Regulatory Issues Europe and Austria

1
Regulatory Issues Europe and Austria

• VON 2003 BostonFall 2003 Telecom Policy Summit
• 22. September 2003
• Richard STASTNY
• ÖFEG/TELEKOM AUSTRIA, Postbox 147, 1103-Vienna
• enum43 664 420 4100E-Mail richard.stastny_at_oefe
  g.atrichard_at_stastny.com

2
Deregulation and Privatization

• Before 1980 the Telecom World was bipolar
• the US, with 3000 privately run telecom
  companies, dominated by ATT 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
  ATT 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
  CW (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.

3
Deregulation in Europe

• 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 -gt the incumbents,
• to achieve competition and lower prices for
  end-users.

4
The new EU Directives (March 2002)

• 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/te
  lecoms/regulatory/new_rf/index_en.htm

5
6 Directives

• on a common regulatory framework for electronic
  communications and services (Framework Directive
  2002/21/EC)
• on access to and interconnection of electronic
  networks and associated facilities (Access
  Directive 2002/19/EC)
• on the authorisation of electronic communication
  networks and services (Authorisation Directive
  2002/20/EC)
• on universal service and users' rights relating
  to electronic networks and services (Universal
  Service Directive -2002/22/EC)
• concerning the processing of personal data and
  the protection of privacy in the electronic
  communications sector (Data Protection Directive
  - 2002/58/EC)
• 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
Guidelines and Recommendations

• 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)

7
Austria

• 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.

8
Major Changes

• 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.

9
New markets
10
Impact on VoIP

• 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

11
Questions

• 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?

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The End
Thank you for your attention