coherent regulatory framework 9 june 2015
TRANSCRIPT
Coherent Regulatory Framework for transforming ICT industry
Muhammad Yousaf SheikhAssistant Director (WLL)
June 2015
INTRODUCTIONSelection of Topic From GSMATimotheus Hoettges CEO Deutsche Telekom
2
Presentation outline1. Introduction
2. Generations of Telecom Regulation
3. Fourth Generation of Telecom Regulation
4. Key Trends (MBB,TVWS,OTT,FMC)
5. Policies of Pakistan Telecom Sector
6. Conclusion
7. Recommendations
Generations of Telecom Regulations
4Source- Trends in Telecommunication Reform Special Edition: 4th Generation Regulation- ITU
1st GenerationState owned Monopolies
2nd GenerationPrivatization, Regulatory bodies
3rd GenerationCompetition, Expansion of Services
4th GenerationICT Industry, Constant Innovations
Fourth Generation of Telecom Regulation
5
Converge Network Services
Universal Access to Broad Band
Consumer Protection-
Unwanted privacy
Spectrum Management
Balanced Regulation-Co/Self Regulation
Co operational –Inter regional-
regional
Consultation Collaboration
Interconnection
Licensing Authorizations
Net Neutrality
Source- Trends in Telecommunication Reform Special Edition: 4th Generation Regulation- ITU
4th Generation Regulator
Driving Digital Communications
Ahead
Key Trends 1- Mobile Broadband Expansion
Source- GSMA- Intelligence The Mobile Economy 2015
Source- Cisco VNI Mobile 2013-2015,GSMA- The Mobile Economy 2015
Global Mobile Data Traffic –(Per Month, Peta Bytes)
Key Trends 2- Applications and Data Traffic
Source- Cisco VNI Mobile 2015,GSMA- The Mobile Economy 2015
3GPPBand No.
Commonly used band name
Uplink (MHz)
Downlink (MHz)
3GPP Band No.
Commonly used band name
Uplink (MHz)
Downlink (MHz)
1 2.1 GHz (UMTS) 1920-1980 2110-2170 18 850 MHz (Japan) 815-830 860-875
2 1900 MHz (PCS) 1850-1910 1930-1990 19 850 MHz (Japan) 830-845 875-890
3 1800 MHz (DCS) 1710-1785 1805-1880 20 800 MHz (CEPT) 832-862 791-821
4 AWS 1710-1755 2110-2155 21 1500 MHz (Japan) 1447.9-1462.9 1495.9-1510.9
5 850 MHz 824-849 869-894 22 3500 MHz 3410-3490 3510-3590
6 850 MHz (Japan) 830-840 875-885 23 AWS-4 (USA) 2000-2020 2180-2200
7 2600 MHz paired 2500-2570 2620-2690 24 L-Band (USA) 1626.5-1660.5 1525-1559
8 900 MHz 880-915 925-960 25 PCS 1900 G 1850-1915 1930-1995
9 1700 MHz (Japan) 1749.9-1784.9 1844.0-1879.9 26 850 MHz (Ext. upper) 814-849 859-894
10 1700/2100 MHz (3G Americas)
1710-1770 2110-2170 27 850 MHz (Ext. lower) 806-824 851-869
11 1500 MHz (Japan) 1427.9-1447.9 1475.9-1495.9 28 APT 700 MHz 703-748 758-803
12 US700 (Lower A,B,C) 699-716 729-746 29 700 de - 717-728
13 US700 (Upper C) 777-787 746-756 30 2300 (WCS) 2305-2315 2350-2360
14 US700 (Upper D) 788-798 758-768 31 450 MHz 452.5-457.5 462.5-467.5
15 Reserved 32 1500-Lband - 1452-1496
16 Reserved TDD Bands (33-44)
17 US700 (Lower B,C) 704-716 734-746 Source: 3GPP TS 36.101 V12.2.0
Key Trends 3- Spectrum Requirements
Source- Cisco VNI Mobile 2015,GSMA- The Mobile Economy 2015
Global Mobile Data Traffic –(Per Month, PB)
Key Trends 4- Defining BroadBand limits
Source: ITU World/ Telecom/ICT indicators Database
BB QoS Regulation 2014- BB speed 256Kbps or as adopted by Authority inline with GOP policies
• Portions of spectrum left unused by terrestrial broadcasting in VHF (54-216 MHz) & UHF (470-698MHz).
• Advantageous propagation properties, including excellent outdoor and indoor coverage and non-line-of-sight propagation.
• Alternative for providing commercial wireless/Broadband services.
• Uses White Spaces Database after registration.
Source- Carlson Wireless, OFCOM,Commscope
Current Standards for TVWSa) Wireless Regional Area Network (WRAN)- On Non
Protection Non Interference basis based on IEEE 802.22 Standard.
b) Machine to Machine (M2M) Communication- very low-power radio transmitters that are used for low-data-rate industrial and commercial applications, such as monitoring, tracking, metering and control
Carlson Wireless USA distributes Broadband using white space in 470-698 MHz in Rural areas.
Key Trends 5- TV White Spaces (TVWS)
Any application or service that
provides a product over the Internet
and bypasses traditional distribution
(Viber, Skype, Whats app, Netflix ).
2014=1.24 billion OTT subscribers.
2017=1.95 Billion
Regulatory Challenges:
•Consumer Security
•Sustainable Business Model for
telcom operator
•Cybercrimes,
•National Security
Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014, https://clt.vtc.edu.hk/about-clt/
Key Trends 5- Over The TOP (OTT) Application
OTT- Uneven Regulatory Playing Field (continued)
Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014
Area of Regulation Telecom Operator OTT Provider
Licensing Yes-Individual licensing required
Often Exempted or Class licensing
Provision of LI Required as License obligation No LI.
Quality of Service Included in licensed obligation No. QoS (specifically speed) problems generally blamed on network provider.
Net Neutrality Assumes “best effort” transport of data without discrimination, independent of source or nature of data. However, Concept not applied in some countries.
No obligations. Their control over the content and freedom of choice concerning customers releases them from restrictions.
InterConnection Yes, Required toterminate Voice/Data traffic.
Doesn’t Require
OTT- International Practices(continued)
Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014TRAI- Consultation paper on OTT 2015
Country Treatment of OTT Voice Providers
Singapore Specific licenses for VOIP connecting to PSTN.P2P not licensed, subject to competition law
US Licenses not necessary but obligations concerning emergency numbers and LI
EU Licenses not necessary bit in individual countries (France, Spain) OTT providers (skype) have been blocked when offering voice services that connect to PSTN.
UAE OTT not allowed if they work with licensed telecom companies. VOIP defined as a regulated activity.
Egypt Legislation expected soon, but none at present. VOIP using mobile network is forbidden. International calls have to go via international gateway.
S. Arabia Few OTTs blocked because of Legal interception issues.
Bahrain Voice Services connected to PSTN only allowed for license holders but foreign providers not actively marketing their services in the country will not be pursued.
India TRAI issued consultation “Regulatory Framework for OTT” in March 2015. Regulate OTT, New Licensing Regime, Commercial Agreement b/w OTT and Telcos, Voice traffic management techniques for OTT.Response- NO OTT Reg Framework required, Regulatory Equivalence approach, Light touch regulations
Management of OTT
Unlimited use
BanTechnical
Measures-monitor, filter
ITU-T recommendation Q.1762 defines Fixed
Mobile Convergence (FMC) as
Mechanism that provide services and
application to the end user regardless of the fixed
or mobile access technologies being used and
independent of the user's location.
Source- ITU -T Recommendation Q.1762,
Benefits : • Bundling of services reduces the cost for consumer.
• Convenient usage of the bundled services (Configuration, single billing)
• Seamless service experience.
• Provide services to a mobile user in an area where a radio network is not deployed
• Better utilization of radio spectrum in IMT-2000, IMT-Advanced networks
• Network deployment and operational cost reduction.
• Reuse of fixed line assets.
Key Trends 6- Convergence (FMC)
FMC Success Stories(continued)
Source- Fixed Mobile Convergence for Cellular Service Providers -Cisco
SwissCom FMC Deployment T Mobile FMC-HotSPot@home
User can roam across fixed-line DSL and mobile GPRS, UMTS, EDGE, HSDPA, and wireless LAN hotspot networks with service automatically switching to the best possible connection.
User with dual-mode cellular/Wi-Fi handset can handoff with the standard cellular network and Wifi/unlicensed mobile access calls/Data.
Key Policies for Telecom Sector in Pakistan
• Fixed line Sector Policy.• Open and Technology Neutral• License Term - 20 Years• Local Loop (LL) – ILF US$
10,000 / region - 14 Regions• Scope- LL services In a
licensed region. LM for WLL.• Wireless Local Loop Option
(Spectrum Auctioned)• Long Distance and
International (LDI) – ILF US$ 500,000
• Deregulated incumbent operator PTCL.
• Introduced APC, USF, R&D, ARFSF Regime.
De-Regulation Policy 2003
• Mobile Sector Policy.• Technology Neutral • 2 New cellular Licenses were
issued for 15 years.• Open Auction.• Promoted efficient use of
Spectrum.• Fair Competition amongst
mobile and fixed line operators• Existing Operators to Pay
Same Amount for Renewal.• Promoted Infrastructure
sharing, National Roaming, Mobile Number Portability.
• ASAF, R&D,USF,ARD Fees.
Cellular Mobile Policy 2004
• Mobile Sector Policy.• Technologies 3G/4G and
above.• 4 New NGMS Licenses were
issued for 15 years.• Open SMRA Auction.• Promoted efficient use of
Spectrum.• Existing Operators to Pay
Same Amount for Renewal.• Promoted use of advanced
technologies, Infrastructure sharing, National Roaming, Mobile Number Portability.
• ASAF,R&D,USF,ARD Fees.
NGMS Policy 2013-14
16
Draft Telecom Policy Oct 20146.2 Licensing framework 6.2.1 The current licensing framework shall continue to apply subject to the introduction of
class licenses associated with satellite services.
6.2.2 The present licensing regime already distinguishes between those operators that provide infrastructure as well as services and those that provide services alone. Nevertheless, there are gaps and inconsistencies in the licensing framework that should be addressed.
6.2.3 MoIT, in consultation with the PTA, will therefore review the licensing framework, in
recognition of the market state at that time, the move to regulation through Competition Rules, changes in the technology used to provide services, and consequential changes in the types of organizations that are telecommunications service providers. It is expected that this review will take place by 31st December 2016. Any proposed changes to the licensing framework will be made in consultation with the sector stakeholders and subject to approval by Government.
6.2.4 Any new licensing regime will be based on international best practices. It will enable new services to be readily provided while meeting service specific requirements (including but not limited to quality of service, customer protection, content acceptability and national security) as they are defined. The licensing regime will continue rights and obligations associated with scarce resources and any obligations on network roll out.
Case Example-Speak XYZ OTT
Voice Call PSTN/Mobile Operator any where OTT / FLL / Mobile User
anywhere in the world
OTT Call
OTT Call
PSTN/Mobile Operator from any where
OTT Call
OTT Call
OTT Call
Speak XYZ OTT Product installed in
Smartphone
XYZ Domestic / LDI
Switch
Free of cost over IP
• OTT to OTT (Voice, Video, Messaging).• OTT to Fixed line/Mobile (Voice) using LL/LDI Gateway.
Source- XYZ Licensee Proposal
ConclusionCurrent licensing framework of Pakistan requiring:
• LL operators to establish switching systems within their local licensed region.
• Handing over LL traffic to LDI outside their licensed region.
• Restricting the use of same LL number in geographical licensed region
boundaries .
• Restricting use of fixed line infrastructure to provide mobile services to end
customer (Femto Cell).
• Restricting FLL/WLL licensee to provide OTT service to Mobile Subscriber.
(XYZ example).
• Restricting use of VH,UHF spectrum on non protection, non interference basis
Are incoherent with the transforming ICT industry in the light of enabling technologies.
Recommendations
1. Study and Review the existing and latest licensing trends Worldwide and prepare a comprehensive
framework.
2. Consultation with stakeholders on proposed framework for introducing unified technology neutral
license based on industry best practices focused on self regulatory principles, consumer choice,
competition, transparency, and effective multi-stakeholder processes.
3. Finalizing the new licensing framework for smooth transition of existing LL/LDI licenses after initial
license tenure.
4. Summarizing the stakeholders responses and submit the same to Federal Government (MoIT) as
per draft policy condition 6.2.1.
THANKS