- Email: [email protected]
French telecommunications on the left
ViewpointlFocus on Europe The contractors would benefit, as all of them manufacture for export as well as for the UK market, and liberalization from the present more stringent requirements of the PO would enable them to standardize to a greater degree and thus reduce costs and be more competitive at home and abroad. It should be noted that PO standards are rejected in favour of simpler and cheaper systems, even in UK-influenced countries like New Zealand and Canada. Contractors would also be. saved the cost of the approval exercise and the oncost for converting basic equipment to the PO specification, not to mention the cost of modifying each individual piece of equipment in many cases. The existence of a buoyant home encourage the would market development of new lines. The TMD thinks it is significant that, of the EEC countries, only Denmark, Holland and the UK have not so far liberalized the supply of subscribers’ apparatus, and all of those countries which have done so report a more successful telecommunication manufacturing industry. The customer would benefit by being able to get what he wants when he wants it at a price which he has free market negotiated in a environment.
The TMD notes that, of the many countries throughout the world which have changed to a more liberal policy on ‘interconnect’, none has sought to change back to a more restrictive one. Maintenance The Division is also anxious for PO acceptance of the fact that staff other than its own can maintain subscribers’ apparatus equally satisfactorily. Many of its members with voice and/or data networks operate in a multisupplier environment where it would be advantageous for one staff to maintain all related parts of an installation. They also envisage customers or wiring contractors being able to move telephones from one office to another in order to obtain the response time they require (or choose to afford). One of the main reasons for the deep interest of the PO in PABX design is the fact that PO staff will subsequently be required to maintain the equipment. Thus any movement away from the entrenched position on maintenance would ease the liberalization of supply. Also the restrictive attitude of the PO on new developments is believed to be partly due to their fear of aggravating their maintenance problems by widening the range of equipment.
Carter Committee The TMD has put these points inter alia to the Carter Committee which reviewed PO activities last year.’ This Committee came out in favour of interconnect but was disappointingly unspecific on the way in which it might be brought about. It vaguely suggested an experiment with small PABXs without specifying how this would be conducted. The TMD believes that it would be quicker and less risky for manufacturers if a multiple secretarial facility or range of telephone instruments were used, if indeed such an experiment is necessary at all. It believes that enough is known about the operation of more liberal systems in the USA and elsewhere to enable the necessary guidelines to be laid down at once and urges that this should be done. George G. McKendrick, ChryslerlnternationalSA, London, UK
’ Report of the Post Office Review Committee, Cmnd 6850. HMSO, London, 1977. The implications of the report are reviewed by Peter Fletcher in Telecommunications Policy. Vol 1, No 5, 1977, pp 420-422; and R. Hornet provides a US perspective in Telecommunications Policy. Vol 2, No 1, 1978, pp 70-72.
Focus on turope French telecommunications In the first round of the French parliamentary elections in March of this year, approximately 50% of the votes were cast for the alliance of the Parti Socialiste and the Parti Communiste Francais (PCF). Although both this and the second round resulted in a somewhat less successful postion for the alliance than the opinion polls had predicted, the French combined left still holds a strong minority of seats in the Parliament. Both of the major parties of the left have issued statements concerning their projected telecommunications strategies for France. The PCF announced a five-year telecommunications programme on 20th
TELECOMMUNICATIONS
on the left
January in a statement of about five thousand words. The statement began with a strongly worded criticism of present policies. It stated that the current plan, intended to overcome the consequences of years of inadequate finance, had the following shortcomings: l The planned rate of growth does not adequately anticipate the financial consequences of increasing the number of subscribers or the need to maintain medium term employment in the telecommunications industry. 0 Waste of resources results from use of a wide range of different types of equipment, from policies towards
POLICY June 1978
cable laying, and from the management of both prices and equipment. The manufacturing sector is damaged, because quick profits for large industrial groups and financiers are favoured, under the pretext of restructuring. Plans to finance telecommunications are based on the assumption that consumption will increase, but tariffs do not encourage that increase. The number of people employed by the PIT is inadequate. The PCF proposes instead ‘une grande politique sociale des telecommunications’ which favours
165
Focus on Europe
‘communications for the people’ by reducing tariffs gradually as technology advances, and permits the take-off of a telecommunications national strong manufacturing industry and developed public telecommunications service. The PCF policy is planned to contribute to growth in employment and support other social policies, while developing national technical ability, contributing to national independence and encouraging exports. Said to be based on a sound financial plan and on a reasonable rate of growth, the plan hopes to permit in turn both the meeting of needs and the achievement of growth.
Increased access The PCF states that its eventual goal is to provide everyone with access to the telephone. However, during the next five years the PCF plans to increase the number of telephone connections at the present rate - 197 million per year - so that 60% of households will be connected in 1980 and 80% in 1983. By the latter year, businesses are expected to require on average 25 connections per 100 employees; the total number of have will therefore connections increased from 11.7 million in 1978 to 20 million in 1983. The PCF plans to increase the number of public telephone call boxes which will ultimately be used as repositories for an electronic mail system, giving special attention to rural areas. Studies will be conducted to identify the new services - data facsimile and communications, electronic mail - that will meet the needs of individuals and groups.
Investment and employment For the growth of 1.7 million connections per year, the telecommunications manufacturing industry would receive an annual payment of 12.2 x lOi francs (1977 value); other as building organizations, such contractors, would receive orders worth 8-2 x lo9 francs each year. The PCF claims that in 1978 exports will again suffer as a result of foreign business agreements, which give rise to large the conflicts between manufacturing groups. It intends to nationalize most of the telephone
166
industry in order to make full use of French technology, reorganize the sector, reduce waste, rationalize the use of the telecommunications infrastructure, reduce tariffs and increase exports. Exports, especially to socialist and developing countries, are to increase from 15% of output to 40% in 1983. The ‘value’ of the telecommunications sector is planned to increase from 18.7 x lOi francs in 1978 to 29.9 x lOLz francs in 1983, a 60% growth. Of that total, private customer equipment will increase from a value of 3.6 x lOi francs in 1978 to 5.6 x lOi francs in 1983; new services willaccountfor 1 x 1012francsin 1983. The number of people employed in the telecommunications manufacturing industry is planned to increase from 75 thousand in 1978 to 105 thousand in 1983; the increase is proportionately less than that in sales, as productivity gains are expected. The PCF will as a matter of priority seek to halt the staff redundancies announced by the Ericsson Company and Thomson CSF. In order to achieve the planned growth rate which is quite considerable, the PCF emphasizes the need for both careful selection of equipment and research. Fully electronic switching equipment, of French origin, will be used instead of the equipment chosen by the present government, which is of partially US origin. Fibre optic transmission will be progressively introduced. The electronic components industry will be strengthened. Research will contribute to rationalization and innovation, particularly the development of new services. The PCF’s plans to nationalize the manufacturing industry and to modernize switching, in order to ensure among other things national independence, have been described above. In addition, France’s interests in radio transmission, satellite transmission tibre and optical technology will be defended. Foreign attempts to control data processing and data transmission systems will be resisted by the PCF. The PCF states that the natural complement of independence is international collaboration in the establishment of standards, both for switching and for transmission. In addition the PCF plans to establish
manufacturing plants in developing and socialist countries.
Self financing The goal of the PCF is to reduce the extent of financing of PTT services from external sources, from the present 50% level to zero in 1983. Investment in the telecommunications industry will be the responsibility of the PTT, which will make use of its self-financing capabilities, and will cooperate with the national investment bank. The targets intended to be achieved are as follows: progressively reducing the relative growth rate each year and increasing the number of connections by a constant number each year; reducing, by 6%, the payment to the industry for all equipment; increasing, by 4%, the revenue obtained from each connection as a result of lowering tariffs simultaneously with increasing consumer spending power; using advanced technology to reduce the number of PTT employees from 13 per one thousand connections in 1978 to 12 per thousand in 1980 and ultimately to 11 per thousand.’ In total the number employed by the PTT is planned to increase from 90 thousand in 1978 to 130 thousand in 1983. Increases are both to meet the growth in new lines and to reduce subcontracting. Existing staff will be retrained in the use of new technologies. Staff costs per head are expected to increase 6% between 1978 and 1980 and a further 7% between 1980 and 1980. Increases in research costs are intended to be offset by a reduction of central services.
Restructuring the industry The PCF intends to nationalize companies from the following corporate groups: CGE, Thomson Brandt, ITT and Dassault. In doing so it will nationalize 80% (in terms of sales value) of the sector. During the first phase after nationalization, the PCF plans to replace corporate headquarters with national coordinating agencies. The companies will thereby be federated while retaining much autonomy; cooperation between companies will be primarily on a regional basis. Research
TELECOMMUNICATIONS
POLICY June 1978
Focus on Europe
facilities will be regrouped under a single management responsible for designing the next generation of In particular, public equipment. terminals for transmitting messages will be rapidly developed. Subsequently the PCF plans to reorganize the nationalized companies into regional companies centred in Brittany, the Loire, the Nord and the Paris region. Factories outside those regions will be attached to one of the companies. Other regional four nationalized electronic companies may either be integrated into the regional be formed into companies or independent regional groups. Each regional group will be autonomous, will negotiate its own contracts with users, especially the PTT, and will have its own research and development facilities, although a centre will c be research national maintained. Technical working groups of representatives of the companies and the PIT (CNET) will ensure technical coordinate compatibility and The companies will development. participate in the formulation of plans for the data processing industry, in the electronics components industry and in the establishment of some technical standards. The PCF intends that ‘democratic processes should be management’ nationalized developed in each company and in each factory.
Public service The PCF stresses that the development of telecommunications is dependent on both a strong nationalized manufacturing sector and an. effective PTT administration, which is the principal user and investor. It argues that communications should not be seen as an opportunity for profit, but as a need to be met; that the service should not be subordinated to the interests of multinational corporations; and that the needs of users and employees should be taken fully into account. The PCF proposes that all communications services post, telephone and other telecommunications - be provided by a single administration, the PTT, reorganized on a democratic basis. The principal responsibility of the PTT is identified as
TELECOMMUNICATIONS
and second, with the important role of the management of public telecommunications networks in the interest of communications in economic and social particularly by encouraging all citizens and so as to guarantee the life, decentralization and reducing the need independence of the national network. It to travel and to send documents. should also ensure the growth and Finally, officials should not neglect improved quality of existing services those steps necessary to ensure the and development of new services; and sound development and regular should set up tariffs to encourage such communications development. telecomthe management of munications industry. The PCF places particular emphasis on the role to be played by the Centre d’Etudes des TelicomNational Reducing inequality munications (CNET). It is intended to In order to reduce inequality the Parti become the most important national Socialiste believes it important to centre of research studies on telecomdevelop the public telephone service. In munications, in control of its own budgets and programmes within an particular, this must be by strictly applying, and even extending, the PIT’s overall national planning framework. It monopoly, so as to guarantee good would coordinate the activities of different government departments and_ quality service and confidentiality; and by rational use of networks and be concerned with electronics as a recourse to sub-contracting. It whole, rather than only telecomdistinguishes those forms of submunications. Its role in coordinating the contracting which would be encouraged activities of the telecommunications manufacturing groups and the PTT has (sub-contracting to transport carriers, been mentioned above. It will also and local sub-contracting to builders predict the need for finance and be and for some aspects of work on lines) concerned with the development of new from those which would interfere with equipment and services. the monopoly (work on public switching By combining the existing subscriber equipment and on domestic telephone telephone apparatus with the television apparatus) and would be discontinued. receiver, services may be provided to After the PTT has reestablished access cheaply a wide range of equitable tariffs and made efficient those information sources and for electronic services which are now unsuccessful, mail. Research cooperation between the the Parti Socialiste states that it should PTT and TelCDiffusion de France will give first priority to collective contiue at the Centre Common d’Etudes investment. The Parte Socialiste believes de T&vision et de Tblecomthat telecommunications must be munications at Rennes, which will oriented more towards the satisfaction become part of CNET. Subsequently of collective and social needs: public CNET will investigate the possibility of telephones, emergency services and new transmitting moving pictures on the services (data communications, telenational telecommunications network. conferencing, facsimile) which facilitate decentralization. It emphasizes that the PTT is the only public agency in dally Statements of Parti Socialiste contact with the public, playing an The ‘Legislative Programme for Teleimportant role in social life, especially in communications’, issued by the Parti rural areas. Re-opening post offices and Socialiste on 15 February, was about eventually extending them to become half the length of the PCF’s statement centres of public administration will and of a different orientation. It began counter the depopulation of rural areas by stressing that, according to socialist and the isolation of suburbs. In order to philosophy, the goals for telecomachieve this goal, the traditional role of munications should be fixed according the post office for small savers should to a democratic process. Management be extended within the context of new would then be responsible for meeting plans for the organization of national those goals and above all for meeting banking. The attempts of the Parti Socialiste to the needs of users. Officials should be concerned first with the integration of define the objectives of the Public Service have led them to identify two isolated groups into the community;
POLICY June 1978
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Focus on Europe
important problems concerning the management of the PlT - financial stability and the cooperation of postal and telecommunications services. The Parti Socialiste proposes that financial stability be ensured by increasing the autonomy of the postal branches, and telecommunication replacing the political control, exercised by the minister of finance, by a process involving the negotiation of contracts, and by clearly identifying the objectives and the budgets of the two branches. If, for social reasons, preferential tariffs that do not cover costs are to be established for a service, then compensation would be paid to the PTT. Coordination between the postal and telecommunications services is intended by the Parti Socialiste to be based on a system of clear accounts and charging for reciprocal services. The Parti Socialiste does not believe that the creation of two or more national overcome future agencies would problems of the two businesses which result primarily from their great size. Only decentralization to regional bodies would open new possibilities. These will be discussed, at an appropriate time, with union representatives. Decentralization is an essential condition for democratic planning and must be taken down to the level of the which is individual establishment responsible for everyday business. This will require the abandonment of the distinction between commercial and technical functions within the telecommunications branch. This is intended to permit the precise definition of the boundary of responsibilities between the postal and telecommunications services. Post offices will be made available to the telecommunications service for the provision of services which cannot be provided directly be telephone. The for majority of public terminals electronic services (public telephones, telex, facsimile, future electronic mail and electronic funds transfer services) will be installed in post offices. The postal service will retain its management of the transportation and collection, distribution of the post, contact with the public and financial activity.* The Parti Socialiste states that the extension of workers’ rights and the involvement of users in decisions will
168
oblige the PTT to changes its structure and methods of management. Responsibility and initiative should be given to staff at ah levels, necessitating changes in the hierarchical structure. Political control should be exercised at the regional and local level, as well as at the national level. Particular emphasis is placed on ensuring that organizational structures for telecommunications conform to this pattern and are not allowed to differ on the grounds of conforming to the phsyical or technical structure of the network.
Research and development The maintenance of an energetic and very large research and development programme is judged to be indispensable. Technical choices will be made in conjunction with manufacturers and technical progress will be used to ameliorate, rather than worsen, conditions of work. New services will be carefully identified in order to make best use of existing equipment and encourage exports, and special attention will be given to the manufacture of electronic components, especially integrated circuits. The Parti Socialiste intends to encourage the telecommunications and electronic industries to take initiatives in the development and the commercialization of new products and systems. Interaction with local users, liaison with scientific and university researchers, and overseas technical cooperation are all to be vigorously undertaken. The CNET is intended to be theinstrument ofahofthese policies.
Creating new employment The formulation of explicit objectives, decentralization and autonomous management are intended by the Parti Socialiste to make the PTT service effective to users. However, that effectiveness should, in the party’s employees. opinion, also benefit Manpower planning will take into account the needs of the PIT’s branches and the availability of employees of different skills in each area. This policy, conducted jointly with the Education Nationale, will make the sector a pilot for the joint planning of education and employment.
The planning of equipment orders is intended to aid industry in maintaining employment and in making the transition to electronic switching. Developments based on research, the introduction of new services, coherent plans for exports, the diversification of the electronics industry, and educational planning are all intended by the Parti Social&e to ensure a steady growth in employment. The success of industrial policy in the matter of components, data processing and telecommunications depends, in the opinion of the Parti Socialiste, on a global strategy, which can only be ensured by an adaptive governmental structure.
Compatibility of the plans At first sight the detailed plans for telecommunications proposed by the Parti Communiste Fran&s and by the Parti Socialiste appear complementary. Both parties wish to increase employment and exports; emphasize the importance of new services; and stress the importance of research and a strengthened components industry. Both parties call for increased industrial democracy, and agree on the central role of the CNET. The Parti Sociahste has detailed plans for the restructuring of the PTT; the PCF says little on this subject besides its plans for the CNET and its statement that all services should be provided by a single administration. It is not clear that democratization of the PTT, as proposed by the PCF, would involve such extensive decentralization as would the plans put forward by the Parti Socialiste. Similarly, the latter says little indicating its attitude on the PCF’s major concerns: to make telecommunications self-financing, partly by slowing growth; to nationalize the manufacturing industry; and to make that industry wholly independent of foreign companies. The Parti Socialiste does emphasize investment in common facilities, but says nothing concerning the rate of growth of domestic service. It does however emphasize the commercial exploitation of new services and foreign collaboration, which could be taken to indicate disagreement with the PCF’s last two major goals. Only with time will it become clear whether the two parties truly have compatible
TELECOMMUNICATIONS
POLICY June 1978
Focus on Europe/Coqferences
plans, or whether the different emphases given by their statements reflect fundamental policy differences in important areas. Rogerme, Communications Studies and Planning L td, London. UK
‘The reduction in the growth of traffic, and its implications for the financing of expansion, are described in Bulletin No 5,
November-December 1977, of IREST (Institut de Recherches Economiques et Sociales sur les TBI6communications). IREST expresses the opinion that the predictions of the PTT, stated in midDecember, that external financing can be reduced to 2096 in 1980 for a growth rate greater than that envisaged by the PCF, are rather optimistic. z Until recently it seemed likely that the postal and telecommunications services in France would be formed into separate administrations. However considerable opposition was expressed to such a for example by a senior change,
representative of the Force Ouvrite trade union organization at an IREST ‘round table’ meeting on the subject of electronic mail (29th November 1977 in Paris). Electronic mail services have clearly been perceived as increasing the rate of decline of the postal service; separation of the services would then further disadvantage postal employees. Such concerns have influenced almost certainly the statements and plans proposed by both the PCF and the Patti Socialiste. Subsequently PlT officials have asserted that division of the PlT is not contemplated, at least in the near future.
Conferences Transnational International
Conference
Online Conferences
data - regulatory on Transnational
Data
Regulation,
issues
organized
by
Ltd. Brussels. Belgium, 7-9 Februarv 1978.’
The expanding flow of information has brought with it various complex social economic problems. Privacy and legislation in certain countries has raised questions concerning the relation to the of legislative conventions international exchange of data. The conference aimed to present different views on the desirability of regulation, to investigate the potential risks of non-regulated information flow, to take a critical look at prospective legislation, and to assess its possible effects. In a sense, the meeting could be seen as a continuation of the OECD symposium held in Vienna on 20-23 September 1977. To a large extent, the same topics and problems were treated. A definite distinction, however, was the orientation of the Online conference towards commercial life, compared with that of the OECD meeting, which reflected the interests of the official sector. The conference was well attended: there were more than 200 participants. A prominent selection of well known experts from both official and commercial life contributed to making the meeting valuable and successful, and there were lively and stimulating discussions.
TELECOMMUNICATIONS
The Conference Chairman was Jan Freese, Director General of the Swedish Data Inspection Board, welI known as an initiator of an international convention concerning data privacy legislation and very active in OECD work in that field. Much of the meeting was devoted to data communications. Different kinds of networks were described and problems associated with international traflic were discussed. It was therefore quite natural that, after Mr Free&s introductory speech, R. Grainson, President of the CEPT Telecommunications Commission delivered a welcome speech emphasizing the vital role of international cooperation in the telecommunications field.
International commerce During the discussion of the policy issues presented in the first session, on ‘Information, communication and international commerce’, it was recognized that similar work on data protection legislation was going on in several countries. Data protection acts have come into force in the Federal Republic of Germany, Sweden and the USA. In France, a Bii has been passed
POLICY June 1978
by Parliament. Bills for data protection are under discussion in the Parliaments of Austria, Belgium, Canada, Denmark, Luxembourg, New Zealand and Norway. All the other member states of the OECD are aware of the necessity for data protection, and legislation against the misuse of personal data is in progress in these countries. It is expected that, by the end of the present decade, data protection provisions will have become effective in the majority of the 24 member states of the OECD. Although in detail somewhat different, common principles in the legislation could be recognized in two resolutions finalized by the Committe of Ministers of the Council of Europe: 0 A relation between the collection of
data and their use should be obligatory. 0 The person concerned must be offered the possibility to have access to his or her data and to correct them in case they are wrong or to erase obsolete information obtained illegally.
Tmflic In the session on ‘Transnational data communications traftic’, the general observation was made that very rapid development is taking place and is leading to the introduction of new and promising data transmission facilities
169
The TMD notes that, of the many countries throughout the world which have changed to a more liberal policy on ‘interconnect’, none has sought to change back to a more restrictive one. Maintenance The Division is also anxious for PO acceptance of the fact that staff other than its own can maintain subscribers’ apparatus equally satisfactorily. Many of its members with voice and/or data networks operate in a multisupplier environment where it would be advantageous for one staff to maintain all related parts of an installation. They also envisage customers or wiring contractors being able to move telephones from one office to another in order to obtain the response time they require (or choose to afford). One of the main reasons for the deep interest of the PO in PABX design is the fact that PO staff will subsequently be required to maintain the equipment. Thus any movement away from the entrenched position on maintenance would ease the liberalization of supply. Also the restrictive attitude of the PO on new developments is believed to be partly due to their fear of aggravating their maintenance problems by widening the range of equipment.
Carter Committee The TMD has put these points inter alia to the Carter Committee which reviewed PO activities last year.’ This Committee came out in favour of interconnect but was disappointingly unspecific on the way in which it might be brought about. It vaguely suggested an experiment with small PABXs without specifying how this would be conducted. The TMD believes that it would be quicker and less risky for manufacturers if a multiple secretarial facility or range of telephone instruments were used, if indeed such an experiment is necessary at all. It believes that enough is known about the operation of more liberal systems in the USA and elsewhere to enable the necessary guidelines to be laid down at once and urges that this should be done. George G. McKendrick, ChryslerlnternationalSA, London, UK
’ Report of the Post Office Review Committee, Cmnd 6850. HMSO, London, 1977. The implications of the report are reviewed by Peter Fletcher in Telecommunications Policy. Vol 1, No 5, 1977, pp 420-422; and R. Hornet provides a US perspective in Telecommunications Policy. Vol 2, No 1, 1978, pp 70-72.
Focus on turope French telecommunications In the first round of the French parliamentary elections in March of this year, approximately 50% of the votes were cast for the alliance of the Parti Socialiste and the Parti Communiste Francais (PCF). Although both this and the second round resulted in a somewhat less successful postion for the alliance than the opinion polls had predicted, the French combined left still holds a strong minority of seats in the Parliament. Both of the major parties of the left have issued statements concerning their projected telecommunications strategies for France. The PCF announced a five-year telecommunications programme on 20th
TELECOMMUNICATIONS
on the left
January in a statement of about five thousand words. The statement began with a strongly worded criticism of present policies. It stated that the current plan, intended to overcome the consequences of years of inadequate finance, had the following shortcomings: l The planned rate of growth does not adequately anticipate the financial consequences of increasing the number of subscribers or the need to maintain medium term employment in the telecommunications industry. 0 Waste of resources results from use of a wide range of different types of equipment, from policies towards
POLICY June 1978
cable laying, and from the management of both prices and equipment. The manufacturing sector is damaged, because quick profits for large industrial groups and financiers are favoured, under the pretext of restructuring. Plans to finance telecommunications are based on the assumption that consumption will increase, but tariffs do not encourage that increase. The number of people employed by the PIT is inadequate. The PCF proposes instead ‘une grande politique sociale des telecommunications’ which favours
165
Focus on Europe
‘communications for the people’ by reducing tariffs gradually as technology advances, and permits the take-off of a telecommunications national strong manufacturing industry and developed public telecommunications service. The PCF policy is planned to contribute to growth in employment and support other social policies, while developing national technical ability, contributing to national independence and encouraging exports. Said to be based on a sound financial plan and on a reasonable rate of growth, the plan hopes to permit in turn both the meeting of needs and the achievement of growth.
Increased access The PCF states that its eventual goal is to provide everyone with access to the telephone. However, during the next five years the PCF plans to increase the number of telephone connections at the present rate - 197 million per year - so that 60% of households will be connected in 1980 and 80% in 1983. By the latter year, businesses are expected to require on average 25 connections per 100 employees; the total number of have will therefore connections increased from 11.7 million in 1978 to 20 million in 1983. The PCF plans to increase the number of public telephone call boxes which will ultimately be used as repositories for an electronic mail system, giving special attention to rural areas. Studies will be conducted to identify the new services - data facsimile and communications, electronic mail - that will meet the needs of individuals and groups.
Investment and employment For the growth of 1.7 million connections per year, the telecommunications manufacturing industry would receive an annual payment of 12.2 x lOi francs (1977 value); other as building organizations, such contractors, would receive orders worth 8-2 x lo9 francs each year. The PCF claims that in 1978 exports will again suffer as a result of foreign business agreements, which give rise to large the conflicts between manufacturing groups. It intends to nationalize most of the telephone
166
industry in order to make full use of French technology, reorganize the sector, reduce waste, rationalize the use of the telecommunications infrastructure, reduce tariffs and increase exports. Exports, especially to socialist and developing countries, are to increase from 15% of output to 40% in 1983. The ‘value’ of the telecommunications sector is planned to increase from 18.7 x lOi francs in 1978 to 29.9 x lOLz francs in 1983, a 60% growth. Of that total, private customer equipment will increase from a value of 3.6 x lOi francs in 1978 to 5.6 x lOi francs in 1983; new services willaccountfor 1 x 1012francsin 1983. The number of people employed in the telecommunications manufacturing industry is planned to increase from 75 thousand in 1978 to 105 thousand in 1983; the increase is proportionately less than that in sales, as productivity gains are expected. The PCF will as a matter of priority seek to halt the staff redundancies announced by the Ericsson Company and Thomson CSF. In order to achieve the planned growth rate which is quite considerable, the PCF emphasizes the need for both careful selection of equipment and research. Fully electronic switching equipment, of French origin, will be used instead of the equipment chosen by the present government, which is of partially US origin. Fibre optic transmission will be progressively introduced. The electronic components industry will be strengthened. Research will contribute to rationalization and innovation, particularly the development of new services. The PCF’s plans to nationalize the manufacturing industry and to modernize switching, in order to ensure among other things national independence, have been described above. In addition, France’s interests in radio transmission, satellite transmission tibre and optical technology will be defended. Foreign attempts to control data processing and data transmission systems will be resisted by the PCF. The PCF states that the natural complement of independence is international collaboration in the establishment of standards, both for switching and for transmission. In addition the PCF plans to establish
manufacturing plants in developing and socialist countries.
Self financing The goal of the PCF is to reduce the extent of financing of PTT services from external sources, from the present 50% level to zero in 1983. Investment in the telecommunications industry will be the responsibility of the PTT, which will make use of its self-financing capabilities, and will cooperate with the national investment bank. The targets intended to be achieved are as follows: progressively reducing the relative growth rate each year and increasing the number of connections by a constant number each year; reducing, by 6%, the payment to the industry for all equipment; increasing, by 4%, the revenue obtained from each connection as a result of lowering tariffs simultaneously with increasing consumer spending power; using advanced technology to reduce the number of PTT employees from 13 per one thousand connections in 1978 to 12 per thousand in 1980 and ultimately to 11 per thousand.’ In total the number employed by the PTT is planned to increase from 90 thousand in 1978 to 130 thousand in 1983. Increases are both to meet the growth in new lines and to reduce subcontracting. Existing staff will be retrained in the use of new technologies. Staff costs per head are expected to increase 6% between 1978 and 1980 and a further 7% between 1980 and 1980. Increases in research costs are intended to be offset by a reduction of central services.
Restructuring the industry The PCF intends to nationalize companies from the following corporate groups: CGE, Thomson Brandt, ITT and Dassault. In doing so it will nationalize 80% (in terms of sales value) of the sector. During the first phase after nationalization, the PCF plans to replace corporate headquarters with national coordinating agencies. The companies will thereby be federated while retaining much autonomy; cooperation between companies will be primarily on a regional basis. Research
TELECOMMUNICATIONS
POLICY June 1978
Focus on Europe
facilities will be regrouped under a single management responsible for designing the next generation of In particular, public equipment. terminals for transmitting messages will be rapidly developed. Subsequently the PCF plans to reorganize the nationalized companies into regional companies centred in Brittany, the Loire, the Nord and the Paris region. Factories outside those regions will be attached to one of the companies. Other regional four nationalized electronic companies may either be integrated into the regional be formed into companies or independent regional groups. Each regional group will be autonomous, will negotiate its own contracts with users, especially the PTT, and will have its own research and development facilities, although a centre will c be research national maintained. Technical working groups of representatives of the companies and the PIT (CNET) will ensure technical coordinate compatibility and The companies will development. participate in the formulation of plans for the data processing industry, in the electronics components industry and in the establishment of some technical standards. The PCF intends that ‘democratic processes should be management’ nationalized developed in each company and in each factory.
Public service The PCF stresses that the development of telecommunications is dependent on both a strong nationalized manufacturing sector and an. effective PTT administration, which is the principal user and investor. It argues that communications should not be seen as an opportunity for profit, but as a need to be met; that the service should not be subordinated to the interests of multinational corporations; and that the needs of users and employees should be taken fully into account. The PCF proposes that all communications services post, telephone and other telecommunications - be provided by a single administration, the PTT, reorganized on a democratic basis. The principal responsibility of the PTT is identified as
TELECOMMUNICATIONS
and second, with the important role of the management of public telecommunications networks in the interest of communications in economic and social particularly by encouraging all citizens and so as to guarantee the life, decentralization and reducing the need independence of the national network. It to travel and to send documents. should also ensure the growth and Finally, officials should not neglect improved quality of existing services those steps necessary to ensure the and development of new services; and sound development and regular should set up tariffs to encourage such communications development. telecomthe management of munications industry. The PCF places particular emphasis on the role to be played by the Centre d’Etudes des TelicomNational Reducing inequality munications (CNET). It is intended to In order to reduce inequality the Parti become the most important national Socialiste believes it important to centre of research studies on telecomdevelop the public telephone service. In munications, in control of its own budgets and programmes within an particular, this must be by strictly applying, and even extending, the PIT’s overall national planning framework. It monopoly, so as to guarantee good would coordinate the activities of different government departments and_ quality service and confidentiality; and by rational use of networks and be concerned with electronics as a recourse to sub-contracting. It whole, rather than only telecomdistinguishes those forms of submunications. Its role in coordinating the contracting which would be encouraged activities of the telecommunications manufacturing groups and the PTT has (sub-contracting to transport carriers, been mentioned above. It will also and local sub-contracting to builders predict the need for finance and be and for some aspects of work on lines) concerned with the development of new from those which would interfere with equipment and services. the monopoly (work on public switching By combining the existing subscriber equipment and on domestic telephone telephone apparatus with the television apparatus) and would be discontinued. receiver, services may be provided to After the PTT has reestablished access cheaply a wide range of equitable tariffs and made efficient those information sources and for electronic services which are now unsuccessful, mail. Research cooperation between the the Parti Socialiste states that it should PTT and TelCDiffusion de France will give first priority to collective contiue at the Centre Common d’Etudes investment. The Parte Socialiste believes de T&vision et de Tblecomthat telecommunications must be munications at Rennes, which will oriented more towards the satisfaction become part of CNET. Subsequently of collective and social needs: public CNET will investigate the possibility of telephones, emergency services and new transmitting moving pictures on the services (data communications, telenational telecommunications network. conferencing, facsimile) which facilitate decentralization. It emphasizes that the PTT is the only public agency in dally Statements of Parti Socialiste contact with the public, playing an The ‘Legislative Programme for Teleimportant role in social life, especially in communications’, issued by the Parti rural areas. Re-opening post offices and Socialiste on 15 February, was about eventually extending them to become half the length of the PCF’s statement centres of public administration will and of a different orientation. It began counter the depopulation of rural areas by stressing that, according to socialist and the isolation of suburbs. In order to philosophy, the goals for telecomachieve this goal, the traditional role of munications should be fixed according the post office for small savers should to a democratic process. Management be extended within the context of new would then be responsible for meeting plans for the organization of national those goals and above all for meeting banking. The attempts of the Parti Socialiste to the needs of users. Officials should be concerned first with the integration of define the objectives of the Public Service have led them to identify two isolated groups into the community;
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Focus on Europe
important problems concerning the management of the PlT - financial stability and the cooperation of postal and telecommunications services. The Parti Socialiste proposes that financial stability be ensured by increasing the autonomy of the postal branches, and telecommunication replacing the political control, exercised by the minister of finance, by a process involving the negotiation of contracts, and by clearly identifying the objectives and the budgets of the two branches. If, for social reasons, preferential tariffs that do not cover costs are to be established for a service, then compensation would be paid to the PTT. Coordination between the postal and telecommunications services is intended by the Parti Socialiste to be based on a system of clear accounts and charging for reciprocal services. The Parti Socialiste does not believe that the creation of two or more national overcome future agencies would problems of the two businesses which result primarily from their great size. Only decentralization to regional bodies would open new possibilities. These will be discussed, at an appropriate time, with union representatives. Decentralization is an essential condition for democratic planning and must be taken down to the level of the which is individual establishment responsible for everyday business. This will require the abandonment of the distinction between commercial and technical functions within the telecommunications branch. This is intended to permit the precise definition of the boundary of responsibilities between the postal and telecommunications services. Post offices will be made available to the telecommunications service for the provision of services which cannot be provided directly be telephone. The for majority of public terminals electronic services (public telephones, telex, facsimile, future electronic mail and electronic funds transfer services) will be installed in post offices. The postal service will retain its management of the transportation and collection, distribution of the post, contact with the public and financial activity.* The Parti Socialiste states that the extension of workers’ rights and the involvement of users in decisions will
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oblige the PTT to changes its structure and methods of management. Responsibility and initiative should be given to staff at ah levels, necessitating changes in the hierarchical structure. Political control should be exercised at the regional and local level, as well as at the national level. Particular emphasis is placed on ensuring that organizational structures for telecommunications conform to this pattern and are not allowed to differ on the grounds of conforming to the phsyical or technical structure of the network.
Research and development The maintenance of an energetic and very large research and development programme is judged to be indispensable. Technical choices will be made in conjunction with manufacturers and technical progress will be used to ameliorate, rather than worsen, conditions of work. New services will be carefully identified in order to make best use of existing equipment and encourage exports, and special attention will be given to the manufacture of electronic components, especially integrated circuits. The Parti Socialiste intends to encourage the telecommunications and electronic industries to take initiatives in the development and the commercialization of new products and systems. Interaction with local users, liaison with scientific and university researchers, and overseas technical cooperation are all to be vigorously undertaken. The CNET is intended to be theinstrument ofahofthese policies.
Creating new employment The formulation of explicit objectives, decentralization and autonomous management are intended by the Parti Socialiste to make the PTT service effective to users. However, that effectiveness should, in the party’s employees. opinion, also benefit Manpower planning will take into account the needs of the PIT’s branches and the availability of employees of different skills in each area. This policy, conducted jointly with the Education Nationale, will make the sector a pilot for the joint planning of education and employment.
The planning of equipment orders is intended to aid industry in maintaining employment and in making the transition to electronic switching. Developments based on research, the introduction of new services, coherent plans for exports, the diversification of the electronics industry, and educational planning are all intended by the Parti Social&e to ensure a steady growth in employment. The success of industrial policy in the matter of components, data processing and telecommunications depends, in the opinion of the Parti Socialiste, on a global strategy, which can only be ensured by an adaptive governmental structure.
Compatibility of the plans At first sight the detailed plans for telecommunications proposed by the Parti Communiste Fran&s and by the Parti Socialiste appear complementary. Both parties wish to increase employment and exports; emphasize the importance of new services; and stress the importance of research and a strengthened components industry. Both parties call for increased industrial democracy, and agree on the central role of the CNET. The Parti Sociahste has detailed plans for the restructuring of the PTT; the PCF says little on this subject besides its plans for the CNET and its statement that all services should be provided by a single administration. It is not clear that democratization of the PTT, as proposed by the PCF, would involve such extensive decentralization as would the plans put forward by the Parti Socialiste. Similarly, the latter says little indicating its attitude on the PCF’s major concerns: to make telecommunications self-financing, partly by slowing growth; to nationalize the manufacturing industry; and to make that industry wholly independent of foreign companies. The Parti Socialiste does emphasize investment in common facilities, but says nothing concerning the rate of growth of domestic service. It does however emphasize the commercial exploitation of new services and foreign collaboration, which could be taken to indicate disagreement with the PCF’s last two major goals. Only with time will it become clear whether the two parties truly have compatible
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POLICY June 1978
Focus on Europe/Coqferences
plans, or whether the different emphases given by their statements reflect fundamental policy differences in important areas. Rogerme, Communications Studies and Planning L td, London. UK
‘The reduction in the growth of traffic, and its implications for the financing of expansion, are described in Bulletin No 5,
November-December 1977, of IREST (Institut de Recherches Economiques et Sociales sur les TBI6communications). IREST expresses the opinion that the predictions of the PTT, stated in midDecember, that external financing can be reduced to 2096 in 1980 for a growth rate greater than that envisaged by the PCF, are rather optimistic. z Until recently it seemed likely that the postal and telecommunications services in France would be formed into separate administrations. However considerable opposition was expressed to such a for example by a senior change,
representative of the Force Ouvrite trade union organization at an IREST ‘round table’ meeting on the subject of electronic mail (29th November 1977 in Paris). Electronic mail services have clearly been perceived as increasing the rate of decline of the postal service; separation of the services would then further disadvantage postal employees. Such concerns have influenced almost certainly the statements and plans proposed by both the PCF and the Patti Socialiste. Subsequently PlT officials have asserted that division of the PlT is not contemplated, at least in the near future.
Conferences Transnational International
Conference
Online Conferences
data - regulatory on Transnational
Data
Regulation,
issues
organized
by
Ltd. Brussels. Belgium, 7-9 Februarv 1978.’
The expanding flow of information has brought with it various complex social economic problems. Privacy and legislation in certain countries has raised questions concerning the relation to the of legislative conventions international exchange of data. The conference aimed to present different views on the desirability of regulation, to investigate the potential risks of non-regulated information flow, to take a critical look at prospective legislation, and to assess its possible effects. In a sense, the meeting could be seen as a continuation of the OECD symposium held in Vienna on 20-23 September 1977. To a large extent, the same topics and problems were treated. A definite distinction, however, was the orientation of the Online conference towards commercial life, compared with that of the OECD meeting, which reflected the interests of the official sector. The conference was well attended: there were more than 200 participants. A prominent selection of well known experts from both official and commercial life contributed to making the meeting valuable and successful, and there were lively and stimulating discussions.
TELECOMMUNICATIONS
The Conference Chairman was Jan Freese, Director General of the Swedish Data Inspection Board, welI known as an initiator of an international convention concerning data privacy legislation and very active in OECD work in that field. Much of the meeting was devoted to data communications. Different kinds of networks were described and problems associated with international traflic were discussed. It was therefore quite natural that, after Mr Free&s introductory speech, R. Grainson, President of the CEPT Telecommunications Commission delivered a welcome speech emphasizing the vital role of international cooperation in the telecommunications field.
International commerce During the discussion of the policy issues presented in the first session, on ‘Information, communication and international commerce’, it was recognized that similar work on data protection legislation was going on in several countries. Data protection acts have come into force in the Federal Republic of Germany, Sweden and the USA. In France, a Bii has been passed
POLICY June 1978
by Parliament. Bills for data protection are under discussion in the Parliaments of Austria, Belgium, Canada, Denmark, Luxembourg, New Zealand and Norway. All the other member states of the OECD are aware of the necessity for data protection, and legislation against the misuse of personal data is in progress in these countries. It is expected that, by the end of the present decade, data protection provisions will have become effective in the majority of the 24 member states of the OECD. Although in detail somewhat different, common principles in the legislation could be recognized in two resolutions finalized by the Committe of Ministers of the Council of Europe: 0 A relation between the collection of
data and their use should be obligatory. 0 The person concerned must be offered the possibility to have access to his or her data and to correct them in case they are wrong or to erase obsolete information obtained illegally.
Tmflic In the session on ‘Transnational data communications traftic’, the general observation was made that very rapid development is taking place and is leading to the introduction of new and promising data transmission facilities
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