infrastructure for einclusion – regulation and policy initiatives marianne røgeberg ministry of...

Infrastructure for Infrastructure for eInclusion – eInclusion –

Regulation and Policy Regulation and Policy InitiativesInitiatives

Marianne RøgebergMarianne Røgeberg

Ministry of Transport and Ministry of Transport and CommunicationCommunication

NorwayNorway

Ministry of Transport and Communication Norway

2Baltic IT&T Riga April 7th 2005

Overall Objective - An Overall Objective - An Information Society For AllInformation Society For All

Pro-competitive Regulatory Pro-competitive Regulatory FrameworkFramework

Accessibility, Security and Accessibility, Security and InfrastructureInfrastructure

Research and DevelopmentResearch and Development Skills and EducationSkills and Education High Quality ContentHigh Quality Content A Forward-looking Public SectorA Forward-looking Public Sector



Regulatory FrameworkRegulatory Framework Transposition of EU-directives complete in Transposition of EU-directives complete in

NorwayNorway New Act on Electronic Communications New Act on Electronic Communications

into force 25. July 2003into force 25. July 2003 Access to Affordable High-Quality Access to Affordable High-Quality

Products and Services by Promoting Products and Services by Promoting Competition Competition

Technological NeutralityTechnological Neutrality Scope: All Electronic Networks And Scope: All Electronic Networks And

ServicesServices Secondary Legislation in Place (Feb 2004)Secondary Legislation in Place (Feb 2004)



Telecommunications Telecommunications SectorSector

Important Role in the Economy: Important Role in the Economy: Technological Diffusion and ProductivityTechnological Diffusion and Productivity

2004: No OECD Country with Fixed-Line 2004: No OECD Country with Fixed-Line Monopoly. Norwegian Market Fully Monopoly. Norwegian Market Fully Liberalised in 1998Liberalised in 1998

Sector Emerging from Financial Setback Sector Emerging from Financial Setback 2001-20032001-2003

Competition Intensifying in Most MarketsCompetition Intensifying in Most Markets Continued Need for Sector-specific Continued Need for Sector-specific

Regulation to Ensure Competition in all Regulation to Ensure Competition in all Market SegmentsMarket Segments



NRA Market AnalysisNRA Market Analysis

Analyse Relevant Markets (1-18) to Analyse Relevant Markets (1-18) to Identify Operators with Significant Identify Operators with Significant Market Power. All but one (17 – Market Power. All but one (17 – wholesale international roaming) wholesale international roaming) FinalisedFinalised

Draft Decisions on Remedies on National Draft Decisions on Remedies on National Consultations Summer/Early AutumnConsultations Summer/Early Autumn

Decisions based on EEA consultation End Decisions based on EEA consultation End of Yearof Year

Incumbent – Telenor – SMP in all but two Incumbent – Telenor – SMP in all but two markets (entry-barriers, market share) markets (entry-barriers, market share)



Specific DevelopmentsSpecific Developments

BroadbandBroadband Fixed and Mobile TelephonyFixed and Mobile Telephony Voice over IPVoice over IP Spectrum ManagementSpectrum Management Privacy and SecurityPrivacy and Security

7Baltic IT&T Riga April 7th 2005Ministry of Transport and Communication Norway

Broadband Roll-outBroadband Roll-out Political Aim: Marked-Driven Political Aim: Marked-Driven

Roll-out in All Parts of the Roll-out in All Parts of the CountryCountry

Rapid Increase in Take-up Rapid Increase in Take-up 116 Operators (2004) 116 Operators (2004) 23% Penetration Rate (2004)23% Penetration Rate (2004) Accessibility Expected to Accessibility Expected to

Reach 90-95% by end of 2005Reach 90-95% by end of 2005


Technology PlatformsTechnology Platforms

0102030405060708090

xDSL Cable Others(fibre, radio

etc)

WorldwideEU Norway


Broadband Roll-outBroadband Roll-out No Public Funding for Infrastructure No Public Funding for Infrastructure Support for Local AdministrationsSupport for Local Administrations to to

Stimulate DemandStimulate Demand Broadband Access for All Primary Broadband Access for All Primary

Schools, Libraries and Local Schools, Libraries and Local Administrations 2005Administrations 2005

Increasing Supply in Rural Areas Increasing Supply in Rural Areas Competition not Satisfactory (Telenor Competition not Satisfactory (Telenor

SMP in Market 11 and 12)SMP in Market 11 and 12) Appropriate Remedies to be Appropriate Remedies to be

ConsideredConsidered



Fixed TelephonyFixed Telephony Declining Market (Value, Revenues, Declining Market (Value, Revenues,

Subscriptions)Subscriptions) New Entrants, Carrier Selection, Price New Entrants, Carrier Selection, Price

Competition Competition Fall in Time-Metered Traffic – Fall in Time-Metered Traffic –

Substitution to VoIP and Always On Substitution to VoIP and Always On Broadband Broadband

Telenor SMP in All Fixed Line Markets Telenor SMP in All Fixed Line Markets (1-6)(1-6)

Appropriate Remedies to be Appropriate Remedies to be Considered by the end of 2005Considered by the end of 2005



Mobile telephonyMobile telephony Main Driver in the Electronic Main Driver in the Electronic

Communications Markets – Turnover Communications Markets – Turnover Exceed Fixed TlphExceed Fixed Tlph

Total Revenues Up 8.4% 2003-2004. 19% Total Revenues Up 8.4% 2003-2004. 19% Traffic Growth Last Year, up from 14% Traffic Growth Last Year, up from 14% 2002-20032002-2003

SMS Major Part of Traffic Proportion, SMS Major Part of Traffic Proportion, MMS on the Increase (160% 2003-3004)MMS on the Increase (160% 2003-3004)

Telenor SMP in Market 15, All Operators Telenor SMP in Market 15, All Operators SMP in Market 16 SMP in Market 16

NetCom and Telenor Only Network NetCom and Telenor Only Network Operators. Combined GSM Market Share Operators. Combined GSM Market Share 84% - Decreasing84% - Decreasing

Number Portability Dec 2001 – 450.000 Number Portability Dec 2001 – 450.000 Changed Operator in 2004Changed Operator in 2004



Mobile Penetration RatesMobile Penetration Rates

0

10

20

30

40

50

60

70

80

90

100

2001 (77%) 2002 (83%) 2003 (88%) 2004 (96%)



Mobile Traffic Mobile Traffic

0

200

400

600

800

1000

1200

1400

1600

1800

2001 2002 2003 2004

InternationalFixedMobile



3G3G

4 Operators Licenced in 2000 4 Operators Licenced in 2000 after Beauty Contestafter Beauty Contest

2 Commercial UMTS Networks 2 Commercial UMTS Networks launched, by Telenor and NetCom launched, by Telenor and NetCom recentlyrecently

Hi3G Access Norway (Licenced Hi3G Access Norway (Licenced 2003) to launch this year2003) to launch this year

CDMA: NMT Awarded Licence in CDMA: NMT Awarded Licence in the 450-band Last Year the 450-band Last Year


Voice over IPVoice over IP First Commercial First Commercial

Offerings Offerings Launched 2004Launched 2004

Today More than Today More than 40 Operators, 40 Operators, 50000 Customers 50000 Customers

Main Driver in the Main Driver in the Broadband MarketBroadband Market

Increased Pressure Increased Pressure on Traditional on Traditional CarriersCarriers

TV over DSL – New TV over DSL – New OpportunitiesOpportunities

0

5

10

15

20

25

30

35

40

June 2004 Oct 2004 March2005


Voice over IP – Voice over IP – Regulatory IssuesRegulatory Issues

Future Regulation under Future Regulation under ConsiderationConsideration

Balance Needs of Industry and Balance Needs of Industry and ConsumersConsumers

Calls to Emergency Services/Caller Calls to Emergency Services/Caller Location, Geographical Portability Location, Geographical Portability Main ChallengesMain Challenges

National Work by NRA in Light of ERG National Work by NRA in Light of ERG Common Position and EC Initiatives Common Position and EC Initiatives (Light Touch Regulation) (Light Touch Regulation)



Radio Spectrum Radio Spectrum Harmonised Management Across EEA Harmonised Management Across EEA

Essential to an Internal Market for Essential to an Internal Market for Electronic CommunicationsElectronic Communications

Secondary Trading Provides Secondary Trading Provides Opportunities for New Innovative Opportunities for New Innovative Technologies and Services in EuropeTechnologies and Services in Europe

National Legislation Opens Up For National Legislation Opens Up For Spectrum Trading, in line with Spectrum Trading, in line with Framework Directive and RSDFramework Directive and RSD

Safeguards for Public Interests Must Safeguards for Public Interests Must be inbe in Place Place



Regulatory OutlookRegulatory Outlook Main Challenges: Develop Competition in Main Challenges: Develop Competition in

All Segments while Safeguarding All Segments while Safeguarding Consumers (USO)Consumers (USO)

New Technological Developments to be New Technological Developments to be Taken into AccountTaken into Account

Revision of Regulatory Framework by Revision of Regulatory Framework by 2006 in line with EC Revision of 2006 in line with EC Revision of Directives for Electronic Directives for Electronic CommunicationsCommunications

Regulatory Challenges: Scope (USO) – Regulatory Challenges: Scope (USO) – Convergence, Sector Specific vs Convergence, Sector Specific vs Competition RegulationCompetition Regulation

infrastructure for einclusion – regulation and policy initiatives marianne røgeberg ministry of...

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