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NATIONAL TELECOMMUNICATIONS AGENCYNATIONAL TELECOMMUNICATIONS AGENCY

MULTIMEDIA IN THE FIXED MULTIMEDIA IN THE FIXED SWITCHED TELEPHONE SWITCHED TELEPHONE

SERVICESERVICEthe the erer@ of information@ of information

Edmundo Antonio MatarazzoEdmundo Antonio MatarazzoSuperintendentSuperintendent for Public Services for Public Services

June 2001June 2001

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ObjectivesObjectives

to provide a broad and to provide a broad and integrated overview of the integrated overview of the regulations and their evolution.regulations and their evolution.

to present key issues for to present key issues for action by telecommunications action by telecommunications service providers.service providers.

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Broad and integrated overviewBroad and integrated overview

Information represents a mobile, Information represents a mobile, transferable, and highly marketable asset;transferable, and highly marketable asset;

Information access represents the Information access represents the possibility of society to make giant possibility of society to make giant stridesstrides;;

What’s important is the evolution of the What’s important is the evolution of the capacity to communicate, access and capacity to communicate, access and exchange informationexchange information, reduce distances, , reduce distances, and rapidly perform actions that produce and rapidly perform actions that produce better results.better results.

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Guidelines to be consideredGuidelines to be considered

Fulfillment of Fulfillment of government obligationsgovernment obligations

guarantee access to services by the population. stimulate expanded service to the benefit of the populaton. strengthen the State’s regulatory role. create investment opportunities and stimulate the technological and industrial development. harmonize the development of the telecommunications sector and the nation’s social development.

Other guidelinesOther guidelines

safeguard the national sovereignty. assegurar a função social; repress violations against the economic order. reduce regional and social inequalities.

Protection of user Protection of user rightsrights

ensure access to services throughout the national territory. ensure users right to choose service provider. guarantee the continuity of services provided under the public regime. ensure dissemination of conditions for provision of services.prevent discrimination against users.

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Key issues Key issues

Can the Can the failure to adopt a cooperative failure to adopt a cooperative attitude in the relationship with attitude in the relationship with competitorscompetitors afect the development of the afect the development of the necessary interactions for the fruition of necessary interactions for the fruition of the services?the services?

How How to ensure that the use of the to ensure that the use of the infrastructure implemented by various infrastructure implemented by various competitorscompetitors will stimulate the will stimulate the development of this necessary user base development of this necessary user base for the telecommunications sector?for the telecommunications sector?

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Key issues Key issues

In addition to competitors, In addition to competitors, what other what other service providers can be providers of service providers can be providers of infrastructure, facilities, and servicesinfrastructure, facilities, and services??

What is the impact of coordinated actions What is the impact of coordinated actions intended for the implementation of intended for the implementation of shared shared systems systems on telecommunications services?on telecommunications services?

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Overview of regulatory frameworkOverview of regulatory framework

Deployment of networksDeployment of networksinfrastructure sharing;infrastructure sharing; provision of facilitie;provision of facilitie; information exchangeinformation exchange resale.resale.

InterconnectionInterconnectioninfrastructure sharing;infrastructure sharing; provision of facilities;provision of facilities; interoperability of networks and services;interoperability of networks and services; integrated planning.integrated planning.

Service offeringsService offeringsindependent plans;independent plans; varied range;varied range; user satisfaction.user satisfaction.

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Recommendations Recommendations

Given the different states of service Given the different states of service provision, their evolution models, and the provision, their evolution models, and the development of the competitive development of the competitive environment, it is necessary to:environment, it is necessary to:

prioritize services;prioritize services; know the regulatory framework;know the regulatory framework; adjust the way to plan and negotiate.adjust the way to plan and negotiate.

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Key issuesuestões-chave Key issuesuestões-chave

Can the Can the fixed switched telephone servicefixed switched telephone service be replaced with another service?be replaced with another service?

Can the Can the failure to adopt a technological failure to adopt a technological standardstandard affect the development of the affect the development of the multimedia environment?multimedia environment?

How How to ensure the use of the same media to ensure the use of the same media for different services and applicationsfor different services and applications be be permitted without impairing the services permitted without impairing the services provided under the public regime?provided under the public regime?

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Key issues Key issues

Can the Can the failure to adopt a standard for failure to adopt a standard for access protocols and information transferaccess protocols and information transfer affect the development of such affect the development of such applications?applications?

How How to ensure that the use of the to ensure that the use of the infrastructure deployed by various infrastructure deployed by various competitorscompetitors will stimulate the will stimulate the development of the user base necessary development of the user base necessary for the telecommunications sector?for the telecommunications sector?

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Key issues Key issues

In addition to the Fixed Switched In addition to the Fixed Switched Telephone Service, Telephone Service, what other services what other services should be provided under the public should be provided under the public regimeregime??

What is the impact of What is the impact of systems for systems for measuring results such as the EVA (Total measuring results such as the EVA (Total Economic Value) or of compensation Economic Value) or of compensation mechanismsmechanisms on telecommunications on telecommunications services?services?

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Recommendations Recommendations

Given the different states of the services, Given the different states of the services, their evolution models, and the their evolution models, and the development of the competitive development of the competitive environment, it is necessary to:environment, it is necessary to:

prioritize services;prioritize services; identify regulatory leverages;identify regulatory leverages; adjust the ways to regulate.adjust the ways to regulate.

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Services attributesServices attributes

Quality and credibilityQuality and credibilityconsumer information & compliance with obligationsconsumer information & compliance with obligations

Prices (tariffs) and billing system Prices (tariffs) and billing system different charges/plans & customer servicesdifferent charges/plans & customer services

Product modernity (terminal)Product modernity (terminal) technological complexity & intelectual and social characteristicstechnological complexity & intelectual and social characteristics

Coverage area Coverage area domestic and international, according to the interest of the userdomestic and international, according to the interest of the user Terminal diversity and portability Terminal diversity and portability

device for personal use & user terminal portabilitydevice for personal use & user terminal portability User mobilityUser mobility

possibility to use any resources from any service providerpossibility to use any resources from any service provider Access capacityAccess capacity

communications environment, access, and information exchangecommunications environment, access, and information exchange

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Terminal4%Preços e sistema

de cobrança21%

Credibilidade10%

Custo e cobertura de roaming

10%

Atendimento ao cliente17%

Capacidade da corporação

17%

Qualidade da chamada

21%

User satisfactionUser satisfaction

WFI, 1999, USA

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Scenario Scenario

ContentContentorigin and destinationorigin and destination

Access and provisioning elementAccess and provisioning elementresources involving arrangement and presentation to usersresources involving arrangement and presentation to users

Distribution Distribution resources to cover each household or userresources to cover each household or user

Telecommunications Services Telecommunications Services attributes of a form of telecommunicationsattributes of a form of telecommunications

Telecomunications Networks Telecomunications Networks facilities for transport of the various forms of tlecommuncations facilities for transport of the various forms of tlecommuncations

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TerminalsTerminals DistribuitionDistribuition

NetworksNetworks

ContentContent Telecommunications servicesTelecommunications services

Telecommunications scenario Telecommunications scenario

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The new paradigms The new paradigms

Deregulation and privatizationDeregulation and privatizationmergers and acquisitions x competitionmergers and acquisitions x competition

ConvergenceConvergencetechnological x intelectual heritagetechnological x intelectual heritage

StandardsStandardsgovernamental action xgovernamental action x market drive (coalition)market drive (coalition)

Elimination of frontiersElimination of frontiers alliances among competitors x identification of competitorsalliances among competitors x identification of competitors Volatility Volatility

faster to market x shorter operating cyclefaster to market x shorter operating cycle Elimination of intermediariesElimination of intermediaries

brings manufacturer/consumer together x produts and services brings manufacturer/consumer together x produts and services analystanalyst

GlobalizationGlobalizationglobal view x different views (locations, cultures, etc.)global view x different views (locations, cultures, etc.)