1. Version : 11 December 2008 Workshop on “Monitoring Quality of Service and Quality of Experience of Multimedia Services in Broadband/Internet Networks” (Maputo, Mozambique, 14-16 April 2014) Regulatory Approaches & Best Practice Joachim Pomy Consultant@joachimpomy.de OPTICOM, Germany

2. Maputo - Mozambique - 14 - 16 April 2014 2  Regulatory Approaches & Best Practice  Introduction  Setting up a National Transmission Plan  QoS for International Connections  Multi-Vendor Environment  Hot Topic: Study on Broadband Access Speed ITRs: Setting the stage for a connected world [Content]

3. Maputo - Mozambique - 14 - 16 April 2014 3 Regulatory approaches Regulation orientated Customer orientated ReportingTo regulatorTo customer TargetsIn regulationsIn contracts PenaltiesFinesCompensation …or a combination?

4. Maputo - Mozambique - 14 - 16 April 2014 4 QoS regulations  Measurement and reporting are expensive  Do you scratch everywhere? or scratch where it itches?  Need to focus on the known problem areas  But the problem areas may change over time  Issue of cost effectiveness

5. Maputo - Mozambique - 14 - 16 April 2014 5 Service Level Agreements  Considered highly important  Indication of the level that the supplier aims to achieve  Only tangible benefit if there is compensation for failure  Is the compensation a token or a rebalancing of the failure  A token at least imposes some incentive to perform  Tokens are noticed by management

6. Maputo - Mozambique - 14 - 16 April 2014 6 Criteria for QoS Parameters  QoS parameters should be easily understood by the public, and be useful and important to them.  All parameters are applicable at the network termination point. Where measurements are possible, they should be made on the customer's premises, using in-service lines. To be as realistic as possible, real traffic rather than test calls should be used as a basis of the measurements, wherever possible.  Parameters should be capable of verification by independent organizations. This verification might be made by direct measurements or by audit of the operator's measurements.  The accuracy of QoS parameter values should be set to a level consistent with cost effectively available measurement methods.  The parameters are designed for both statistical and individual application. The statistical values should be derived by the application of a simple statistical function to the individual values. The statistical function should be specified in the standard. The standard should also contain guidelines on how statistically significant samples should be selected. From ETNO: European incumbent’s club

7. Maputo - Mozambique - 14 - 16 April 2014 7 Regulation and Customer Compensation  Initial levels of compensation should be low  Any such payments will be monitored by management of operators  Experience is that the benefit in alerting management to problems far exceeds the value of the sums paid as they expose mangers to internal criticism  However for critical parameters that have a seriously damaging effect on customers  Levels of compensation should rise depending on the extent on the problem with higher payments to business customers than to residential ones  For example failure to repair a fault within a specified time would incur a penalty of say $X per day  this rate should not be capped at a maximum of say 5 days but continue  possibly rate per day should rise if the time exceeds say 10 days  This formulation is needed to ensure that the managers concerned take appropriate steps to resolve the issues and prepare adequately for the problems that inevitably will occur.

8. Maputo - Mozambique - 14 - 16 April 2014 8 Regulatory Aspects (1)  QoS parameters for Regulation should be  Limited in number  Focus to hot topics  where problems already exist or expected to occur soon  Taylored to the special situation in the Region  different topics for each country

9. Maputo - Mozambique - 14 - 16 April 2014 9 Regulatory Aspects (2)  Network operators but also customers have experience  with regulation & resulting QoS in other countries of the region  For National Regulators it is important to prove  customized regulation regime  but no re-invention of the wheel  no over burdening of operators

10. Maputo - Mozambique - 14 - 16 April 2014 10 Best Practice  Some Advantages (postulated)  QoS Regulation not needed  Market Powers regulate overall Quality  Some Requirements (obvious)  All Stakeholders Stick to Standards  Appropriate Standards are available in Time  QoS Responsibilities must be clear defined  Some Problems (surprise !)  „connect your fridge to the network – it might be legal“

11. Maputo - Mozambique - 14 - 16 April 2014 11 Market Mechanisms  Forces of the Market will bring users into a position where they can obtain the end- to-end QoS they wish to perceive  Has been postulated for a long time in Europe  Has been proven to be more than questionable  Mostly, contracts between users and network operators  have a longterm binding character  do not contain any QoS provisions  Currently, traditional Telcos have no incentive to provide high end-to-end QoS for their NGN customers  Number of customers remains stable  In parallel the commercial company value  In contrast are Internet based communication service providers  Receive their revenue not directly from users  But by other business models which rely on a high (and increasing) number of users of the service every day  Customers not satisfied with end-to-end QoS will stop using the service  Consequently the number of customers decreases immediately and so the company value  Thus the incentive to offer high end-to-end QoS to the user is extremely high.

12. Maputo - Mozambique - 14 - 16 April 2014 12 European approach  Universal Services Directive 2002/22/EC Articles 11 and 22  Publication of performance for common list of parameters  Target levels and additional parameters may be added by National Regulatory Authority  Public communication network  Supply time for initial connection  Fault rate per access line  Fault repair time  Publicly available telephone service  Call set up time  Response times for operator services  Response times for directory enquiry services  Proportion of coin and card operated public pay-telephones in working order  Bill correctness complaints  Unsuccessful call ratio

13. Maputo - Mozambique - 14 - 16 April 2014 13  Regulatory Approaches & Best Practice  Introduction  Setting up a National Transmission Plan  QoS for International Connections  Multi-Vendor Environment  Hot Topic: Study on Broadband Access Speed ITRs: Setting the stage for a connected world [Content]

14. Maputo - Mozambique - 14 - 16 April 2014 14 Pre-Requisites for a National Transmission Plan  Definition of Network Structure & Topology  Definition of Desired End-to-End QoS  Absolute Minimum  Average over Usage/Regions/Calendar Time  Specification of QoS & NP Parameters  End-to-End  For each Network Element & Terminals  Selection of Reference Connections  Typical Connections (High # of Occurence)  Complex Connections (QoS Problems expected)  Legal Regulatory Framework  To enforce Requirements  To strengthen Customers‘ Rights  To solve issues in Cases of not achieved QoS

15. Maputo - Mozambique - 14 - 16 April 2014 15 Transmission Planning in Europe (1)  Historically, separate national transmission plan have been enforced and utilized in European countries:  National transmission plans based on ITU-T (CCITT) Recommendations  Inter-Country, intra-European telephony connections ruled by  The International transmission plan as per ITU-T Recommendations G.101, G.111 and G.121  Regulatory Treatment of a Telephony Connection in Europe consists of two parts:  Regulation of the public network (through the Directives on an Open Network Provision) and  Regulation of the terminal market (through a “Terminal Directive")  Both of these regulations are undergoing changes with the effect that national regulatory authorities do not intervene where quality is ensured through effective competition  The new directive for Radio equipment and Telecommunications Terminal Equipment (the "R&TTE" directive) includes a possibility for the Commission to issue regulation regarding voice performance.

16. Maputo - Mozambique - 14 - 16 April 2014 16 Transmission Planning in Europe (2)  As long as the market actors behave in a responsible manner, there will be no EU regulation of voice performance of customer premises equipment connected to a public network  For the telecommunications industry it is however of value to arrive at a common transmission plan for future networks, to ensure successful global communications  Pan-European Loss Plan has been developed  ETSI ES202020 harmonized with TIA  To assist manufacturers in achieving satisfactory voice performance  Not a regulatory requirement

17. Maputo - Mozambique - 14 - 16 April 2014 17  Regulatory Approaches & Best Practice  Introduction  Setting up a National Transmission Plan  QoS for International Connections  Multi-Vendor Environment  Hot Topic: Study on Broadband Access Speed ITRs: Setting the stage for a connected world [Content]

18. Maputo - Mozambique - 14 - 16 April 2014 18 National Transmission Plan Part of International Connection Defined by National Transmission Plan Defined by ??? ITU-T G.101 Sure ??

19. Maputo - Mozambique - 14 - 16 April 2014 19  Regulatory Approaches & Best Practice  Introduction  Setting up a National Transmission Plan  QoS for International Connections  Multi-Vendor Environment  Hot Topic: Study on Broadband Access Speed ITRs: Setting the stage for a connected world [Content]

20. Maputo - Mozambique - 14 - 16 April 2014 20 National Transmission Plan On-Net Connections  Single Vendor’s Technology Implementation  Has Potential to deliver homogeneous QoS  Tends to be easy controllable

21. Maputo - Mozambique - 14 - 16 April 2014 21  Multiple Vendor’s Technology Implementations  Has Potential to deliver QoS-Problems  Tends to be less controllable National Transmission Plan Multi-Vendor Inter-Connections

22. Maputo - Mozambique - 14 - 16 April 2014 22  Connection to other Jurisdictions National Transmission Plan International Connections  Plus Multiple Vendors in National Network

23. Maputo - Mozambique - 14 - 16 April 2014 23 Some Conclusions...  Focus on User perceived Parameters  users do not understand network specific KPIs  End-to-end QoS is different  On-net vs. Off-net  National vs. International  On the other hand  User trend to global communication  Especially for data services like YouTube

24. Maputo - Mozambique - 14 - 16 April 2014 24  Regulatory Approaches & Best Practice  Introduction  Setting up a National Transmission Plan  QoS for International Connections  Multi-Vendor Environment  Hot Topic: Study on Broadband Access Speed ITRs: Setting the stage for a connected world [Content]

25. Maputo - Mozambique - 14 - 16 April 2014 25 HOT TOPIC  Selected Results Fixed & Mobile Broadband Access Study Germany  Related Activities Austria

26. Maputo - Mozambique - 14 - 16 April 2014 26 Hot Topic  Results from Study on Broadband Access Speed  Initiated by German Regulator  Carried out by independant test house  Results for both Mobile & DSL access  http://www.bundesnetzagentur.de/SharedDocs/Downloads/DE/Sachgebiete/Telekommunikation/Unternehmen_Institutionen/ Breitband/Qualitaetsstudie/AbschlussberichtQualitaetsstudie.pdf?__blob=publicationFile&v=1 http://www.bundesnetzagentur.de/SharedDocs/Downloads/DE/Sachgebiete/Telekommunikation/Unternehmen_Institutionen/ Breitband/Qualitaetsstudie/AbschlussberichtQualitaetsstudie.pdf?__blob=publicationFile&v=1  English Version planned  Following is a Summary of Results for Mobile Access  Categorized by Ranges of Advertised Bandwidth  Bar graphs by Location (Major cities in Germany)

27. Maputo - Mozambique - 14 - 16 April 2014 27 Average Mobile Download Speed Depicted as Percentage of the Advertised Speed

28. Maputo - Mozambique - 14 - 16 April 2014 28 Average Mobile Upload Speed Depicted as Percentage of the Advertised Speed

29. Maputo - Mozambique - 14 - 16 April 2014 29 Average Mobile Download Time for Web Sites For Alexa Top 10 Web Sites in Germany

30. Maputo - Mozambique - 14 - 16 April 2014 30 Initial Conclusions  Conclusion of the German Regulator:  Quality extremely fluctuating and not predictable  An global average quality value across one mobile network has no meaning for the customer  (e.g. average UMTS download speed for T-Mobile across Germany = 3 Mbit/s)  Customer wants to know quality at current location  High resolution required for measurements to be of any use for customer  Measurements of quality anddisplay of results must always reference Time and Location  Averaging across entire infrastructures not permitted

31. Maputo - Mozambique - 14 - 16 April 2014 31 Compare LTE with other Technologies Achieved Percentage of Advertised Speed

32. Maputo - Mozambique - 14 - 16 April 2014 32 Examples of Drive Tests

33. Maputo - Mozambique - 14 - 16 April 2014 33 Future Work  Development of a measurement methodology for broadband access speed  measurement will be done by customers  creation of a public data base across all providers  enable customers to know the quality before signing the contract  enable customers to check the contracted quality  Consequences for Mobile Operators:  make your own drive test with very high granularity "postal code level" or  make software measurement on your customers' phones  Approach via customers' phones requires huge data base  On average results per location will "true values"  Software must account for terminal aspect in intelligent manner  Currently under development by German Regulator

34. Maputo - Mozambique - 14 - 16 April 2014 34... Others have the same Approach © Rundfunk und Telekom Regulierungs-GmbH (RTR-GmbH)

35. Maputo - Mozambique - 14 - 16 April 2014 35 Links  The Austrian Regulator already started measurement campaign based measurements from customers' phone  Currently in Beta test phase: https://www.netztest.at/en/https://www.netztest.at/en/  Results on interactive map: https://www.netztest.at/en/Karte https://www.netztest.at/en/Karte  Technical Parameters: https://www.rtr.at/en/rtr/netztestfaq_technik#c25808 https://www.rtr.at/en/rtr/netztestfaq_technik#c25808

36. Maputo - Mozambique - 14 - 16 April 2014 36 Any questions ? Contact: Consultant@joachimpomy.de