International Insights – December 2008
An Update on Global Communications Issues
This is the first of a regular series of newsletters reporting on INTUG’s activities and issues of interest in the global telecommunications scene. It is issued as INTUG holds its second meeting of the year, in Rome, hosted by ANUIT, after a successful meeting in June, in Stockholm, hosted by NTK.
Priorities
During 2008, key issues which have continued as priorities for INTUG action have been Broadband, Next Generation Access/Networks (known as NGN/NGA), Roaming Charges, Termination Rates, seamless international connectivity, the Digital Dividend, the Digital Divide, and recently security and data protection, especially for intellectual property rights.
European Union/Asia Pacific/Africa – Digital Divide
There has been considerable activity in Europe, with regular lobbying of the European Commission and Parliament focusing on the proposed revisions to the regulatory framework. INTUG has also been very active elsewhere in the world, through presentations at two APECTEL meetings. INTUG’s links with the Commonwealth Telecommunications Organisation enables it to keep up to date with developments in the emerging nations, notably in Africa. INTUG remains strongly supportive of policies by the ITU and other international bodies, which aim to enable social participation through universal access.
International Broadband Services
One key concern expressed by INTUG members has been competition for services across national boundaries. INTUG published a report entitled “Growth, Productivity and Jobs”, jointly with BT and EVUA, showing that network service providers can’t obtain broadband access from incumbents on an equivalent basis to that used by the incumbent. This blocks fair competition, which would improve EU GDP by 1.6-2.0% within 10 years.
Functional Separation
The discrimination by incumbents refusing to offer wholesale products on equivalent terms is one reason why INTUG strongly supported the European Commission’s proposal to provide National Regulatory Authorities (NRAs) with the option of a remedy of “functional separation”, in which the access network becomes a separate unit supplying services to the incumbent and its wholesale customers, including competitive operators. The Telecom Council of Ministers in Brussels at the end of November supported this remedy.
NGN/NGA
A formal submission was made in response to a consultation by the European Commission and a research paper was published, stressing that competition in access products must be maintained with new infrastructure available to alternative operators, eg through wholesale Ethernet and Bitstream products. A combination of service and infrastructure-based competition is essential.
International Roaming
A formal submission was made in response to a consultation by the European Commission on extension of the roaming regulation to 2013 with the inclusion of SMS and mobile data. This was also successful with the Telecoms Council endorsing the proposals, resulting in significant cost reductions for customers. This is latest benefit arising from INTUG’s campaign, which began the whole process in 1998/9. The sharply reduced rates for these services abroad will encourage implementation of improvements in productivity by business users.
Wireless/Mobile – Digital Dividend
Competition for services across national boundaries is also absent in wireless, where it is not possible to establish effective MVNOs in all countries. INTUG made a formal submission in response to a consultation by the European Commission on Termination Rates (fixed and mobile), and these are now set to become more consistent and much reduced in the next few years. The release of spectrum from terrestrial TV has also been a key topic, with this “Digital Dividend” being congested by many potential applications. INTUG believes that international collaboration on its reallocation is vital and that applications such as HDTV will demand wireless broadband frequencies.
Market Analysis – Geographic Segmentation
INTUG has argued strongly that the regulatory framework is deficient since market definition and analysis is at national level, and makes no distinction between business users and residential consumers despite distinctly different user requirements. This is beginning to be recognized by some NRAs. Geographic segmentation nationally makes this worse for business customers, whose locations will be split between regulated and unregulated geographic areas, based on consumer competition even within one country.
Corporate Networks/Closed User Groups
INTUG made representations with SWIFT and SITA to oppose proposals for extending the scope of new privacy legislation to corporate networks and closed user groups. This was successful and the extensions were dropped.
2009 and Beyond
The imminent future is going to be a critical period for telecommunications regulation across the world, with the global recession making investment by operators and customers more constrained. Efficient and effective investment will be essential, and the best way to achieve that is through competition at national and international level, with no room for national protectionism.
Membership
INTUG’s membership continues to spread geographically and now includes members from Korea and Mexico. Links have also been established with several countries beginning the liberalization process, and it is hoped this will lead to further new members in new regions. INTUG continues to contact with new countries to expand its representation.
This newsletter was compiled by Nick White, Executive Vice President.
