Development of policy for enhancing broadband access using DSL technologies

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HRD Program for Exchange of ICT
Research/Engineers
Development of policy for enhancing broadband
access using DSL technologies
2
APT Ministerial Conference on Broadband and ICT
Development

• Asia-Pacific Broadband Summit
• Place Bangkok
• Date 1 2 July 2004

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APT Ministerial Conference on Broadband and ICT
Development Asia-Pacific Broadband Summit

• Objectives
• To submit Bangkok Agenda which is an initiative
  to promote the deployment of broadband and ICT in
  Asia Pacific region, for the adoption of all
  Ministers of the APT Members
• Holding the silver jubilee celebration to
  commemorate the 25th anniversary of the APT

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Outline of Bangkok Agenda

• 5 Main Pillars
• Raising Awareness, Capacity Building and HRD
• Creating and Enabling Environment to Encourage
  Broadband and ICT Investment
• Improving Access and Encouraging Broadband and
  ICT Usage
• Increasing Confidence and Security for Broadband
  and ICT Usage
• Strengthening International Cooperation

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Outline of Bangkok Agenda

• Action Plans
• Further Enhancement of HRD Program and Promote
  utilization of the e-learning
• Promotion the development of the application for
  rural areas
• Promotion of RD activities for the realization
  of the ubiquitous network Strengthening the ASTAP
  activities
• Strengthening RD activities including individual
  official certification systems. Strengthening
  international cooperation regarding the private
  date date protection
• Support for making ICT strategies in developing
  countries

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Project Background

• The HRD program was set up follow from the
  Bangkok Agenda
• The National Telecommunications Commission
  (former known as Post and Telegraph Department)
  has submitted the proposal to the APT
• Acceptance from APT with the expectation of good
  outcome

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Researchers

• Pichai Suwanakijboriharn
• Pasu Srihirun
• Worapat Patram
• Lalida Limwuthigaijirat
• Hitoshi Mitomo
• Nobuyuki Tajiri
• Tsuyoshi Okazaki
• Toshiya Jitsuzumi

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Scope of the project

• Principle
• The growth of broadband technology in Thai market
  significantly increase
• Thai government policy intends to use broadband
  service to boost economic
• Policies to enhancing broadband are necessary
  however, no regulations have been developed on
  the broadband service

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Research Methodology
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Assumption
Demand Side
Demand Side
Coverage
Coverage
Content
Content
Cheap
Cheap
QoS
QoS
Application
Application
Regulate
Promote
Encourage
Encourage
Promote internet access
Promote broadband access

• Open access
• Local loop
• Promote competition
• -Backbone
• -International gateway

Regulate Telco
Competitive safeguard
-
Cross subsidy
-
Cross subsidy
-
Predatory Price
-
Predatory Price
-
Bundle of sale
-
Bundle of sale
-
Price squeezing
-
Price squeezing
-
Discriminate
-
Discriminate
Supply Side
Supply Side
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Lesson learn from Japan

• The four success factors to promote broadband in
  Japan
• Local loop unbundling
• Fair competition in Telecom network
• Internet gateway
• Appropriate content

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ADSL Value Chain in Thailand
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Policy recommendation

• Short term
• Medium-long term

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Short term policy
Open network
Co location
Internet Exchange
Reform
Central Office
ISP Premises
Local Loop
Backbone Network
User
Trunk Network
Internet
International Gateway
Competition
Access and interconnection
Competitive safeguard
Network base competition
Long term policy
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Short term policy

• 1) Reform ISP industry
• 2) Promote competition in supply chain
• 3) Access and interconnection

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1) Reform of ISP industry

• 1) Issue ISP license with condition that at least
• Allow ISP freely provides any service
• Allow ISP build their own facility
• 2) In period that CAT still have monopoly power,
  cross subsidy should be monitored

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2) Promote competition in supply chain

• 1) Issuing new licenses for
• International gateway
• Backbone and Trunk network
• 2) Issuing new license for wholesale operators
  and ensure competition in wholesale business by
• Option 1 Ex ante regulation
• Setting license conditions with Wholesale Cost
  Imputation Requirement wholesale price should be
  lower than retail price unless the cost structure
  justified
• Or
• Option 2 Ex post regulation
• Strongly enforce the competitive safeguard policy
  to prevent wholesale price higher than retail
  price

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3) Access and Interconnection

• Ensure fair and equal access in international
  gateway, trunk and backbone, local loop by
  setting license condition as follows
• Ensure fair and equal access to network and
  facilities which is supply for ADSL Internet
  services by
• Network licensees must allow other licensees to
  interconnect with his telecommunications network
  (under specified technical criteria)
• Access/Interconnection conditions and charges
  must be on equal and non-discrimination basis and
  
• Access/Interconnection conditions and charges
  must be disclosed,

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Medium-Long term policy

• Local loop unbundling
• Co-location
• Network base competition

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1) Local loop unbundling/Market mechanism
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2) Co-location

• Identify the co-location facilities e.g. rack,
  raised floor, air-conditioner, electricity
• Determine charges for such co-location facilities
• Determine co-location rules e.g. rules for
  entering co-location building and rooms in order
  for maintenance or installation

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3) Network-based competition

• To expand broadband access network where there is
  no fixed line coverage area
• Use tax incentive or license condition to
  encourage operator to roll out new facilities.

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Competitive safeguard

• Monitoring operator behavior which may harm
  competition in market such as predatory pricing,
  discriminate offer, Bundle of sale, etc.
• Strongly enforce regulation and penalty to whom
  it may harm competition by any behavior as
  mentioned in first bullet.

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The others related policy

• There also have the others related policy to make
  DSL market to be robust
• -Accounting rules
• -Right of way
• -Demand side policy
• -Rate rebalancing

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QA

THANK YOU
QA