TELECOMMUNICATIONS SECTOR FRAMEWORK UNDER SECTOR PARTNERSHIP FUND What is the Telecommunications Sector Framework? The Telecommunications Sector Framework is a sectoral strategy approved by the Ontario government under the Sector Partnership Fund (SPF). Telecommunications initiatives which meet the objectives of the Sector Framework can be considered for financial assistance from the SPF. The major objective of the Sector Framework is to improve the competitive position of Ontario's telecommunications industry by encouraging co-operation and a move to higher value-added activities within the sector. The framework responds to the report of the Advisory Committee on a Telecommunications Strategy for the Province of Ontario. The committee strongly recommended that the provincial government support projects that stimulate wealth and job creation in the telecom industry. What is the Sector Partnership Fund? The Sector Partnership Fund is a three-year, $150 million funding program under the Ontario government's Industrial Policy Framework. It is designed to strengthen sectors or "clusters" of the Ontario economy by shifting companies and industries to higher value-added activities. This program was announced in the Ontario Budget in the spring of 1992. What is the purpose of the SPF? The focus of the SPF is on strengthening the competitive fundamentals of the Ontario economy through: - continuous innovation - raising skill levels - increasing technological capabilities - developing linkages and networks - building international capabilities and - establishing companies' home-based activities in Ontario. What are the priority areas in the Telecom Sector Framework? The Telecom Sector Framework highlights four priority areas: - It encourages the development of new telecom applications that benefit groups of companies or particular sectors and advance Ontario's leadership in network development and management. - It fosters innovative business enterprises by promoting strategic alliances, particularly between Ontario's large and small telecom companies. Ontario telecom suppliers are also urged to pool their resources, talents and skills with those of other information technology companies and with firms in related industries. The framework calls for specialized sectoral infrastructure that strengthens the underlying foundations of the telecom industry, provides benefits to the sector as a whole and directly raises the competitiveness of Ontario's telecom product and service providers. A final direction is market development and promotion. The framework supports activities that increase export sales or expand the domestic market for products and services supplied by small and mid-sized firms. Will certain types of projects be emphasized? Priority will be given to initiatives which: - involve consortia of Ontario-based companies that combine their technical capabilities to develop new telecommunications products or services - enhance the competitiveness of each allied organization and reduce the risk incurred by individual firms in innovative product or market development - lower the overall cost to firms of capturing global markets - offer opportunities for skills upgrading in the sector - provide information on global standards, on initiatives within the sector or on leading edge scientific and technical developments from global sources - increase the amount or timeliness of critical information available to smaller firms - create vehicles for sharing information and fostering the development of product consortia.