Regulating Telecommunications

24 January 2009 Dan McGarry

The proposed new Telecommunications Bill is not a perfect document. But Vanuatu is not a perfect place. Considering the limited resources it can bring to bear, the great gains it’s made in improving communications nationwide are truly commendable.

[This week’s Communications column for the Vanuatu Independent.]

Last Thursday, members of the IT industry, researchers and interested members of the public got together with Ministry of Infrastructure and Public Utilities to discuss proposed new laws governing Vanuatu’s burgeoning telecommunications sector.

At issue was a Bill to define the precise role of the Telecommunications Regulator. Designed to supplement the existing Telecommunications Act of 1989, it outlines in detail the extent of the Regulator’s mandate to influence the newly-liberalised telecoms market.

The draft Bill describes an environment wherein the Regulator has wide latitude to impose his will on telecoms operators if they misbehave. Among other things, he can enforce fair and equitable access to rare or unique infrastructure (known as bottleneck resources), he can intervene if telecoms operators are deemed to be offering preferential or prejudicial prices to others and if necessary he can enforce tariff or pricing regimes on carriers if they don’t play fair.

Viewed in the light of their exemplary track record, the draft Bill reflects well on both the Ministry and the Regulator. To date, their attitude has been to let market forces work with little if any intervention. They have nonetheless made sure that the regulatory stick they hold in reserve holds real clout. The proposed Bill gives this all the force of law. Rather than relying in the language of various negotiated agreements, they’ve outlined a set of rules that applies to anyone and everyone operating in the telecoms sector.

Others aren’t so sure that a big regulatory stick is such a good thing….

The Rules

17 January 2009 Dan McGarry

As long as clear rules exist around ownership, trade and the economic environment in general, a well-run company will be able to find its way – and possibly to thrive – under just about any regime.

But a company that can’t predict what will happen tomorrow can’t plan effectively. And a company that can’t plan finds itself scrambling from one day to the next. It finds that it can’t commit – neither to its customers nor to its staff. When this uncertainty becomes generalised, with nobody willing or able to say what tomorrow holds, the business climate worsens all round.

[Originally published in the Vanuatu Daily Post’s Weekender Edition.]

There is only one thing worse than a badly played football match: a badly refereed match.

What makes a bad referee? Players the world over agree that it’s not strictness or laxity; what makes a referee really bad is when he’s inconsistent and unpredictable. The ref consistently calls offsides in favour of the defence? Not great for the strikers, but a team can adjust and try different approaches to the net. The ref calls them consistently in favour of the offence? Drop the zone defence and mark your man carefully.

But when neither team knows how the play will be called, it creates uncertainty, which leads to sloppy play and sometimes a little opportunistic cheating, hoping that this time the ref won’t call a questionable play.

This principle applies everywhere. In numerous business surveys, company leaders consistently report that continuity and predictability in economic management and government affairs matter more to them than the economic structures themselves.

Safeguarding the Internet Commons

16 January 2009 Dan McGarry

With the creation of a functioning and effective Telecommunications Regulator, we now have proper oversight on how Vanuatu’s communications resources are used. The government of Vanuatu has made great strides in ensuring that all telephone operators manage their systems responsibly and efficiently.

Now we need to do the same for our Internet resources.

[This week’s Communications column for the Vanuatu Independent.]

On January 5th, the Sydney Morning Herald published a story titled, “Dial X for Optus.” The feature recounted the story, by now well known in Vanuatu, of how Optus collaborated with certain Pacific Islands nations to make tens of millions of dollars in profit from the pornography industry.

“The scheme,” wrote Vanda Carson, “allowed the telcos to bill customers premium rates for sexually explicit calls or X-rated downloads when they dialled the country codes” of many Pacific nations, Vanuatu included. “Optus was part of the partnership of telcos which acted as gatekeepers in the porn trade between the US and Europe and small Pacific islands.”

As if that wasn’t bad enough, Optus illegally appropriated 100 Vanuatu telephone numbers and kept all revenues generated by them.

None of that could happen today. With the creation of a functioning and effective Telecommunications Regulator, we now have proper oversight on how Vanuatu’s communications resources are used. The government of Vanuatu has made great strides in ensuring that all telephone operators manage their systems responsibly and efficiently.

Now we need to do the same for our Internet resources.

Shifting Ground

10 January 2009 Dan McGarry

People have already leveraged their ties to the land in order to make their move into the material world possible. They supplemented their income with food and family support in order to use that monthly 20,000 vatu for essentials.

A market economy is a mobile economy. Where life in Vanuatu seldom required more than one’s legs or a paddle for transport, now we find ourselves bound by the need to cover large distances every day. And you can’t grow a bus.

[Originally published in the Vanuatu Daily Post’s Weekender Edition.]

Much has been written since New Year’s about the rise in bus fares. Scarcely a day goes by but someone submits a long and thoughtful letter deploring the increase and suggesting ways to help drivers earn more without charging more.

The reasons for this are obvious. If someone takes the bus to and from work every day, they now spend 6,600 vatu a month just for the privilege of keeping their job. And that’s ignoring using the bus for anything but work. Add in a trip to the market on the weekend, a few visits with family in the course of the week, bus fare for the children to get to and from school… suddenly transportation takes a bigger slice of the household income than just about everything except rent.

We’ve known for some time that it’s very hard for the average ni-Vanuatu to make a living wage. Just about every family I know supplements their cash income via informal channels. They run tiny little mom-and-pop nakamals and road markets that are profitable only because family in the village send them produce at only slightly more than cost. They sew or repair much of what they wear, and wear it until it’s unrecoverable. They grow what they can on whatever land they have. They hold fund-raising when cash shortages become critical.

None of that is enough. The plain fact is this: The more people depend on the cash economy in Vanuatu, the more poor people we will see.

Leviathan

9 January 2009 Dan McGarry

[This week’s Communications column for the Vanuatu Independent.]

“Here is the ocean, vast and wide, teeming with life of every kind, both large and small. See the ships sailing along, and Leviathan, which you made to play in the sea.” – Psalm 104

In 1651, an Englishman named Thomas Hobbes used the metaphor of the powerful, even unassailable aquatic giant of biblical lore to present the concept of the commonwealth. If we live as individuals, caring only for ourselves, he said, our lives could only be “solitary, poor, nasty, brutish, and short.”

But if people can find their way to compromise with one another, to accept that respecting mutual rights is better for one and all, a person could “be contented with so much liberty against other men as he would allow other men against himself.” Hobbes contended that this commonwealth of like-minded people becomes strong enough to be unassailable – or at least better able to defend itself than any individual ever could. Leviathan emerges where only shoals of darting, frightened minnows existed before.

The Internet lends itself very well to such imagery. Individually, we are tiny minnows awash in a vast, sometimes unfriendly sea of information. Acting alone, we can find some good in it, but we are largely defenceless against the greater forces at work. If we join forces with our like-minded brethren, though, we can achieve great things. Not the least of these is a degree of safety, comfort and predictability in how we experience the Net.

Sometime very soon, Vanuatu’s Internet marketplace is going to be liberalised. The approach will be similar to that used to bring competition into the mobile telephony market. But there are a few significant differences….

A Matter of Justice

20 December 2008 Dan McGarry

It’s easy to say that prisoners deserve what they get, that they’ve made their bed and now they should lie in it. And it’s true, to a degree. But there is a point past which a man ceases to be a man. The measure of our society, of our capacity to care for one another, is made according to where we draw that line. There is nothing in kastom or natural justice that condones crossing that threshold.

The great comfort of kastom is that every person has their place, in life, in the village, in the world. The government needs to commit to building a new prison and to allowing our chiefs to continue to watch over their children. If it does –when it does – it will ensure that conditions will improve, both for our prisoners and for society as a whole.

[Originally published in the Vanuatu Daily Post.]

On December 5, a remarkable document surfaced. Prison Report 2008, authored in secret by Vanuatu inmates on a contraband laptop, is a long, ambling document that alternates between history, documentary and cri de coeur as it recounts the hardships faced by those incarcerated in Vanuatu’s prisons.

At times uncritical, naive and even occasionally self-serving, the report nonetheless contains well documented reports of violence and mistreatment in our prisons.

The report paints a picture of regular physical abuse and neglect in an environment that resists our best efforts to improve it. The prisoners claim that it is precisely these conditions that not only lead them to escape but allow them to succeed.

The prisoners are frankly foolish in their expectations. They make claims for compensation to the tune of 100 million vatu and finish with a warning that if these claims are not addressed within 14 days the prisoners will walk out.

Director of Correctional Services Joshua Bong initially insisted his department had not seen the report, but has since assured the prisoners that a commission of inquiry will be established to investigate the claims. On Thursday, he indicated his intention to stop any effort to leave the prison – with or without outside help –by blockading the road in front of the Stade.

Notwithstanding all precautions taken, the prisoners made good on their threats. On Friday morning at roughly 9:30 a.m., they set the prison alight. In the ensuing chaos, they exited the building, tossed a bible astride the concertina wire atop the fence, and used that foothold to effect their escape.

Lost in Translation

16 December 2008 Dan McGarry

The continuing confrontation between the government of Vanuatu and business interests over recent amendments to the Employment Act is being exacerbated by failures in translation. Either through unwillingness or inability to bridge the gap between cultures, needs and concerns, people on both sides of the issue now find themselves staring each other down.

The fuse has been lit on an issue that could have explosive impact on ni-Vanuatu and expat alike, but nobody seems to be able to step forward and quench it.

[Originally published in the Vanuatu Daily Post’s Weekender Edition.]

Poetry is what gets lost in the translation – Robert Frost

This quotation is one of those handy catch-all phrases that scholars love to use to explain – and often excuse – people’s inability to capture the essence of a statement when it’s translated between languages and cultures. Examples of miscommunication between peoples are everywhere.

One of the most startling examples of the limits to cross-cultural communication occurred during US-Russian nuclear talks. Disarmament expert Geoffrey Forden writes:

‘It turns out that when the US START II treaty negotiators tried to explain to their Russian counterparts the need for a “strategic reserve” of nuclear warheads, they called it a hedge. The Russian interpreters alternately translated that as either “cheat” or “shrub”.’

You can imagine the confusion and consternation this would have caused. More than poetry was at stake in this particular translation.

The (Mobile) Ties That Bind

13 December 2008 Dan McGarry

The Pacific Institute of Public Policy (PiPP) will soon be releasing a report measuring the social impacts of telecoms liberalisation in Vanuatu. One of the main findings is that, in the months following the extension of mobile telephone service to the majority of Vanuatu’s population, families benefited more than businesses in terms of changed perceptions and real outputs.

[This week’s Communications column for the Vanuatu Independent.]

It won’t come as news to anybody if I say that family is strong in Vanuatu. We’ve known it all along. But with the upcoming release of a new report on telecommunications liberalisation, we will see its influence illustrated in vivid terms.

We’ve suspected this for a while. In June of this year, I presented a talk to regional telecommunications providers. Titled ‘Network Effects: Social Significance of Mobile Communications in Vanuatu‘, it explains Network Effects and how they manifest themselves in village life, then looks at some obvious and not-so-obvious implications for network providers in the Pacific.

Briefly, my point is that village life features very tight communication loops from which no one is exempt. The one-to-one aspects of village communications are enhanced by mobile communications, and smart network operators should do what they can to enhance this effect. The result is that our island geography (and gestalt) creates more value per user than traditional business analysis might lead us to believe.

Read more “The (Mobile) Ties That Bind”