ITU-CRC Workshop

“Regulatory framework for digital applications in Mongolia”

23-24 October 2018, Ulaan Baatar, Mongolia

Ashish Narayan, ITU Regional Office for Asia and the Pacific

Goals for a Sustainable Future : The SDGs

Universal Broadband

Infrastructure Security

Emergency

IoT, Sensor Networks, GIS, Satellites

C&I

Health

Agriculture

Governance

Spectrum Management

Standards, Conformity & Interoperability

Digital InclusionSMART

SOCIETY

Green ICT & E-Waste

Education

TransportCapacity Building

Electricity

Water

Finance

Measurements

Privacy & Security

Policy & Regulation

Applications

Investment

ICTs have become

even more multi-

sectoral and can be leveraged to achieve

SDGs

We are sitting on an opportunity curve in this digital society…..

Enab

ling En

viron

men

t , Digital In

clusio

n

Skills and

capacity B

uild

ing

Inn

ovatio

n

+

Source: ITU-T Focus Group on Smart Sustainable Cities

Scale upReplication

Digital Transformation Process

Source: ITU

Estimates of the Global Market: 2015,

2016, 2017, 2020 and 2021

Coverage of mobile-cellular networks in relation to world population

The number of subscriptions per 100 population has grown from 33.9 in 2005 to 76.6 in 2010, 98.2 in 2015 and an estimated 103.5 in 2017.

The number of subscriptions worldwide now exceeds the global population, with subscriptions also exceeding population in 112 of the 176 countries included in IDI 2017

Source: ITU

Growth in Number of Users of Messaging and Hybrid Networks, 2011-2017

Source: ITU

Fixed Network: Technology Market Share by Region, Q4 2017

•• 858 operators investing in LTE, including pre-commitment trials.

•• 672 commercially launched LTE or LTE-Advanced networks in 204 countries,

including those using LTE for FWA services, and including 111 LTE-TDD (TD-

LTE) networks launched in 58 countries.

145 commercial VoLTE networks in 70 countries and 224 operators investing in

VoLTE in 102 countries.

•• 241 launched networks that are LTE-Advanced in 115 countries.

•• four launched networks that are capable of supporting user equipment (UE)

at Cat-18 DL speeds (within limited geographic areas)

•• 680–700 anticipated commercially launched LTE networks by end-2018 (GSA

forecast).

•• 50 NB-IoT and 15 LTE-M/Cat-M1 networks commercially launched with 58

other operators investing in NB-IoT and 19 other operators investing in LTE-

M/Cat-M1 in the form of tests, trials or planned deployments.

•• 134 operators that have been engaged in, are engaged in, plan to engage in,

or have been licensed to undertake 5G demos, tests or trials of one or more

constituent technologies.

•• at least 48 operators that have now made public commitments to time-lines

for deployment of pre-standards ‘5G’ or standards-based 5G networks in 33

countries.

Report:

Evolution

from LTE to

5G, GSA

https://gsacom.com/

Report:

Evolution

from LTE to

5G, GSA

https://gsacom.com/

Internet and IP traffic

4th Wave

US$ 7THealthcare costs & productivity losses 2011-2025

9MPremature deaths / year

7 BillionMobile cellular subscriptions

"We should all work to meet targets to reduce NCDs."

Soft-

Infrastru

cture

IC

T for B

etter H

ealth

Ou

tcom

es

ITU-W

HO

Partn

ersh

ip

e.g. in ASP Philippines, India

AfghanistanBhutanFijiPapua New GuineaPhilippinesSri Lanka

Country Assistances

20

18

Solutions Forum

Strategy Guide

Case studies

Coming up: Special edition on Blockchain

E-agriculture – Asia-Pacific

Key

Technologies

Cloud Computing

Big Data

Artificial IntelligenceB

lockch

ainRelatively cheap and

scalable computing

resources

High quality

data

The development and application of emerging technologies such as cloud computing, big data, artificial

intelligence, and blockchain have had a major impact on the business service model of financial institutions. They

have gradually become the key technology driver for the development of the financial industry.

Mass data storage

and data

aggregation

Improve the speed and

quality of data collection

and processing

Reg

Tech

Source: Dr. Han Han, Senior Engineer, China Academy of ICT

Cloud computing, Big data, AI and Blockchain are the key technologies of FinTech

United 4 Smart Sustainable Cities (U4SSC)

U4SSC is a United Nations Initiative coordinated by

ITU and UNECE that advocates for public policy to

encourage the use of ICTs to facilitate and ease the

transition to smart sustainable cities.

U4SSC was launched by ITU and UNECE to respond to the Sustainable Development Goal 11: "Make cities and human

settlements inclusive, safe, resilient and sustainable

Supported by:

U4SSC publications

Available for free on the U4SSC website: http://itu.int/go/U4SSC

Implementing Key performance indicators for Smart Sustainable Cities Worldwide

The U4SSC welcome

all cities that would

like to start their SSC

journey!

For more information contact: u4ssc@itu.int

Evolution of ICT Regulation

Source: ITU

Evolution of ICT Regulation

Source: ITU

A multi-tier SSC (smart sustainable city) ICT architecture from communication view (physical perspective)

Infrastructure Sharing

Licensing

Right of Way

Interoperability

Competition

QoS/QoE, Consumer

Big Data & Open Data

Cloud Roaming

Security Privacy

Investment

Spectrum

BroadbandHetNets

Green ICTs

e-Waste

Cross-Sector Collaboration

Standardization

Regulation

Policy

Telecom/ ICT Sector Issues(examples)

Data Centres

Emergency Telecommunications

Numbering & Addressing

Figure source: ITU-T Focus Group on Smart Sustainable Cities: Overview of smart sustainable cities infrastructure

Number Portability

Emerging ICT Infrastructure and Policy and Regulatory issues

Level of competition (1)

* This indicator allows multiple choice per country/economy

Year: 2016 or latest available data.

Source: ITU World Telecommunication/ICT Regulatory Database

ITU ICT-Eye: http://www.itu.int/icteye

Number of countries/economiesAfrica Arab

StatesAsia & Pacific

CIS Europe The Americas

Total

Level of Competition: Cable modem Monopoly 3 2 4 0 2 1 12Partial competition 1 0 3 0 0 2 6Full competition 5 4 14 4 37 23 87N/A 17 10 4 1 3 2 37

Level of Competition: Cable Television Monopoly 2 2 5 0 3 1 13Partial competition 2 1 3 0 1 4 11Full competition 8 2 11 8 37 25 91N/A 19 9 7 0 1 0 36

Data - Data Monopoly 2 2 3 1 2 1 11Partial competition 3 0 3 0 0 1 7Full competition 11 2 6 3 7 6 35N/A 0 1 1 0 0 0 2

Level of Competition: Domestic fixed long distance Monopoly 18 7 11 3 4 7 50Partial competition 6 4 5 1 0 0 16Full competition 14 7 12 6 39 24 102N/A 3 2 2 0 0 2 9

Level of Competition: Fixed Satellite Services (FSS) Monopoly 8 3 4 1 1 2 19Partial competition 5 1 5 0 2 1 14Full competition 14 8 14 5 27 23 91N/A 8 5 3 1 12 3 32

Level of Competition: Fixed Wireless Broadband Monopoly 9 2 2 0 2 0 15Partial competition 3 6 7 1 3 4 24Full competition 21 7 16 6 33 27 110N/A 1 1 1 0 4 0 7

Level of Competition: IMT (3G, 4G, etc.) Monopoly 2 2 3 0 2 0 9Partial competition 7 3 8 0 8 3 29Full competition 23 8 16 5 30 25 107N/A 4 4 1 1 1 0 11

Level of competition (2)

Number of countries/economiesAfrica Arab States Asia &

PacificCIS Europe The

AmericasTotal

Level of Competition: International Gateways Monopoly 9 7 4 1 2 2 25Partial competition 10 5 5 0 1 2 23Full competition 17 6 17 7 31 18 96N/A 2 1 1 0 5 2 11

Level of Competition: International Fixed Long Distance Monopoly 18 7 11 3 4 4 47Partial competition 6 4 3 0 0 2 15Full competition 14 9 16 6 39 26 110N/A 3 1 1 0 0 0 5

Level of Competition: Internet Services Monopoly 3 1 4 0 3 0 11Partial competition 4 2 3 0 0 4 13Full competition 34 16 25 8 38 30 151N/A 0 0 0 0 0 0 0

Level of Competition: Leased Lines Monopoly 14 7 5 2 3 5 36Partial competition 5 3 5 1 3 0 17Full competition 19 10 19 5 36 24 113N/A 1 0 0 0 0 1 2

Level of Competition: Wireless Local Loop Monopoly 8 5 3 0 2 5 23Partial competition 5 3 6 1 2 2 19Full competition 18 4 16 6 29 16 89N/A 3 4 2 0 8 2 19

Level of Competition: Local Fixed Line Services Monopoly 17 9 10 1 4 6 47* This indicator allows multiple choice per country/economyYear: 2017 or latest available data.

Source: ITU World Telecommunication/ICT Regulatory Database

Level of competition (3)

Number of countries/economiesAfrica Arab States Asia &

PacificCIS Europe The

AmericasTotal

Level of Competition: Local Fixed Line Services Monopoly 17 9 10 1 4 6 47Partial competition 4 4 4 0 1 0 13Full competition 14 7 18 8 39 25 111N/A 2 0 0 0 0 0 2

Level of Competition: Mobile Monopoly 3 3 3 0 2 1 12Partial competition 11 7 10 1 9 5 43Full competition 27 9 18 9 32 28 123N/A 0 0 0 0 1 0 1

Level of Competition: Mobile Satellite Services (MSS) Monopoly 1 2 7 2 0 2 14Partial competition 4 1 3 2 3 2 15Full competition 14 9 14 3 26 19 85N/A 10 5 2 0 10 3 30

Level of Competition: VSAT Monopoly 1 3 6 0 1 1 12Partial competition 5 2 5 2 0 3 17Full competition 30 11 20 5 31 23 120N/A 2 1 0 0 9 1 13

Level of Competition: DSL Monopoly 16 5 7 0 4 7 39Partial competition 2 4 2 1 0 1 10Full competition 16 9 18 6 38 24 111N/A 2 1 0 0 0 0 3

Year introduced3 3 5 0 0 0 11

Year adopted5 2 5 0 1 0 13

Region size 44 21 40 11 44 35 195

* This indicator allows multiple choice per country/economyYear: 2017 or latest available data.

Source: ITU World Telecommunication/ICT Regulatory Database

Three-criteria test for markets susceptible to ex ante regulation (ITU-T Rec. D.261)

High and non-transitory structural, legal and regulatory barriers to entry are present

Market structure does not tend towards effective competition within the relevant time horizon (having regard to the state of other competition behind the barriers to entry)

Competition law alone is insufficient to adequately address market failure(s)

A relevant market will be subject to ex ante regulation by Member States and NRAs, only if all the three criteria given below are met:

Market analysis – 3 stage process

Market definition

(in terms of product, customers and geography)

Market analysis

(to determine dominance in the relevant markets)

Determination of remedies

(that are appropriate, proportionate and reasonable)

D.262 (draft): Collaborative Framework for OTTs

D.263 (draft): Competition in Mobile Financial Services

Competition and Institutions : ITU Survey

Number of countries/economies

Africa Arab States

Asia & Pacific

CIS Europe The Americas

Total

Does a separate competition authority exist in your country?

Yes 23 11 23 8 40 23 128No 18 9 15 1 4 12 59

Jurisdiction over telecom/ICT competition issues * Telecom/ICT regulator 8 7 10 1 10 15 51

Competition authority 1 2 3 1 11 7 25Both authorities 12 3 9 4 21 2 51None of the above 2 0 1 0 4 2 9

Legal instruments defining competition * General competition law 9 3 3 1 15 4 35Telecom/ICT law 8 7 8 1 4 7 35Both 10 4 11 4 23 14 66None of the above 3 2 5 0 1 4 15

Concept of merger defined in law Yes 2 0 0 0 0 0 2No 0 0 1 0 0 0 1

Region size 44 21 40 10 45 35 195

* This indicator allows multiple choice per country/economyYear: 2017 or latest available data.

Source: ITU World Telecommunication/ICT Regulatory Database

Competition Issues: ITU Survey

Question Answer Africa Arab States Asia & Pacific

CIS Europe The Americas

Total

Concept of dominance or Significant Market Power recognized in law

Yes 31 12 19 8 39 24 133No 3 4 9 1 1 9 27

In what legal instruments (legislation in force) is the concept defined? *

ICT/Electronic communications law 6 1 1 2 19 3 32General competition/anti-trust law 2 2 5 2 11 2 24ICT competition law 1 4 0 0 0 0 5Other 2 3 2 0 2 3 12

Criteria used in determining dominance or SMP * Geographical 9 7 6 4 27 12 65Market share in terms of number of subscribers (or revenues)

27 12 16 6 37 21 119

Control of essential facilities 20 9 11 2 33 15 90Easy access to financial resources 9 8 5 1 29 4 56Strength of the countervailing power of consumers

8 6 5 1 33 7 60

Economies of scale and scope 10 6 6 3 34 11 70Barriers to entry 15 9 9 3 34 13 83Potential competition 12 6 9 2 30 9 68Other 3 5 5 0 13 4 30

Most common ex ante obligations imposed on operators * Transparency 27 11 12 5 34 17 106Non discrimination 29 12 12 7 34 19 113Interconnection and access obligations 27 11 13 6 34 21 112Regulatory accounting 16 8 9 3 26 9 71Accounting separation 21 8 9 4 31 12 85Price control 15 7 11 4 31 12 80No ex ante obligations are in place 0 0 0 0 0 0 0Other 3 2 3 0 2 4 14

Is the status of “dominance” or SMP periodically reviewed? Yes 8 8 4 4 24 7 55No 1 1 2 1 2 1 8

Status of dominance or SMP reviewed Every year 7 1 5 2 0 1 16Every two years 6 0 2 3 2 3 16Every three years 6 4 1 0 23 0 34More than three years 1 0 0 0 2 3 6Markets are reviewed on an ex-post basis, when needed and case-by-case

0 0 0 0 0 0 0

Other 7 5 9 3 6 13 43Functional separation of SMP/dominant network operator(s) required by law

Yes 16 5 9 2 15 7 54No 15 10 14 5 24 15 83

Region size 44 21 40 12 43 35 195

* This question allows multiple answers per country/economyYear: 2017 or latest available data.

OTT and Regulation: ITU Survey

Question Answer Africa Arab States

Asia & Pacific

CIS Europe The Americas

Total

Does the Telecom/ICT regulator have the jurisdiction to regulate Over-the-Top players (OTTs, e.g., companies producing Internet content, value-added services providers)?

Yes 9 3 9 1 12 5 39

No 13 9 5 3 21 12 63

Has your country adopted any policy/legislation/regulation related to OTTs?

Yes 0 2 2 0 7 3 14

No 21 10 14 4 26 16 91

If Yes, please indicate which area(s) they address: * Digital platforms 1 1 0 0 0 0 2

Social media 0 2 2 0 0 1 5

Content Delivery Networks (CDNs) 1 1 1 0 0 0 3

Other 0 0 1 0 7 2 10

If no, are there plans to adopt a regulatory framework for OTTs?

Yes 4 2 5 1 7 5 24

No 9 3 0 1 10 3 26

Region size 44 21 40 11 44 35 195

* This question allows multiple answers per country/economyYear: 2017 or latest available data.

Source: ITU World Telecommunication/ICT Regulatory Database

Number of countries/economiesAfrica Arab

StatesAsia & Pacific

CIS Europe The Americas

Total

Does the Telecom/ICT regulator have responsibilities related to e-applications and/or m-applications (e.g., e-health, e-education, e-agriculture, e-commerce)?

Yes 16 6 8 2 5 2 39No 12 8 17 5 36 24 102

If yes, please specify: 13 5 5 1 4 2 30If No, who is responsible for/ involved in the area of e-applications in your country? *

Sector Ministry 9 2 6 2 10 7 36Other Ministry 2 0 2 1 7 4 16Specialized agency 3 3 2 3 4 0 15Other 1 2 2 1 6 5 17

Has your country adopted any policy/legislation/regulation related to e-applications and/or m-applications?

Yes 10 10 12 5 18 5 60No 14 4 11 2 12 18 61

If Yes, please indicate which area(s) they address * Government services 9 10 10 4 15 5 53Business/entreprise services 7 6 9 3 7 4 36Employment 5 4 4 2 4 0 19Education and learning 8 7 9 2 7 4 37Health 6 6 10 2 8 3 35Environment 4 2 4 2 3 0 15Agriculture 5 2 5 2 4 1 19Science 4 3 6 1 4 1 19Near field communications (NFC) 3 1 4 1 2 1 12Financial services/banking 6 8 8 3 5 3 33Advertising 4 6 3 2 4 0 19Other 2 2 2 0 4 1 11

Region size 44 21 40 10 45 35 195Source: ITU World Telecommunication/ICT Regulatory Database

ITU ICT-Eye: http://www.itu.int/icteye

Fixed & Short Range

i. RFIDii. Bluetoothiii. Zigbeeiv. WiFi

IoT TechnologiesLong Range

Numbering , addressing and number portability issues

Source: BEREC Report “Enabling the Internet of Things”12 February 2016,

• Public Numbers• National E.164 numbers;• International/global E.164 numbers assigned by the ITU; • National E.212 IMSI (International Mobile Subscriber Identity); • International/global E.212 IMSI with MNCs under MCC40 901 assigned by the

ITU. • Eligibility to receive MNCs• Sufficiency of numbering resources• IP addresses (IPv4 to IPv6 transition)• MAC addresses• How to switch the IoT devices when changing operators?• OTA (Over-the-air) programming of SIMs

IOT and regulatory issues

PRIVACY AND SECURITY ISSUES• Privacy Issues as in IoT environment, data is collected and shared automatically by devices, and some may be critical in nature

• Data protection vs Open data• Applicable laws• Entity responsible for data protection• Who can have access to the data collected?• Data classification and processing• Consent of data owner?• National vs International collection and sharing of data

• Security of device and data• Consumer protection• IoT devices should follow a security and privacy “by design” approach

INTEROPERABILITY AND STANDARDS

• IoTs have both public and proprietary standards currently• Standardization is important for Interoperability, reducing costs and barriers to entry

• ITU-T SG 20 (IOT and Smart Cities, Smart Communities)• National Standardization bodies• International Standardization bodies

• How to coordinate interoperability amongst public and private sector entities?e.g. parking meters, thermostats, cardiac monitors, tires, roads, car

components, supermarket shelves• Cross-sectoral collaboration is very important as IoT are deployed in multiple sectors

IOT and regulatory issues

• Licensed Vs Non Licensed services• Area of license • OTT• Net Neutrality• Infrastructure sharing• Access to data and open IOT platforms• Data analytics• Customer lock-in • Mobile data roaming• Consumer protection• Quality of Service• USO• Taxation

IOT and regulatory issues

Distributed Ledger

Technologies (DLT)

TECHNOLOGY HIERARCHY

Technologies:Used To CreateApplications

Applications:Crypto-currency as a ‘means of payment’ and/or a ‘digital asset’

Source: Leon Perlman, ITU Asia-Pacific CoE Training on Distributed Ledger Technologies (Blockchain) Ecosystem and Decentralization

Main DLT Overall Comparison

47

Name Paypal Visa Bitcoin Bitcoin Cash Ethereum NEO EOS Stratis Komodo ICON Cardano Hyperledger Fabric Ripple Stellar IOTA Hashgraph Hedera

Type Private Private Blockchain Blockchain Blockchain Blockchain Blockchain Blockchain Blockchain Blockchain Blockchain Blockchain Blockchain Blockchain DAG DAG

Consensus n/a n/a PoW PoW PoW dBFT DPoS PoS dPoW LFT PoS Different types possible 80% of approved validators fBFT/FBA/SCP Tangle Hashgraph + PoS

Current decentralization none none Medium Medium High Low (OnChain) Medium Low Medium Low (LoopChain) Planned Possible but more for private Very low Medium Low (until coordinator-less) Planned (Swirlds)

Public attack-resistance n/a n/a High Medium High Low (until more use) Medium Medium Medium Low (until more use)Medium (until full release) Possible but more for private Medium Medium Low (until coordinator-less) Planned

Liveness or safety n/a n/a Liveness Liveness Liveness Safety Safety Liveness Liveness Safety Liveness Depending on the chosen type Safety Safety Liveness Liveness

Own tokens n/a n/a Mining Mining ICO/Mining ICO ICO ICO ICO/Mining ICO ICO n/a Company allocation Company allocation (unbanked)ICO ICO

TPS (Visa usual needs 2000 TPS) 200 50000 7 61 15 1000+ 3000+ 20000 20000 3000+ 10 (planned for thousands) Depending on the chosen type (max. 700) 1500 1000 1500 (real-time stress much lower) 100000

Sidechain n/a n/a Lightning n/a Raiden, Liquidity n/a n/a Yes Planned n/a Planned n/a n/a n/a n/a n/a

Crosschain n/a n/a n/a n/a n/a Planned n/a n/a Planned Planned Planned n/a n/a n/a n/a n/a

Open-source No No Yes Yes Yes Yes Yes Yes Yes Planned Yes Yes Yes Yes Yes Yes but patented

Programming language n/a n/a C++ C++ Solidity C#, Python… C++ C# C++ Python Haskell, Plutus, Solidity… Golang Javascript Javascript, Java, Go… Java, Javascript, Python Java, Solidity

Coding difficulty given available IDE n/a n/a Medium High Medium Easy Medium Easy Medium Low Medium Medium Medium Easy Easy Medium

Permission Private Private Public Public Public Public Public Public Public Public Public Private (and public in theory) Private Public Public Public

Smart contract n/a n/a Limited Limited Yes Yes (500 GAS to deploy) Yes Yes Not yet Planned Yes Yes Limited to finance Limited to finance Yes

Transaction cost e.g., 2,9% + fixed fee e.g., 1,5% + fixed fee Medium Low Medium Low (if below 10GAS) Low (may need renting bandwidth)Low Low Planned (Low) Planned (Medium) Depending on the chosen type Planned (Low) Low None Medium

KYC/AML for its own currencies Yes Yes No No No No No No No KYC & AML KYC n/a Yes No No KYC & AML

KYC/AML for other created tokens n/a n/a n/a n/a Not yet Planned Not yet Helpers Helpers Planned Not yet Not yet Not yet Helpers Not planned Not yet

Privacy n/a n/a n/a n/a n/a n/a n/a Yes (option) Yes (option) n/a n/a n/a n/a n/a n/a n/a

Community Private Private Big Small (but influent) Big Medium Big Small Small Small Medium Medium (backed by IBM…) Medium (backed by banks…)Medium Medium Medium

Peer-reviewed Private Private Yes No Yes No No No No No Yes No No Yes No Yes

Number of dApps/tokens/use-cases n/a n/a Medium Not planned High Low Medium Low Low Very low Planned Medium Low Low Medium Medium

Upgrades n/a n/a PoS, sharding, plasma Decentralization, refactoring, zero-knowledge proof Coordinator-less, smart contracts

Distributed Ledger Technologies, Blockchain and Bitcoin ?

Source: Jean-Marc Seigneur (Reputaction), ITU Asia-Pacific CoE Training on Distributed Ledger Technologies (Blockchain) Ecosystem and Decentralization

Regulatory areas of interest (examples)

• Lack of clear legal framework and applicable laws• DLTs, Cryptocurrency, ICOs and exchanges

• Maturity level of technology, standards, interoperability

• How to apply consumer protection measures…

• How to apply AML measures…

• Use of identities registered in one jurisdiction, in others

• Immutability of data, data privacy frameworks and legal recourse

• Increased responsibility on consumer (Forgot my password??)

• Security (encryption, attacks….)

Source: Leon Perlman, ITU Asia-Pacific CoE Training on Distributed Ledger Technologies (Blockchain) Ecosystem and Decentralization

Source: Draft Report (Artificial Intelligence (AI) for Development Series Introductory module),https://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2018/documents/AISeries_IntroductoryModule_GSR18.pdf

Artificial Intelligence

Personal data

Notice and consentBias or fairness issues

Accountability and liability

Appropriate standards

Verification and validation

Security threats

Market structure issues

Establishment of an oversight body

Institutional framework and cross-sectoral and interdisciplinary approaches

Ethical, Legal, Regulatory Issues

Sector-specific policy

Cross-sectoral policy

Multistakeholder governance generally

Data protection regulation

Exploratory regulatory approaches

Business and investment models to support digital transformation

Policy and regulatory approaches for continued innovation and progress

Fostering the potential of emerging

technologies for digital

transformation

GSR-18 BEST PRACTICE GUIDELINES ON

NEW REGULATORY FRONTIERS TO ACHIEVE

DIGITAL TRANSFORMATION

Thank You