susan schorr, head, a.i., regulatory and market ... · monopoly 29% partial competition 17%...
TRANSCRIPT
InternationalTelecommunicationUnion
10 years of regulatory trends10 years of regulatory trends
Susan Schorr, Head, a.i., Regulatory and Market Environment Division
BDT, International Telecommunication Union
Symposium on Telecommunicationsto Commemorate the 10th Anniversary of the
Fourth Protocol to the GATS20-21 February 2008,
WTO, Geneva, Switzerland
The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the ITU or its Membership.
February 2008 2
Agenda
IntroFirst wave of regulatory reform: ICT Market and Regulatory TrendsIs it time for a second wave?
February 2008
WTO Reference Paper 1997
Topics covered:1. Competition2. Interconnection3. Universal Service4. Licensing5. Independent Regulators6. Allocation of scarce resources
February 2008 4
Flexibility & forward-looking approach being adopted worldwide, but tailored to local circumstances, towards a converged regulatory frameworkConverging technologies (FMC, etc.)
Changing focus:From regulating voice towards regulating data services, multimedia, broadcasting: regulatory parityFrom regulating multiple services over multiple delivery platforms towards NGN regulationFrom regulating PSTN to regulation IPInfrastructure sharingFrom heavy-handed regulation to light-touch approach, but also functional separation Transparency & accountabilityAdopting and enforcing of clear rulesComplexity vs. simplicity (i.e. interconnection, etc.)International cooperation
Regulation in an era of convergence
February 2008
Effective regulation
14
43
86
106
124137
148
1990 1995 1998 2000 2002 2004 2007
Regulatory agencies, world (cumulative)
59%
83%
89%
85%
Americas
Africa
Asia-Pacific
Europe
Source: ITU World Telecommunication Regulatory Database
Number of regulators worldwide
Percentage of regulators in each region, 2007
February 2008
Competition
Source: ITU World Telecommunication Regulatory Database
Growth in competition and in nb of subscribers, selected services
0
20
40
60
80
100
120
140
160
1995 1997 2000 2001 2002 2003 2004 2005 2006
Basic services MobileCountries
Grow th of competition, 1995 to 2006
Growth in fixed lines, mobile cellular subscribers and Internet users, in billions, 1996-2006
0.0
1.0
2.0
3.0
4.0
5.0
6.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
billi
ons
Fixed lines Mobile subscribers Internet users
February 2008
Private ownership worldwide, 2007
0
20
40
60
80
100
120
140
160
1991 1993 1995 1999 2001 2005 2007
nb o
f eco
nom
ies
Private State-owned
Status of fixed-line incumbents, worldwide, 1991-2007
Proportion of privately-owned incumbents, by region, 2007
74%
53%
56%
48%
76%Europe
Americas
Asia-Pacif ic
Africa
Arab States
Source: ITU World Telecommunication Regulatory Database
February 2008
Sector reformPrivatizations of incumbent operators worldwide, 1997
The designations employed and the presentation of material in this map do not imply any opinion whatsoever on the part of the ITU concerning the legal or other status of any country, territory or area or any endorsement or acceptance of any boundary.
Source: ITU World Telecommunication Regulatory Database
February 2008
Sector reformPrivatizations of incumbent operators worldwide, 2007
February 2008
Functional Separation
A new kind of re-structuring?Separation of legacy fixed line operators’ non-replicable or bottleneck assets into a new business division which provides wholesale accessThis wholesale access division is kept separate from the incumbent’s own retail divisionsAustralia, Ireland, Italy, Mongolia, New Zealand, Sweden and U.K.
February 2008
LicensingTechnology and service neutralityTransparency (criteria, procedure time, terms, etc.)Expansion in the number of services that are subject to only minimal or even no licensing, andDevelopment of converged licensing frameworks that break down traditional service-based and technology-based licensing distinctions.Ensuring a level playing field between legacy operators and new market playersWhat about Voice over IP?
» GSR Best Practice Guidelines on Licensing (2004)
February 2008
Interconnection Trends
Who has to provide?Different countries may require interconnection from incumbentsincumbentsor dominant operatorsdominant operators or operators with SMPoperators with SMPIncreasingly, countries take a technology neutral approach and impose interconnection obligations on all network operatorsall network operatorsStill asymmetric regulationasymmetric regulation places heavier interconnection obligations placed on major suppliers
When is it provided?Immediately through Reference Interconnection OfferDeadlines (e.g. 3 months – to 135 days from time of request)
How much does it cost?Cost-oriented rates, using fully allocated costs, LRIC or othersBenchmarkingPrivately negotiated
What information is available?Role of regulators’ websites to publish RIOs
Dispute settlement
February 2008
What interconnection information is made publicly
available?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Africa Americas Arab States Asia-Pacific Europe
Interconnection prices RIO Interconnection agreements
ITU World Telecommunication Regulatory Database (2005 & 2006)
February 2008 14
IXPs and International gateway liberalization
Monopoly29%
Partial competition
17%
Competition54%
Liberalization of the int’l gateway worldwide, 2007
Source: ITU World Telecommunication Regulatory Database
Number of IXPs and number of countries with and without IXP, by region, 2007
35
22
28
1918
13
21
35
020406080
100120140160180
Africa Americas Asia-Pacific Europe & CIS
Nb o
f IXP
s
0
5
10
15
20
25
30
35
40
Nb o
f cou
ntrie
s pe
r reg
ion
Nb IXPs Countries without an IXP Countries with an IXP
February 2008
Universal access
» GSR Best Practice Guidelines on Universal Access (2003)
Universal Sevice ObligationTraditional Approach Implemented By PlacingObligations on Fixed Line Monopoly OperatorGoal: universal household connectionsLargely achieved in developed world
Universal Access OpportunityFirst step: Sector reform measuresUse of funds and smart subsidies combined with competitive auctionsGoal: promote public access to un-served areasMobile communications have reached more voice users than through fixed line USO programmesNew steps needed to promote broadband
February 2008
CompetitionCompetition, Price and , Price and TechnologyTechnology
Competitive bidding keeps subsidy, if any, lowLack of competition for access services willimpact financial viabilityPrice of services to end users and fromincoming calls can make or break financialviabilityTechnology choice can push forward the envelope of financial sustainability and affordability
February 2008 17
Towards the second wave of sector reform
Liberalize the international gateways and VoIP to promote IP servicesLeverage on the success in the mobile market to migrate to IMT technologiesLeapfrog to fiber backbone and backhaul networks, by providing financial and fiscal incentives to encourage the deployment of backbone infrastructureCreate national IXPsContinue to use market liberalization and competition as a force for developmentThink outside the box
encouraging network deployment with incentivessupporting small-scale deployment in rural areasUsing infrastructure sharing and open access models to promote deployment
Promote cross-border harmonization for issues like international mobile roamingRemember where we started? . . . Convergence!First steps taken to address convergence; new issues arising for new applications and services like IPTV and mobile broadcasting
February 2008
http://www.itu.int/GSR08/
GSR 2008
Trends in TelecommunicationReform 2008: Open Access &
Infrastructure Sharing
Six degrees of sharing: Six degrees of sharing:
Innovative infrastructuresharing and open accessstrategies to promote
affordable access for all
Coming soon!
