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Industry requirements for a regulatory environment for Next Generation Networks

Industry requirements for a regulatory environment for Next Generation Networks. Wolfgang Reichl, Telekom Austria, Chair of WG on NGN at European Telecommunications Platform , Brussels, Belgium . ETP.

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Industry requirements for a regulatory environment for Next Generation Networks

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  1. Industry requirements for a regulatory environment for Next Generation Networks Wolfgang Reichl, Telekom Austria, Chair of WG on NGN at European Telecommunications Platform, Brussels, Belgium

  2. ETP • The European Telecommunications Platform (ETP) is a consultative body which was formed in Brussels on 4th February 1998, following the opening of the European telecommunications market on 1st January of that year. • It combines the Open Network Provision Co-ordination and Consultation Platform (ONP-CCP), founded in 1991, and the European Interconnect Forum (EIF), which during the run-up to liberalisation had both been advising the European Commission as representatives of the telecommunications industry. • The ETP deals with the needs of the European telecommunications market from the point of view of industry. Its remit includes: the European regulatory framework, its implementation, the converging communications sector, and the global information society. • What are its goals? • promote self-regulation by the industry • encourage the ongoing development of competition • clarify operational and strategic business issues www.etp-online.org

  3. ETP Members • Lucent Technologies • Magyar Telecom • Nokia • Nortel • Omnitel • ONE • OTE • PT Luxemburg • Siemens • Slovak Telecom • Swisscom • TDC • Telekom Italia • Telecom Italia Mobile • Telefonica • Telekom Austria • Telekom Slovenije • Telenor • Tele.ring • TeliaSonera • Agoria ICT • Amena • Arcome • BITKOM • BT • Cegetel • Cesky Telecom • Cisco Systems • Cullen International • Deutsche Telekom • ECCA • ERA • Ericsson • ETNO • FiCOM • Finnet • France Telecom • Global Crossing • Interconnect Communications • KPN 14. November 2005

  4. Report on NGN - released 20 January 2006 Real world implementations of NGN • Next Generation Core • Next Generation Access • Next Generation Service Control Regulatory implications of NGN evolution focus of this talk High level requirements for a positive environment for NGNs the report can be dowloaded from www.etp-online.org

  5. Next Generation Networks Applications Next Generation Service Control Next Generation Access Customer PremesisEquipment Next Generation Core

  6. Core, Access, Services The Next Generation CoreThe next generation core network is a single converged fixed network, which can carry voice and data. The network technology of choice will be IP/MPLS and all traffic is transported as IP. This core networks evolves from a complex environment of different boxes in todays core networks. The evolution to a next generation core network promises significant savings in the long run and a stable platform for converged services. The Next Generation AccessThe next generation access is a large digital bitpipe. The next generation access is service independent and allows triple play (TV broadcast, high speed internet access and telephony). There will not be a single platform to deliver next generation access. Platform competition is expected between copper lines, cable networks, mobile networks as well as satellite and fibre access. The Next Generation Service ControlTodays service control is service specific. In a next generation network rapid service development and delivery is paramount. The next generation service control will provide a toolbox for operators, where converged service can be brought to market flexibly and quickly. Certain challenges arise regarding interoperability of services and service components.

  7. Existing legislation and NGNs • Policy makers should carefully evaluate if existing legislation is suited for NGNs, e.g. • legal intercept • emergency services • universal service • Disclaimer: • ETP‘s NGN Paper has the intent to highlight challenges in applying regulatory and legislative measures in NGNs • Does not attempt thorough investigation

  8. Regulatory Implications of NGNs • New technologies raise policy issues • Transition phase: existing regulatory framework needs to be evaluated with regard to • Changing technology • Changing market structure • Vision: one network – many services -> underlines necessity for technology neutral approach. • Reflection on boundaries between networks and services is needed.

  9. Today: two sets of regulation • Regulation imposed on everyone • Regulation applied in case of significant market power • the first set of regulation: • Legal requirements • Security requirements • Consumer protection

  10. Reacting to concerns • New technological possibilities lead to additional privacy concerns • Legislators may be tempted to intervene • Challenge for industry to respond to concerns • Conduct educated and informed discussion • Leave it to industry to give consumers real choice and protection incl. data security and opt-out privacy protection!

  11. Economic regulation • Technologies for NGNs are mature and available but business models aren‘t • Market analysis/Art. 7 procedures: process still not completed within various EU25 Member States • Today‘s 18 markets and SMP remedies are very much connected to legacy infrastructure and services • Not evident whether NGNs will fit into existing markets or will generate new unregulated markets. • NGN itself is not a market! NGNs lead to new markets and changing market structures. • General competition law may be sufficient to deal with NGNs!

  12. NGN in the UK • BT has made plans to introduce a NGN over the next 5 years • BT has made formal commitments to Ofcom such as: • grant access to other network operators • Not make any network design decisions that would prevent supply of network access • Set charges based on costs (for most efficient network that could reasonably be built)

  13. High level requirements… • … for a positive regulatory environment for NGNs: • For Europe’s information society and media policies, the Commission proposes in I2010 • the completion of a Single European Information Space which promotes an open and competitive internal market for information society and media; • strengthening Innovation and Investment in ICT research to promote growth and more and better jobs; • achieving an Inclusive European Information Society that promotes growth and jobs in a manner that is consistent with sustainable development and that prioritizes better public services and quality of life. • NGNs will contribute significantly to these goals! • Policy has to be decoupled from technology!

  14. The new regulatory environment ... • should be based on technology-neutral and provider-neutral regulatory criteria Regulatory asymmetry leads to competitive asymmetry and creates the incentive and the opportunity for artificial competition, which is not based on market demands. It is of utmost importance to find a proper and workable definition of technological neutrality.

  15. The new regulatory environment ... • must be based on legal principles drawn largely from competition law Current and likely marketplace developments demand a statutory structure, which makes regulation dependent upon a finding of lack of effective competition. Although reliance on competition law is a long term goal, ex-ante regulation is likely to be needed for some time if some foreclosure of markets occur, which can not be solved with other instruments.

  16. The new regulatory environment ... • non-economic regulation should be hands-off regulation The societal regulatory regime ought to pursue a regulatory hands-off approach with as light a touch as possible. This hands-off approach should not only apply to the European level but also to the national level. However, harmonisation on a European level (e.g. regarding EMC or terminal equipment) remains necessary to gain the benefits from a European market and to achieve user protection. The societal regulatory regime ought to pursue a regulatory hands-off approach with as light a touch as possible. This hands-off approach should not only apply to the European level but also to the national level. However, harmonisation on a European level (e.g. regarding EMC or terminal equipment) remains necessary to gain the benefits from a European market and to achieve user protection.

  17. The new regulatory environment ... • economic regulation (if required) should focus on enduring bottlenecks Although it would be desirable eventually to base economic regulation entirely on competition law, it might be necessary to deal with network bottlenecks while they still exist. These bottlenecks are likely but not exclusively to be found in the access network.

  18. The new regulatory environment ... • should allow for innovation and investment There needs to be a favourable regulatory environment for investment and innovation in Next Generation Networks. This is a necessary precondition for the achievement of the goals set in i2010, which was announced by the Commission on 1 June, 2005. It promotes an open and competitive digital economy and emphasises ICT as a driver of inclusion and quality of life. NGN can become a means to achieve the policy goals of the Commission.

  19. The new regulatory environment ... • should provide legal certainty For investment in telecommunications legal certainty is a necessary prerequisite. The current regulatory framework does not provide this certainty (e.g. the definitions of PATS and ECS do not reflect some technological evolutions).

  20. The new regulatory environment ... • should focus on services not on technology Every asymmetry in technology triggered by regulation can potentially distort the market. Therefore technology decisions should be left to the market. Regulators should not interfere by promoting one or the other technology. It is therefore necessary to define the boundary between technology and service. The Next Generation Core itself falls out of the regulatory scope. It is the services that are subject to possible regulation. Every asymmetry in technology triggered by regulation can potentially distort the market. Therefore technology decisions should be left to the market. Regulators should not interfere by promoting one or the other technology. It is therefore necessary to define the boundary between technology and service. The Next Generation Core itself falls out of the regulatory scope. It is the services that are subject to possible regulation.

  21. The new regulatory environment ... • should avoid fragmentation of markets A common market allows the competitive provision of services and products. Fragmentation could endanger the position of the European industry and operators and has therefore to be avoided. NGN interconnection will be based on standards voluntarily agreed upon by industry in standards bodies. That does not imply that standards need to be imposed. Every asymmetry in technology triggered by regulation can potentially distort the market. Therefore technology decisions should be left to the market. Regulators should not interfere by promoting one or the other technology. It is therefore necessary to define the boundary between technology and service. The Next Generation Core itself falls out of the regulatory scope. It is the services that are subject to possible regulation.

  22. The new regulatory environment ... • should balance harmonisation and innovation Harmonisation is certainly necessary to avoid fragmentation and to allow for interoperability of services. It has however to be recognized that harmonisation in an early stage could stifle innovation by favouring a possibly suboptimal solution. Priority should be given to market forces which will lead to harmonised solutions at the right time. This is probably different for different layers. Innovation at service level is much more important.

  23. The new regulatory environment ... • should address the question of cross-border services In a next generation network the possibility for cross-border services exists. It has to be assured that national operators are no worse off than competitors from abroad. Therefore the EU should try to accede to agreements with other parts of the world. NGN has a global focus. That's the reason for global standards.

  24. Conclusion The new regulatory environment should rely on market forces and competition. Non-economic regulatory goals should be pursued with as light a regulatory touch as possible. In that way next generation networks will significantly contribute to the political goals set out in i2010.

  25. THANK YOU! www.etp-online.org

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