Regulation of Electronic Networks and Services in Europe. Contents

Transcription

1 OECD - Telecommunications Policy for the Digital Economy Regulation of Electronic Networks and Services in Europe Peter Scott EUROPEAN COMMISSION Brussels PSC 1 OECD Dubai Contents 1. EU liberalisation - 4 years on u Indicators 2. Key areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Numbering, naming and addressing u Rights of way, collocation u Spectrum PSC 2 OECD Dubai Market growth EU telecommunications market (bn) 2001* voice telephony mobile serv ices leased lines and data serv ices PSC 3 OECD Dubai

2 Market segmentation Breakdown of EU telecommunications market 2001* 51% 38% 12% % 34% 13% voice telephony % 63% 27% 23% 14% 15% m obile serv ices leased lines and data serv ices 0% 20% 40% 60% 80% 100% PSC 4 OECD Dubai Per capita telecommunications expenditure in the EU in Per capita telecommunications expenditure EU simple average : 762 B/L DK D EL E F IRL I NL A P FIN S UK Source: EITO 2001 EU average PSC 5 OECD Dubai Consumer choice Percentage of population with choice of operators for long distance and international calls 100% 80% 60% 40% 20% 0% B DK D EL E F IRL I L NL A P FIN S UK 2 operators 0% 3-5 operators 100% 0% 100% More than 5 40% 100% 100% 0% 100% 100% 100% 100% 0% 100% 100% 100% 100% 100% 100% PSC 6 OECD Dubai

3 Tariff rebalancing: evolution of fixed charges /PPP per month, incl VAT Residential rental per month Aug 1998 Aug 1999 Aug 2000 Aug PSC 7 OECD Dubai Tariff rebalancing : Charges for a 3 min call Local and long-distance call charge, 3 m in. -cents / PPP, VAT included EU15 w eighted average A ug A ug A ug A ug Local call Long-distance call PSC 8 OECD Dubai Cost of international calls EU weighted average cost of an international call / PPP Business, excl. VAT Residential, incl. VAT PSC 9 OECD Dubai

4 Average monthly expenditure EU weighted average monthly expenditure for national calls / PPP Business, excl. VAT Residential, incl. VAT PSC 10 OECD Dubai 2Mbit/s national leased lines Price trends Average price variations, 2 Mb/s % change since % -5% -10% -15% -20% -25% -30% -35% -40% EU, 2km EU, 50km EU, 200km -8% -19% -31% -10% -25% -36% -11% -24% -38% PSC 11 OECD Dubai International Leased lines Price trends Average price variations, 2 Mb/s % change since % -5% -10% -15% -20% -25% -30% -35% -40% -45% 0% -11% -12% -16% -23% -28% -30% -29% -33% -40% Mb/s to near EU 2 Mb/s to far EU 2 Mb/s to USA PSC 12 OECD Dubai

5 Mobile penetration and growth Mobile penetration and growth EU average penetration (2001): 73% EU av. penetration growth rate ( ): 34% 80% 70% 60% 50% 40% 30% 20% 10% 0% +43% +49% +63% +36% +41% +13% +70% +26% +93% +69% +82% +75% +101% +111% +68% 68% 74% 67% 67% 68% 57% 70% 82% 84% 75% 82% 76% 78% 76% 73% B DK D EL E F IRL I L NL A P FIN S UK August 2000 August PSC 13 OECD Dubai Internet access Household penetration of internet access (October 2000-June 2001) 70% 60% 50% 40% 30% 20% 10% 0% B DK D EL E F IRL I L NL A P FIN S UK Sourc es: Eurobarom eter Oc tober 2000 June 2001 EU av erage June PSC 14 OECD Dubai Incumbent s market share local call market Estimates of incumbent operators local call market shares, retail revenues 100% 80% 60% 99% 74% 70% 100% 94% 97% 95% 93% 100% 99% 85% 100% 95% 82% 68% 40% 20% 0% B** DK* D* EL E F IRL I L** NL A** P** FIN S* UK Local calls excluding calls to the Internet All local calls PSC 15 OECD Dubai

6 Data sources ueuropean Commission 7th implementation report see /telecoms/implementation/annual_report/7rep ort/index_en.htm PSC 16 OECD Dubai Creating the right legislative framework A successful legal framework will: uattract investment, by - encouraging market entry - providing legal certainty - restraining firms with undue market power - keeping regulation to the minimum necessary upromote choice and competition usafeguard users interests, where market forces do not PSC 17 OECD Dubai The Challenge of Convergence Audio- visual Telecoms Multimedia PSC 18 OECD Dubai IT

7 GLOBALISATION u Regulators around the world face similar problems u Regulatory principles may be agreed globally, regionally or nationally u Regulation should be enforced as closely as practicable to the activities being regulated u Transparency, fairness and proportionality in rules and rule-making are essential PSC 19 OECD Dubai &RQYHUJHQFHLVDUHDOLW\ Service Voice telephony Data Broadcasting Network Cable Wireless Fixed Satellite Fixed Cable Telecoms Satellite Mobile Terrestrial Terminal Telephone/ Handset PC Television PSC 20 OECD Dubai DEALING WITH CONVERGENCE 1. Content and transport are different, so: - separate regulation for transport and for content, while recognising the links between them 2. All content can be delivered over all networks; network-dependent rules are being overtaken by technology; markets are merging; so: - coherent regulation of communications infrastructures and associated services PSC 21 OECD Dubai

8 Communications services, networks and associated facilities Services provided over networks (outside scope of Communications regulation) Communications services (eg transmission of voice, data, text, image) Communications networks and associated facilities (eg conditional access facilities) PSC 22 OECD Dubai Problems.. and Solutions uunpredictability of markets uneed for legal certainty udiffering degrees of competition in different markets ½ Flexibility for regulators ½ Strict procedures for regulators ½ Regulation to be linked to degree of competition PSC 23 OECD Dubai Keeping regulation to the minimum necessary uwhich markets are subject to sector-specific regulation? uwhich companies are regulated on those markets? uwhat obligations do they face? PSC 24 OECD Dubai

9 Keeping regulation to the minimum necessary unot all markets within scope of new framework will be regulated ex-ante uno ex-ante intervention when there is effective competition in a specific market w except for general obligations arising from public policy reasons eg consumer protection uno ex-ante intervention where competition law remedies would suffice and market entry barriers are low PSC 25 OECD Dubai Asymmetric regulation uasymmetric regulation needed for as long as some players have significant market power, and competition is not effective uobligations on operators with significant market power may include cost orientation, transparency, non discrimination, mandatory provision of - or access to - specified facilities PSC 26 OECD Dubai Critical areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Numbering, naming and addressing u Rights of way, collocation u Spectrum PSC 27 OECD Dubai

10 Licensing and market entry utoday - mainly individual licences, in particular for voice telephony services ufrom no prior permission for market entry - obligations set out in general authorisations - individual licences only for rights-of-use of frequencies or numbers PSC 28 OECD Dubai Critical areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Rights of way, collocation u Numbering, naming and addressing u Spectrum PSC 29 OECD Dubai Independence of Regulatory Authority u Independent of any operator or service provider u Independent of any government department that is a shareholder in an operator or service provider u Independent of political interference with regard to individual decisions PSC 30 OECD Dubai

11 Independent Regulatory Authority uthe Regulatory Authority is the guardian of effective competition and user rights PSC 31 OECD Dubai Independent Regulatory Authority uthe Regulatory Authority is the guardian of effective competition and user rights... u. but watchdogs need teeth! PSC 32 OECD Dubai Ensuring effectiveness of the regulatory authority uregulator needs to have the legal powers to impose obligations on operators (eg in resolving disputes) ustaff need to be equipped with the necessary technical, economic and legal expertise udecision-making processes need to be impartial and transparent, and subject to an appeal procedure PSC 33 OECD Dubai

12 Critical areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Numbering, naming and addressing u Rights of way, collocation u Spectrum PSC 34 OECD Dubai Universal service uscope - what services are included? ucosting - how much does it cost to provide? ufunding - who pays for it? PSC 35 OECD Dubai Universal service in the EU Scope uconnection to the public telephone network at a fixed location, suitable for voice and data transmission uaccess to, and use of, the public telephone service uprovision of pay-phones, public telephone directories, directory enquiry services uspecific facilities for disabled users PSC 36 OECD Dubai

13 Universal service in the EU Costing ucost of Universal service obligation (USO) based on avoidable cost principle ucalculation of cost of USO to be transparent and independently audited unon-tangible benefits to be taken into account in calculating the net cost PSC 37 OECD Dubai Universal service in the EU Funding uonly allowed where USO is seen as an undue burden umost EU States have not set up USO funding schemes PSC 38 OECD Dubai Protecting Users Interests upriority given to market solutions in first instance eg standardisation seen as market- led process; markets determine winners uregulators have reserve powers to intervene where necessary to protect user interests eg quality of service, information for users uexisting rules for data protection, privacy and confidentiality extended to new services eg PSC 39 OECD Dubai

14 Critical areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Rights of way, collocation u Numbering, naming and addressing u Spectrum PSC 40 OECD Dubai Why regulate interconnection? u to ensure any-to-any communication - organisations that control the means of access to customers have rights and obligations to negotiate interconnect uto compensate for imbalance of negotiating power between incumbents and new entrants - operators with market power have obligations for transparency, cost orientation, and non-discrimination PSC 41 OECD Dubai Interconnection charges in EU 2.0 Interconnection charges for call termination on fixed network Single transit level - EU average: cents 1.5 Aug Aug cents per minute B DK D D(2) EL E F IRL I L NL A P FIN FIN(2) S UK Bt UK King PSC 42 OECD Dubai

15 Interconnection in the EU ufor details of interconnection in each Member State, see the Interconnection Atlas at PSC 43 OECD Dubai Regulating interconnection and access utoday - legislation pre-defines markets where access / interconnection obligations apply PSC 44 OECD Dubai Access - a generic issue access to the local loop (local loop unbundling) access to cable TV networks or satellite systems, access to mobile network infrastructures (MVNOs) access to IN functionality of fixed and mobile networks access to broadband networks access for ISPs to cable TV networks access to submarine cables access to set-top boxes, EPGs and APIs access to?????? PSC 45 OECD Dubai

16 Regulating interconnection and access utoday - legislation pre-defines markets where access / interconnection obligations apply ufrom any to any interconnection rule retained - more NRA flexibility in defining markets - obligations to provide access only where competition is not effective and operator has significant market power PSC 46 OECD Dubai Regulating Access and Interconnection ua tool box of possible obligations for NRAs to use, (transparency, non-discrimination, accounting separation, mandated access, price regulation) PSC 47 OECD Dubai Regulating Access and Interconnection u. to fix specific types of problem PSC 48 OECD Dubai

17 Regulating Access and Interconnection u following a common set of objectives and guidelines PSC 49 OECD Dubai Critical areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Numbering, naming and addressing u Rights of way, collocation u Spectrum PSC 50 OECD Dubai Role of regulatory authority in numbering, naming & addressing unumbering: w control the national numbering plan w ensure non-discrimination and equality in assignment of numbers unumbering, naming and addressing w co-ordination of positions in international forums PSC 51 OECD Dubai

18 Number Portability utoday: - subscribers on fixed networks can retain their number (at a fixed location) when changing operator ufrom 2003: - this facility extended to subscribers on mobile networks PSC 52 OECD Dubai Critical areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Numbering, naming and addressing u Rights of way, collocation u Spectrum PSC 53 OECD Dubai Treatment of Rights of way (RoW) utoday: w no discrimination over RoW between incumbents and new entrants ufrom 2003: w procedures, terms and conditions for RoW to be more transparent w procedures to be applied without discrimination and without delay w local authorities must separate regulatory functions for RoW from any network operation or ownership functions PSC 54 OECD Dubai

19 Collocation and facility sharing ucollocation normally a matter of commercial negotiation unra may impose collocation or facility sharing after public consultation PSC 55 OECD Dubai Critical areas u Licensing u Independent regulatory authority u Universal service and user interests u Interconnection and access u Numbering, naming and addressing u Rights of way, collocation u Spectrum PSC 56 OECD Dubai RADIO SPECTRUM in EU uradio spectrum policy making is evolving, both at national, Community and international level: wincreased demand wglobal services wspectrum pricing PSC 57 OECD Dubai

20 New approach to Radio Spectrum in EU upolicy framework will: waddress the strategic planning and harmonisation of the use of ALL radio spectrum in the Community (broadcasting, transport, communications etc) wtake into account economic, health, public policy, cultural, scientific, social and technical aspects wseek to balance the various interests of different spectrum users PSC 58 OECD Dubai For more information... On the European Commission: On : telecoms/index_en.htm On the new legislation: telecoms/regulatory/new_rf/index_en.htm PSC 59 OECD Dubai European Heads of State and Government A new strategic goal for Europe in the next decade: to become the most competitive and dynamic knowledge-based economy in the world March PSC 60 OECD Dubai