2012.

  52. 52.

    ITU, Measuring the Information Society 2011, Executive Summary, p. 14. http://www.itu.int/ITU-D/ict/publications/idi/index.html.

  53. 53.

    Development and international cooperation in the twenty-first century: the role of information technology in the context of a knowledge-based global economy. Report of the Secretary-General at Substantive session UN Economic and Social Council of 18 May 2000. E/2000/100, pp. 8–11.

  54. 54.

    McIver and Birdsall 2002, p. 11.

  55. 55.

    Similarly, Burri-Nenova 2006b, p. 14.

  56. 56.

    The respective numbers for the EU in 2010 were 5 % GDP, 20 % of productivity growth directly from the ICT sector and 30 % from ICT investments. See Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. A Digital Agenda for Europe. COM(2010) 245 final/2 of 26 August 2010, p. 4.

  57. 57.

    Alampay 2006, p. 9.

  58. 58.

    Sarrocco 2002, p. 19.

  59. 59.

    For detailed accounts of discussions on the emerging right to communicate see Fisher 1982; McKenna 2011, pp. 137–174; Raboy and Shtern 2010.

  60. 60.

    See D’Arcy 1977.

  61. 61.

    Fisher 1982, pp. 13–14.

  62. 62.

    D’Arcy 1978, pp. 3–4.

  63. 63.

    See, for instance, D’Arcy 1978, p. 4; Nowak 2005, pp. 437–467.

  64. 64.

    Phatic communication is a form of communication which does not transmit any information, but is used to create or maintain bonds within society. See Senft 2009. With the development of the information society the role of phatic communication over telecommunications networks has been growing exponentially, because due to globalisation and increased mobility personal societal ties weaken and can be (re-)established only via distance communicative means. With this the rise of social networks and the employment of many communications technologies for non-information purposes is explained. See Wang et al. 2011.

  65. 65.

    Fisher 1982, p. 11.

  66. 66.

    For the development of a definition see Fisher 1982, pp. 21–22, 28–29, 32–33; for elements of the right to communicate as an umbrella term for a group of related existing rights see Statement on the right to communicate by Article 19 global campaign for free expression, ITU Document WSIS/PC-2/CONTR/95-E, London, 14 February 2003.

  67. 67.

    See, for example, Bolivia recognises citizens’ right to communication and information, 2009. http://centreforcommunicationrights.org/component/content/article/37-communcation-policy/400.html?layout=citation, Serrano and Tamayo 2008.

  68. 68.

    McKenna 2011, pp. 165–168.

  69. 69.

    Ó Siochrú 2010.

  70. 70.

    Fisher 1982, p. 18.

  71. 71.

    Kaarle Nordenstraeng, cited in: D. Fisher, The Right to Communicate: A Status Report. Paris: Unesco, 1982, p. 18. http://unesdoc.unesco.org/images/0005/000503/050335eo.pdf.

  72. 72.

    Howse 2012, p. 465.

  73. 73.

    Communication from Australia “Negotiating Proposal for Telecommunications Services”, Special session of the Council for Trade in Services, S/CSS/W/17 of 5 December 2000, para 10.

  74. 74.

    Howse 2012, p. 463.

  75. 75.

    Preamble to and Article 1 of the Constitution of the International Telecommunications Union of 22 December 1992 (ITU Constitution).

  76. 76.

    See Article 17 ITU Constitution and the list and agendas of ITU-T Study Groups which are available at http://www.itu.int/ITU-T/studygroups/index.html.

  77. 77.

    Article 2 ITU Constitution. See also the list of ITU Members. http://www.itu.int/en/membership/Pages/default.aspx.

  78. 78.

    Bronckers and Larouche 2008, p. 370; Batura 2014a.

  79. 79.

    Kelsey 2008, p. 155.

  80. 80.

    Communication from Cuba “Negotiating Proposal for Telecommunications Services”, Special session of Council for Trade in Services, TN/S/W/2 of 30 May 2002, esp. para 7; Report of the meeting held on 5 and 6 June 2002. Special session of Council for Trade in Services. TN/S/M/2 of 10 July 2002, paras 100–101, 111, 114, 125.

  81. 81.

    Blackman 2007, p. 11.

  82. 82.

    ITU, Measuring the Information Society 2011, pp. 8, 24–34. http://www.itu.int/ITU-D/ict/publications/idi/index.html.

  83. 83.

    ITU, Measuring the Information Society Report 2014, pp. 110–111. https://www.itu.int/en/ITU-D/Statistics/Documents/publications/mis2014/MIS2014_without_Annex_4.pdf.

  84. 84.

    Idem, p. 115.

  85. 85.

    Background Note by the Secretariat “Telecommunications services”, S/C/W/299 of 10 June 2009, pp. 3–4. Doubts on the possibility to expand the implementation of the Telecommunications Annex and the Reference Paper to universal service encompassing value-added services are also expressed in Burkart 2007.

  86. 86.

    Zhao 2003/2004, pp. 8–9.

  87. 87.

    Bronckers and Larouche 2008, p. 371.

  88. 88.

    Background Note by the Secretariat “Telecommunications services”, S/C/W/299 of 10 June 2009, p. 4.

  89. 89.

    Some WTO Members suggest recognising Internet delivery services as basic telecommunications. See Communication from Australia “Negotiating Proposal for Telecommunications Services”, Special session of Council for Trade in Services, S/CSS/W/17 of 5 December 2000, para 12; Communication from Switzerland “GATS 2000: Telecommunications”, Special session of Council for Trade in Services, S/CSS/W/72 of 4 May 2001, para 9.

  90. 90.

    Kelsey 2008, p. 168.

  91. 91.

    The ITU regularly holds symposia and workshops on regulatory issues, often acting as an intermediary for knowledge and experience transfer between the developed and developing countries. See, for instance, the list of ongoing projects launched by the ITU Telecommunication Development Sector: http://www.itu.int/ITU-D/projects/proj_ongoing.asp and events and projects on telecommunications regulation: http://www.itu.int/ITU-D/treg/.

  92. 92.

    Milne 1998.

  93. 93.

    Special Eurobarometer 414 (2014). E-Communications Household and Telecom Single Market Survey.

  94. 94.

    See Xavier 2008.

  95. 95.

    Falch and Henten 2009. Compare to Xavier and Ypsilanti 2007.

  96. 96.

    Noam 2010.

  97. 97.

    Mueller 1997a, c, pp. 187–191.

  98. 98.

    Blackman 2007, p. 15.

  99. 99.

    Eli Noam stresses the importance of timing for regulatory reform in this regard: Noam 2010, p. 8; Xavier 1997, p. 833.

  100. 100.

    See, for instance, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. i2012—A European Information Society for Growth and Development. COM(2005) 229 final of 1 June 2005; Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. A Digital Agenda for Europe. COM(2010) 245 final/2 of 26 August 2010, esp. at p. 4.

  101. 101.

    For details see Batura 2014b.

  102. 102.

    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. A Digital Agenda for Europe. COM(2010) 245 final/2 of 26 August 2010.

  103. 103.

    At this point it needs to be explained that access to high-speed internet (broadband coverage) means solely the availability of the proper infrastructure, but not actual subscription and the provision of services through it. For instance, the EU average for coverage with DSL lines, which is used as a baseline for broadband, was at 95 % in 2010, but the actual subscription and usage was at 26.6 % (the number of fixed-broadband subscriptions per 100 population).

  104. 104.

    Batura 2014b, pp. 29–31.

  105. 105.

    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. The open internet and net neutrality in Europe. COM(2011) 222 final of 19 April 2011.

  106. 106.

    For instance, the following documents govern broadband development in the EU: Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Bridging the Broadband Gap. COM(2006) 129 final of 20 March 2006; Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. European Broadband: investing in digitally driven growth. COM(2010) 472 final of 20 September 2010; Communication from the Commission. Community Guidelines for the application of State aid rules in relation to rapid deployment of broadband networks. 2009/C 235/04, OJ C 235/7 of 30.09.2009; Commission Recommendation 2010/572/EU of 20 September 2010 on regulated access to Next Generation Networks (NGA), OJ L 215/35 of 25.09.2010.

  107. 107.

    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. A Digital Agenda for Europe. COM(2010) 245 final/2 of 26 August 2010, p. 21.

  108. 108.

    Sawhney 2003, pp. 327–332.

  109. 109.

    Burgelman 2000, p. 63.

  110. 110.

    Mansell 1993, pp. 225–227.

  111. 111.

    Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. i2012—A European Information Society for Growth and Development. COM(2005) 229 final of 1 June 2005, p. 3.

  112. 112.

    See Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. i2012—A European Information Society for Growth and Development. COM(2005) 229 final of 1 June 2005, p. 5; Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. Reaping the full benefits of the digital dividend in Europe: a common approach to the use of the spectrum released by the digital switchover. COM(2007) 700 final of 13 November 2007; Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and to the Committee of Regions. Transforming the digital dividend into social benefits and economic growth. COM(2009) 586 final of 28 October 2009. There is a great number of Decisions harmonising the use of specific frequency bands.

  113. 113.

    Feijóo González et al. 2004, p. 5.

  114. 114.

    See also NRAs’ reaction to the attempt at a further harmonisation of conditions for the determination of broadband speeds for the connection provided as a part of universal service. BEREC Input and Opinion on Universal Service, BoR (12) 25.

  115. 115.

    Hart 1998.

  116. 116.

    Sawhney and Jayakar 1996.

  117. 117.

    For examples see The Economist, The Apparatgeist Calls, 30 December 2009. http://www.economist.com/node/15172850.

  118. 118.

    Burgelman 2000, p. 56.

  119. 119.

    See Sect. 2.2, esp. Sect. 2.2.5.

  120. 120.

    van Gorp and Morris 2008 provide an example of universal service policy effectively deterring Wi-Fi deployment in Africa although mobile solutions have a greater potential there than legacy wired networks.

  121. 121.

    Scanlan and Neu 2000, pp. 3–4.

  122. 122.

    See for this Sect. 2.1.1.

  123. 123.

    Mueller and Schement 1996, p. 273.

  124. 124.

    Preston and Flynn 2000, p. 94.

  125. 125.

    Young 2005, p. 193.

  126. 126.

    Idem, p. 194.

  127. 127.

    Similarly, Blackman argues for opening up market and regulation through competition law because universal service is becoming a de facto state of the market and that, in its current form, it holds back technologies and prices for telecommunications services, like VoIP offers. See Blackman 2007, pp. 6–16.

  128. 128.

    See, for example, Levin 2010, pp. 92–97; Mueller 1997a; Gasman 1998.

  129. 129.

    Gómez Barroso and Pérez Martínez 2004, p. 7; Falch and Henten 2008, p. 20.

  130. 130.

    A similar claim and reasoning by Nagy 2011. Similarly, but only as regards broadband connection, Feijóo González et al. 2004, p. 10; Vogelsang 2013, p. 52.

  131. 131.

    A quite full, but concise overview of various network access possibilities and services available in NGNs referring to technological possibilities and infrastructure requirements can be found in Birke 2009, pp. 141–154.

  132. 132.

    Sawhney and Jayakar 2007b, p. 4.

  133. 133.

    Sawhney and Jayakar 2007a, p. 200.

  134. 134.

    Feijóo González et al. 2005, p. 10.

  135. 135.

    Feijóo González et al. 2005, p. 2.

  136. 136.

    Idem, p. 3.

  137. 137.

    Sawhney and Jayakar 2007b, p. 8.

  138. 138.

    Pekari 2005, p. 73.

  139. 139.

    Similarly Burri-Nenova 2006b, pp. 15–10.

  140. 140.

    Similarly Sarrocco 2002, p. 5.

  141. 141.

    Milne 1998, p. 776.

  142. 142.

    Bar and Riis 2000, p. 103.

  143. 143.

    Feijóo González et al. 2005, p. 10.

  144. 144.

    Lie 2007, p. 3.

  145. 145.

    Communication from Colombia “Telecommunications Services”, Special session of the Council for Trade in Services, S/CSS/W/119 of 27 November 2001, para 7.

  146. 146.

    Milne 1998, p. 776.

  147. 147.

    Maxwell 2000, p. 12; Shade 2010, pp. 125–126.

  148. 148.

    Feijóo González et al. 2005, p. 10.

  149. 149.

    Werbach uses the terms “floor” and “ceiling” to communicate this idea. The universal service instrument shall provide only the floor –access to the network in order to use eGovernance services and other services supplied electronically to satisfy basic needs. See Werbach 2009, pp. 73–76.

  150. 150.

    Special Eurobarometer 355 (2010) Poverty and Social Exclusion; Mack et al. 2013; Kreutzmann-Gallash et al. 2013.

  151. 151.

    Sen 1992, 1999.

  152. 152.

    Birdsall 2011; Oosterlaken 2011.

  153. 153.

    A similar approach was adopted by van Dijk Management Consultants and SVP Advisors (2012) Broadband Availability and Affordability. Study for the European Commission. The difference is, however, that the study looked at the most popular uses of the internet by EU citizens and did not consider their value for social inclusion.

  154. 154.

    On the importance of interconnection in converged networks see Werbach 2007.

  155. 155.

    Hudson 1997, p. 389.

  156. 156.

    Leith 2012, p. 114; Goggin 2008.

  157. 157.

    Much along the same lines, Birke presents how to define quality of access to broadband networks in case of a possible expansion of the current universal service concept. She does not, however, advocate the renunciation of the service element, but considers access as a new service offered in the new communications environment. If the political will approves the expansion of the scope of universal service to broadband, then access shall be introduced as an element in consistency with the logic of the existing universal service concept. See Birke 2009, pp. 155–162.

  158. 158.

    Lie 2007, p. 12.

  159. 159.

    Idem, p. 12.

  160. 160.

    Broadband over copper or coaxial wire is meant; obviously broadband over glass fibre is more expensive, see Wirzenius 2008, p. 118.

  161. 161.

    The term broadband is commonly used to describe connections which are faster than earlier dial-up technologies, but the speed is seldom specified. ITU Recommendation I.113 (06/97) “Vocabulary of terms for broadband aspects of ISDN” sets the transmission speed for broadband at 1.5 or 2.0 Mbit/s. The ITU has developed a number of Recommendations for various technologies for the provision of broadband connection; for a list with a brief description see ITU and its Activities Related to Internet-Protocol (IP) Networks, April 2004, Geneva: ITU, pp. 55–66. http://www.itu.int/osg/spu/ip/itu-and-activities-related-to-ip-networks-version-1.pdf. The OECD Broadband Subscriber Criteria of 2010 have lowered the mark to at least 256 kbit/s download speeds. http://www.oecd.org/sti/broadbandandtelecom/oecdbroadbandsubscribercriteria2010.htm.

  162. 162.

    ETSI has developed a great amount of standards for wireline (http://www.etsi.org/website/Technologies/WirelineBroadband.aspx) and wireless (http://www.etsi.org/WebSite/Technologies/BWA.aspx ) broadband access.

  163. 163.

    Economic considerations supporting a decision for broadband access are summarised in Birke 2009, pp. 155–162.

  164. 164.

    European Commission Press release “100 % basic broadband coverage achieved across Europe—EU target achieved ahead of schedule. Next stop is fast broadband for all.” 17 October 2013. http://europa.eu/rapid/press-release_IP-13-968_en.htm.

  165. 165.

    George and Lennard 2009, p. 13.

  166. 166.

    Wirzenius 2008, p. 119.

  167. 167.

    Lie 2007, p. 12.

  168. 168.

    Young 2005, p. 189; Mueller 1997c, p. 201.

  169. 169.

    Browning 1994.

  170. 170.

    Levin 2010, p. 94.

  171. 171.

    See a very brief, but comprehensive overview in Xavier and Ypsilanti 2007, pp. 27–29.

  172. 172.

    Alleman et al. 2010, pp. 90–91.

  173. 173.

    Similarly Feijóo González et al. 2005, p. 10.

  174. 174.

    Blackman and Forge 2008, p. 164.

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    Olga Batura

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Batura, O. (2016). Transformation of Universal Service for the Future. In: Universal Service in WTO and EU law. Legal Issues of Services of General Interest. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-94-6265-081-7_5

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