The Impact of Convergence on the Communications Sector

World Electronics ForumSeptember 14-16, 2005

London, UK

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Presentation Overview

TIA Overview Policy Issues– U.S.-Specific Challenges– Regulation– Investment and Competition– Spectrum

Conclusions / Possible WEF Action?

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TIA Overview

Trade organization serving the communications and information technology industry

Three primary activities:– Domestic and international advocacy– Trade shows and marketing support– Standards Development Organization

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TIA Overview

TIA’s Offices– Arlington, VA: Headquarters– Beijing, China: USITO

TIA Staff: 53

Convergence:Policy Issues

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U.S.-Specific Challenges

1996 Telecommunications Act– Technological change surpassing the 1996 Act– Law is unable to cope with an IP-based world– No easy solution

• Multiple legislative fixes?

• Eliminate technology “silos”?

• Focus on service definitions?

Universal Service Fund

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Regulation

Challenges are regulatory more than technological

TIA supports competition among multiple platforms for delivery

Regulators may need to focus on service definitions rather than platforms of delivery or technology

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Regulation

The regulatory structure must be able to cope with rapid innovation in an IP-based world

Consumers should be free to choose both the service and the service provider

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Regulation

Regulation should be– Used only where absolutely necessary– Light-handed– Narrowly focused– At the national level– Uniform– Technology-neutral

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Investment and Competition

Onerous regulation will stifle investment

Regulatory uncertainty will also stifle investment– Example = last mile issue in the United

States– Triennial Review decisions on broadband

triggered billions of dollars in investment

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Investment and Competition

Next Generation Networks (NGN)– Reduce market entry costs– Increase flexibility– Enhance competition

• Any network will provide any service to any device

• Competing infrastructures can offer the same types of service

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Spectrum

Need flexible, market-driven spectrum policies

Need technology neutrality Need to continue to find more

spectrum where possible– In the U.S., it is critical to release analog

TV spectrum for other uses– Need hard date for digital TV transition

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Conclusions (1) Technology and NGN work

continues to advance rapidly– Multiple platforms– Innovative services– Increased competition

An entirely new regulatory mindset must be created

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Conclusions (2) Industry must work with regulators (and

consumers) Industry and government should strive

to agree to common principles Regulatory policies – last-mile access,

spectrum have the potential to chill investment

WEF members must continue to work together on these issues

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Matthew J. FlaniganPresident

TIA2500 Wilson Boulevard, Suite

300Arlington, VA 22201

Telephone: +1-703-907-7700Fax: +1-703-907-7727