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Telecommunication Regulatory Reform
ITU/BDT Regulatory Reform Unit Newsletter #8 - May, 2006

In this issue:


1. World Telecommunication Development Conference aligns Regulatory Reform Programme with WSIS Enabling Environment objectives

The 2006 WTDC, held in Doha, Qatar in March 2006 recognized the strong link between regulatory reform and achievement of the goals laid out by the World Summit on the Information Society to connect all the world’s villages to ICT by 2015. The main objective of the new BDT regulatory reform Programme is to provide assistance in developing and implementing an enabling environment that fosters a supportive, transparent, pro-competitive and predictable policy, legal and regulatory framework, fully in line with the WSIS Action Line C6 on the “Enabling Environment”.

The new regulatory reform Programme has further been re-tooled to address the regulatory environment required for the accelerated convergence between technologies and services, and the development of next generation networks (NGN).

The new regulatory reform Programme will develop up-to-date tools in the area of policy, legislation and regulation for use by telecommunication/ICT decision makers, regulators, policy-makers, operators and service providers. WTDC backed the annual Trends in Telecommunication Reform publication and the ITU-infoDev ICT Regulation Toolkit. Training materials and courses for regulatory staff as well as policy makers was seen as a priority in order to keep pace with this rapidly evolving sector. Strong support was voiced for a training mechanism for enhanced cooperation among telecommunication regulators, including staff exchanges between regulators (know as the Tandem Programme for Regulators).

The importance of providing platforms at which national policy-makers, regulatory authorities and regional regulatory organizations can discuss key issues and obtain relevant input from the relevant partners is an essential activity of the Programme. It was stressed that the Global Regulators Exchange (GREX), a convenient online interactive forum for regulators to exchange views and experiences on key regulatory issues, should be maintained and enhanced to meet the needs of its users. Moreover, the Global Symposium for Regulators was highlighted on several occasions throughout the conference and considered one of the great successes of the BDT, and full support was given to its continuance.

To this effect, a new resolution was adopted by the Conference to Strengthen Cooperation among Regulators, see Resolution 48. The resolution recognizes that that the success of telecommunications reform will mostly depend on the establishment and implementation of an effective regulatory framework, and that it is therefore important to share information amongst regulators, particularly long-standing regulators and newly established ones.

The resolution instructs

the Director of the Telecommunication Development Bureau

  1. to rotate the GSR in different regions, to the extent possible;
  2. to continue to have a specific platform for regulators;
  3. to organize, coordinate and facilitate activities that promote information sharing among regulators on key regulatory issues;
  4. to organize seminars, regional workshops and training programmes and other activities to help strengthen newly established regulators,

requests the Secretary-General

    to transmit this Resolution to the forthcoming plenipotentiary conference (Antalya, 2006) to ensure that appropriate attention is given to these activities, in particular within the framework of WSIS implementation. Full Programme.

 


2. Trends in Telecommunication Reform: Regulating in the Broadband World

 

 

At the opening press conference of the 2006 World Telecommunication Development Conference, Doha, Qatar, ITU launched the seventh edition of Trends in Telecommunication Reform.

This 7th edition has been released at a time of remarkable transformation of the information and communication technology (ICT) sector, fueled by a combination of technological, market, policy and regulatory developments. These changes include unparalleled numbers of voice telephone subscribers, the rise of IP-enabled networks and Voice over IP (VoIP) services, initial—yet promising—deployment of fixed line broadband and broadband wireless access (BWA) services and intelligent radio devices. At the same time that developed countries are busy planning for the deployment of next generation networks and visualize a world of ubiquitous networks, most developing countries have expanded their continuing quest to provide universal access to basic voice services to include universal access to broadband internet services. Are developing countries making any progress in this quest? How can regulators harness the potential of new technologies and innovative business models to foster ICT sector development?

Low cost technologies exist today that can promote broadband access and enable developing countries to “leapfrog” over older technologies to advance into the broadband future rapidly. Many businesses stand ready to start providing broadband services in developing countries—mirroring the keen interest second-generation mobile service providers demonstrated in developing countries throughout this decade. Although broadband technologies and business models hold great promise, the pace of broadband take-up hinges on the regulatory framework. In many countries, today’s broadband ‘missing link’ is the regulatory framework. Regulators have an unprecedented opportunity to speed the uptake of broadband to enable the Information Society. Today’s broadband challenge requires new thinking, and an end to business as usual. This publication is designed to enable regulators and policy makers to meet this challenge.

This year’s Trends in Telecommunication Reform contains eight chapters addressing each of the broadband-related challenges and opportunities to enable regulators to harness the potential of broadband to build a safe and secure Information Society for all. (See summary of Chapter 7, Stemming the International Tide of Spam, below). See more information and download the executive summary.

 


3. Stemming the International Tide of Spam

The current fight against spam has adopted a multi-pronged strategy including legislation, technical solutions, consumer education and international cooperation. Anti-spam laws have so far been unsuccessful in stopping spam around the world. In many cases, these laws have missed their target entirely, with no perceptible impact on actual spammers

One reason is that most anti-spam laws are directed at sanctioning spammers for their bad acts and have ignored the key role that ISPs play in the fight against spam. Spam laws focused on spammers require considerable investigative and enforcement resources to have any impact. In addition, although many ISPs are making valiant efforts to combat spam, not all ISPs share the same incentives to address the issue.

That’s why the time may be ripe for anti-spam authorities to expand their efforts to include working with ISPs who can be instrumental in fighting spam. Regulators could establish enforceable codes of conduct that would require ISPs to prohibit their customers from using the ISP as a source of spam, phishing and spoofing. Not only might such codes be more successful in fighting spam, they would also have the benefit of leveling the playing field between good-willed ISPs that are now spending a lot of money to fight spam, and those that take no action.

Chapter 7 of the recently published 2006 Trends in Telecommunication Reform report, describes how enforceable codes of conduct for ISPs could level the playing field so that all players share responsibility in the fight against spam. The chapter also takes up the elements that might be included in a model anti-spam law to "help stem the tide of spam and materially reduce spam’s costs to ISPs and consumers." The Chapter was written by John G. Palfrey, Executive Director, Berkman Center for Internet & Society.   Download the spam chapter for free!

The use of enforceable codes of conduct was presented by RRU at the Arab Regulators Network meeting in Abu Dhabi (see below) and at the APEC TEL 33 Symposium on Spam and Related Threats, held in Calgary, Canada from 23-24 April 2006. The APEC TEL meeting brought together APEC, the Asia-Pacific Telecommunity (APT), the International Telecommunication Union (ITU) and the Organisation for Economic Co-operation and Development (OECD). The full agenda of the symposium, and papers delivered by speakers are available at: www.apectel33.ca.


4. Arab Regulators Network

The third meeting of the Arab Regulators Network, held from 18 to 20 March 2006 in Abu Dhabi, United Arab Emirates, included a workshop on 19 March, organized together with ITU, on Voice over Internet Protocol (VoIP) Challenges and Opportunities. During the workshop, ITU shared global best practices from the 2006 edition of ITU Trends in Telecommunication Reform. The latest edition of Trends includes a comprehensive study of VoIP regulatory practices worldwide, and documents the global trend of liberalizing VoIP services, while addressing issues such as access to emergency services, numbering resources and emerging interconnection practices. In addition, ITU highlighted materials from the joint ITU-infoDev ICT Regulation Toolkit on interconnection between IP and PSTN networks. One of the 2006 Trends authors, Russell Southwood, described the rise of VoIP peering and clearinghouses, which enable IP networks to transit and exchange international traffic through purely commercial and unregulated arrangements. Algeria provided detailed information about its recent decision to liberalize VoIP. While some participants expressed concern about the impact of VoIP on fixed line operators, most recognized that the rise of VoIP is inevitable and will lead to positive results, both for consumers, and operators as they transition to NGN networks. ITU also presented a new approach in the fight against spam through enforceable codes of conduct for Internet Service Providers. (See "Stemming the international tide of spam" above). Click here http://www.ituarabic.org/ArabReg-Network-UAE/index.htm to access the presentations.

The Arab Regulators Network meeting discussed and reviewed the progress of various projects, which include issues relating to harmonized interconnection and licensing practices, mobilizing investment, human capacity building of the region’s regulators, and the exchange of experiences. Another crucial project relates to efforts among regulators to reduce mobile roaming charges to facilitate easier cross border movement of customers between the Arab countries.


5. Virtual Conference on the Impact of New Technologies on Regulatory Practices

On 15 March 2006, the RRU organized a virtual conference on the impact of new technologies on regulatory practices. RRU invited a series of information and communication technology (ICT) regulators, academics and practitioners to identify the key technological developments they see affecting current regulatory practices in order to provide input into the New Technologies Module of the joint ITU-infoDev ICT Regulation Toolkit.

So what’s in store for the ICT sector? According to participants in the latest RRU Virtual Conference, voice is becoming just one of many commodities available on broadband networks, a reality that will dramatically change the traditional telecommunications industry. Indeed, convergence is leading to greater competition and struggle between the traditionally heavily-regulated telecommunications world and the largely un-regulated IP world. Voice and broadcasting services are now offered on IP networks, with fixed line telecom and cable TV networks being upgraded as IP-enabled next generation networks (NGN). And the full range of ICT services can be –or soon will be – provided on mobile networks as well. 3G networks have already been deployed worldwide, and many of these are being upgraded to offer even higher speeds. At the same time, fixed broadband wireless access technologies are soon expected to support wireless broadband at vehicular speeds. Costs are also going down for computer screens, promising to bring low cost laptops within reach of more users. Likewise, micro-fuel cells may well take ICTs off the electric grid, resolving the power supply issue for many developing countries seeking to bridge the digital divide.

In the developed world, operators and service providers from both the telecom and IP world compete for the same pool of customers. Many service providers realize they will have to compete by offering attractive high-end applications customers are willing to pay for, since traditional voice services are increasingly sold as part of a bundled package of three or more other ICT services. In the developing world, innovative entrepreneurs seek to harness the potential of new technologies to provide a full range of affordable ICT services to customers. At the same time, some incumbents still seek to stave off the impact of new technologies and the competition they bring by maintaining restrictive regulatory practices.

Regulators in developing countries can play a key role to ensure that their practices encourage entrepreneurship and innovation. Developing country regulators can also develop pro-competitive infrastructure sharing mechanisms to keep costs of service provision low. In both the developed and developing world, regulators are re-examining traditional interconnection arrangements as IP networks take hold, giving rise to VoIP peering and purely commercial “interconnection” arrangements such as clearinghouses. The rise of convergence is leading to simplified licensing practices. The rise of wireless broadband services and the development of “smart” radios and antennas, is likewise putting pressure on existing spectrum management practices, many of which were designed for radio technologies from an earlier era. Regulators are now looking at unlicensed spectrum, spectrum trading and more flexible spectrum management practices to foster, rather than stifle, innovation and new technologies.

The intelligence in networks is going to the edges, leading to a good news-bad news story. On the positive side, end users can access an ever wider range of applications. Likewise, small and micro entrepreneurs can easily become service providers, competing head-on with traditional telecommunication operators. The negative impact of intelligence at the edges is increased concern about spam and other cyber-security threats. The migration of IP-based networks to NGN networks may offer greater network security and infrastructure protection. At the same time, however, NGN could create new bottlenecks for competitors and lead to vertical integration requiring regulatory intervention. As technological developments fuel greater numbers of ICT users, pressure is expected on naming, addressing and identification resources, making internet governance policies and practices more important. Data protection and consumer privacy will grow in importance, not only because of increasing numbers of users, but also due to the rise of location-aware applications.

The recorded virtual conference and the presentations can be accessed here http://www.itu.int/ITU-D/treg/Events/Seminars/Virtual-events/infoDevNewTech_15Mar06/index.html


6. ECOWAS/UEMOA moves forward towards ICT market harmonization

Working with the support of the ITU and European Commission (EC), the ECOWAS and UEMOA countries have taken the next step towards ICT market harmonization. In September 2005, during a meeting of the West African Regulators Assembly (WATRA) regulators from the region agreed to a set of guidelines on ICT policy, interconnection, licensing, spectrum management, numbering and universal access. These guidelines have now been turned into decisions were presented to and adopted by the 6th meeting of the Ministers in charge of Telecommunications and ICT, in Abuja, Nigeria on the 11th May 2006. For more information, see: http://www.itu.int/ITU-D/treg/Events/Seminars/ITU-EC-Project/index.html


7. TREG Blog

  

To keep pace with the rapid changes affecting regulators and policy makers the world over, the RRU has added a Blog to its website to capture the latest breaking news from regulatory and policy makers.

 

 

 

 

 

 


8. Future Events

  1. Telecommunication Regulation in Africa (FTRA-2006): "IP Networks and related services: Challenges for Africa Regulators" Yaoundé, Cameroon, 7-8 June 2006
  2. Liberalization in the field of telecommunications - The problems and prospects of the CIS countries Chisinau, Moldova, 20-23 June 2006
  3. Global seminar on quality of service and consumer protection Geneva, Switzerland, 31 August - 1 September 2006

 

 

 

 

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