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Dialogue between media and telecom regulators in times of convergence. Lessons from Developed countries’s experiences in electronic communications regulation . By : Gaston Zongo [email protected] [email protected] Content.

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Presentation Transcript
slide2

Content

I. Convergence and the changing era of the electronic communications sector

II. Regulatory challenges: What is at stake?

III. Key Address-strategies from the developed countries:

IV. Lessons and exploring possible avenues for west and central Africa

slide3

Convergence and the changing era of the electronic communications sector

I.1. The global picture of the dynamics of environment- change

Policy and regulation are the main drivers of the change with a market-shift from infrastructure towards services

slide4

Market

e.Services

Technology

e-applications

Hardware

Software

Infrastructure

Monopoly

Constestability

Competition

Multimedia

Metcalfe’s law

(Network effect)

Moore’s law

Regulatory policy

Deregulation, regulation

slide5

I.2 Greedy demand for broadband communications even at the end-user’s level

Source: Digital Lifestyles: 2006 Outlook from Sparks Associates, US

slide6

I.2 Shake-up of the industry players at all levels

  • Declining revenue from traditional fixed wireline are pushing Telcos to build Broadband and IP-enabled networks (NGN): e.g: British Telecom 21th Century Network (BT21CN);
slide7

IPv6 poised to leave the labs into the market arena

  • New media challenge old ones including the entertainment business and the enabling of the arrival of new journalists:
  • (MP3, iPod, blogs, Poscasting, RSS), boosted by the power of the network-effect of P2P softwares
  • the upcoming of digital radio as well as the development of TV content delivered to the small screen (handheld)

9% of American Internet users (6% of the entire U.S. adult population) have created their blogs and 25 % (or 16 % of the entire adult population) are reading blogs, 5% use RSS (Really Simple Syndication)

[SOURCE: Pew Internet & American Life Project]http://www.pewinternet.org/press_release.asp?r=104

slide8

Renewed fever of mergers and acquisitions irrespective of the original business area of the players

  • Ebay, the US auction site, to buy Skype for $2.3bn
  • ITV, the terrestrial broadcaster, acquires likely Friends Reunited, an online communities company for close to $255 m.
  • British Sky Broadcasting to buy Easynet
  • Creation of a BB TV mobile alliance between Vodafone and Broadcasters,
  • The US big telco’s number shrinjing from 12 to 3,
slide10

II. Regulatory challenges: What is at stake?

  • Creating an enabling environment that fosters competition leading to a vast variety of innovative services benifiting consumers and impacting the national economic growth and competitiveness : That is building a sustainable networked economy
  • Protecting consumer’s interest and user’s rights (indecency, child porgraphy, scams, spams, phising, …)
  • Ensuring national security (cyberterrorism and other e.criminilaty,…)
slide11

III. Key Address-strategies from the developed countries:

USA: the Federal Communication Commission

  • 5 Commissioners, appointements to be approved by Congress, usually a bi-partisan commission with its Chair appointed by the President, subject to approval by the Congress
  • Regulation of all the electronic communication sector (media including newspapers, telecom, internet,…)
  • Sector subject to federal laws and/or state laws for some issues
slide12

Third-party regulatory interventions:

  • National Association of Counties (NACO)
  • State Public Utilities Commission

(National Association of Regulatory Utility Commissioners )

  • Federal Trade Commission
  • Association of Counties (NACO)
  • State Public Utilities Commission
  • Federal Trade Commission
slide13

Associations and NGOs

  • Consumers Union, the Consumer Federation of America and Public Knowledge, Freepress, etc. (DIGITAL MEDIA CONSUMERS\' RIGHTS ACT OF 2005),
  • Industry: CTIA,
slide14

Role of the Congress:

Senate and house commerce committes

A Congressional Review Act allows Congress by joint resolution to overturn regulatory agencies\' rules.

slide15

‘’According to the Supreme Court, the First Amendment protects the American public’s right to “an uninhibited marketplace of ideas in which truth will prevail” and “suitable access to social, political, esthetic, moral and other ideas and experiences.” Moreover, it is “the right of the viewers and listeners, not the right of the broadcasters, which is paramount.”

· Bill of Media Rights - Word .doc (38.5KB)

slide16

Association of ISPs

The Broadband Bill of Rights :

slide17

FCC PRIORITIES FOR 2006Media:

1. Facilitate the transition to digital television

2. Roll-out digital radio,

3. Auction of FM licences

4) Initiate a review of media ownership rules.

slide18

Wireline Competition:

1. Improve 911 services for consumers of nomadic Internet telephone services (VoIP),

2. Support continued broadband deployment, 3. Reform the universal service fund.

slide19

Congress

Committes

Federal Trade CommissionTC

Consumers unions and NGOs

Justice Department and FBI

FCC

Industry

PUC

Other Departments

slide20

UK: Ofcom

Media and telecoms convergence should be reflected in regulation.

Ofcom’structure based of the EC directive resulting on the packet telecom directives, March 2002

"Our ambition is to be measured by growth in the sector but not growth in regulation,“

Stephen Carter , CEO

slide21

Ofcom rules Party Political, Party Election and Referendum Broadcasts.

Under section 333(1) of the Communications Act, commercial public service TV channels and national commercial radio services must include referendum, as well as party political/party election broadcasts.

But as required by statute, Ofcom must consult and have regard to any views expressed by the Electoral Commission, before making these rules.

slide22

Ofcom rules on Public Service Boradcasting

Section 264 of the Communications Act 2003 required Ofcom to report on the effectiveness of the existing television public service broadcasters - BBC, ITV, Channel 4, S4C, five and Teletext - in the delivery of their PSB obligations; and to make recommendations for maintaining and strengthening the quality of PSB for the future

http://www.ofcom.org.uk/consult/condocs/psb3/

slide23

Ofcom rules on spectrum issues

Ofcom expects that spectrum liberalisation and trading will make it easier for entrepreneurs and innovators to enter the market, deploy new technologies and applications, and compete with existing players; they will make it easier for spectrum to migrate from relatively low value uses to higher value ones. Although spectrum trading and liberalisation are distinct developments, they are complementary. A recent report for the European Commission1 estimated the benefits of spectrum trading with liberalisation to be some €9bn per year across the EU, predominantly arising from the earlier adoption of new technologies and applications that trading and liberalisation would allow. The benefits of spectrum trading alone, without liberalisation, were estimated to be about one tenth of this.

Spectrum liberalisation

slide24

ERG

EC

Industry (media and telecm)

The Advertising Standards Authority

Ofcom

Research firms and the academia

Consumers unions and NGOs

Deparment of Trade Industry

slide26

European TV DSO:

Germany will complete the changeover by 2016 compared with the scheduled 2010

Italy, which has announced a switchover by 2006, will only switch off its analogue signal in 2020.

UK, where the government is aggressively pushing for a switchover by 2012, the date is projected to slip to 2015.

Source: Adam Thomas

Informa Telecoms Media, a research and publishing group.

slide27

IV. Lessons and exploring possible avenues for west and central Africa

  • Current situation
  • Threats of connectedness divide
  • Missing development opportunities
  • Not emulating African pioneers (SA, Mauritius, Kenya, etc.)
  • 5. Global trend
  • A ‘’must- do’’ ; sooner or later?; Better sooner or better later?
slide28

‘’The opportunity costs of not developing an appropriate policy and regulatory framework are high and are globally evidenced in what has been coined the digital divide. Countries that are unable to take up the challenges posed by global technological and economic trends are increasingly marginalised, not only from the global network economy, but in their ability to deliver on their own developmental objectives’’.

slide29

Some food for thoughts:

  • Advocacy and capacity building at all levels of stakeholders (CSO, Government, parliaments operators, regulators, Private sector in IT, consumers, other relevant stakeholders
  • Tapping into the local resources
  • Regional approach and partnership
  • International cooperation
  • What next from Cotonou?
slide30

‘’The opportunity costs of not developing an appropriate policy and regulatory framework are high and are globally evidenced in what has been coined the digital divide. Countries that are unable to take up the challenges posed by global technological and economic trends are increasingly marginalised, not only from the global network economy, but in their ability to deliver on their own developmental objectives’’.

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