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Creating a Global Communication Infrastructure

Esther, Meaghan, Randi, Sam, Steve & Vivienne present and reflect on chapter three of International Communication: Continuity and Change by Daya Kishan Thussu.

Sam Bates

on 26 September 2014

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Transcript of Creating a Global Communication Infrastructure

Creating a Global Communication Infrastructure
Presented by: Esther, Meaghan, Randi, Sam, Steve & Vivienne
The creation of pro-markets international trade commands a huge impact on international communication

The globalization of telecommunication has revolutionized international communication

New information and communication technologies have helped to create a global communication infrastructure based on regional and global satellite networks
Why Services are Important
Satellites became a huge resource for global telecommunications in the 1990’s and has grown from there.

Because of this, policies were put in place to ensure equality in distribution and services.

Another change has also been the commercialization of INTELSAT
Privatizing Space: The Final Frontier
Lockheed Martin
Loral Space
Key Players in the
Global Satellite Industry
The Privatization of Telecommunications
Free Trade in Communication
Impact of WTO Agreements on International Communication
Liberalization of the Telecom Sector
Hughes Space and Communications Company
Lockheed Martin Global Communications
Loral Space and Communications
Regional Satellite Services
Murdoch's News Corporation
Around the World, Around the Clock
The World of Telecommunications
Implications of a
Liberalized Global Communication Regime
Who Benefits from Liberalization and Privatization?
The most significant of the three
40% of commercial satellite service worldwide
Hughes conglomerate includes:
PanAmSat; Hughes Network Systems; DirecTV
(2000) Bought by Boeing

Hughes Today
4 million customers in over 100 countries
Lockheed Martin corporation (defence contractor)
Joint venture with Intersputnik
5 satellites for Chinese market

Lockheed Martin Today
Exited its Global Telecommunications Services business
Key player in aerospace & defence; information technology; space
Third-largest satellite corporation
(1997) acquired Skynet & SatMex
Operates the Telstar & Orion satellite fleets
In 1999 covered 85% of the world

Loral Today
Owns 62% of Telestat & 56% of XTAR
Global deregulation = fierce regional competition
Private satellite companies:
Astra & AsiaSat (SES); PanAmSat; Galaxy Latin America; DirecTV

Big players taking over smaller
Market for satellite services becoming increasingly commercial
15 years ago a peak in the expansion of global satellite networks and extraordinary rates of merger activity and corporate consolidation
The reason: the demand for wireless technologies and mobility
= A fundamental change for international communications and the marketplace

Telecommunications and “dotcom” industries along with computer and media industry merge as a consolidation of business that led to global dominance in 1999.

Today, we see the same merger patterns:

do mergers happen?
Shift from: state regulation / the political to more market-driven policies / an economic discourse

In a perfect liberalized global system, the expansion of internationalized production and consumption should be harmonized with domestic laws and regulatory structures that affect trade and investment, while removing any advantage or protection for domestic industries.
Transnational telecommunications, entertainment, technology and media corporations

Thussu argues that “they are the primary movers and shapers of the global economy”

Is this still relevant?
Twitter Check
Intelsat was an intergovernmental treaty organization
(1964) Offered affordable satellite capacity on a non- discriminatory basis
20% of investments from the US
Allies saw Intelsat as a instrument to control satellite communication
(1999) owned and operated a global satellite system of 19 satellites reaching 200 countries around the world

The New Intelsat
What do you think Intelsat looks like now?

What kind of communications do they provide today?

Do they have more satellites in space? How many?

In 2013, the world's top corporations were:
2. China Construction Bank BANKING CHINA
3. JPMorgan Chase BANKING U.S.
4. General Elective CONGLOMERATE U.S.
5. Exxon Mobil OIL & GAS U.S.
6. HSBC Holdings BANKING U.K.
7. Royal Dutch Shell OIL & GAS NETHERLANDS
8. Agricultural Bank of China BANKING CHINA
9. Berkshire Hathaway DIVERSIFIED FINANCIAL U.S.
10. PetroChina OIL & GAS CHINA

(DeCarlo, "The World's Biggest Companies", 2013)
Who is Rupert Murdoch? How did he become so successful?
Vertical integration
Cross Media Ownership
Examples from the reading
Wholly or partially owned as of 1999
The Split
As of June 28th, 2013
News Corporation officially split into two seperate companies
: A relaxation of previous government restrictions, usually in such areas of social, political, and economic policy. In some contexts this process or concept is often, but not always, referred to as
21st Century Fox
What is the
International Telecommunication Union
Allocate global radio spectrum and satellite orbits
Develop the technical standards that ensure networks and technologies seamlessly interconnect
Improve access to ICTs to underserved communities worldwide
Current membership: 193 countries and over 700 private-sector entities and academic institutions
New News Corp
Thussu's Perspective
Thussu gathered a quote from the annual report of 1999 which states that, “Virtually every minute of the day, in every time zone on the planet, people are watching, reading and interacting with our products. We’re reaching people from the moment they wake up until they fall asleep (Thussu, p.107)”.
“His growing political influence as a multi-media mogul and his extensive control of both information software and hardware make Murdoch a hugely powerful global actor (112)”.
USA is the largest service exporter
Service sector is the fastest growing segment of the economy
Approximately 80% of American employment is in the services, either major producers or intensive users of information technology products and services
I believe that they use propaganda within their news coverage. Thussu stated that, “The Sun’s support for Tony Blair was crucial in the 1997 election victory of the British Labour Party (112)”.
Currently owned wholly or partially by 21st Century Fox
Currently owned by New News Corp
1. Thussu argues that a global market can only be achieved through the deregulation and liberalization of rules and policies set on international trade. Is giving up advantages and protection on domestic industries worth having a global market?

2. Do you agree with the privatization of telecommunications or would you prefer a world in which telecom was owned by governments and public sectors?

3. What do you think will be the next major issue that we will face in the telecommunications industry?

: the transmission of information, as words, sounds or images usually over a great distance
Ex: telegraphs, telephone, radio or television

The movement that started among western countries has now affected telecommunications globally

Who benefits?
Corporations opposed national monopolies, allowing a competitive environment that would improve services and reduce costs

Benefits to Corporations
American Telephone and Telegraph (AT&T)
In 1984 US President Raegan announced an open skies policy, breaking the public monopoly and introducing a private telecommunications arena
AT&T was split into 22 local companies which allowed new types of businesses, causing the US telecommunications sector to gradually become deregulated

How are these new types of businesses impacting society?

Regulated Vs. Deregulated
: to control or direct by a rule to adjust accuracy of operations
: to remove government regulatory controls

Ex. Liquor stores

Privately owned liquor stores in Alberta
According to the
Alberta Gaming and Liquor Commission
, privatization has helped the liquor industry to benefit both retailers and consumers
639 retail stores
Sales of 1.74 billion dividend given to Ontario Government; this is used to help pay for health care, education, infrastructure and other important government services
Would you rather have your money put into
the government or private sectors?
Different agreements were signed to liberalize the telecommunications sector:
World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT)
General Agreement on Trade in Services (GATS)
General Agreement on Tariffs and Trade (GATT)
According to the WTO, GATT takes the form of binding commitments on tariffs for regulating goods

Problems that occurred
Tension between the free-marketers and those who argued for a more regulated system
Why GATT needed to be implemented
GATT’s success in reducing tariffs to such a low level drove government to create forms of protection for one’s country
GATT created a strong trading system to become more liberal trying to reduce tariffs

World Trade Organization (WTO)
Global international organization that implements rules and regulations of trade between nations

What problems occur between the trade?
Key issue: distortion
Agriculture was the hardest-fought issue
The Solution
Many have argued that breaking the barriers to the free flow of information was essential for economic growth
Urgruay Round and Agriculture Agreement
The service sector encompasses financial services

General Agreement on Trade in Services (GATS)
According to WTO, GATS is the commitment stating how much access foreign series providers are allowed for specific sectors

Why was this implemented? What are the benefits?
Telecommunication sector in GATS is divided into two broad categories
Basic services
Value-added services
Creating a system that allows fair and equitable solutions for all participants

GATS fourth Protocol on Basic Telecommunications Services (1998) is the most significant agreement for international communication
This agreement obligates the 69 WTO countries a wide-ranging liberalization of trade in global telecommunication services

How is this a huge advantage to international communication?
This agreement allowed all technological means of transmissions – cable, radio and satellites

Ex: USA, Japan and EU countries dominate global trade in the information technology sector through China and South Korea

Canada-Korea Free Trade Agreement
Successful free trade agreement between Canada and Korea

Thousands of new jobs in Canada are offered through industrial goods, automotive products, forestry products, agricultural products and services

This agreement increased exports by 32% and boost the Canadian economy by 1.7 billion annually
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Thank you for participating with Twitter, now let's get into our discussion
Alberta's Oil Sands Economic Benefits. (n.d.). Alberta's Oil Sands. Retrieved September 23, 2014, from http://oilsands.alberta.ca/economicinvestme
Alberta Gaming and Liquor Commission. Alberta Liquor Privatization. Retrieved from: http://www.aglc.gov.ab.ca/liquor/albertaliquorprivatization.asp
Andrade, G., Mitchell, M., & Stafford, E. (2001). New evidence and perspectives on mergers. Journal of economic perspectives, 103-120.
DeCarlo, S. (2013, April 17). The World's Biggest Companies. Forbes. Retrieved September 23, 2014, from http://www.forbes.com/sites/scottdecarlo/2013/04/17/the-worlds-biggest- companies-2/
Ellingson, A. (2013). It’s official: 21st Century Fox and News Corp split, with new shares to be issued Monday. L.A. Biz. Retrieved from http://www.bizjournals.com/losangeles/news/2013/06/28/its-official-21st-century-fox- splits.html
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WTO. (2014). Services: GATS. Retrieved from: http://www.wto.org/english/tratop_e/serv_e/gatsqa_e.htm
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The global communication infrastructure has been created with agreeable terms of liberalization, privatization and deregulation that aid and support the interest of multi, even billion dollared transnational corporations. It is evident in our presentation, that there is a lack of equality for the concerns and needs of the consumer; furthermore, the power of these transnational corporations nonetheless determine what we consume.
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