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 Wednesday, May 04, 2005

The UK communications regulator OFCOM has done one of the first public consultations on the regulatory implications of Next Generation Networks (NGN), particularly with regard to BT's 21CN NGN initiative. The consultation document, entitled Next Generation Networks - Future arrangements for access and interconnection (overview,complete) explores the implications of Next Generation Networks (NGNs) for access and interconnection arrangements in the UK. The responses to the consultation are available here.

In BT's response to the consultation, it indicates some of its views on 21CN regulation:

Finally BT observes that some key aspects of the strategic positioning, NGN access and interconnect, are not addressed in Ofcom's questions. We wish to point to the following specific points.

  1. We would expect that NGNs will blur many of the boundaries all of us in the industry currently take for granted. For example, the distinction between "operators" and "service providers" will diminish; and one could foresee an increase in pan-European alternative providers leveraging their IP infrastructure using next-generation interconnection more effectively. Further, as the barriers to market entry are lowered through technology advances and open standards, we would expect many new entrants to change the landscape - some with innovative value propositions and others by identifying and exploiting new arbitrage angles.

  2. We believe end user customers will soon demand seamless, ‘any to any’ interworking between mobile and fixed networks. Operators will require the ability to roam on, and interconnect to, other national and international fixed and mobile networks in order to facilitate the provision of next generation services. The regulatory regime needs to become more technologically neutral and focus on economic bottlenecks, irrespective of the underlying network technology.

  3. We believe that innovative services will be heavily reliant on intelligent interworking to provide coherent services. Therefore, cross platform access (including roaming and interconnect) to intelligence capabilities will be essential in ensuring further development of services and competition in the convergent marketplace.

  4. BT is disappointed to see the level of potential regulatory intervention and micromanagement, both in commercial and technical terms, demonstrated in this Consultation. This is particularly inappropriate as it followed so soon after the second phase of the Telecoms Strategic Review, which promulgated a deregulatory agenda and a focus on regulating only bottlenecks. This Consultation also includes some substantive inconsistencies of approach which will need to be addressed.

  5. It is critical that the outcome of this - and any later - consultation processes should be a regulatory regime which rewards investment and does not leave BT with a significant proportion of the 21CN investment risk, whilst distributing the investment returns across the industry. Ofcom will wish to consider this issue as they contemplate the responses to the Consultation.

The ITU Strategy and Policy Unit, in cooperation with the ITU-T and ITU-D, is organizing a workshop on NGN Policy and Regulation in February 2006.