Challenges to Regulation: Intenet Ecosytem

ANDREJS DOMBROVSKIS

Deputy Director, Electronic Communications and Post (SPRK)

BEREC – EMERG – EAPEREG - REGULATEL SUMMIT

CNCM, Barcelona, 2 - 3 July 2015

1

% of Fixed Broadband Connections by Download Speeds

2

Broadband Market Structure

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49 77 93131 133 158 184 211 213 240 232 244 241 232228 223 223 238 242261 238 219 230 22456 89 105 151 188 227

265 319 346 395585 632 667

829

11511197 132413031393

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29 29.1 28.327.318.7 19.22

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14.8727.948525184628329.5616717635066

36.870663582992451.370168704811253.68675995694359.752685260402659.0233737996014

68.499213217938678.2537800177883

83.4401550156506

99.544291781164199.719182200841999.0343995171998

ISPs Pieslēgumi (1000) Lattelecom tirgus daļa (%) Platjoslas blīvums (%)

Broadband Technologies

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xDSL Ethernet Mobilie FWA CaTV t.sk. DOCSIS 3.0) Citi FTTx

5

Resale

Bitstream

P. infrastr.

LLUServices

investments

investments

investments

Critical

mass

Critical

mass

Critical

mass

EU Digital Agenda

targets 2020

100% res. ≥ 30 Mb/s

50% housh. ≥ 100 Mb/s

EU service based competition model and Digital Agenda targets

Service/infrastructure based competition/NGA roll out

6

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Share of NGALinear (Share of NGA)Unbundled lines + bitstream of Incumbents connectionsLinear (Unbundled lines + bitstream of Incumbents connections)

IoT Ecosystem

7Source: Cisco and Beecham Research

OTTs

8Source: NovoTech

Regulatory Challenges – Competition/Market

9

ABSOLUTE FUNCTIONAL CONNECTIVITY – EVERYTHING EVERYWHERE

• Having infrastructure competition poses different kind of challenges for regulation

• Offers are not based on wholesale products and are very different, varying among platforms

• Availablity of regulated access to non-SMP infrastructure – masts, ducts, etc.

• Geographical market segmentation for ex ante regulation – detailed connection maps, IT systems

OPERATORS

ISPs

ENDUSERS both B&C

OPERATORS

10

ABSOLUTE FUNCTIONAL CONNECTIVITY – EVERYTHING EVERYWHERE

• Consumer Empowerment - transparency of retail offers/comparisons and literacy

• Consumer Empowerment – net neutrality and quality of service is of a major importance, in order to ensure consumers both understand what they are subscribed to and are actualy receiving those services

• QoS as a competitive offer – Latvian Electronic Communications Law provides SPRK with rights to setup a QoS management system

• QoS built into end-user agreements and are mandatory to follow. Room for best effort?

• Minimum speed to provided shall be agreed upon in an agreement. Is speed still valid criteria?

Regulatory Challenges – Users/Market