Transcript Example 1 - Pakistan Telecommunication Authority

Overview of ICT licensing
regime frameworks
20-23 July 2015
Islamabad, Pakistan
Sameer Sharma, Senior Advisor
ITU Regional Office for Asia and the Pacific
Agenda
 ICT Development Trends
 Regulatory Trends
 Licensing Framework & Migration
 International Best Practices
 Conclusions
ITU: A Brief Overview
Founded in 1865
193 Member States
567 Sector Members
159 Associates
60 Academia
A specialized agency of the UN with
focus on Telecommunication / ICTs
ITU-R: ITU’s Radio-communication Sector globally manages
radio-frequency spectrum and satellite orbits that ensure
safety of life on land, at sea and in the skies.
ITU-T: ITU's Telecommunication Standardization Sector
enables global communications by ensuring that
countries’ ICT networks and devices are speaking the
same language.
Headquartered in
Geneva,
4 Regional Offices
7 Area Offices.
ITU-D: ITU’s Development Sector fosters
international cooperation and solidarity in the
delivery of technical assistance and in the creation,
development
and
improvement
of
telecommunication/ICT equipment and networks
in developing countries.
A Day in Digital World
ICT Services Uptake
Who’s online?
By region, 2014
Global, 2014
Mobile cellular subscriptions:
- Almost 7 billion
Mobile broadband penetration:
- 84% developed countries
- 21% developing countries
Fixed broadband penetration:
- 27.5 % developed countries
- 6 % developing countries
- Almost 3 billion people online
(individuals using the Internet)
Source: ITU World Telecommunication/ICT Indicators database
Broadband now affordable in 111 countries
MBB less expensive than FBB
3 G Mobile Broadband Coverage: Extending in Rural Areas
MDGs 2000-2015:
ICT Revolution and Remaining Gaps
Digital Divide in 2015
Mobile Broadband Subscribers
% Individuals using Internet
Fixed BB across regions of the world
Fixed (wired) Broadband subscriptions per 100 inhabitants 2014*
Active users by social platform : Jan’ 2015
Regulatory Trends
Connect 2020 Agenda
For Global Telecommunication/ICT Development
Enable and foster access to and increased use of
telecommunications/ICTs
Bridge the digital divide and provide broadband for all
Manage challenges resulting from telecommunication/ICT
development
Lead, improve and adapt to the changing
telecommunication/ICT environment
www.itu.int/en/connect2020
ICT Market Trends
Challenges to Traditional Service Providers
Licensing Framework
Regulating Fixed Line Services
Regulating Mobile Services
Financing Means
Broadband Plans
Broadband plans, 2014
45
Number of countries
40
35
30
25
20
15
10
5
0
Africa
Arab States
plan adopted
Asia &
Pacific
CIS
Europe
Americas
planning to adopt one
Source: ITU Telecommunications/ICT Regulatory Database
Over 140 governments worldwide have
adopted a national broadband policy
Financing: Public-private partnerships
and Government funding are the main
means of financing broadband
deployments in the region
1
9
What Are The Goals of the Broadband Plans?
Operational USO Funds
Operators/ service providers required to contribute to USF
Maturity of Regulation
Beginning of 2014
G4: Integrated regulation – led
by economic and social policy
G3: Enabling investment,
innovation and access – dual
focus on stimulating competition
in service and content delivery,
and consumer protection
G2: Basic reform – partial
liberalization and privatization
across the layers
G1: Regulated public
monopolies– command and
control approach
Source: ITU.
Better Regulation – Greater Growth?
Evolution of mobile broadband penetration, by generation of regulation, 20092013
Note: Based on data for 122 countries over the entire period.
Source: ITU.
Licensing Framework &
Migration
Changing Institutional Frameworks
Legislations
embracing
the
power of convergence as well as
addressing concerns such as
Cybersecurity on the rise.
Institutional
convergence
including Telecom, Broadcasting,
IT and in some cases even
beyond on ground: e.g., Australia,
China, India, Republic of Korea,
Malaysia,
Converged policy & regulatory
frameworks evolving: e.g., Converged
Licensing (Malaysia), Authorization
(European Union), Unified Access
License (India). Digital Signature, etc.
General Drivers of Migration
New services and revenue increase with
multimedia services
–
–
–
Compensate voice revenue reduction and increase
BB related business
Providing Service innovation (e.g. VPN)
Decreased time to market
Cost reductions by sharing network infrastructure
and systems
–
–
Savings are a function of network scenario,
equipment modernization status and customers
grow speed
Evolving legacy networks to NGN: Reduced OPEX
and streamline operations
Simplification of O&M
–
–
Integrated operation platforms, maintenance and
training
Centralized Management and Control
New Services & NGN Applications
Drivers of Migration: Operators Perspective
• Business continuity required to maintain ongoing
dominant services and customers that require carriergrade service
• Flexibility to incorporate existing new services and react
quickly to the ones that appear on real time (main
advantage of IP mode)
• Profitability to allow feasible return on investments and in
the best practices market values
• Quality of Service to guarantee the Service Level
Agreements for different traffic mixes, conditions and
overload.
• Interoperability across networks to allow to carry end to
end services for flows in different network domains
Which licensing model to adopt?
• Think long-term
• Consider the administrative burden
• Mix and match
– Different arrangements for different segments
• Consider what terminology will be used
Individual
licence
• Individually
approved
• Specific rights
and obligations
Class licence
Registration
Notification
Open entry
• General system
of rights and
obligations
• Simple award
process
• A formality
• File notification
then
commence
• No need to
wait for
approval
• Not regulated
What Could be the Licensing Models?
Simplification of Licenses
Models for Reduction of Administrative Requirements
Source: Report from ITU-D Study Group 1, Question 10-2/1
Key issues in license migration
Differences in license fees (one time & annual)
Differences in the level of rights: Service scope, Spectrum,
Numbering, Right of way. License period, Service area etc.
Differences in the level of obligations: USO, Roll out,
Emergency services etc.
Others: impact on competition rules, interconnection etc.
Regulatory Instruments
Policy
Legislation
Whether to
regulate?
What to regulate?
Choice between commercial
negotiation and regulation
Regulation
How to regulate?
License
Choice between the level of detail
to be inserted in each of these
instruments
More flexible frameworks to enhance access
Simplification of licenses
Lowering the entry barriers (including
administrative and procedural) to
promote competition
Move towards service and technology
neutrality
Principles to consider in migration
Fostering technology neutrality;
Ensuring flexibility to allow the new licensing regime to
accommodate future technological and market changes;
Simplifying the number of license categories;
Reducing administrative burdens and fees on market players;
Applying incentive mechanisms that encourage existing
operators to transition to the converged licensing framework;
Ensuring transparency with regard to converged licensing
responsibilities;
Fostering close collaboration amongst appropriate entities;
Source: Draft Report ITU-D Question 10-2/1:
Regulation for licensing and authorization of converging services
International Best Practices
2015 Survey on the National Broadband Policy/Plan
[Description of the survey]
• In June 2015, ITU conducted a survey on the latest progress on
implementing broadband policy/plans
- 15 selected countries which requested the ITU assistance on
national broadband policy/plans or recently updated the policy
including,
- Bangladesh, Bhutan, Brunei Darussalam, Cambodia, Fiji, Indonesia, Lao
PDR, Myanmar, Nepal, Pakistan, Philippines, Vanuatu
(Papua New Guineas, Samoa, Vietnam)
2015 NBP Survey: Improving Licensing Regime
• In the last three years, many countries reported to have made
considerable progress in reviewing or simplifying the licensing regime
based on convergence
- High progress: Brunei Darussalam, Fiji, Indonesia, Vanuatu
- Some progress: Cambodia, Nepal, Lao PRD
- No or Low change: Bangladesh, Bhutan, Pakistan, Philippines
5
High
Progress
4
Average
3
2
No
Change
1
Review of current
licensing regime
Simplifying licensing
based on
convergence
2015 NBP Survey: Spectrum allocation
• Most countries (except Nepal and Lao PDR) reported to have made good
progress in improving spectrum efficiency in the last three years
• These countries also made some progress in adopting market-based
approaches to spectrum allocation such as auction or beauty contest
5
High
Progress
4
Average
No
Change
3
Improving spectrum
efficiency
2
Introducing marketbased approach to
spectrum allocation
1
2015 NBP Survey: Licensing Practices
• Currently, variations exist in licensing practices between different countries
- Brunei, Myanmar, Pakistan and Philippines have taken a more flexible and dynamic
approach to spectrum/licensing management that can easily accommodate convergence
- Bhutan, Cambodia and Lao PRD still maintain a relatively rigid spectrum/licensing practices
Bangla
desh
Bhutan
Brunei
D.
Camb
odia
Indon
esia
Lao
PRD
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Unified Licensing
Spectrum Allocation
by Auction
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Spectrum Allocation
by Beauty Contest
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Spectrum sharing
Fiji
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In-band Migration
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Nepal
Pakist
an
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Secondary Trading of
Spectrum
Myan
mar
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Philip
pines
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Vanuatu
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2015 NBP Survey: Infrastructure Sharing
• The majority of the studied countries (except Nepal and Philippines)
worked hard on establishing or enforcing infrastructure sharing rules on
the licensees
5
High
Progress
4
Average
3
2
No
Change
1
Developing or enforcing
infrastructure sharing rules
2015 NBP Survey: Consumer rights and QoS
• Regarding consumer rights and broadband quality of services, there exist
considerable variations in the degree of progress made by each country
- High progress: Brunei, Cambodia, Pakistan, Vanuatu
- Low progress: Bangladesh, Bhutan, Fiji, Nepal, Philippines
5
High
Progress
4
Average
3
2
No
Change
1
Protecting consumer
rights and broadband
quality of service
Example 1: General authorization in the
European Union
• A general authorization instead of individual licenses . All electronic
communication services and networks will be covered under a general
authorization regime, with individual rights-of-use being confined to the
assignment of radio frequencies and numbers only.
• A maximum set of conditions to be attached to general authorizations .
The Directive introduces a strict separation between:
(a) conditions under general law, applicable to all undertakings in all
economic sectors;
(b) conditions under the general authorization applicable to all
telecommunication services and networks; and
(c) conditions attached to rights of use for radio frequencies and numbers.
Example 2: Multi-service authorization in
Singapore
Facilities-based operator. (FBO) licenses
In general, operators that install or operate any kind of network infrastructure require an FBO
license. This includes international and domestic wireless transmission or switching facilities;
public cellular mobile networks; paging networks; public mobile data and trunked radio services;
and local multipoint distribution services. Wireless services are licensed separately, pursuant to
spectrum-management policies.
Service-based operator (SBO) licenses
Individual SBO licenses are required for international simple resale; resale of leased circuits;
virtual private network services; managed data network services; Internet access; Internet
exchange services; mobile virtual networks; and live audio-text services.
SBO class licenses cover simple resale of public switched telephony; international call-back
services; Internet-based voice or data services; and international calling card services. Class
licensees may offer their services without obtaining a specific authorization, but they are subject
to all relevant codes of practice and service-quality standards.
Source: IDA (http://www.ida.gov.sg/) Trends in Telecommunication Reform 2004/05
Example 3: Multi-service authorizations in Malaysia
•
Network Facility Providers (NFPs), which include owners of satellite earth stations, fibre optic
cables, communications lines and exchanges, radio communication and transmission
equipment, mobile communication base stations and broadcasting towers and equipment;
•
Network Service Providers (NSPs) for entities that provide basic connectivity and bandwidth to
support a variety of applications;
•
Application Service Providers (ASPs) for licensees that provide particular functions such as
voice services, data services, Internet access services, IP telephony and other transmission
services; and
•
Content Applications Service Providers (CASPs): A special subset of applications service
providers . including traditional broadcast services and services such as online publishing and
information services.
The services falling under these categories are further subdivided into individual, class and
exempt services. A total of 56 categories of licensed services and 24 categories of licensed
facilities were reorganized into the four generic licensing classifications established by CMA.
Source: MCMC (http://www.mcmc.gov.my/).
Example 4: Unified access service licensing in India
In October 2003, India adopted an Universal Access Service Licensing
(UASL) regime:
• Technology and Service Neutral Regime;
• Long distance, Internet Services etc. licensed separately
• Within a service area, license does not distinguish between types of
access e.g. fixed, mobile, WLL;
• Basic Service operators had to pay a fees to enter UASL at
benchmarked levels of fees paid by cellular mobile operators;
• Licenses to be allocated on first cum first served basis;
• 2G mobile spectrum (limited quantity) still a part of the license;
• 3G mobile spectrum auctioned separately.
A migration process
Understand
framework
Migration
period
Licence
mapping
Migration
process
How will the new licensing
framework be
implemented?
Will the transition be
quick or gradual?
To which licences will
existing licences be
migrated ?
Are incentives needed?
What licensing rules are
needed for
implementation?
Is compensation
necessary?
Are the migration rights
clear and agreed?
What will happen to the
existing licence
conditions?
Who will administer
licensing and manage
migration?
What happens on the
expiry of existing licences?
Is the migration process
clear and publicised?
Is the administrative
burden reasonable?
What opportunity will
stakeholders have to
comment?
How will licence fees be
managed during transition
period?
What other regulatory
instruments are needed?
GSR 2009 and 2007 Best Practice
Guidelines
2009 - In order to stimulate investment to grow converged markets,
regulators need to further:
Build an adaptive regulatory framework by adopting a technology neutral
approach, administratively simplified and flexible licensing regime providing
for easy market entry of new players, such as through general authorizations
and multiservice/unified licences.
2007 - Authorization: We encourage regulators to simplify procedural
requirements to obtain a license by introducing registrations, notifications,
and in certain instances, deregulation and to secure rights of way in order to
facilitate the roll-out of NGN access networks. This will ultimately allow
market players to make use of NGN to access global markets and consumers
to benefit from such global competition in the provision of services.
Conclusions
 ICT development is taking at phenomenal pace posing

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challenge to conventional ways of regulation
Regulatory Authorities need to be agile and to be an agent
of change to create proactive enabling environment
Technology / service neutral licensing regime based on
convergence framework
License migration to converged approach is complex but
essential requirement to fully harness the benefits in
networked society
Building human and institutional capacity of regulatory
agencies
ITU : I Thank U
ITU Publications
ITU-D Study Group 1 QUESTION 10-2/1:
Regulation for licensing and authorization of converging services
http://www.itu.int/pub/D-STG-SG01.10.2-2010
Trends in Telecommunication Reform 2004/05 provides a comprehensive
overview on licensing in an era of convergence.
http://www.itu.int/pub/D-REG-TTR.7-2004
ICT Regulation Toolkit Module on Authorisation of
Telecommunication/ICT Services.
http://www.ictregulationtoolkit.org/en/Section.507.html.