We tend to think about convergence in terms of technology alone, but convergence in information and communications technology (ICT) does not solely involve technological innovation, it also has a real impact on everyday lives that can potentially create further imbalances in terms of the digital divide, especially in the developing world. As an evolving concept, convergence encompasses a combination of opportunities and challenges, not only for the ICT industry, but also for regulators, policy makers and society at large.

What does it mean?

Convergence lacks a generic or universal definition. The term is used interchangeably between and within the contexts of integrating technologies, services and applications, markets, policies and regulations, institutions and their functions; both within and between nations.

In the past, telecommunications, information technology (IT) and broadcasting all operated independently in terms of the technology used, the information transmitted and the networks employed. Television, radio, telephones and computers were used for discrete purposes and the services provided were regulated via separate laws, usually by different regulators, and with no obvious need for coherence between these separate laws and regulators. Technological convergence enables traditionally distinct voice and data transmissions to be transported over the same network and to use integrated consumer devices for purposes such as telephony, television or personal computing. The European Union (EU) defines convergence as "the ability of different network platforms to carry essentially similar kinds of services, including the coming together of consumer devices such as the telephone, television and personal computing". It is also taking place between infrastructures, and at the content, service, and application levels. The term is also used on a broader scale to refer to the harmonisation of telecommunications standards, policies, and regulatory frameworks between member states of institutions such as the Organisation for Economic Co-operation and Development (OECD), the South African Development Community (SADC), and the European Union (EU).

What are the opportunities and challenges of convergence?

Technology convergence offers massive opportunities for the development of new value-added services, convenience, efficiency and the expansion of consumer choice. It certainly expands the overall market for ICT and related services, and is likely to be the catalyst for the next stage in the integration of the world economy. Digital technology and convergence now allow both traditional and new communication services to be provided over the same networks, which should lower the price of communications services due to increased efficiency and lower transmission costs.

With these benefits come new policy and regulatory challenges, such as the setting of manufacturing standards, facilitating cyber-trade, controlling emerging cyber-crime, protecting consumer interests, intellectual property rights, and other public issues. Technological innovations are taking place faster than regulatory developments with the danger that regulatory regimes will be unable to catch up, leading to ineffective regulation. If the developing world is to feel the full benefit of convergence then the legal and regulatory environment must develop at the same pace, and new laws must be drafted in such a way as to be technology neutral and to take account of international developments and the needs of a number of different constituencies.

Regulatory and policy challenges

Different nations and institutions are adapting their policies, regulations, and institutional frameworks to address issues in an increasingly converging communications sector, both within and between countries. These issues need to be addressed by updating regulatory frameworks and institutions to address emerging industry, market, and public protection issues; aligning national regulatory practices with international agreements; and, informing traditional policy-making to consider convergence trends.

Examples of issues that will need to be addressed include the harmonisation of definitions used in converging equipments, technologies and services so as to improve the regulation of standards and the licensing of converging technologies and equipments. This is needed particularly where separate regulators cover discrete technological areas. Convergence increasingly needs cross-product and cross-platform regulation and licensing. Regulators must be encouraged to cooperate and integrate their regulatory efforts, and should ultimately consider merging regulatory bodies. The formation of a cross-sectional regulator would facilitate the existence and implementation of uniform cross-product standards upon which interoperability and interconnection of services and networks can be regulated. Effective regulation will remain a pipe dream, unless regulators are sufficiently resourced, have complete political independence, and the ability to make unbiased decisions.

Way forward for developing countries

Today, national regulators are aligning their regulations to international agreements drawn up by the International Telecommunications Union (ITU) and the requirements in the General Agreements on Trade and Services (GATS). Regulations are also being brought into line with regional economic integration practices, as seen with the OECD in the EU and, to a limited extent, with the Telecommunications Regulators' Association of Southern Africa (TRASA) in SADC. National regulators will increasingly need to keep themselves abreast of changes beyond their borders if they are to remain effective, because many of the new technologies are not limited by political and geographic boundaries.
An emerging trend is the establishment of cross-sectional regulators that implement regulatory standards and practices that are not sector or equipment specific. The USA was the first to merge technology-specific regulators to regulate across telecommunications, media, and broadcasting services, with similar examples in Austria, Canada and Portugal. The same trend has occurred in developing countries with examples in Bosnia and Herzegovina, Botswana and South Africa.

While these developments may enable uniform and effective regulation across newly converging technology and service sectors, they will be ineffective unless they are accompanied by mutually supportive policies and regulations in a wide variety of related economic and social sectors. And as technology convergence accelerates, nations will need to think and plan differently if they are to maximise the benefit that it offers. Policy formulation needs to be rethought. Instead of stand-alone policies on issues such as telecommunications, healthcare and banking, there is an increasing need to develop and integrate a wide variety of policy initiatives and implementation projects into single coherent strategies. Only then will nations be equipped to succeed and survive in the information era.

Of course, many developing countries have far more pressing issues and challenges to address than convergence. But the stark reality of the digital divide is that it is growing, and convergence only serves to increase the rate of growth. Dealing with convergence may not be a priority, but developing country governments need to be aware of the opportunities and challenges that it offers, especially if they hope to leapfrog in technology terms. If for that reason alone, developing country governments need to take convergence into account when developing policy.