Transcript Closer Economic Partnership Agreement (CEPA) between Hong

Wireless Broadband Services and
Policy Concerns in Hong Kong
Xu Yan
HKUST Business School
[email protected]
Mobile Multi-media Services in Hong Kong
Highly competitive mobile market:
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11 2G licenses + 4 3G licenses + 7 MVNO
Licenses
Market restructuring in past 12 months
Three trends in the 3G era
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Mobile/media Convergence
Synergy of Corporate Resources and
Strategies
Fixed/mobile Convergence
Mobile/media Convergence
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Mobile + TV
Mobile + Radio
Mobile + Newspaper
Mobile + Internet Portal
Synergy of Corporate Resources
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Shared channel by NOW and PCCW Mobile
Fixed/mobile Convergence
Home / Office/Retail
WiseWatch Wired
Camera
WiseWatch Platform
Mobile Operator
WiseWatch WiFi
Camera
View from
Mobile Data
GPRS / EDGE / 3G Data
WS Mobile Video
Surv App Server
WAP Access
Servers
Router (Wired/
Wireless)
Broadband
Modem
View from PC
Internet / IP Access
Web Access
Servers
Video Streaming
Internet / IP Access
Video Streaming
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Server Authentication Security
Automatic IP adaptation
Automatic screen sizing
Motion detection
2G/3G
Mobile
Data
Network
Internet
3GPP Video Streaming
Broadband Wireless Access (BWA)
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Broadband Wireless Access (BWA):
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Multiple Technologies: technology neutral
Short delivery period: “on-demand” high speed
connectivity for temporary event
Primarily the wireless extension of
conventional wireline based fixed network
An effective solution for Type II Network
Interconnection
Accelerated Market Share of New
Entrants in Local Fixed Network
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
BWA: A Solution after Withdrawing Type II
Network Interconnection?
Network 2
Network 1
A
MDF
TBE
Room
B
Distribution Point
Local Exchange of Network 1
Street
Block-wiring
C
Building
The BWA and Fixed/Mobile Convergence
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Mobile operators’ worry: will BWA pose a
threat to 3G?
OFTA: BWA will complement rather than
threaten 3G – at least until the technology
fully matures, namely with the handoff and
roaming capabilities.
Handoff between Adjacent Cells
Cellular
Switch
DMS-MTX
PSTN
Who Should Get BWA License?
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Current licensing and regulatory
frameworks for mobile and fixed carriers:
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Separated and different
Can fixed carrier holding a BWA license
provide mobile service?
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No – then what about technology neutrality?
Yes – then what license? Fixed or mobile?
Who Should Get BWA License?
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Can mobile carrier get a BWA license?
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If yes, can they use their 3G spectrums for
BWA service?
If no, how can the mobile/fixed convergence be
facilitated?
OFTA is positively working on the convergence of mobile and fixed carrier
license and conducting a comprehensive policy review of spectrum regulation
Digital Terrestrial TV (DTT) in Hong Kong
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1998 – government policy paper to introduce DTT
in HK after 2002
1999 – technology trials of three DTT standards
2000/2003 – two rounds public consultation
2007 – DTT to be launched in Hong Kong
2008 – 75% coverage in HK
2012: Analogue switch off
Digital Terrestrial TV (DTT)
Fixed Reception
Only
0100110000101001110110
Both Fixed and Mobile
Reception
Merger of Telecom and Broadcasting Services
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DTT supports all kinds of services including:
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Mobile broadcasting service
Interactive multimedia service
Text broadcast services
Telecommunications services
Merger of audio, sound, video and text services
DTT and Its Policy Implications
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DTT supports mobile TV and mobile interactive
multimedia service, while current licenses do not
allow mobile communications
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DTT offers both paid and free service while
current license are separated for these two
business models in accordance with the
Broadcasting Ordinance
A new regime to deal with the merger of telecommunications and
broadcasting services is required.
Towards a Converged Regulatory Framework
BROADCASTING
TELECOMMUNICATIONS
Television and
Entertainment
Licensing Authority
(TELA)
INFORMATION
TECHNOLOGY
Office of the
Telecommunications Authority
(OFTA)
Information Technology
Service Department (ITS)
Regulatory Framework
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Communications Authority (CA): Merger of
Telecommunications Authority (TA) and
Broadcasting Authority (BA)
The industry don’t see any urgency of merger
Infrastructure may suffer from content-related
political controversies
Policy level merger may be more critical
Spectrum Policy
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Innovative royalty auction of 3G license
Consistency of renewed 2G licenses
Urgency for flexible trade of spectrum
Spectrum regulation for Digital Terrestrial
TV
Comprehensive frequency policy review:
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Asymmetric regulation between mobile &.
wireless fixed technology?
Towards a Converged Regulatory Framework
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From technology-orientated regulation towards
application-orientated regulation
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The political objective of telecom policy should be
guaranteeing “Universal Connection” rather than
guaranteeing “Universal Service” in the specific context of
EoIP
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Efficiency remains the economic objective of
telecommunications policy, while competition between
different technologies and different players remains the
best option to achieve the economic objective
Thank You!