Telecoms Market Will Thrive With Few Operators

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Huawei's vice-president of Global Public Affairs, Edward Zhou
Huawei's vice-president of Global Public Affairs, Edward Zhou. Image source: Active Telecoms

The government plays a vital role in the forming a favourable environment to enable the fast and healthy development of the Information and Communications Technology (ICT) industry.

This is according to Huawei’s vice-president of Global Public Affairs, Edward Zhou, who was speaking at the Huawei ICT Ministerial Forum at the World Telecom 2018 in Durban.

“Government should act as an enabler to create a favourable policy environment,” said Zhou.

He added that competition is also very important and some countries in fact have too many operators, which can damage the whole ecosystem.

In fact, two to four operators is a healthy number of operators to create a healthy competitive environment.

Huawei believes that investments in ICT infrastructure will significantly improve economic growth and society.

The company also published a position paper titled: “Telco: Investment, Innovation and Competition in ICT Infrastructure”.

The paper stated government should make ICT policy not just a subject of sector policy (e.g. telecommunications) but a subject for national policy.

“The development of ICT and relevant infrastructure cannot be realised by solely relying on participants in the ICT ecosystem,” states the paper.

“Instead, it requires supports from the government in three major aspects: investment, innovation, as well as competition”.

The position paper also stated that ICT not only forms the backbone of today’s digital economy, but also has enormous potential to help achieve sustainable development of human society, and improve people’s lives fundamentally.

“Governments of developing countries need to pay more attention to ICT development, and especially ICT infrastructure. Investment in ICT infrastructure is a way to close the gap and break the vicious cycle that continues to cause laggards to miss out on the benfits of ICT developmet as well as economical and societal value created by ICT.”

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