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March 2004 Richard Stastny 1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be that of my company

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Page 1: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 1

IP Communications in Europe

Implications of Regulation

Richard Stastny, ÖFEG*

* The opinions expressed here may or may not be that of my company

Page 2: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 2

Two Global Networks

• heavily regulated• optimized for speech• end of lifetime

• accounting: cascading

• vertically integrated• global connectivity

• (still) unregulated• multipurpose• regarding IP Comm. begin of lifetime• accounting: peering• horizontally layered• global connectivity

Global Phone Network Global Internet

Page 3: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 3

Vertical Structure

Access

Transport

Services T

E LCO

T E LCO

T E LCO

T E LCO

NGN NGN

Regulatory boundaries

Page 4: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 4

Horizontally Layered

Access

Transport

Services

Internet

PSTN

ISDN

GSMUMT

S

ADSL

W-LAN

SIP MAIL IM WEB ...

...

Regulatory boundaries

?

Page 5: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 5

Implications

• Markets and competition will be global– service providers can act globally– users can subscribe globally– users can access the services globally– users can even do it themselves– via the global commons (the transport)

• Regulation still national (state, fed)– regulation is still vertically oriented

• New policy framework needed– but on a global scale

Page 6: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 6

Main Purpose of Regulation

• Europe: Aims of the “New” Regulatory Framework and the derived national Telecommunication Laws:– fostering of competition in the telecommunication arena– to ensure the adequate supply of the population and the

economy – with reasonably priced, high quality and innovative

communication services• reached by different measures of regulation

– but these measures should be to a large extent technology neutral

– and innovative technologies and services as well as new emerging markets should only be regulated (ex-post) to avoid distortion of competition and to reach the above aims.

• and NOT by protecting service providers or technologies– especially NOT specific service providers or specific

technologies

Page 7: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 7

Electronic communications service (ECS)

A service normally provided for remuneration which consists wholly or mainly in the conveyance of signals on electronic communications networks, including telecommunications services and transmission services in networks used for broadcasting, but exclude services providing, or exercising editorial control over, content transmitted using electronic communications networks and services; …

Page 8: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 8

Publicly available telephone service (PATS)

A service available to the public for originating and receiving national and international calls and access to emergency services through a number or numbers in a national or international telephone numbering plan,

and in addition may, where relevant, include one or more of the following services: the provision of operator assistance, directory enquiry services, directories, provision of public pay phones, provision of service under special terms, provision of special facilities for customers with disabilities or with special social needs and/or the provision of non-geographic services

• The definition is flawed, some say– if you do not provide access to emergency services,

you are not PATS– if you provide access, you are PATS

Page 9: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 9

Service categories in NRF

Source: Analysys – IP Voice and associated convergent services

Page 10: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 10

Business models

• Self provided consumer (DIY - Skype)

• Corporate internal use on LAN/WAN (IP PBX)

• Independent of Internet Access (Vonage)

• Provided by Broadband Access Provider (YAHOO! BB)

• Carrier internal use (NGN)

Source: Analysys – IP Voice and associated convergent services

Page 11: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 11

Service categories in NRF

Corporate internal use

DIY

Carrier internal useYahoo!BB

Vonage

Source: Analysys – IP Voice and associated convergent services

Page 12: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 12

European Regulatory Issues

• Definition of PATS and related issues– Access to emergency services– VoIP provided at a “fixed location”– Possible pressure on national numbering plans– Interconnect to the PSTN– Termination charges vs. VoIP peering– Network integrity– Effects on USO funding

• Impact on relevant markets defined by the commission• Extraterritorial service providers• Treatment of free and self-provided services• Designation of associated facilities• Clarifying control of access to end users• Impact on lawful intercept• Interconnect to other VoIP service providers‘ networks• Possible barriers by access operators• Security and reliability• Changes to regulatory costing

Source: Analysys – IP Voice and associated convergent services

Page 13: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 13

My two cents worth• The drifting apart of the two platforms should be prevented• The PATS definition in the Universal Service Directive should be

challenged• Non-PATS Service should be encouraged to provide access to

emergency calls by any means (NENA/VON Coalition approach)• Number portability obligatory for PATS and non-PATS (Fixed /

mobile)• Non-PATS services should not be considered as „at a fixed

location“• There will be no pressure on numbering plans if enough new

number ranges are offered• Only voice peering should be used for IP-IP calls• Lawful intercept is only feasible at the access to end users• Safe guarding network integrity and interoperability • Least intrusive regulation

Page 14: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 14

Going a step further after Monday

Source: Analysys – IP Voice and associated convergent services

?

Page 15: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 15

Sound Public Policy, Not Regulation

• Broadband Applications Make the Existing Regulatory ‘Stove Pipes’ Completely Obsolete– Attempting to overlay stovepipes in converged

environment will cause real harm

– Increasing Broadband Availability and Capability is the #1 Policy Priority

• Competition at Every Layer Eliminates Need for Most Regulation Which Had Been Implemented To Constrain the old vertical monopolies

• The success of the internet has been enabled by the ‘end-to-end’ principle.– The Adoption of Simple Connectivity Principles, With

Government Oversight, Provide a Safety Net In Case Abuses Occur in ANY layer

Source: Regulatory Update, Kathryn C. Brown -Verizon

Page 16: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 16

Broadband Policy ProposalHigh Tech Broadband Coalition

• Title I (similar to ECS) is the appropriate regulatory classification for all broadband services to encourage maximum investment and innovation

• However, all participants in the broadband value chain should embrace a set of connectivity principles which ensure that consumers…

• Can gain access to any content on the internet• Can run the applications they choose• Have adequate information regarding their service capabilities• Can attach any devices to their broadband connection that do

not harm the network

• FCC (the regulators) will retain authority under Title I (ECS). If needed, they can step in and take action these principles are being violated and the public interest is harmed

Source: Regulatory Update, Kathryn C. Brown -Verizon

Page 18: March 2004Richard Stastny1 IP Communications in Europe Implications of Regulation Richard Stastny, ÖFEG* * The opinions expressed here may or may not be

March 2004 Richard Stastny 18

Links• http://europa.eu.int/information_society/topics/ecomm/a

ll_about/todays_framework/index_en.htm• http://europa.eu.int/information_society/topics/ecomm/

doc/useful_information/library/studies_ext_consult/ip_voice/401_28_ip_voice_and_associated_convergent_services.pdf

• http://europa.eu.int/information_society/topics/ecomm/doc/useful_information/library/studies_ext_consult/ip_voice/analysys_presentation_on_voip.ppt

• http://www.enum.nic.at/documents/Diverse/OE1450.doc• http://www.ofcom.org.uk/static/archive/oftel/

publications/internet/2003/voip1103.pdf