POLICY AND REGULATORY APPROACH FOR VOIP DEVELOPMENTS

1
POLICY AND REGULATORY APPROACH FOR VOIP
DEVELOPMENTS

• Bistamam Siru Abdul Rahman
• Malaysian Communications Multimedia Commission
• Macao, China
• 17 May 2006

2

1. VoIP Voice or Data?

• VOIP is transmission of real-time voice using IP
• Offered on converged IP platform
• Can provide voice, data and video
• IP datagram encapsulates voice
• Transmission in data form but could be voice at
  customer end
• Consumers dont care voice or data
• More of a regulatory issue

3

2. VoIP Offers

• Effective competition
• Lowers barriers to entry
• Reduced calling prices
• Voice calls over broadband
• Service innovation and rich features
• Normadicity of numbers
• Convergence of voice , data and video
• Migration platform for NGN

4
3. Peer to Peer

• No Gateways involved
• Protocol Used SIP/ H.323
• Need to know IP Address or consult directory
  server or remain online
• Users connected to ISP via PSTN
• Broadband connection via ADSL, cable or wireless
  
• PSTN by-passed except for access leased
  facilities
• A matter between users - not easy to detect or
  regulate Skype, Yahoo BB

5
4. State of Competition in VoIP Markets
100
2
80
29
60
40
20
1
2
7
0
Africa
Americas
Arab States
Asia-Pacific
Europe/CIS
No policy for VoIP Telephony The respondent did
not answer this specific question, or indicated
that there was no current policy, or that a new
policy is currently being formulated.
Full competition All public telecommunication
operators (PTO), whether licensed or not, may use
both IP-based networks and the public Internet
for the conveyance of voice calls.
Partial competition Non-licensed PTOs may use
either IP-based networks or the public Internet
for the conveyance of voice calls.
Prohibited All PTOs (even licensed ones) are
prohibited from using IP-based networks or the
public Internet for the conveyance of voice calls.
Restricted Only licensed PTOs are able to use
IP-based networks or the public Internet for the
conveyance of voice calls.
Source ITU World Telecommunication Regulatory
Database
6
5. KEY REGULATORY DRIVERS

• Classification of VoIP as a traditional Voice
  line service or different treatment
• Policies regulating unbundling and infrastructure
  sharing (e.g., collocation)
• Service level obligations between operators
• Policies on numbering availability, nature (i.e.,
  geographic vs non-geographic) and portability
• Regulatory environment around broadband
• Treatment of interconnection (single tandem
  termination prices) (originating and terminating)
• Policies on pricing of leased lines, equipment
  building sharing, etc
• Policies on retail pricing for VoIP providers
• Pricing / bundling flexibilities for incumbents
• Policies on emergency calls to police / fire
  (i.e., tracking call localization)
• Obligation to ensure wiretapping possibility

• Clearly impacts attractiveness for/of
• Consumers for instance through numbering, access
  to emergency calls, arbitrage margins
• Economics of attacker through unbundling options
  and fees, interconnection charges, VoIP
  classification

7
6. VOIP in Malaysia

• To promote competition through low entry barriers
• Benefits users by lower prices and innovation
• Application Service Provider (C)
• Contribution to Universal Service
• VOIP up to 80 reduction on Intl calls
• VOIP market only 4
• VOIP Revenue 70 IDD and 30 STD
• VOIP Revenue Prepaid 41 and Postpaid 59

8
7. VOIP in Malaysia (2)

• Guidelines on VOIP (2001)
• PC to PC- based or Internet telephony
• Phone to phone based through PSTN, using
  multistage access dialing (VoIP)
• Guidelines on Telephony Services over IP (2005)
• Emergency, Directory and Operator Assisted
  Services
• Allocation of non-geographic numbers
• Interconnection Fixed Network includes IP

9
8. Conclusion

• Engine for economic growth for countries
• Benefit for end users for competitive services
• New revenue opportunities for incumbents
• Promotes competition, lower barrier to entry
• Light handed approach for growth of VOIP
• Stimulates innovation in technologies,
  applications and services