Download Barriers to Progress in Converged Network and Services Development

Barriers to Progress in Converged
Network and Services Development
William H. Melody
Managing Director, LIRNE.NET
[email protected], www.lirne.net
Presentation at Workshop
Convergence of Media and ICT in Egypt:
Challenges, Policies and Regulation
Cairo, 3 May 2006
Finance/
Banking
Regional
Development
Travel & Tourism
Manufacturing
Health/Medical
Government Services
Content
Broadcast
Media
Film
Libraries
Software
etc
Disaster Management
Media & Cultural Sectors
Education/Training
Applications
Electronic Services
(Pay TV, VAS, Internet)
Multimedia, etc.
(Public, User group, Private)
Telecommunication
Facilities Network
(Information Superhighway)
Computing / Information
Technology
Interactivity
(Instant & Delayed)
Voice
Data
Sound
Graphics
Video
Telecommunication
Equipment Manufacturing
INFORMATION INFRASTRUCTURE
Significance of Network
Unbundling
• Industry Sectors - Equipment, Operator
Networks, Services
• Fixed and Mobile
• Basic Network Layers
• *Content
*Communication Services
*Network Protocols, OSS & Management
*Equipment & Facility Capability
The Dimensions of Convergence on the Information Infrastructure
Convergence Sectors
Computing
Content
Telecom
Drivers of Convergence
•Technology
• Industry-Supply
• Market-Demand
• Policies/Regulation
•Industry Specific
•Convergent
Applications
• Finance
• Commerce
• Education
• Health
• Publishing
• Manufacturing
• etc.
From Vertical to Horizontal Markets
Layer 4: INFORMATION SERVICES
Provision of Content
Layer 3: COMMUNICATION SERVICES
Basic, value-added & access to information services
Layer 2: NETWORK MANAGEMENT
Protocols and standards for routing & service quality
Layer 1:INFRASTRUCTURE FACILITIES
Transmission capacity and interfaces to terminals
Steps Toward ICT Convergence
•
•
•
•
•
•
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Digitalization of the network
Mobility
Next Generation Internet (Broadband)
Media integration (Internet Protocol)
E-commerce (QoS)
Restructuring of industries
Reshaping Policy and Regulation
Infrastructure For Digital
Economies
• Higher Capacity Facilities - Broadband?
• Access to High Speed Networks?
• Access to Minimal Level of Universal
Services?
• Access to Minimal Levels of Information?
VoIP or Everything Over IP?
• The gradual digitalization of the network has
been a steady march to providing all forms of
electronic communication over a compatible
set of protocols, now called IP
• From terminals to transmission, switching and
local distribution. Network protocols
applicable to data, graphics, music, video and
finally voice
• Why are we surprised and poorly prepared
for VOIP?
ICT Convergence Regulation
• Access to communication channels and
access to content
• New issues of competition and monopoly
• Privacy, security, IPR
• Reducing digital divides?
• Can content regulation be avoided?
• The most effective role for national telecom
regulators?
Entry Points in Converging Markets
IT Data
Information
Services
Communication
Services
Network
Management
Infrastructure
Facilities
Telephone
Internet Content
Entertainment
EoIP
From Regulating Competitors to Opening Markets
Protection
Internati
onal
Traffic
Termina
tor
Network
Integrator
“ISPs”
Vertically
Integrated
Incumbent
Fixed
Services
Mobile
Services
Second
Cellular
Operator
Mobile
Services
Restricted Infrastructure Rights
Transmission
Transmission
Infrastructure
Infrastructure
Protection
Restricted Services (e.g.
excluding Voice or Roaming)
VSAT
Operators
Trunking
Operators
Open Playing Field Regulation
• A transition from monopoly/oligopoly direction
to maximizing participation via open access
• Target is not technological neutrality, but
maximum development of all technology &
services advantages
• Maximum opportunities for competing firms to
achieve public interest goals
• Maximum stimulation to market development
through both private and public participation
Policy/Regulation Reassessment to
Create Investment Opportunities (1)
• Structural Adjustment, Phase 2
- empowering regulator as change agent
• Horizontal Market Definitions
- unbundling layers; monopoly nodes
• Reassessing Licenses
- what needs licensing, why, how?
- removing service restrictions
• Application of Competition Principles
- from regulating firms to regulating markets
Policy/Regulation Reassessment to
Create Investment Opportunities (2)
• Interconnection/Access in Converged Markets
- from minutes to Gbits
• Pricing and Revenue Settlement Standards
- wholesale/retail; origination/termination
• Allocation/Use of Public Resources
– spectrum, numbers, names, right of way
• Public Service Requirements
– emergency, security, QoS
• Social Subsidy Mechanisms
– USO, ADC, etc.
World Dialogue on Regulation for
Network Economies
• Participate in the Dialogue; review and comment on the
research, www.regulateonline.org
LIRNE.NET, www.lirne.net
• A Strategic Collaboration for applied research, training, policy
and regulation support, relating to information infrastructure and
new network economy development
• Center for Tele-Information (CTI), TU Denmark
• Economics of Infrastructures, TU Delft, Netherlands
• LINK Centre, Wits University, South Africa
• LIRNEasia, Colombo, Sri Lanka
• LIRNEamericas, Montevideo, Uruguay
• Media@lse, London School of Economics, UK