Hassane MAKKI, OFCOM, Switzerland

1
Telecommunications Regulatory Framework in
Switzerland Situation, Challenges Perspectives

• Hassane MAKKI, OFCOM, Switzerland
• Experts Group meeting for Q8.1 (ITU-D)
• Geneva, 22 - 23 June 2000

2
General Plan
Introduction reminder of the situation before
1998
1 - Legal and institutional Framework 2 - Tasks
of the OFCOM
3 -  Telecom PTT  Operator 4 - Balance and
transient measures
I - Present Situation Total Liberalization
since 1998 1 - New Regulatory Framework 2 - Legal
Framework 3 - Institutional Framework
II - Challenges III - Perspectives Useful
Information
3
I - Introduction1 - Legal and Institutional
Framework

• Legal Framework
• Law on Telecommunications (LTC of 7.12.91)
  coming into force April 1992
• Ordinances (CF, DFTCE, OFCOM, etc.)
• Institutional Framework
• Creation of the OFCOM (April 1992), new
  regulatory Authority in charge of application of
  two laws LTC (Telecom) et LRTV (Radio-TV)
• OFCOM integrated in the DFTCE (Ministry)

4
I - Introduction2 - Task of the OFCOM

• Data transmission services
• Users equipment technical specification type
  approval by the OFCOM
• Accreditation of test laboratories de test for
  technical conformity (others than the one of
   Telecom PTT )
• Frequency Management Attribution

5
I - Introduction3 -  Telecom PTT  Operator

• Monopoly of  Telecom PTT  on infrastructures
  and voice telephony service
• Exception voice telephony service for Closed
  Users Group
• Monopoly of  Telecom PTT  on leased lines
  services
• Monopoly on mobiles services (NMT GSM)
• Frequency Monitoring Frequency Assignment

6
I - Introduction4 - Balance Transient Measures

• Balance market of users Equipment
• More choice to the users
• Prices decrease
• Transient Measures for total liberalization
  provisional licenses for test purposes
• Internet access through CATV networks
• gt 30 licenses granted

7
I - Total Liberalization1 - New Regulatory
Framework

• Refounding of the juridical instruments
• New Law and Ordinances
• Creation of a new Regulatory Authority (RA-1)
• ComCom (Federal Commission for Communication)
  gt independence
• Restructuring/Reorganization of the OFCOM (RA-2)
  stills in charge of application of two laws
  LTC (Telecommunications) LRTV (Radio-TV)
• Privatization of Swisscom (former Telecom PTT)

8
I - Total Liberalization2 - Legal Framework2a -
Law on Telecommunications

• CH.1 General Provisions
• Scope, Objet Definitions
• CH.2 Telecommunications Services
• Licenses, Universal Service, etc.
• CH.3 Wireless Communications
• Licenses, Frequency Management, etc.
• CH.4 Addressing Resources
• CH.5 Telecommunications Installations

• CH.6 Fees
• CH.7 Statistics of Telecommunications
• CH.8 Important National Interests
• CH.9 Penal Provisions
• CH.10 ComCom (Authority)
• Status, Independence, Competencies, etc.
• CH.11 Supervisory and Appeal
• CH.12 Final Transient Provisions

9
I - Total Liberalization2 - Legal Framework2b -
Ordinances (Decrees) of the Federal Council
(Government)

• O. Telecommunications Services
• O. Frequency management Licenses for Wireless
  Communications
• O. Addressing Resources
• O. Telecommunications Installations
• O. Fees
• O. Supervisory (Post Telecommunications)

10
I - Total Liberalization3 - Institutional
Framework3a - ComCom Competencies of RA-1

• Granting of licenses Public tender, Universal
  Service, GSM ..
• Decisions related to interconnection
• Approval of national plan frequency attribution
  and the numbering plans
• Supervisory Measurements
• Ordinance CSC, NP delegation of some
  competencies to the OFCOM (RA-2)

11
II - Total Liberalization3 - Institutional
Framework3b - OFCOM Competencies of RA-2

• Decisions Preparations to the ComCom (RA-1)
• Granting of licenses without public tender
  licenses for wireless communications
• Instructions of procedures for interconnection
  conciliation between parties
• Frequency Management attribution of Addressing
  Resources
• Type approval market control of installations

12
II - Total Liberalization3 - Institutional
Framework3c - Relationship ComCom / OFCOM
ComCom
DETEC
Directives
Supervisory
51
OFCOM
Swisscom
OFCOM 250 full-time employees in the Federal
Administration ComCom 6 part-time employees
DETEC Federal Department for Environment,
Transports, Energy Communication
13
II - Total Liberalization3 - Institutional
Framework3d - Other Concerned Authorities
Federal Court
Administrative Appeal
ComCom
DETEC
Appeal Commission
Directives
Supervisory
51
OFCOM
Swisscom
14
II - Challenges (1/2)

• Interconnection
• Costs Complaints, in particular related to LRIC
  (Long Run Incremental Costs)
• Advise of Charge
• Display of CLI (Calling Line Identification)
• Number Portability
• Local Loop Unbundling

15
II - Challenges (2/2)

• Y2k (the bug of year 2000)
• Digital Signature (Electronic Commerce)
• Directories
• Change of numbers following the closed numbering
  plan (9 digits numbers)
• Convergence
• Information Society
• . .

16
III - Perspectives

• WLL (Wireless Local Loop) users wireless
  connection
• 48 licenses under auction bidding rule (3 on the
  national level 5 per area (x 9 areas)
• Auctions between February and May 2000
• Universal Service
• 1998 - 2002 National license granted for 5
  years to Swisscom without compensation
• License(s) granting for 2003
• Mobiles Services (UMTS) public tender in 2001

17
Useful Information
OFCOM Homepage http//www.bakom.ch
ComCom Homepage http//www.fedcomcom..ch
OFCOM Address Office fédéral de la
communication 44, rue de lAvenir CH - 2501
Bienne, Suisse T 41 - 32 - 327 55 11 F 41 -
32 - 327 55 55
ComCom Address Commission fédérale de la
communication Marktgasse 9 CH - 3003 Berne,
Suisse T 41 - 3 1 - 323 52 90 F 41 - 31 - 323
52 91