Transformation requires open ICT infrastructure

Similar to the processes mentioned above, the infrastructure sectors also need to be transformed so as to facilitate the industry and sector reforms.

This infrastructure needs to be available on a utilities basis, and technological advances make it possible to provide this infrastructure at affordable levels.

In markets where there is sufficient competition, market forces will drive prices down to an affordable level simply because of the commoditisation of such infrastructure. In markets where this level of competition is not available, government intervention is needed to create a regulated, open infrastructure at utilities-priced costs.

Regulatory system needs to support transformation

 Telecoms: utilities based open network models (structural separation

Energy: allow for smarts to be included (competition at distributed energy, home energy networks). Force interoperability of smarts

Healthcare insurance to accept video consults/monitoring, e-health in all its forms

Reform media ownership and copyright rules

(Source: BuddeComm)

The key reason for this is that the social and economic benefits of such infrastructure are significantly larger than the commercial gains of the operator(s). Furthermore, those social and economic benefits do not show up on the balance sheet of commercial infrastructure operators and one can’t expect these organisations to make infrastructure investments simply for the good of the country.

Several countries have introduced structural infrastructure separation regulations in order to achieve an open, low-cost broadband infrastructure.

Together, the combination of ICT infrastructure – broadband, smart grids, data centres, cloud computing, M2M, smartphones – forms the basis for organisations to develop what is known as the ‘smart city’ or ‘smart community’.

Smart communities

(Source: BuddeComm)