Download Regulatory Enablers of Convergence and NGN

Regulatory Enablers of Convergence and NGN
Dead Sea
November 2008
Presentation by: Eng. Khaled Al Twergi
Convergence to Jordan 2008
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Table of Contents
 Definitions (Convergence & NGN)
 General regulation of Convergence & NGN
 Specific regulation of Convergence & NGN
 Conclusion
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The common understanding of convergence in the telecom
industry is when media and telecom services overlap
Convergence Definition
Content
Infrastructure
Voice Calls
Fixed Networks
Data Transmission
(internet content,
email, picture, SMS,
MMS, special data,
etc…)
Data Networks
Mobile Networks
Next Generation
Networks
Media (Radio, TV,
etc…)
Satellite
Transmission
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Key convergence enablers are Next Generation Networks which
will replace the legacy core network with an all-IP based core
Definition of NGN
3
Access
Network
2
Fibre
Wireless Copper
Access
Network
2
Metro
Aggregation
NGN
1
Core
From 3
to 2
layers
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1
IP Core
Convergence and NGN could impact the regulatory value chain
from policy making to regulatory levers
NON EXHAUSTIVE
Impact of Convergence and NGN on Regulations
Policies
 Sector
Objectives:
– Economic
– Social
 Policy Impact
Governance
 Media vs Telecom
Regulators
 Industry led
(NGNuK) versus
Authority-led
Regulations







Spectrum
Numbering
Interconnection
QoS
Content regulation
Access
Market definition
Impact on Regulations
Heavy
Light
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The OECD provides eight key policy making recommendations to
support the emergence of NGN
OECD Policy Challenges for NGN
1
Addressing Significant Market Power (SMP) issues and promoting fair competition
2
Maintaining and open and competitive market in infrastructure and services
3
Encouraging innovation and long-term investment
4
Removing barriers to the development of emerging markets
5
Ensuring proportionality of regulation, including forbearance
6
Ensuring technologically neutral regulatory framework, allowing market players
freedom of choice
7
Ensuring the optimal balance in spectrum management
8
Ensuring consumer protection and QoS
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While media and telecom regulation are typically separate
functions, the Trends: Governments will unify their regulators
SELECTION
Governance Setup Benchmarks
Separate Telecom and
Media Regulators
Saudi Arabia
Jordan
Morocco
Lebanon
Singapore
France
Germany
Turkey
Hungary
Key Migration Drivers
 One-stop-shop leading to
greater regulatory
consistency
Integrated (Converged)
Regulatory Bodies
Australia
Italy
 Easier compliance
models
Malaysia
 Better reflection of the
market place
Canada
 Operational efficiencies
for regulators
South Africa
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UK
USA
To regulate NGN, the most favorable model is one where the
industry regulates itself
Evaluation of the Regulatory Management Models
Model
1
Industry-led:
United Kingdom
Evaluation
Favorable
 Industry could lead the development of NGN and come to a
consensus on key issues affecting interaction
 Industry knows better how is it evolving and can better determine
its future
2
Authority-led:
Singapore
3
Wait-and-See:
Hong Kong
 Governments are not able to pre-determine consumer needs
 Market-led initiatives are more responsive and efficient
 Government participation should only be a last resort where the
market has demonstrated it cannot meet consumer needs
 No action might hinder development specially if no collaboration
between industry stakeholders is triggered
 Given the scope and impact of NGN, no consensus among
stakeholders might lead to misaligned technical solutions
Low
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High
Defining markets & SMP in converged markets will be
challenging given the vertical integration
SMP and Dominance in a Converged Environment
Existing Independent Markets
PSTN
Cable TV
ISP
Vertically Integrated Markets
Typically
Regulated
PSTN
Typically
Partially
Regulated
Cable TV
Typically
Not Regulated
ISP
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Comments
 Integrated service
providers will
surely impact
market definition
 Legacy definitions
should be
reviewed in light of
convergence and
vertical integration
With convergence and NGN, new interconnection obligations
could arise to address new bottlenecks
Interconnection under NGN
Interconnection Routes
NGN Interconnection Bottlenecks
 Network capabilities (block, delay
or degrade service)
 Elementary services (use of
proprietary standards)
 Service access (Walled Gardens:
restricting access to certain
addresses and services)
 Control and user information
(user authentication, location
data, and other data to help
resolve naming and numbers)
Legacy
Network
NGN
NGN
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NGN and convergence will put even more strain on spectrum
availability forcing regulators to optimize spectrum use
Spectrum Management Requirements and Initiatives
Convergence and NGN Spectrum Requirements
 Adopting technology development,
i.e. smart radios
Wimax
Mobile
2G and 3G
 Allowing primary licensees or
spectrum brokers to lease spectrum
rights to secondary users
Microwave
links
 Registering the use of licenseexempt spectrum such as WiFi to
avoid overrunning capacity
Spectrum
Requirements
 Re-farming spectrum held by users
such as governments
Satellite
links
Broadcasting
EU Spectrum Management Initiatives
 Trading spectrum (as per the EU
Regulatory Package for Electronic
Communications of March 2002)
Wifi
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Other regulatory dimensions would be impacted with the advent
of convergence and NGN
Additional Regulatory Dimensions
1
Numbering
2
QoS
 Regulators should be ready
for ENUM
3
 It will allow even more
convergence and should be
encouraged
Access
 NGN will allow more
flexibility when defining
quality of service
parameters per client
4
Content
 QoS obligations need to be
revisited in light of this
flexibility
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 Access networks are
evolving
 Legacy regulations might
prohibit investments and
hence delay faster
networks
 Convergence and NGN will
enable a wider and richer
delivery of content over
telecom infrastructures
 Content regulation will soon
become quite relevant to
telcos and hence need to
be properly adapted
Conclusion:
 Messages to the policy makers & Regulators to enable Convergence & NGN:
– Pay attention to Convergence & NGN Economic and Market potential to develop the telecom
industry & remove hesitation from large scale investments due to regulators uncertainties.
– Avoid unexpected regulatory changes due to its impact on long term investment plans.
– Remove regulatory barriers & encourage the development of convergence and NGN.
– The scope of competition policy will shift from competition among networks to service
competition.
– To harness the potential of convergence & NGN, is to leave the market to find solutions and not
to regulate up-front.
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Thank You for
Your Kind Attention
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