1. Internet Access Services: Regulatory Issues and Choices Session 8: Working Group Exercise 1: Development of a Wireless Broadband Roadmap Bangkok, Thailand 12 December 2012 Scott Minehane (scott.minehane@windsor-place.com) Windsor Place Consulting

2. 2 Agenda 1.Case Study - Republic of Vaderstan Names in this case study were inspired by the release of Angry Birds Stars by Rovio. See www.rovio.com/en/our- work/games/view/50/angry-birds- star-wars www.rovio.com/en/our- work/games/view/50/angry-birds- star-wars

3. 3 Vaderstan Broad Learning objectives Discuss and resolve issues relating to net neutrality, fair usage pricing, broadband pricing, competition, tariff regulation, quality of service and consumer protection. Make recommendations based on what you have learned from previous presentations and on the country-specific information provided in this case study. Work as a team to find the best overall solutions.

4. 4 Vaderstan The Republic of Vaderstan is a sovereign nation in the Asia region. Vaderstan was constituted in 1958 after the withdrawal of colonial powers. Since then the country has made strong progress with the liberalisation of its telecommunications market, and is moving towards a converged regulatory framework. Flag of the Republic of Vaderstan Introducing the Republic of Vaderstan

5. 5 Vaderstan CORUSCANT Tatooine Alderaan Dagobah REPUBLIC OF VADERSTAN Map of the Republic of Vaderstan

6. 6 Vaderstan Regulator The Vaderstan Telecommunications Regulatory Authority (VTRA) has been asked by Minister Han Solo to undertake an inquiry into Vaderstan’s telecommunications sector. The extensive terms of reference cover issues such as:  Net neutrality  Fair usage pricing  Competition and consumer protection  Tariff regulation  Quality of service  Bundling issues The government wants to undertake a comprehensive review of the broadband market and to establish recommendations for dealing with above issues. Previously the VTRA has been loath to intervene in the market without the express direction of the government.

7. 7 Vaderstan Demography Vaderstan has a population of approximately 70 million people, with the majority of the country’s population living in the southern region, where Vaderstan’s major cities are located. Vaderstan’s largest city is Alderaan, with approximately 15 million people. The administrative capital is Coruscant, with approximately 2 million people. The northern region of Vaderstan consists of mountainous terrain surrounded by a number of farming towns such as Tatooine and Dagobah. There is significant wealth discrepancy between the two regions. GDP per capita in the south is approximately USD 22,000 per capita, while in the north it is approximately USD 6,500. Population growth is predicted to continue strongly into the future, with a population forecast of 100 million by 2050.

8. 8 Vaderstan Market Vaderstan went through a period of liberalisation in the 1990s which included reform of its telecommunications law and regulation. Today the country has a voice mobile market that is reasonably liberalised by world standards, and a fixed broadband market that is completely liberalised. There are three operators in Vaderstan. SithTel is the former government-owned incumbent and is the largest provider of fixed and mobile services in Vaderstan. The other two operators - Obicom and Yodafone - have less market share but are experiencing significant growth.

9. 9 Vaderstan Market While the telecommunications market in Vaderstan is mostly robust, not everything is well. High mobile broadband prices have forced the government to initial a review of the market. The regulator has received a growing number of quality of service complaints, and there are concerns that complex product bundling is restricting access to services. The main operators have also brought it fair use policies as an attempt to address the significant growth in monthly downloads, much of which is ‘foreign based’ content often inappropriate and/or pirated IP. The latter has become an issue given the start of negotiations on a free trade agreement between Vaderstan and the US. The Government is also very aware of the importance of access to broadband services for society and the economy, and wants to ensure that the country has affordable broadband with good quality of service.

10. 10 Vaderstan Broadband prices The VTRA conducted a review of retail broadband prices a year or so ago and has determined that they are significantly above those of neighbouring countries in the region. The regulator has considered price controls for the retail market but is unsure what effect this will have in the absence of a review of wholesale prices. The VTRA has raised network access issues with the government previously, but the government’s policy has been to encourage investment in network infrastructure, and is concerned that regulating access prices may discourage network expansion. SithTel, which owns the majority of Vaderstan’s national fibre cable network, negotiates commercial agreements with the other two carriers. Since Obicom and Yodafone are happy to agree to the negotiated terms, the government has previously seen no reason to intervene.

11. 11 Vaderstan The Task The CEO of VTRA, Princess Leia, has called in the four divisions (represented by a table) of the the VTRA namely: Competition Division Economic Division Technical Division (which includes Quality of Service monitoring) Consumer Protection Division to ask them to list, assess and review the key issues within their area of competence and report back to her by at the latest Friday 14 December 2012. Each Division will make a presentation of 10-15 minutes with either 1 or 2 persons with accompanying powerpoints detailing to the CEO and the Board of the VTRA, those key issues and the key recommendations/solutions to the Board of the VTRA in relation to them. Recommendations on possible key powers or legislative powers necessary as welcome by the CEO and the Minister.

12. 12 Vaderstan Assessment: 1.As the position of Deputy CEO of the VTRA is vacant, the CEO intends to endorse the head of the division who prepares the most compelling arguments as the deputy of the VTRA. 2.The best arguments will be assessed and voted on to determine the wining division.