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INTUG CONFERENCE MADRID
21 de mayo de 2013
Global Developments in
Telecommunications
Nick White, EVP, INTUG
Enabling the Economy
1. Business communications – an engine of growth
2. Removing national barriers to international trade
3. Focusing on big picture, not the means to the end
4. Focusing on today’s big issues for business users
5. Balancing global, regional and national objectives
6. Regulation as an enabler not a constraint
7. Infrastructure: Investment and Competition?
8. Fixed and Mobile convergence
9. INTUG strategy and key priorities
10. INTUG key relationships and activities
1: Business Communications
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The engine of growth – lifeblood of the economy
A single EU telecoms market would add 0.6% GDP
Every 10Mbps broadband generates c0.1% growth
Online business is driving SME global explosion
Smart devices increase mobile data exponentially
Digital exclusion is a barrier to social progress
Internet of Things will add Billions of connections
Machine to Machine (M2M) communications
2: Barriers to Trade
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Current environment is a fragmented patchwork
Multiple contracts add inefficiency and cost
Inconsistent approaches block interoperability
Incumbent dominance is a barrier to new entrants
Access to local infrastructure is discriminatory
Roaming charges deter on-line process investment
Lack of pan-EU MVNOs fragment contracts
Blocking of gateways limit private network reach
3: Focusing on the Big Picture
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It’s about the economy……(not the telecoms industry)
ICT is only 4-5% of GDP: Business use is 35-40% GDP
Fragmentation in Europe is hurting the EU economy
The “Ladder of investment” forces unwise choices
Productivity, job creation and growth are priorities
- but not in telecoms at the expense of the rest!
4: Focus on the Big Issues
Business Users face major communications challenges:
• Cloud Services, Big Data: Security
• Mobile Communications: Roaming
• Availabillity and Quality of Service
• Competition, Lock-in and Switching
• Acquisitions and Disposals
• Supply Chain interoperabilty
5: Global v Regional v National
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New Telecoms Framework: BEREC
Harmonisation and consistency
Commission Serious Doubts/Article 7
Converged and Consumed and Diverged NRAs
Regulating Content and Carriage
Global Context: ITU, WARC, WSIS, WCIT, ICANN
Regional Context: APECTel, CITEL, SAMENA
Political Pressures: OECD, Digital Agenda
6: Regulation: Enabler or Constraint
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Telecoms still needs sector specific ex-ante
Competition/Fair Trade ex-post too late
Some Relevant Markets in Retail still required
But business and consumer markets differ
Right-sizing the competitive landscape is needed
The US has a continental operator structure
Transational consolidation is needed in Europe
Mergers have often forced disposal not aggregation
Spectrum allocation should facilitate scale economy
Aim is enabling the economy not telecom growth
7: Investment and Competition
• Current debate appears to suggest that there is a
political choice between investment (in infrastructure)
and sustaining a competitive environment
• This is influencing decisions on pricing wholesale
copper access, and the cinsequent service cost to
customers and deterring market entry
• There is extensive evidence to prove that duplicated
fibre infrastructure to the cabinet or home in most
countries is unjustifiable and unaffordable
• In some countries there will never be FTTH and
wireless will provide ubiquitous broadband so FTTM
(Fibre to the Mast) become the best apprach
8: Fixed and Mobile Convergence
• Businesses use electricity regardless of generating
technology and expect comparable performance,
availability and price
• Telecommunications should become the same,
with the distinction between fibre, copper, WiFi,
Wimax, mobile etc invisible and irrelevant
• Industry structure is currently geographically and
technologially fragmented and divergent
• The next generation of technology and industry structure
should be able to resolve this
9: INTUG Strategy and Priorities
• Removing barriers for online businesses
of all sizes – SMEs an engine for growth
• Enabling innovative business processes in
public and private sectors
• Addressing the cloud challenge of service
quality, security and cost
• Supporting anywhere, anytime anything,
anyhow connectivity and usage
10: INTUG Relationships/Activities
Key Relationships
• Global: ITU, OECD, Service providers
• Europe: Commission, BEREC
• AsiaPacific: APECTel
• Americas: CITEL, Regualtel
• Africa: Correspondents
• National: Government Ministries, NRAs
Key activities
• Meetings with key Individuals, eg VP Kroes
• Consultation submissions, letters
• Conference presentations, media interviews
• Position papers, Press articles
• Website, news alerts
INTUG CONFERENCE MADRID
21 de mayo de 2013
Global Developments in
Telecommunications
Nick White, EVP, INTUG
Thank You! Questions?