THE FOURTH APEC MINISTERIAL MEETING OF THE TELECOMMUNICATIONS AND INFORMATION INDUSTRY
(TELMIN4)
24-26 MAY 2000, CANCUN, MEXICO

Annex A

APEC TELECOMMUNICATIONS WORKING GROUP (TEL)

PROGRAMME OF ACTION

General

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).

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.

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

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.

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:

improving network access, especially in underserved urban, rural and remote areas;
assisting developing economies to reform their policy and regulatory structure to meet new environments;
reinforcing and enhancing human resource development activities through various measures such as utilising distance learning technologies;
promulgating knowledge and recognition of the digital divide by holding appropriate fora;
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
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.
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.

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.

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.

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

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.

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

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:

study the impact of regulatory, policy and technological environments on the delivery of and access to convergent services;
encourage discussions on promoting diversity in the supply of information and access to it;
promote dialogue on possible incentives to improve business/private sector participation in the supply of communications goods and services; and
support competitive markets in the domestic and international telecommunications and information industries.
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.

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.

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.

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. (Attachment B)

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.

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 10th APEC Ministerial Meeting in Kuala Lumpur (1998).

Reinventing Policy

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.

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.

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

Development of electronic authentication technologies and their associated standards and protocols is primarily the role of industry
There is a variety of business models, authentication technologies, and implementation of electronic commerce. There should be free choice of these models, technologies and implementations.
It should be recognised that in authenticating an electronic transaction multiple technologies may be used.
When developing legal and policy frameworks, consideration should be given to the role of multiple technologies.
Legal and policy frameworks that focus on specific technologies can impede the use of multiple technologies.
Cooperation between economies facilitates cross-border recognition of electronic authentication.
Electronic commerce pilot projects both within and between economies will increase understanding of the issues involved.
Examination of the work in other economies and international organisations and the exchange of information can facilitate the cross-border recognition of electronic authentication. APEC is involved in a program of workshops to facilitate the exchange of information.

| CANCUN DECLARATION |
| Annx B : APEC Principles on International Charging Arrangements for Internet Services |
| Annx C : APEC Principles of Interconnection |

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