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Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH [email protected] ITU Workshop on “Workshop on Practical measurement of QoS/QoE Parameters for Regulatory Compliance” (Cotonou, Benin, 16-17 July 2012)

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Page 1: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Cotonou, Benin, 16-17 July 2012

Regulatory Approaches & Best Practices

Joachim Pomy, SG 12 RapporteurConsultant, Opticom GmbH

[email protected]

ITU Workshop on “Workshop on Practical measurement of QoS/QoE

Parameters for Regulatory Compliance”

(Cotonou, Benin, 16-17 July 2012)

Page 2: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulatory Approaches & Best PracticesIntroduction Setting up a National Transmission PlanQoS for International ConnectionsMulti-Vendor Environment

ITRs: Setting the stage for a connected world

[Content]

Page 3: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulatory approaches

Regulation orientated

Customer orientated

Reporting To regulator To customer

Targets In regulations In contracts

Penalties Fines Compensation

…or a combination?

Page 4: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

QoS regulations

Measurement and reporting are expensiveDo you scratch everywhere? or scratch where it itches?Need to focus on the known problem areasBut the problem areas may change over timeIssue of cost effectiveness

Page 5: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Service Level Agreements

Considered highly importantIndication of the level that the supplier aims to achieveOnly tangible benefit if there is compensation for failureIs the compensation a token or a rebalancing of the failureA token at least imposes some incentive to performTokens are noticed by management

Page 6: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Criteria for QoS Parameters

QoS parameters should be easily understood by the public, and be useful and important to them.All parameters are applicable at the network termination point. Where measurements are possible, they should be made on the customer's premises, using in-service lines. To be as realistic as possible, real traffic rather than test calls should be used as a basis of the measurements, wherever possible.Parameters should be capable of verification by independent organizations. This verification might be made by direct measurements or by audit of the operator's measurements.The accuracy of QoS parameter values should be set to a level consistent with cost effectively available measurement methods.The parameters are designed for both statistical and individual application. The statistical values should be derived by the application of a simple statistical function to the individual values. The statistical function should be specified in the standard. The standard should also contain guidelines on how statistically significant samples should be selected.From ETNO: European incumbent’s club

Page 7: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulation and Customer Compensation

Initial levels of compensation should be lowAny such payments will be monitored by management of operatorsExperience is that the benefit in alerting management to problems far exceeds the value of the sums paid as they expose mangers to internal criticism

However for critical parameters that have a seriously damaging effect on customers

Levels of compensation should rise depending on the extent on the problem with higher payments to business customers than to residential onesFor example failure to repair a fault within a specified time would incur a penalty of say $X per day

this rate should not be capped at a maximum of say 5 days but continuepossibly rate per day should rise if the time exceeds say 10 days

This formulation is needed to ensure that the managers concerned take appropriate steps to resolve the issues and prepare adequately for the problems that inevitably will occur.

Page 8: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulatory Aspects (1)

QoS parameters for Regulation should be

Limited in numberFocus to hot topics

where problems already exist or expected to occur soon

Taylored to the special situation in the Region

different topics for each country

Page 9: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulatory Aspects (2)

Network operators but also customers have experience

with regulation & resulting QoS in other countries of the region

For National Regulators it is important to prove

customized regulation regimebut no re-invention of the wheelno over burdening of operators

Page 10: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Best Practice

Some Advantages (postulated)

QoS Regulation not neededMarket Powers regulate overall Quality

Some Requirements (obvious)

All Stakeholders Stick to StandardsAppropriate Standards are available in TimeQoS Responsibilities must be clear defined

Some Problems (surprise !)

„connect your fridge to the network – it might be legal“

Page 11: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

11

Market Mechanisms

Forces of the Market will bring users into a position where they can obtain the end-to-end QoS they wish to perceive

Has been postulated for a long time in EuropeHas been proven to be more than questionableMostly, contracts between users and network operators

have a longterm binding characterdo not contain any QoS provisions

Currently, traditional Telcos have no incentive to provide high end-to-end QoS for their NGN customers

Number of customers remains stableIn parallel the commercial company value

In contrast are Internet based communication service providersReceive their revenue not directly from usersBut by other business models which rely on a high (and increasing) number of users of the service every dayCustomers not satisfied with end-to-end QoS will stop using the serviceConsequently the number of customers decreases immediately and so the company value Thus the incentive to offer high end-to-end QoS to the user is extremely high.

Page 12: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

European approach

Universal Services Directive 2002/22/EC Articles 11 and 22Publication of performance for common list of parametersTarget levels and additional parameters may be added by National Regulatory AuthorityPublic communication network

Supply time for initial connection Fault rate per access line Fault repair time

Publicly available telephone service Call set up time Response times for operator services Response times for directory enquiry services Proportion of coin and card operated public pay-telephones in working order Bill correctness complaints Unsuccessful call ratio

Page 13: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulatory Approaches & Best PracticesIntroduction Setting up a National Transmission PlanQoS for International ConnectionsMulti-Vendor Environment

ITRs: Setting the stage for a connected world

[Content]

Page 14: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Pre-Requisites for a National Transmission Plan

Definition of Network Structure & TopologyDefinition of Desired End-to-End QoS

Absolute MinimumAverage over Usage/Regions/Calendar Time

Specification of QoS & NP ParametersEnd-to-EndFor each Network Element & Terminals

Selection of Reference ConnectionsTypical Connections (High # of Occurence)Complex Connections (QoS Problems expected)

Legal Regulatory FrameworkTo enforce RequirementsTo strengthen Customers‘ RightsTo solve issues in Cases of not achieved QoS

Page 15: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Transmission Planning in Europe (1)

Historically, separate national transmission plan have been enforced and utilized in European countries:

National transmission plans based on ITU-T (CCITT) RecommendationsInter-Country, intra-European telephony connections ruled byThe International transmission plan as per ITU-T Recommendations G.101, G.111 and G.121

Regulatory Treatment of a Telephony Connection in Europe consists of two parts:

Regulation of the public network (through the Directives on an Open Network Provision) and Regulation of the terminal market (through a “Terminal Directive") Both of these regulations are undergoing changes with the effect that national regulatory authorities do not intervene where quality is ensured through effective competition

The new directive for Radio equipment and Telecommunications Terminal Equipment (the "R&TTE" directive) includes a possibility for the Commission to issue regulation regarding voice performance.

Page 16: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Transmission Planning in Europe (2)

As long as the market actors behave in a responsible manner, there will be no EU regulation of voice performance of customer premises equipment connected to a public networkFor the telecommunications industry it is however of value to arrive at a common transmission plan for future networks, to ensure successful global communications Pan-European Loss Plan has been developed

ETSI ES202020 harmonized with TIATo assist manufacturers in achieving satisfactory voice performanceNot a regulatory requirement

Page 17: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulatory Approaches & Best PracticesIntroduction Setting up a National Transmission PlanQoS for International ConnectionsMulti-Vendor Environment

ITRs: Setting the stage for a connected world

[Content]

Page 18: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

National Transmission Plan Part of International Connection

t t

a

b a

b

T1204G.101_FI.1

International SwitchingCentres (ISCs)

National system National systemInternational chain

Exchange

ISC that carries international transit traffic

a, b Virtual International Connecting Points

Defined by National Transmission Plan

Defined by ???ITU-T G.101

Sure ??

Page 19: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Regulatory Approaches & Best PracticesIntroduction Setting up a National Transmission PlanQoS for International ConnectionsMulti-Vendor Environment

ITRs: Setting the stage for a connected world

[Content]

Page 20: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

National Transmission PlanOn-Net Connections

Single Vendor’s Technology Implementation

Has Potential to deliver homogeneous QoSTends to be easy controllable

Page 21: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Multiple Vendor’s Technology Implementations

Has Potential to deliver QoS-ProblemsTends to be less controllable

National Transmission PlanMulti-Vendor Inter-Connections

Page 22: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Connection to other Jurisdictions

National Transmission PlanInternational Connections

Plus Multiple Vendors in National Network

Page 23: Cotonou, Benin, 16-17 July 2012 Regulatory Approaches & Best Practices Joachim Pomy, SG 12 Rapporteur Consultant, Opticom GmbH Consultant@joachimpomy.de

Any questions ?

Contact:[email protected]