1. The role of operators in broadband infrastructure and services David Souter ict Development Associates EACO, Munyonyo, 16 April 2013 david.souter@runbox.com

2. Four eras of modern telecommunications MonopolyLiberalisation Competition Convergence / Broadband

3. Central role in telecommunications development MonopolyLiberalisation Competition Convergence Broadband The role of operators has changed alongside these different paradigms of telecoms development: In the monopoly era, operators were subservient to policymakers In the liberalisation era, government s transferred leadership in the sector to the market, and so to operators This intensified as competition became established, for example through technology and service neutral licensing In the broadband era, policymakers are again playing a leading role, alongside operators: because of the perceived importance of broadband to development because of the high investment costs involved because of renewed belief in the appropriateness of public investment

4. Shareholder perceptions of the operator role  Shareholders see the operator’s role as being to enhance shareholder value  Operators do this by:  investing in networks  providing services  making profits  not investing in anything that will make a loss.  Operators adopt different strategies for maximising shareholder value according to context and market circumstances

5.  Consumers see the role of operators as being to meet consumer needs:  to provide high quality, fast and reliable services,  of the kind consumers want,  at the lowest possible prices,  as and when consumers want them.  Different consumers have different priorities - in particular business and personal consumers Consumer perceptions of the operator role

6.  Competition in telecommunications is necessarily associated with cooperation between competitors  because of the necessity for interconnection  because of new imperatives for infrastructure sharing  Non-dominant operators see the role of dominant operators as being (inter alia) the provision of access to them on fair terms Operator interaction

7.  Policymakers see the role of operators as including:  to maximise the social and economic value of their networks and services for national economic growth  to minimise consumer costs and maximise consumer value, leading to higher levels of access and use  to ensure geographical and social equity in the availability and affordability of services  to foster innovation and the deployment of new services, including services which will have strong economic and social, or developmental value Policymakers’ perceptions of the operator role

8. Questions to operators: 1  Are the roles of policymakers and operators changing in the broadband era?  In particular, is there a shift in authority and responsibility away from the market towards government and regulators?  If so, are operators worried by this?

9.  How far do public-private partnerships change the role of operators?  What are the respective roles of government and operators in public-private partnerships?  What makes proposals for such partnerships attractive or unattractive to operators? Questions to operators: 2

10.  What do operators think about infrastructure sharing?  Do they see it as a short-term fix to expedite investment or a long-term business model, which reshapes their role and relationships with one another for the future? Questions to operators: 3

11.  What is the relationship between networks and services in operators’ business models in the broadband era?  Do operators’ business models depend on vertical integration between these two aspects of the broadband ecosystem?  Are there any problems arising from this? Questions to operators: 4

12.  What do operators believe their role should be in achieving universal access and universal service?  What incentives work best for them? Questions to operators: 5