TDSAT INTERNATIONAL SEMINAR ON DISPUTE RESOLUTION

29-30 October 2004New Delhi, India

Susan Schorr, Regulatory OfficerTelecommunication Development Bureau (BDT)

The Evolving The Evolving Scenario in the Scenario in the

TelecommunicatiTelecommunications Sectorons Sector Impact on Impact on

Nature Nature of Disputes and of Disputes and

Response Response MechanismsMechanisms

The Telecommunications Sector The Telecommunications Sector has become the ICT Sectorhas become the ICT Sector

• Plain old telecom services being replaced by bouquet of voice, data, broadband Internet and multimedia services

• Copper networks refitted as ADSL broadband networks

• CATV compete head-to-head with copper• Voice traffic shifting to VoIP• Wireless broadband key to developing

countries

Revenues from public switched telephone, Revenues from public switched telephone, cellular mobile and other telecommunication cellular mobile and other telecommunication networks worldwide, 1993-2003 and 2003, in networks worldwide, 1993-2003 and 2003, in

current USD billionscurrent USD billions

0

200

400

600

800

1'000

1'200

1993 95 97 99 01 2003

Global service revenue trends, in current US$ billions

Domestic fixed telephone

International fixed telephone

Mobile

Data and other

Global service revenues, 2003 Total = US$1.1 trillion

Domestic fixed

telephone, 38.9%

Int'l fixed, telephone,

4.4%

Mobile, 37.7%

Data and other, 19.1%

Source: ITU World Telecommunication Indicators Database

Ownership Status of the Incumbent Ownership Status of the Incumbent OperatorOperator

Source: ITU World Telecommunication Regulatory Database

from 1991 to 2004

0

20

40

60

80

100

120

140

160

1991 1993 1995 1999 2001 2004

Private State-ownedCountries

74%

53%

42%

43%

Americas

Asia-Pacific

Africa

Arab States

Privatization by region, percentage, mid 2004

102 million broadband subscribers by 102 million broadband subscribers by end 2003end 2003

0

20

40

60

80

100

120

1998 1999 2000 2001 2002 2003

Broadband subscribers w orldw ide , million

0.56%1.25%

3.96%

7.33%

15.3%

11.2%

Broadband subscribers as a

percentage of Internet users

Source: ITU Internet Reports 2004 “The Portable Internet”

Broadband networksBroadband networks

• Phone linesPhone lines• Coaxial cablesCoaxial cables• Fibre optic cablesFibre optic cables• Power linesPower lines• WirelessWireless

“While most current broadband networks are based on copper lines, fibre optic and wireless technologies are the broadband of the future”

Source: ITU World Telecommunication Indicators Database

Broadband subscribers wordwide, 2003. Total = 102 million

DSL, 57.5%

Cable modem, 37.0%

Other broadband, 5.5%

Other” broadband includes fibre to the home, WiFi, Metro Ethernet,Fixed Wireless Access, Satellite, etc.

Broadband’s fast growthBroadband’s fast growth

“Broadband access has quietly grown faster than mobile phones in their early stages”

0

10

20

30

40

50

60

70

Year 1 Year 2 Year 3 Year 4

Broadband (1999-2002)

Mobile (1989-1992)

Broadband and mobile growth, millions, world

Source: ITU World Telecommunication Indicators Database

ICT Sector Increasingly Dominated ICT Sector Increasingly Dominated by Wireless Technologiesby Wireless Technologies

• ICT sector dominated by mobile cellular

• Advent of 3G services

• New fixed wireless broadband technologies like Wi-Fi and Wi-MAX on the rise

All these changes require a new regulatory framework

ICT Users Worldwide 1991–mid ICT Users Worldwide 1991–mid

20042004 Telephone and Internet Users

World, Millions

0

500

1'000

1'500

2'000

1991 94 97 2000 03

Fixed-line

Mobile

Internet users

Source: ITU World Telecommunication Indicators Database

Cellular mobile usersCellular mobile users mmid-2004 and mobile id-2004 and mobile users added 2000-mid 2004; number of users added 2000-mid 2004; number of

Internet users 2003, and new Internet users Internet users 2003, and new Internet users added, 2000-2003added, 2000-2003

 

44.0%21.5%

56.0%78.5%

Mid-2004 Installedbase

New subscribersadded, 2000-Mid

2004Cellular mobile subscribers

Developing

Developed

1.48 billion 739 million

60.9%

33.8%

39.1%

66.2%

2003 Installedbase

New usersadded, 2000-

2003Internet Users

Developing

Developed

691 million 332 million

Source: ITU World Telecommunication Indicators Database

Level of competition in Level of competition in selected services world, 2004selected services world, 2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Basicservices

Leased lines Wirelesslocal loop

Cellular Cable TV VSAT ISPs

Monopoly Competition

Source: ITU World Telecommunication Regulatory Database

MalaysiaMalaysia

Licenses under the old regime

Licensing under the new regime

Licensing Category Individual Licence Class Licence Exempt/Unlicensed

1. Domestic Network Operators2. International Network Operators3.Cellular/Personal Communications Services4. CT2 / Telepoint Service5. Financial Electronic Transaction6. Paging Services7. Trunk Radio System8. Radio Maritime Service9. Mobile Satellite Services10. Telecommunications Satellite Network Services11. Very Small Aperture Terminal Services12. Radio Location Services13. Satellite Broadcasting Services14. Mobile Data Services15. Mobile Radiocommunications Services16. Private Information Services17. Public Electronic Data Interchange Services18. Value Added Network Data Services19. Value Added Services (Premium Rate)20. Telecommunications Personal Services21. Public Internet Kiosk Services22. Internet Service Providers23. Power Line Carriers24. Payphone & Public Facsimile Services25. Wireless Video Communications Network26. Private Telecommunications Network27. Common Subscriber Directory Services28. Community Interactive Multimedia Services29. Amateur Satellite30. Broadcasters - Radio31. Broadcasters – Television

Network Facility Provider

Earth StationsFixed links and cables

Public payphone facilitiesRadiocommunications transmitters and links

Satellite hubsSatellite control station

Space stationSubmarine cable landing

centreSwitching centre

Towers, poles, ducts and pits used in conjunction with other

network facilities

Niche or limited purpose network facilities

Broadcasting and production studiosIncidental network facilities

Private network facilities

Network Service Provider

Bandwidth servicesBroadcasting distribution

servicesCellular mobile services

Access applications serviceSpace service

Niche customer accessNiche connection service

Incidental network servicesLAN services

Private network servicesRouter

Internetworking

Applications Service Provider

PSTNPublic cellular services

IP telephonyPublic payphone service

Public switched data service

Audiotext hosting services provided on an opt-in basis

Directory servicesInternet access services

Messaging services

Electronic transaction serviceInteractive transaction service

Networked advertising boards and Cineplex

Web hosting or client server

Content Applications Service Provider

Satellite broadcasting subscription

Broadcasting Terrestrial free to air TV

Terrestrial radio broadcasting

Not issued Internet content applications services

Other Regulatory TrendsOther Regulatory Trends

• Freeing spectrum for use by ever growing numbers of wireless devices

• Authorizing greater use of VoIP

• Considering regulation of VoIP

• Combating Spam

Impact of Technological, Market Impact of Technological, Market and Regulatory Developments on and Regulatory Developments on

DisputesDisputes• Embracing technology and service neutral

licenses should reduce disputes about market entry into specific markets

• Technology neutral regulation = greater liberalization

• Further liberalization creates new market players and grants rights to these new players that did not exist before.

• Granting of new rights inevitably leads to new disputes as new interests clash with traditional ones

Spam GrowthSpam Growth

8%

32%

48%

65%

June '01 June '02 June '03 June '04

Spam as a percentage of all email worldwide (Brightmail)

0

10

20

30

40

50

60

70

80

Nov'03

Dec Jan'04

Feb Apr Mar May Jun Jul Aug Sep Oct'04

Spam as a percentage of all email worldwide (MessageLabs)

Trends: Trends: National Regulatory National Regulatory Authorities WorldwideAuthorities Worldwide and and

Percentage per RegionPercentage per Region

Source: ITU World Telecommunication Regulatory Database.

14 1727 31 34

43

56

75

8694

106

117

132Regulatory agencies, world (cumulative)

50%

48%

73%

81%

88%

Asia-Pacific

Arab States

Europe

Africa

Americas

Percentage of regulators in each region

Mechanisms to resolve interconnection Mechanisms to resolve interconnection disputes, sanctions powerdisputes, sanctions power

Mechanisms used for resolution of interconnection disputes

0% 10% 20% 30% 40% 50% 60% 70%

Arbitration

Mediation/conciliation

Expert determination

Administrative adjudication

Courts/litigation

Percent of countries using mechanism

Percentage of countries where the Regulatory Authority can impose the specified sanctions/penalties

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other sanctions

Additional licence obligations

Modification of licence

Licence suspension

Licence revocation

Monetary fines

Percentage of countries

Overturning decision of national regulatory Overturning decision of national regulatory authorityauthority

Which entities can overturn the decisions of the National Regulatory Authority, by percentage of

countries, world

0% 10% 20% 30% 40% 50% 60% 70%

Other

No one

Competition Authority

Sector complaint body

The Judiciary

The Sector Ministry

Percentage of Regulators worldwide Percentage of Regulators worldwide responsible for consumer issuesresponsible for consumer issues

87%

59%

82%

59%

76%

Consumercomplaints

Provision ofcomparative tariff

information

Informingconsumers of

their rights

Representingconsumers

Promotingconsumer

participation

http://www.itu.int/ITU-D/treg/http://www.itu.int/ITU-D/treg/

Thank You!Thank You!

Susan Schorr

Regulatory Officer

ITU/BDT/Regulatory Reform Unit

+41 22 730 5638

susan.schorr@itu.int