Presentation on theme: "World Trends in Telecommunications"— Presentation transcript:
1 World Trends in Telecommunications Eric TysonDirector Commercial ServicesInterConnect Communications
2 Eric Tyson11 Years with BT, in Regulatory Affairs, Overseas Sales and International Relations9 years with InterConnect Communications, currently Director of Commercial ServicesRecent work has focused on Interconnection, cost allocation and business planningDeveloped RIOs and RUOs for operators and interconnection regimes for regulatorsDeveloped cost allocation models for Regulators, Incumbent Operators and New Entrant OperatorsUndertaken costing for both fixed and mobile networks
3 InterConnect Communications Established in 1984Focused on providing professional services to telecommunications operators, equipment suppliers and regulatorsWorked in Europe, CEEC, Middle East, Africa and AsiaMulti disciplined staff based in the UK drawn from operational positions within operators, regulators, lawyers and suppliersAcquired by the Business Optimisation Services (BOS) of Telcordia Technologies in March 2001
5 Economic backgroundTelecommunications is an enabler for economic developmentLong term investments in network infrastructure have been by the incumbent operatorsCustomer expectations are for more services at lower pricesFixed network infrastructure provision no longer seen as attractiveMobile service tariff regulation is not carried out in the same way as in fixed networksIs the balance correct between the incentives offered to new entrants and to the existing incumbents?
6 Policy Mobile operator Fixed operator Measurement of teledensity in fixed and mobile networksProvision of universal access in countries where telephone penetration is less than 20%Account separation in fixed networks leads to high monthly access charges but all mobile network cost is recovered from call charges. Is thus model appropriate?RetailNetworkOtherCostsMobile operatorRetailCoreNetworkAccessOtherCostsFixed operator
7 PolicyCompetition in all services, including broadband, seen as the way of maximising customer choice and valueWhat USO obligation is appropriate, who should provide it and who should pay or it?Mobile networks seen as the main providers of voice services and are largely unregulatedFixed networks potentially seen as providing data services but are heavily regulated (especially their voice and ULL services)Mobile services, particularly 3G, and IP seen as the future way to spread ICTIs this balance right and does offer an appropriate long term approach?
8 PrivatisationPrivate sector involvement has brought significant investment into the telecommunications sector in recent yearsTelecoms seen by Governments as a “cash cow”:3G licence feesfee expectations from further GSM licenses in some countries (e.g. Lebanon, Pakistan, Saudi Arabia, Oman, Cyprus etc)Telecommunications is still highly political and incumbent fixed line operators still at very different stages to face competitionA new entrant in a country is usually the incumbent in another country
9 Regulation Separate regulation of infrastructure and services Regulation still not technology neutral – fixed vs mobile, 2G vs 3G, cable modem vs ADSLFocus on voice telephony but not on voice over IPRegulation being adopted by Benchmark or political pressure rather than suitability to local circumstancesEU expansion countries required to adopt EU Directives rapidlyDevelopment of sector wide “Super Regulators” e.g. Ofcom – sign of convergenceOther sectors (primarily Broadcasting and content) more central to their activities
14 Summary Is the regulatory balance right? How appropriate is Western European Regulation in non European countries? e.g.LRIC costing for interconnectionLocal Loop UnbundlingHow to achieve tariff rebalancing in low GDP countriesEnsure balance between fixed and mobile operators