1. Luiz Fernando Ferreira Silva, Ph.D., Anatel, Brazil IP Networking and MEDIACOM 2004 Geneva, 24 - 27 April 2001

2. 4 4Regulations toward Convergence 4 4Concluding Remarks 4 4Introduction 4 4The Technological Convergence 4 4Future Actions Contents

3. Objective 3 3 To describe the extent to which Brazil has positioned itself to respond to the impact of the technological convergence on the telecommunication regulation in the country. Argument 3 3 The implications of the technological convergence on current regulatory regimes clearly indicate that they will be subject of revisions. 3 3 The actions to be taken on these regimes, it is argued, need to be in line with the expectations of service providers and consumers in the sense of promoting greater benefits for the society as a whole under an increasing availability of convergent services. Introduction

4. The Technological Convergence Conceptual Approach 3 3 Technological convergence is defined as a process of formation of successive similarities amongst technologies that had been distinct from one another. They have once established clear borderlines amongst the services they have enabled the provision but now share a common digital environment.

5. 3 3 Full legislation and regulatory reform requires a long-term in-depth assessment of the technological convergence; 3 3 Technologies and services are evolving rapidly and leaving a large number of legal and regulatory provisions lagging behind; 3 3 Regulatory uncertainties must be expeditiously and timely removed, in order for the pertaining industries to continue to grow; 3 3 Initial step toward a future flexible regulatory framework: â â to consider technology and platform as neutral so that new developments in services, be they incremental or radical innovations, can be easily accommodated. Response of Regulatory Authorities The Technological Convergence

6. Source: Elaborated from Bill Wigglesworth and Jill Hills. Convergence of Broadcasting and Telecommunications, 1999 (mimeo). The Technological Convergence Users Perspective

7. General Aspects: 3 3Anatel’s regulatory actions in the light of the technological convergence are mainly concerned with: 3 3The support for the creation of a modern, efficient infrastructure of telecommunications in Brazil; 3 3The supply for the entire Brazilian population of telecommunications services at fair prices; 3 3The re-organization of its own structure and of the telecommunications industry. Regulations toward Convergence

8. Regulation for the Use of Paid Mass Communication Service Networks for the Provision of Value Added Services (VAS) 3 3Approved through Anatel’s Resolution nº 190 in 1999. 3 3The purpose of this regulation is: â âTo make mass communication service networks (DTH, MMDS, and Cable TV) available for providers of VAS; â âTo allow the network holder to explore VAS only through a separated company established specially for the rendering of VAS; â âTo promote free-market competition features between Access Network Providers; â âTo make it possible the interconnection of Cable TV, MMDS, and DTH Networks to the Internet.

9. Regulation for Mass Electronic Communication Services for Subscribers (SCEMa) 4Public Consultation yet to be published; 4The purpose of this regulation is: âTo introduce the term “electronic” and adequate the regulatory framework to the current context of the telecommunications sector; âTo review and consolidate a single regulatory Act for pay-TV services; âTo license services and radio-frequencies separately; âTo regulate this service independent of the technology employed in its provision. Regulations toward Convergence

10. SCEMa can be provided over technologies as follows: 4 4Coax and Fiber (Cable TV); 4 4Terrestrial radio-electric waves (MMDS); 4 4Satellite (Direct-to-Home).

11. MMDS Characteristics 3Telecommunication service which uses radio-frequency spectrum (2.5 GHz - 2.686 GHz) to distribute signals (any telecommunication signal) within the licensed area; 3Return channel in the frequency band of 2.170 to 2.182 GHz (differs from the U.S. and Canada); 36 MHz channels; 3EIRP Max - 33 dBW considering a 50 Km radius; 3The signal transmitted shall be coded by the operator; Systems Characteristics

12. MMDS Characteristics 3Most of the operations are currently analogue, but the digitalisation of this system is taking place and its capacity will increase for the provision of services; 3MMDS uses a cellular configuration also split into sectors; 3Average Rate of 144 Kbps from the user to the head-end, using digital modulation. Systems Characteristics

13. MMDS

14. Cable TV Characteristics 3Cable television network is built up as a public and unique network; 3Telecommunication service, which distributes sound and video programs to subscribers by using cables (Mainly fiber and coax); 3Approximately 80 video channels (6 MHz); 3The return channel is available in the cable infrastructure; 3The modulation techniques most used are Quadrature Phase Shift Keying (QPSK) and Quadrature Amplitude Modulation (QAM); 3Cable TV operators are currently using the Cable Modem technology to provide interactive services to users. Systems Characteristics

15. Cable TV

16. Cable TV Interactivity Systems Characteristics Internet WWW Server Cable TV Network User equipment Modem Computer Television Internet Link Headend Cable TV Programming Until 10 Mbps to the user 128 Kbps from the user

17. Characteristics DTH 3Telecommunication service which distributes audio and video programs through satellites to subscribers within the licensed area; 3The operator can use satellite systems either of its own or leased from a satellite operator; 3The operator must establish a Monitoring Center within the Brazilian territory; 3The transmission of DTH signal is digital; 3DTH has approximately 120 video and audio channels. Systems Characteristics

18. DTH

19. Regulations toward Convergence Regulation for the Multimedia Communication Service (SCM) 4 4Anatel’s Public Consultation nº 246 (under analysis); 4 4Holds capacity for providing multimedia applications, such as data, image, audio & video, text, etc. (a convergent service indeed); 4 4Can be provided over any telecommunications network; 4 4Public Switched Telephone Service, Broadcasting Service and Pay-TV Service are excluded.

20. SCM Characteristics 4 Licensed area may be local, regional or national; 4 Can be provided over various radio-frequencies, including 2,5 GHz, 3,5 GHz, 10,5 GHz and 24 - 31GHz, known as Fixed Broadband Wireless Access (FBWA); 4 Point to multi-point, uni and bi-directional. Regulations toward Convergence

21. SCM will support applications such as: 4 High speed Internet access; 4 Data communication; 4 Corporate voice; 4 Audio and video; 4 Teleconference; 4 Tele-medicine; 4 Tele-education; 4 Video-on-Demand; 4 Other. Regulations toward Convergence

22. SCM can be provided over various technologies, mainly over Local Multipoint Distribution/Communication System (LMD/CS). : 3LMD/CS has the following features: 3Capacity to provide convergent services; 3Capacity to provide telecommunication services at high bit rate; 3Use radio-frequencies around 28 GHz; 3Cellular architecture; 3Frequencies reuse; 3Limited coverage area. Systems Characteristics

23. LMD/CS

24. LMD/CS Strengths 3P otential to provide a ‘full multimedia service network’ package of integrated voice, video and high-speed data services; 3Rapid deployment of a multimedia network and the lower costs for the installation of related accesses; 3A point to multi-point network, which offers further advantages such as: faster realisation of revenue, demand-based buildout, a sort of fibre-like quality of service, quick response to market demand and lower network maintenance, management and operating costs. LMD/CS Weaknesses 3One of the main problems to be faced by operators of this system is rain, foliage and dust attenuation effects causing reduction in the signal level due to its operation at 28 GHz frequency band. Systems Characteristics

25. Public Consultation nº 291 3On April 17, Anatel published the Public Consultation nº 291 which has the purpose of stimulating and broadening the debate on the choice of the countries’ DTV standard; 3This Public Consultation has as its Annexes: 3Annex I - Integrated Technical and Market Report; 3Annex II - Analysis of Tests (Field/Laboratory) performed in Brazil. Anatel’s Regulatory Action

26. The factors that Anatel is to take into account in the adoption of a Digital TV broadcast Standard: 3Penetration rate of analogue, off-the-air TV in Brazilian households; 3Importance of the Brazilian market in the consolidation of the standard selected on a global scale; 3Business and transition models that meet the needs of the Brazilian population; 3Identification and analysis of all the factors involved in the introduction of digital technology in terrestrial TV transmissions. Anatel’s Regulatory Action

27. Introduction 3 3Analysis of the impact of the technological convergence on the Brazilian telecommunication market to be carried out by Anatel and Specialized Consultants. Future Actions Objective 3 3Expose about the impact of technological convergence in the telecommunications sector, including the radio broadcast and IT sectors. 3 3Review the telecommunications regulatory regime in the country, including the radio broadcast and IT regimes presently in force; 3 3Develop a regulatory framework that do not hinder the growth of the telecommunications sector, including the radio broadcast and IT sectors, and that foster, at the same time, technological innovations that can be extended to all associated industries.

28. Expected Products 3 3An analysis of the current and future setting, the risks and opportunities for the development of the telecommunication sector, including the radio broadcast and IT sectors; 3 3A description of the future scenarios for the technological development of these sectors and how these elements can contribute to the various modes of telecommunications (voice, data, video, multimedia, etc. signal transmissions) in urban and rural areas; 3 3A regulatory and licensing framework that is capable of promoting the compatible development of communications, the redesign of Anatel’s organizational structure and competencies, and the establishment of an action plan for adjusting to the changes. Future Actions

29. Conclusion 3 3While the process of technological convergence progresses the world over, policy strategies need to be found on the extent to which the pace toward the establishment of multimedia services can be accelerated, whereas we all share the idea of the direction the whole global society is heading; 3 3Back to the concept of evolutionary process that telecommunication, broadcasting and computing technologies have embarked on, it can be asserted that the digital environment has set the direction for an ubiquitous provision of convergent services in the very near future.

30. Luiz Fernando Ferreira Silva, Ph.D. Anatel, Brazil lffs@anatel.gov.br (55) (61) 312-2393