Download Ms. Susan Schorr

The Evolving
Scenario in the
Telecommunications
Sector
Impact on Nature
of Disputes and
Response
Mechanisms
TDSAT INTERNATIONAL SEMINAR ON DISPUTE RESOLUTION
29-30 October 2004
New Delhi, India
Susan Schorr, Regulatory Officer
Telecommunication Development Bureau (BDT)
The Telecommunications Sector has
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, cellular
mobile and other telecommunication networks
worldwide, 1993-2003 and 2003, in current USD
billions
Data and
other,
19.1%
Mobile,
37.7%
Domestic
fixed
telephone,
38.9%
Int'l fixed,
telephone,
4.4%
Global service revenues, 2003 Total = US$1.1 trillion
Source: ITU World Telecommunication Indicators Database
Ownership Status of the Incumbent Operator
from 1991 to 2004
Countries
160
Private
Privatization by region,
percentage, mid 2004
State-owned
140
120
100
Arab States
43%
Africa
42%
80
60
40
20
Asia-Pacific
0
1991
1993
1995
1999
2001
53%
2004
Americas
Source: ITU World Telecommunication Regulatory Database
74%
102 million broadband subscribers by end 2003
Broadband s ubs cribe rs w orldw ide , million
120
100
80
60
15.3%
Broadband
subscribers as a
percentage of
Internet users
11.2%
7.33%
40
20
0.56%
1.25%
3.96%
0
1998
1999
2000
2001
2002
Source: ITU Internet Reports 2004 “The Portable Internet”
2003
Broadband networks
“While most current broadband networks are based
on copper lines, fibre optic and wireless
technologies are the broadband of the future”
•
•
•
•
•
Phone lines
Coaxial cables
Fibre optic cables
Power lines
Wireless
Other broadband, 5.5%
Cable
m odem ,
37.0%
DSL,
57.5%
Broadband
subscribers
w ordw ide, 2003.
Total = 102 million
Other” broadband includes fibre to the home, WiFi, Metro Ethernet,
Fixed Wireless Access, Satellite, etc.
Source: ITU World Telecommunication Indicators Database
Broadband’s fast growth
“Broadband access has quietly grown faster than
mobile phones in their early stages”
Broadband and mobile growth, millions, world
70
60
Broadband (1999-2002)
50
Mobile (1989-1992)
40
30
20
10
0
Year 1
Year 2
Source: ITU World Telecommunication Indicators Database
Year 3
Year 4
ICT Sector Increasingly Dominated by
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 2004
Telephone and Internet Users
World, Millions
2'000
1'500
Fixed-line
1'000
Internet
users
500
M obile
0
1991
94
97
2000
Source: ITU World Telecommunication Indicators Database
03
Cellular mobile users mid-2004 and mobile users added
2000-mid 2004; number of Internet users 2003, and
new Internet users added, 2000-2003
1.48 billion
739 million
Developing
332 million
691 million
56.0%
78.5%
39.1%
Developing
66.2%
44.0%
Developed
21.5%
60.9%
Mid-2004 Installed
base
Cellular mobile subscribers
New subscribers
added, 2000-Mid
2004
Developed
33.8%
2003 Installed
base
Internet Users
Source: ITU World Telecommunication Indicators Database
New users
added, 20002003
Level of competition in selected
services world, 2004
Monopoly
Competition
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Basic
services
Leased lines
Wireless
local loop
Cellular
Source: ITU World Telecommunication Regulatory Database
Cable TV
VSAT
ISPs
Licensing under the new regime
Malaysia
Licensing Category
Individual Licence
Class Licence
Exempt/Unlicensed
Licenses under the old regime
1. Domestic Network Operators
2. International Network Operators
3.Cellular/Personal Communications
Services
4. CT2 / Telepoint Service
5. Financial Electronic Transaction
6. Paging Services
7. Trunk Radio System
8. Radio Maritime Service
9. Mobile Satellite Services
10. Telecommunications Satellite Network
Services
11. Very Small Aperture Terminal Services
12. Radio Location Services
13. Satellite Broadcasting Services
14. Mobile Data Services
15. Mobile Radiocommunications Services
16. Private Information Services
17. Public Electronic Data Interchange
Services
18. Value Added Network Data Services
19. Value Added Services (Premium Rate)
20. Telecommunications Personal Services
21. Public Internet Kiosk Services
22. Internet Service Providers
23. Power Line Carriers
24. Payphone & Public Facsimile Services
25. Wireless Video Communications
Network
26. Private Telecommunications Network
27. Common Subscriber Directory Services
28. Community Interactive Multimedia
Services
29. Amateur Satellite
30. Broadcasters - Radio
31. Broadcasters – Television
Network
Provider
Facility
Earth Stations
Fixed links and cables
Public payphone facilities
Radiocommunications
transmitters and links
Satellite hubs
Satellite control station
Space station
Submarine cable landing
centre
Switching centre
Towers, poles, ducts and pits
used in conjunction with other
network facilities
Niche or limited purpose
network facilities
Broadcasting and production studios
Incidental network facilities
Private network facilities
Network
Provider
Service
Bandwidth services
Broadcasting distribution
services
Cellular mobile services
Access applications service
Space service
Niche customer access
Niche connection service
Incidental network services
LAN services
Private network services
Router
Internetworking
Applications
Provider
Service
PSTN
Public cellular services
IP telephony
Public payphone service
Public switched data service
Audiotext hosting services
provided on an opt-in basis
Directory services
Internet access services
Messaging services
Electronic transaction service
Interactive 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 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 and
Regulatory Developments on Disputes
• 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 Growth
Spam as a percentage of all email worldwide (MessageLabs)
80
70
60
Spam as a percentage of
all email worldwide
(Brightmail)
50
40
65%
48%
30
20
10
32%
0
Nov Dec Jan Feb Apr Mar May Jun Jul Aug Sep Oct
'03
'04
'04
8%
June '01
June '02
June '03
June '04
Trends: National Regulatory Authorities
Worldwide and Percentage per Region
Regulatory
agencies, world
(cumulative)
132
117
106
Percentage of regulators in each region
94
86
Americas
88%
75
Africa
56
81%
43
27
14
31
34
Europe
48%
04
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
Arab States
19
73%
17
Asia-Pacific
Source: ITU World Telecommunication Regulatory Database.
50%
Mechanisms to resolve interconnection disputes,
sanctions power
Mechanisms used for resolution of interconnection disputes
Courts/litigation
Administrative adjudication
Expert determination
Mediation/conciliation
Arbitration
0%
10%
20%
30%
40%
50%
Percent of countries using mechanism
Percentage of countries where the Regulatory Authority can impose
the specified sanctions/penalties
Monetary fines
Licence revocation
Licence suspension
Modification of licence
Additional licence obligations
Other sanctions
0%
10%
20%
30%
40%
50%
Percentage of countries
60%
70%
80%
60%
70%
Overturning decision of national regulatory authority
Which entities can overturn the decisions of the
National Regulatory Authority, by percentage of
countries, world
The Sector Ministry
The Judiciary
Sector complaint body
Competition Authority
No one
Other
0%
10%
20%
30%
40%
50%
60%
70%
Percentage of Regulators worldwide responsible for
consumer issues
Promoting
consumer
participation
Representing
consumers
76%
59%
Informing
consumers of
their rights
Provision of
comparative tariff
information
Consumer
complaints
82%
59%
87%
http://www.itu.int/ITU-D/treg/
Thank You!
Susan Schorr
Regulatory Officer
ITU/BDT/Regulatory Reform Unit
+41 22 730 5638
[email protected]