Regulatory Framework under Discussion: CITEL and APEC Experiences

1. Regulatory Framework under Discussion: CITEL and APECExperiences Salma Jalife – Cofetel México What rules for IP enabled NGNs? ITU Workshop, 23-24 March 2006 Geneva, Switzerland 1

2. CITEL´s Structure Citel Assembly 35 Member States >200 Associate members Permanent Executive Committee COM-CITEL Secretariat Steering Committee PCC.II Radiocommunications including Broadcasting PCC.I Telecommunications Standardization FACILITATING AND PROMOTING THE CONTINUOUS DEVELOPMENT OF TELECOMMUNICATIONS IN THE HEMISPHERE Conferences Preparatory WG 2

3. PCC.I Telecommunications Standardization Technical advisory body for Equipment Certification Tariff principles Standards Coordination for telecom networks and services ensuring interoperability Advanced Network Technologies and Services Economic Aspects and Tariff Principles Standards Coordination for telecom networks and services Preparations for WTSA MRA and Certification Processes Preparations for WCIT 3

4. Working Group on Advanced Network Technologies and Services (ANTS WG) Questions of Study • Study Question I:  Internet Domain Name Issues • Study Question II:  Cyber Security and Critical Infrastructure • Study Question III:  Broadband Access Technologies • Broadband as a “leapfrogging” technology • Broadband Infrastructure Evolution and Deployment • Broadband Access Standards • Migration to new (IP-based) networks • Security issues surrounding broadband technologies • Access to broadband technologies • Study Question IV: Advanced Services • Study the development of the new generation services in the Region of the Americas • Study the impact on the implementation of the telecommunication services, especially supported by IP, such as telephony services and IP multimedia; as well as providing information on these services to the countries of the Region • Research and report on the characteristics of the new technologies and their application in the Member States of the Region • Issues to be considered include Voice on Internet Protocol (VoIP) and migration from the traditional networks to the new services 4

5. Working Group on Standards Coordination (WG SC) Rapporteur Groups • RG Fixed and Mobile Services and Network Signaling • Multimedia service definition and architectures • Signaling requirements and protocols (Intelligent networks) • IP-based services (Voice over IP, Video over IP, etc.) • Emergency services • Network aspects of IMT-2000 and beyond (wireless Internet, harmonization and Convergence, network control, mobility, roaming, etc.) • Interworking between traditional telecommunication networks and evolving networks • RG Transport Infrastructure • Metropolitan and Long haul optical transport networks • Access network transport (LANs, xDSL, Ethernet, cable modem, fiber, Wireless LANs, etc.) • Terminals (PC, TV, phone, codecs, etc.) • Outside plant • RG Communications Network Management and Operations • Management of communications services, networks and equipment • Communications system security (lawful intercept, privacy, fraud prevention, cyber crime, sabotage, etc.) • Numbering, Naming and Addressing (ENUM) • Performance and QoS 5

6. Workshop on NGNs (PCC.I) The workshop had the aim of sharing views of various organizations and member states regarding evolution towards an NGN environment. Relevant conclusions: • When a strategy is searched for the migration of next generation networks, it must be taken into account that the tactics should be followed depend on the priorities of the operators and what the market determines in accordance with the telecommunication environment in order to satisfy the users´ needs. • The key to increase NGN capacity would be the capacity to create new quality services that satisfy the users´ needs. • The regulation should allow competition, with the purpose of an equal base with respect to rights and obligations. Services and not technology should be regulated. In an environment of convergence it should be clear that the regulation should achieve a flexible scheme with quality service for the user. • More active participation in standardization is needed from Latin America, as is the diffusion of a program of the knowledge, technologies and experiences of the region and from other regions. • The next generation networks imply changes, new contributions, and new operators and services. The NGNs are a new way of thinking for telecommunications. 6

7. Videoconference Workshop Voice over IP(PCC.I) Relevant discussions: • VoIP Technology: Direction, Attractiveness and Current Deployment Challenges • Broadband Deployment • Quality Of Service • Regulatory And Public Policy Considerations • Economic Impact On Industry To foster an open dialogue and debate of critical issues regarding deployment of Voice over IP technology in the Americas region 7

8. Technical Notebook:Next Generation Networks - Standards Overview Summary Next Generation Networks (NGN) are converged voice/data multi-service networks that operate in a multivendor environment. NGNs require an architecture that provides seamless integration of both new and traditional telecommunications services across high-speed packet networks, interworking among clients of heterogeneous capabilities. This architecture is usually structured around four major layers of technology. • The core connectivity layer includes routing and switching, network and access gateways. • The access and customer-premises equipment (CPE) layer includes the various technologies used to reach customers. • The application server layer contains enhanced services and value-added applications. • The management layer provides network services and business management functions. Each of these layers is supported by a number of standards that are key to the successful implementation of an NGN. 8

9. Technical Notebook:Study on Characteristics of Voice Based Networks using IP Summary Relatively new services are arising in the telecommunications environment. One such case is IP Telephony, which has drawn the attention of regulators, the industry and consumers particularly because of its characteristics, which have increased the service alternatives that can be provided through the Internet Protocol compared to switched-circuit telephone networks. Voice over IP is one of the most important emerging trends in telecommunications. As with many new technologies, VOIP introduces both security risks and opportunities. VOIP has a very different architecture than traditional circuit-based telephony, and these differences result in significant security issues. Lower cost and greater flexibility are among the promises of VOIP for the enterprise, but VOIP should not be installed without careful consideration of the security problems introduced. 9

10. Endorsment of various ITU documents on NGNs • ITU-D Question 19/2 “Strategy for Migration from Circuit-Switched Networks to Packet-Switched Networks” and ITU-D Question 20/2 “Examination of Access Technologies for Broadband Communications” • Proposed New Y.2000 Series ITU-T SG13 Recommendations for Next Generation Networks • ITU-D Question 6/1 “Regulatory Implications for Next Generation Networks, in Particular Interconnection-Related Issues” 10

11. APEC Structure 21 economies business & academia Telecommunications and Information (APEC Tel) 11

12. APEC NGNs for APEC "Next generation networks" (NGN) is a catchall phrase for the infrastructure that will enable the advanced new services to be offered by mobile and fixed network operators, while continuing to support all of today's existing services. To achieve seamless services at a global level, APEC TEL actively engages the private sector to identify new technologies and issues. The TEL will continue to promote discussion on NGN and the development of the Asia Pacific Information Society. The TEL has already made invaluable contributions to this goal, including its initiatives in e-commerce, e-government, e-security, disaster preparation, on-line learning and skills standards development. 12

13. APEC TEL The Rationale for TEL Work on Next Generation Networks The TEL has long engaged in a program of work related to what is now thought of as NGN. Most recently, TEL’s work on NGNs is driven by specific instructions provided by our ministers at TELMIN 5 TELMIN 5 : Shanghai Program of Action Ministers instruct the TEL to continue fostering the development of the Asia Pacific Information Infrastructure (APII) in accordance with the five objectives and ten core principles spelled out in the TELMIN 1 Seoul Declaration (1995) and the goals of the e-APEC Strategy (Shanghai, 2001) and to adopt a pathfinder approach in advancing the APEC initiatives. In particular, this would include initiatives aimed at [inter alia]: … (g.) studying and undertaking collaborative projects to advance the implementation of next generation networks and technologies. 13

14. TEL29 Work at the Business Facilitation SG “… it is key that APEC TEL continue the work examining NGNs and their implications. The issues raised by NGNs are so complex and multi-faceted that it affects the discussions of all 4 Steering Groups.” (Transversal Task) 14

15. TEL30 Brainstorming Session on NGNs • It is acknowledged that defining NGNs is difficult, but there is a discernable shape growing out. • There is a new and expanded definition of convergence – beyond and somewhat opposite to merger of content and carriage. Now it is important to look at interconnection and interworking of newly converging elements. • User expectations should also be considered, including the desire for access to new services in a timely fashion, and the impact of that on industry, versus user demand for reliability and quality of service. • Security is an important consideration, since we are currently working in an insecure environment. • Necessity of a light regulatory touch in response to the call for certainty in the regulatory treatment of NGNs, which is in contrast to an uncertain industry and uncertain world. • It is important to remember the APEC mandate as a trade facilitation body. Any work we do on NGNs will contribute to this being a more open region for trade. • We need to ensure standards do not become a barrier, but rather a facilitating factor for trade. • To facilitate growth of wireless NGNs, we need to discuss frequency bands. 15

16. TEL31 Brainstorming Session on NGNs Four areas for future work were defined Interconnection/interoperability: • Review APEC TEL Interconnection Principles to determine whether they remain relevant. Trade facilitation: • Best practices to facilitate trade, expansion of networks and services, and to avoid barriers to development of NGNs NGN security, reliability and confidence: • Establish principles for security and reliability of NGNs to create community-wide confidence (governments, private sector and users) and network integrity in emergency situations for public safety and first response. Capacity building: • Develop guidelines to build capacity for policy development, regulators, service providers, and users NGNs for Underdeveloped Areas: • Explore NGN development strategies in relation to the needs of developing economies and rural and remote areas. 16

17. TELMIN 6 Lima Program of Action Ministers recognize that the advancement of information and communication infrastructure is a key factor in expanding digital opportunities. Ministers also reaffirm their commitment to the five objectives and ten core principles in the Seoul Declaration endorsed at the first meeting of APEC Ministers responsible for the Telecommunications and Information Industry (TELMIN 1, 1995) as essential for the construction and the expansion of the Asia Pacific Information Infrastructure (APII) and the realization of the vision of the Asia Pacific Information Society (APIS). In recognition of this, Ministers instruct the TEL to undertake activities that [inter alia]: … f) explore innovative next generation network (NGN) approaches arising from new technologies and services, consistent with the topic areas put forward in the Lima Declaration; Lima Declaration … 23. supporting continued work on next-generation networks (NGNs), including interconnection/interoperability; trade facilitation; NGN security, reliability and confidence; and capacity building in NGNs for underdeveloped areas; 17

18. Regulatory Roundtable – Next Generation Networks Aspects discussed at TEL29 • types of NGNs and their service capability; • user expectations from NGNs; and • regulatory challenges from NGNs. “… the exact form and evolution of the NGNs might vary but remarked that understanding of the concept of NGNs as well as user expectations from NGNs would assist policy makers and regulators to ensure that their policies and regulations keep abreast with technological developments and changing market demands…” Aspects discussed at TEL31 • Connecting Networks: Legacy to IP and IP to IP • Leased Lines and Virtual Private Networks • Numbering • Consumer Issues • APEC “Principles of Interconnection” 18

19. Regulatory Roundtable – Next Generation Networks Potential collective actions already established in TEL31 and endorsed by TELMIN6 to be discussed at TEL33 (April 25, 2006): • Interconnection/interoperability • Trade facilitation • NGN security, reliability and confidence • Capacity building • NGNs for Underdeveloped Areas Other related issues: • Revise the interconnection principles including interoperability • Presentation of economies’ actions taken on VoIP and Fixed Mobile Convergence at the Regulatory Roundtable 19

20. TEL32 Other issues of mutual interest: • Explore innovative next generation network (NGN) approaches arising from new technologies and services, consistent with the topic areas put forward in the Lima Declaration; • Undertake a review of the current APEC Principles of Interconnection in light of issues raised by the transition to NGN, including the interoperability of services and networks; • Explore work on the emerging challenges to numbering and addressing, especially in the context of NGN and transitional environments; • Explore policies to promote innovation and competition in the use of spectrum, including for legacy networks, transitional situations and NGNs – taking into account work in other international organizations; share information on experiences regarding the efficient use of spectrum; build on member economies’ understanding of spectrum policy and regulatory frameworks and their implications for trade and competition; and consider potential training activities on spectrum policy and regulatory issues; • Support policy and regulatory frameworks for standards that promote innovation and competition, including the development of NGNs; participate in mutual recognition arrangements with respect to one another’s standards-related measures; and continue work on the Comparison of the Equivalence of Selected Telecommunications Standards Project; Considerations for Regulatory Roundtable at TEL33 20

21. CONCLUSIONS NGNs have no boundaries, and as such we have to recognize that decisions cannot be made only on a national level, rather solutions will have to consider perspectives from a regional or global viewpoint. Ideally, NGN products, networks and services that are standards-based will interconnect and interoperate offering carriers and users the best choices in technology, scalability, and price. However, given the relative immaturity of the NGN market and their associated standards, the telecommunications industry will face a period of standards “convergence” over the next few years. There is still much work to be done on the different aspects of NGNs as technologies and services are rapidly evolving: • Architecture that provides seamless integration of both new and traditional telecommunications services (standardization coordination) • Interconnection and interoperability (numbering, signaling, etc.) • Efficient use of spectrum • Security, reliability and confidence • Capacity building • Trade Facilitation • Quality of Service • Regulatory and Public Policy considerations • Economic impact on industry Countries and economies have taken steps forward driving national initiatives that may help CITEL and APEC move forward on a regional regulatory framework for NGNs 21