Emerging policy and regulatory challenges of Next Generation Networks (NGN)

Similar documents
International Telecommunication Union

International Telecommunication Union

MINUTES AND TEXTS CUSTOMER MOBILE BOLT-ON GUIDE JUNE 2018 BOLT-ON WILL KEEP YOU IN CONTROL OF YOUR COSTS. INTERNATIONAL NUMBERS FROM YOUR MOBILE, THIS

Payphone Origination Service Charge Rate Per Min. Mobile Origination Service Charge. MLB Switched Rate Per Min. MLB Dedicated Rate Per Min

E-Seminar. Voice over IP. Internet Technical Solution Seminar

DataKom Vodafone Mobile Tariff Minimum 30 day end of month notice cancellation - Subject to contract. DataKom O2 Mobile Tariff. All prices exclude VAT

PAY MONTHLY ADDITIONAL SERVICES TERMS AND CONDITIONS

Telecommunication Regulatory Reform and the WTO Process

EU Telecoms Reform package 2007 Comments/ questions

Digital EAGLEs. Outlook and perspectives

Economic aspects of to-mobile interconnection

International Business Mail Rate Card

Cisco Aironet In-Building Wireless Solutions International Power Compliance Chart

Patent Portfolio Overview May The data in this presentation is current as of this date.

Traffic Offload. Cisco 7200/Cisco 7500 APPLICATION NOTE

Global trends in telecom development Seminar in Niamey, April 2001

ICT Connectivity for Trade & Development

Global trends in telecom development & new challenges for developing countries

Enterprise price plan guide Vodafone One Net Business

STANDARD BROADBAND & FIBRE BROADBAND PLANS

VDSL The way to Next Generation Access Networks

VOICE/DATA SIMCARD USA UNLIMITED

MANUAL VOICE/DATA SIMCARD CANADA

Sonae/PT: Implications for fixed-line markets. Giulio Federico ACE Meeting 2008 Budapest, November

EE Pay Monthly Add-Ons & Commitment Packs. Version

Step 1 Step 2. Name Minutes * Texts *

Power Analyzer Firmware Update Utility Version Software Release Notes

Patent Portfolio Overview July The data in this presentation is current as of this date.

International Packets

OUR SHARERS MEAN BUSINESS. SHARER TARIFF RANGE CUSTOMER MOBILE TARIFF GUIDE JUNE 2018

Pricing mobile services: Trends and tactics. Pricing mobile services

Bahrain Telecom Pricing International Benchmarking. July 2018

BoR (11) 08. BEREC Report on Alternative Voice and SMS Retail Roaming Tariffs and Retail Data Roaming Tariffs

BoR (10) 13. BEREC report on Alternative Retail Voice and SMS Roaming Tariffs and Retail Data Roaming Tariffs

Broadband. Rudolph Muller. MyBroadband.co.za

The Canadian Experience

Items exceeding one or more of the maximum weight and dimensions of a flat. For maximum dimensions please see the service user guide.

iclass SE multiclass SE 125kHz, 13.56MHz 125kHz, 13.56MHz

Reference Interconnect Offer Fix and Mobile (RIO F&M)

Reference Interconnect Offer Fix and Mobile (RIO F&M)

For: Ministry of Education From Date: 19 November 18-2 December 18 Venue: M1 Shops

EventBuilder.com. International Audio Conferencing Access Guide. This guide contains: :: International Toll-Free Access Dialing Instructions

Global entertainment and media outlook Explore the content and tools

STANDARD BROADBAND & FIBRE BROADBAND PLANS

Digital Context Pacific Alliance

Case study of a high-tech world leader: Republic of Korea Dr Tim Kelly, Head, Strategy and Policy Unit

STANDARD BROADBAND & FIBRE BROADBAND PLANS

END-OF-SALE AND END-OF-LIFE ANNOUNCEMENT FOR THE CISCO MEDIA CONVERGENCE SERVER 7845H-2400

BUSINESS CUSTOMERS MORE FLEXIBILITY, CUSTOMER MOBILE TARIFF GUIDE MORE CHOICE EXPECT MORE MORE DATA, APRIL 2018

Rural broadband and its implications for the future of Universal Service. The Israeli Case

BUSINESS CUSTOMERS MORE FLEXIBILITY, CUSTOMER MOBILE TARIFF GUIDE MORE CHOICE EXPECT MORE MORE DATA, NOVEMBER 2018

International Roaming Critical Information Summaries JULY 2017

THE CISCO SUCCESS BUILDER PROGRAM THE CISCO SMALL OFFICE COMMUNICATIONS CENTER: AFFORDABLE, PROVEN COMMUNICATIONS SOLUTIONS FOR SMALL ORGANIZATIONS

Digital Opportunity Index. Michael Minges Telecommunications Management Group, Inc.

International Business Parcels Rate card

Carrier Services. Intelligent telephony. for over COUNTRIES DID NUMBERS. All IP

OUR SHARERS MEAN BUSINESS. SHARER TARIFF RANGE CUSTOMER MOBILE TARIFF GUIDE APRIL 2018

Spoka Meet Audio Calls Rates Dial-In UK

Overcoming the Compliance Challenges of VAT Remittance. 12 April :55 to 16:30 (CEST)

Enterprise price plan guide Vodafone One Net Business

The pricing guide. What are these prices?

Service withdrawal: Selected IBM ServicePac offerings

Business Mobile Plans

Purchasing. Operations 3% Marketing 3% HR. Production 1%

Mexico s Telecommunications Constitutional Reform, the Shared Network and the Public - Private Collaboration. MBB Forum Shanghai, China

Global trends in telecom development

THE POWER OF A STRONG PARTNERSHIP.

IGEL-Briefing March Managed Software and Hardware Thin Clients

The Guide Everything you need to know about our mobile services

development: Lessons from Asia

Delivering Broadband in the Region. John Reid

INTERNATIONAL TRENDS FOR NEW INVESTMENT MODELS IN NGA

Cisco Voice Services Provisioning Tool 2.6(1)

Cisco CallManager 4.0-PBX Interoperability: Lucent/Avaya Definity G3 MV1.3 PBX using 6608-T1 PRI NI2 with MGCP

Business Mobile Plans

Connected for less around the world Swisscom lowers its roaming tariffs again. Media teleconference 12 May 2009

Assessing Broadband in America. By Phil Heidenreich

Unlimited UK mobile calls and unlimited UK texts Bolt On: Unlimited landlines Poland Bundle (400 minutes to mobiles & landlines) 3.

RT-AX95U Wireless-AX11000 Tri Band Gigabit Router

No Purchase needed

AN POST SCHEDULE OF CHARGES

The Role of SANAS in Support of South African Regulatory Objectives. Mr. Mpho Phaloane South African National Accreditation System

Excerpt Poland: LTE and Fiber Rollouts to Turn Telecom Market Around, M&A to Continue

CUSTOMER GUIDE Interoute One Bridge Outlook Plugin Meeting Invite Example Guide

CISCO IP PHONE 7970G NEW! CISCO IP PHONE 7905G AND 7912G XML

Why some economies succeed with broadband

Cisco Extensible Provisioning and Operations Manager 4.5

MORE THAN JUST A PRODUCT, CABLOFIL IS A GLOBAL SOLUTION. Safer, more economic economic and more performant and A SYSTEM AN EXPERTISE A SERVICE

Growth in mobile-broadband connections

International Telecommunication Union

The real deal. The Bill Pay and Prepay price guide.

Automation DriveServer

Allianz SE Reinsurance Branch Asia Pacific Systems Requirements & Developments. Dr. Lutz Füllgraf

Access Code and Phone Number

Connectivity Scorecard Leonard Waverman. Kalyan Dasgupta. Haskayne School of Business University of Calgary. LECG, London

Vodafone Usage Manager R2.0

CISCO 7304 SERIES ROUTER PORT ADAPTER CARRIER CARD

Alternative phone number: Credit card/debit card number Expiry date: / / DD MM YYYY

Dashboard. Feb 18, Feb 18, 2008 Comparing to: Site. 13,318 Visits 28,414 Pageviews 2.13 Pages/Visit

Improving digital infrastructure for a better connected Thailand

Transcription:

Emerging policy and regulatory challenges of Next Generation Networks (NGN) Dr Tim Kelly Head, Strategy and Policy Unit, ComReg workshop: NGN in Ireland 8 March 2007, Dublin The author can contacted by e-mail at tim.kelly@itu.int.

Agenda: NGN Policy and Regulatory Challenges 2 Why NGN? Why should we migrate from today s networks to tomorrow s NGN? Where does Ireland rank? Today s trends Telcos still heavily dependent on voice revenues But, the trend is towards bundling and flat-rate pricing Voice revenues will drive NGN investment Regulatory challenges Investment incentives versus unbundling Complexity versus simplicity Mobile versus fixed termination IP versus PSTN call termination

What is an Next Generation Network? Today s PSTN network Next Generation Networks 3 Circuit-switched. Limited mobility of end-user services. Vertical integration of application and call control layers, with dedicated networks. Non-responsive network. Source: ITU Internet Reports 2005: The Internet of Things Packet-based, based on Internet Protocol (IP). Broad-based generalised mobility. Horizontally-integrated control layers, with simultaneous delivery of applications. Servicerelated functions independent of transportrelated technologies. NGN will be able to identify and adapt to user needs in real-time.

But, doubts persist over NGN 4 NGN represents the marriage of the Telco and IP worlds. But will it be a collision? Is the NGN just another a telco attempt to recreate an Intelligent Network with centralised intelligence? Is the NGN primarily an overlay or a newbuild? Is it just a clever marketing name? Who pays for what, where, when and to whom in an NGN environment?

So, what might be the benefits of a Next Generation Network? 5 For the Operator: Lower costs in having a single IP-based network to invest in and maintain, and fewer switching locations Single billing contact with the customer ( internet with billing ) and interface for 3rd party content providers Possibility to offer multiple play (voice, video, data etc) and faster time to market for new service roll-out For the customer: Possibility to use the same customised environment between different platforms Possibility of lower prices through bundled service offerings Integration of user-generated content (e.g., photos, music and video library, website) with that of service provider

Greece 30 25 Where does Ireland fit? (Broadband penetration) OECD Broadband subscribers per 100 inhabitants, by technology, June 2006 DSL Cable Other 20 15 OECD average 10 5 0 Denmark Netherlands Iceland Korea Switzerland Finland Norway Sweden Canada United Kingdom Belgium United States Japan Luxembourg Austria France Australia Germany Spain Italy Portugal New Zealand Czech Republic Ireland Hungary Poland Turkey Slovak Republic Mexico Source: OECD Broadband penetration: Within OECD, ranked 24 th out of 30 economies, June 2006 14 th fastest growing OECD economy, Q2 2005 Q2 2006 Global level, ranked 36 th out of 206 economies, Dec 2005

Japan 1 Korea (Rep.) 2 Netherlands 3 Sweden 4 Singapore 5 Italy 6 Taiwan, China 7 Finland 8 France 9 United States 10 Germany 11 United Kingdom 12 Lithuania 13 Hong Kong,China14 Bosnia 15 Portugal 16 Canada 17 Macao, China 18 Brazil 19 Belgium 20 Poland 21 Malta 22 Czech Rep. 23 Slovenia 24 China 25 Iceland 26 Ukraine 27 Switzerland 28 Jordan 29 Philippines 30 Norway 31 New Zealand 32 Romania 33 Morocco 34 Thailand 35 Malaysia 36 Argentina 37 Slovak Rep. 38 Luxembourg 39 Israel 40 Hungary 41 Ireland 42 Bulgaria 43 Croatia 44 Denmark 45 Sri Lanka 46 Martinique 47 French Guiana 48 Austria 49 Guadeloupe 50 0.07 0.08 0.14 0.23 0.24 0.30 0.34 0.36 0.36 0.49 0.51 0.63 Broadband prices per 100 kbit/s, top 50, 2006 0.69 0.83 0.93 0.93 1.01 1.07 1.08 1.21 1.22 1.34 1.37 1.37 1.43 1.49 1.50 1.58 1.63 1.77 1.82 2.06 2.14 2.18 2.42 2.55 2.60 2.75 2.88 2.95 2.98 3.03 3.07 3.17 3.25 3.28 3.33 3.33 3.33 3.33 Where does Ireland fit? (Broadband prices) Broadband prices: Within OECD, ranked 22 nd most expensive (per 100 kbit/s) out of 30 economies, August 2006 Global level, ranked 42nd out of 206 economies, August 2006 Digital Opportunity Index In ITU/UNCTAD composite Digital Opportunity Index, Ireland ranks 31 st in 2006 of 180 economies (same as in 2005)

8 Some regulatory challenges of NGNs Pricing: Will NGN offer prices that are significantly lower than those available today? Bundling and billing: How to distinguish real price of bundled services (predatory pricing)? Interconnection: Will current interconnection models (based on per-minute settlement) work in an NGN? Security: If much greater capacity is available at the edges of the network, how to guarantee security? Investment: Will unbundling discourage new infrastructural investment? Traffic prioritisation: Is the Net really neutral? Emergency services: What level of universal service obligation to impose? Competition policy: Significant market power will not go away in an NGN environment Consultation: compensation for stranded assets?

Long-term telecom revenue trends Revenue (US$ billion) 1'400 1'200 1'000 800 600 400 200 Other (e.g., non-voice) Mobile International PSTN Domestic PSTN 0 1991 1993 1995 1997 1999 2001 2003 Source: ITU Information Society Statistics Database.

Nevertheless, voice revenues are relatively stable as % of total telco revenue Revenue (US$ billion) 1'400 1'200 1'000 800 600 400 200 0 Non-voice Voice Voice as a % of total 100% Voice as % of total 1991 1993 1995 1997 1999 2001 2003 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: ITU Information Society Statistics Database.

The trend towards bundling UK households taking bundled packages 11 Source: OFCOM

The trend towards flat-rate pricing Global trends in broadband pricing schemes 12 Number of economies 180 160 140 120 100 80 60 40 20 0 Data Both 133 68% Time Flat-rate 145 75% 166 81% 2004 2005 2006 Note: Data refers to price packages with bit caps. Time refers to time-metering. Both refers to packages with both data and time caps. Fl rate implies unlimited monthly use. Source: ITU World Information Society Report 2006 (www.itu.int/wisr).

Growth in broadband speeds Growth in max. broadband speeds 40 2003 2005 2006 35 30 2006 25 20 15 10 5 0 2005 2003 13 Speed (kbps) Source: ITU World Information Society Report 2006 (www.itu.int/wisr).

Trends in broadband pricing, global 14 International survey of broadband prices Based on 133 economies that had broadband as early as 2004 Methodology Based on price in US$ per 100 kbit/s Price trends Median price has fallen by 41% p.a. Median speed has risen by 66% p.a. Faster than Moore s Law Source: ITU Internet Reports 2006: Digital.Life.

Triple-play bundles: The example of Free.fr (Iliad) 29.99 Euros per month (US$40) DSL Internet at 28 Mbit/s (down) 1Mbit/s (up) Unlimited VoIP calling to 49 countries worldwide (+domestic calls in France) 100 video channels (+ 150 options) But only available in France 15

NGN interconnection options 16 Towards complexity Differentiate between different traffic streams with different QoS Differentiate between different user terminal devices (e.g., fixed, wireless, portable) Provide interconnection options based on perminute, per-volume, per-service type and percontent type Towards simplicity Sender keeps all (bill and keep) Arrangements based on interconnection capacity

Termination rates worldwide Termination rates in US cents per minute Average fixed rate Avererage mobile rate Asia-Pacific 11.69 16.58 Africa 13.62 20.57 Europe and Mediterreanean 3.11 32.86 Latin America and Caribbean 4.88 16.43 North America 2.81 6.07 17 Global average 5.77 21.76 Source: ITU-T, based on survey of regional tariff groups.

Spot the odd one out. Asia-Pacific Africa Europe and Mediterranean Basin 1.42 1.51 Ratio between fixed and mobile call termination rates 10.57 Latin America & and Caribbean North America 2.16 3.36 18 Global average Source: ITU-T, based on survey of regional tariff groups. 3.77

Conclusions 19 NGN business case still unproven, but voice revenues continue to drive investment Inter-operator settlements remain important (but become more complex) in an NGN environment Trends toward bundling and flat-rate pricing in retail market will be mirrored by capacity-based pricing in wholesale market Short-term: Per-minute settlement is preferred choice for carriers, but hard to sustain. Rates are dropping. Longer term: shift towards capacity-based pricing and/or towards Sender Keeps All But, migration to NGN will not make concerns over Significant Market Power (SMP) disappear

Thank you. Tim.Kelly [at] itu.int http://www.itu.int/spu 20