Regulatory Issues Europe and Austria

VON 2003 BostonFall 2003 Telecom Policy Summit

22. September 2003

Richard STASTNYÖFEG/TELEKOM AUSTRIA, Postbox 147, 1103-Vienna

enum:+43 664 420 4100E-Mail: richard.stastny@oefeg.at

richard@stastny.com

Richard Stastny

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Before 1980 the Telecom World was bipolar: the US, with 3000 privately run telecom companies,

dominated by AT&T – centered in New York the rest of the world, an enormous sea of government-owned

and government-controlled operating entities, in most case part of the Ministries and Post Offices – centered in Geneva

This came to an end in 1984 with the break-up of AT&T into 8 pieces.

The Geneva "club" still held together - lead by France, but UK followed somehow the lead of the US, by privatizing

BT and establishing a duopoly with C&W (Mercury) and made a business out of exporting deregulation all over the world with OFTEL and its consultants.

the battle went on until the early 1990's, until a compromise was found in Brussels.

Deregulation and Privatization

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For the launch of GSM (to help the European industry to compete against the US and Japan),

and in the context of the "single market" concept, the EC accepted more competition, larger market, more technology

development, more sales, more jobs and more government tax revenues as telecom theology.

This was a concept even France could accede to (at least in other countries ;-)

So deregulation and privatization started in Europe at various speeds, until 1998 when the first set of directives harmonized this within the EU.

The major cornerstones where: Privatization, Carrier selection, Local loop unbundling, Number Portability, Asymmetric "de"- regulation of operators with "substantial" market

power -> the incumbents,

to achieve competition and lower prices for end-users.

Deregulation in Europe

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Following the liberalization in 1998, competition in European telecommunications markets has driven growth and innovation and the widespread availability of services to the public (EU commercial from the 8th Report).

The new regulatory framework is intended to provide a coherent, reliable and flexible approach to the regulation of electronic communication networks and services in fast moving markets.

The directives provide a lighter regulatory touch where markets have become more competitive yet ensure that a minimum of services are available to all users at an affordable price and that the basic rights of consumers continue to be protected.

Member states shall apply those measures from 25 July 2003.

http://europa.eu.int/information_society/topics/telecoms/regulatory/new_rf/index_en.htm

The new EU Directives (March 2002)

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1. on a common regulatory framework for electronic communications and services (Framework Directive – 2002/21/EC)

2. on access to and interconnection of electronic networks and associated facilities (Access Directive – 2002/19/EC)

3. on the authorisation of electronic communication networks and services (Authorisation Directive – 2002/20/EC)

4. on universal service and users' rights relating to electronic networks and services (Universal Service Directive -2002/22/EC)

5. concerning the processing of personal data and the protection of privacy in the electronic communications sector (Data Protection Directive - 2002/58/EC)

6. on competition in the markets for electronic communications networks and services (Market Directive - 2002/77/EC) – also EEA relevance

plus the Regulation on unbundled access to the local loop (No 2887/2000) – also EEA relevance EEA - European Economic Area

6 Directives

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Commission guidelines on market analysis and the assessment of significant market power (also EEA)

Commission recommendation on relevant product and service markets susceptible to ex ante regulations in accordance with Directive 2002/21/EC (also EEA)+ explanatory memorandum

Commission recommendation on the processing of caller location information in electronic communication networks for the purpose of location-enhanced emergency call services (E112)

For status end of 2002 see: Eighth Report from the commission on the Implementation of the

Telecommunication Regulatory Package (3.12.2002)

Guidelines and Recommendations

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Goals of the New Telecommunications Law (TKG) (July 2003): Creation of a modern electronic infrastructure on a high standard. Securing a fair and functional competition through:

offering a broad selection of choice, price and quality for all users, prevention of distortions and restrictions in competition, promotion of efficient investment in infrastructure and innovations, securing an efficient utilization and administration of frequency and

numbering resources. Promotion for the benefit of the citizens of:

area-wide universal service, simple and cost effective settlement of disputes, privacy and security, transparent tariffs and general terms and conditions, availability and integrity of the public telecommunication networks.

Above measures should be technology neutral Innovative technologies and upcoming new markets should be regulated

only if necessary to avoid distortion of competition and to reach the goals of this law.

Austria

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Major changes to previous law: new definition of core network/access provider, communication

service provider and information service provider, no license necessary, only notification, also mobile number portability (in addition to fixed and services), carrier selection also for non-incumbents, if provider has substantial

market power, new rules for access (e.g. virtual fixed and mobile operators, resale) new regulation required for numbering (NVO),

and the new market concept: from 4 markets (fixed, leased lines, interconnect and mobile) to 18 markets (see next slide), now also regional markets possible.

Major Changes

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New marketsRetail Market

Private Customers Business Customers Leased Lines

1. Access network2. National/Local3. International

4. Access network5. National/Local6. International

7. Leased Lines

Wholesale Market

Interconnection Unbundeling Leased Lines

8. Originating9. Terminating10. Transit

11. Subscriber lines12. Broadband

13. Terminating segment

14. Trunk segment

Mobile Broadcasting

15. Access and originating16. Mobile terminating17. International roaming

18. Broadcasting

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No clear picture at the moment People concerned still struggling with the basics of the new TKG and

with more important issues VoIP is not yet in the main focus in Europe Implementing VoIP in a closed network (NGN) and using the

conventional interconnections is no problem, because regulation in principle is technology independent of course, the conventional interconnections are not technology

independent ;-) The impact of using VoIP on the public Internet is not fully discussed yet

On the other hand, ENUM and the use of numbering resources for ENUM and VoIP is discussed in Austria for some time

This discussion will also influence the new regulation on numbering (NVO) e.g. mobile personal number range for VoIP

Impact on VoIP

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What is a telecommunication service? Who is providing which service if two people are talking to each other?

the access provider the core network provider the communication service provider the gateway provider the information service provider the clearing house, trusted third party, certification authority, … the end-user

Is there a difference if the PSTN/ISDN is involved? if E.164 numbers or URIs or "private" numbering plans are used?

What is public and what is private on the Internet? What about emergency services and caller ID?

where to route the call to trusted location information trusted Caller ID

Is VoIP able to provide a primary line or Universal service?

Questions

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The End

Thank you for your attention