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Regulatory Issues Europe and Austria

Regulatory Issues Europe and Austria. VON 2003 Boston Fall 2003 Telecom Policy Summit 22. September 2003 Richard STASTNY ÖFEG/TELEKOM AUSTRIA, Postbox 147, 1103-Vienna enum:+43 664 420 4100 E-Mail: richard.stastny@oefeg.at richard@stastny.com. Deregulation and Privatization.

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Regulatory Issues Europe and Austria

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  1. Regulatory IssuesEurope and Austria VON 2003 BostonFall 2003 Telecom Policy Summit 22. September 2003 Richard STASTNY ÖFEG/TELEKOM AUSTRIA, Postbox 147, 1103-Vienna enum:+43 664 420 4100E-Mail: richard.stastny@oefeg.atrichard@stastny.com

  2. Deregulation and Privatization • Before 1980 the Telecom World was bipolar: • the US, with 3000 privately run telecom companies, dominated by AT&T – centered in New York • the rest of the world, an enormous sea of government-owned and government-controlled operating entities, in most case part of the Ministries and Post Offices – centered in Geneva • This came to an end in 1984 with the break-up of AT&T into 8 pieces. • The Geneva "club" still held together - lead by France, • but UK followed somehow the lead of the US, by privatizing BT and establishing a duopoly with C&W (Mercury) and made a business out of exporting deregulation all over the world with OFTEL and its consultants. • the battle went on until the early 1990's, until a compromise was found in Brussels. Richard Stastny

  3. Deregulation in Europe • For the launch of GSM (to help the European industry to compete against the US and Japan), • and in the context of the "single market" concept, • the EC accepted more competition, larger market, more technology development, more sales, more jobs and more government tax revenues as telecom theology. • This was a concept even France could accede to (at least in other countries ;-) • So deregulation and privatization started in Europe at various speeds, until 1998 when the first set of directives harmonized this within the EU. • The major cornerstones where: • Privatization, • Carrier selection, • Local loop unbundling, • Number Portability, • Asymmetric "de"- regulation of operators with "substantial" market power -> the incumbents, • to achieve competition and lower prices for end-users. Richard Stastny

  4. The new EU Directives (March 2002) • Following the liberalization in 1998, competition in European telecommunications markets has driven growth and innovation and the widespread availability of services to the public (EU commercial from the 8th Report). • The new regulatory framework is intended to provide a coherent, reliable and flexible approach to the regulation of electronic communication networks and services in fast moving markets. • The directives provide a lighter regulatory touch where markets have become more competitive yet ensure that a minimum of services are available to all users at an affordable price and that the basic rights of consumers continue to be protected. • Member states shall apply those measures from 25 July 2003. • http://europa.eu.int/information_society/topics/telecoms/regulatory/new_rf/index_en.htm Richard Stastny

  5. 6 Directives • on a common regulatory framework for electronic communications and services (Framework Directive – 2002/21/EC) • on access to and interconnection of electronic networks and associated facilities (Access Directive – 2002/19/EC) • on the authorisation of electronic communication networks and services (Authorisation Directive – 2002/20/EC) • on universal service and users' rights relating to electronic networks and services (Universal Service Directive -2002/22/EC) • concerning the processing of personal data and the protection of privacy in the electronic communications sector (Data Protection Directive - 2002/58/EC) • on competition in the markets for electronic communications networks and services (Market Directive - 2002/77/EC) – also EEA relevance • plus the Regulation on unbundled access to the local loop (No 2887/2000) – also EEA relevance EEA - European Economic Area Richard Stastny

  6. Guidelines and Recommendations • Commission guidelines on market analysis and the assessment of significant market power (also EEA) • Commission recommendation on relevant product and service markets susceptible to ex ante regulations in accordance with Directive 2002/21/EC (also EEA)+ explanatory memorandum • Commission recommendation on the processing of caller location information in electronic communication networks for the purpose of location-enhanced emergency call services (E112) • For status end of 2002 see: • Eighth Report from the commission on the Implementation of the Telecommunication Regulatory Package (3.12.2002) Richard Stastny

  7. Austria • Goals of the New Telecommunications Law (TKG) (July 2003): • Creation of a modern electronic infrastructure on a high standard. • Securing a fair and functional competition through: • offering a broad selection of choice, price and quality for all users, • prevention of distortions and restrictions in competition, • promotion of efficient investment in infrastructure and innovations, • securing an efficient utilization and administration of frequency and numbering resources. • Promotion for the benefit of the citizens of: • area-wide universal service, • simple and cost effective settlement of disputes, • privacy and security, • transparent tariffs and general terms and conditions, • availability and integrity of the public telecommunication networks. • Above measures should be technology neutral • Innovative technologies and upcoming new markets should be regulated only if necessary to avoid distortion of competition and to reach the goals of this law. Richard Stastny

  8. Major Changes • Major changes to previous law: • new definition of core network/access provider, communication service provider and information service provider, • no license necessary, only notification, • also mobile number portability (in addition to fixed and services), • carrier selection also for non-incumbents, if provider has substantial market power, • new rules for access (e.g. virtual fixed and mobile operators, resale) • new regulation required for numbering (NVO), • and the new market concept: • from 4 markets (fixed, leased lines, interconnect and mobile) • to 18 markets (see next slide), • now also regional markets possible. Richard Stastny

  9. New markets Richard Stastny

  10. Impact on VoIP • No clear picture at the moment • People concerned still struggling with the basics of the new TKG and with more important issues • VoIP is not yet in the main focus in Europe • Implementing VoIP in a closed network (NGN) and using the conventional interconnections is no problem, because regulation in principle is technology independent • of course, the conventional interconnections are not technology independent ;-) • The impact of using VoIP on the public Internet is not fully discussed yet • On the other hand, ENUM and the use of numbering resources for ENUM and VoIP is discussed in Austria for some time • This discussion will also influence the new regulation on numbering (NVO) e.g. mobile personal number range for VoIP Richard Stastny

  11. Questions • What is a telecommunication service? • Who is providing which service if two people are talking to each other? • the access provider • the core network provider • the communication service provider • the gateway provider • the information service provider • the clearing house, trusted third party, certification authority, … • the end-user • Is there a difference • if the PSTN/ISDN is involved? • if E.164 numbers or URIs or "private" numbering plans are used? • What is public and what is private on the Internet? • What about emergency services and caller ID? • where to route the call to • trusted location information • trusted Caller ID • Is VoIP able to provide a primary line or Universal service? Richard Stastny

  12. The End Thank you for your attention Richard Stastny

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