Does Regulation Incentivise Investment in Areas of New Technological Development VoIP Panel Discussi

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Does Regulation Incentivise Investment in Areas
of NewTechnological Development?VoIP Panel
DiscussionTelecoms Regulation Competition
Law5th Annual SummitBrussels, 28th October 2004

• Richard Stastny, ÖFEG

The opinions expressed here may or may not be
that of my company
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Short answer
YES, at least it SHOULD
next question, please -)
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Main Purpose of Regulation in 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.

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Europe vs. US and Asia

• The last 3 days we have heard much about Europe,
  but
• what is going on in the US?
• what is going on in Asia?

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Michael K. Powell, Chairman FCC
Last week at the Fall VON 2004 in Boston

• The IP revolution also unleashes the strength of
  innovation and entrepreneurial spirit
• The Commission has squarely recognized how
  dramatic a change it is to move from a circuit
  based network, in which applications are tightly
  woven into the architecture and controlled
  centrally, to an IP network that is capable of
  running applications over top of it.
• It means great innovation is possible. This holds
  great promise for the communications sector.
• It means lower prices, greater value, more
  competition, and more innovative services. VoIP
  is barely a few years old as a retail offering
  and providers have already cut prices several
  times to compete for consumers.
• These are the benefits indicative of a true
  revolution.

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Mike Powells 4 Internet Freedoms

• Freedom to Access Content Consumers should have
  access to their choice of legal content
• Freedom to Use Applications Consumers should be
  able to run applications of their choice
• Freedom to Attach Personal Devices Consumers
  should be permitted to attach any devices they
  choose to the connection in their homes and
• Freedom to Obtain Service Plan Information
  Consumers should receive meaningful information
  regarding their service plans.
• These freedoms will preserve consumer choice,
  foster competition and promote investment in
  infrastructure and Internet applications. In
  short, we need to think creatively about how to
  protect consumers in a newly competitive
  communications environment.

? regulation to concentrate on bottlenecks
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Michael Powell at the Fall VON 2004

• The first step in getting policy pointed in the
  right direction is for the Commission to step
  forward and affirmatively establish jurisdiction
  over these services.
• That is why I will present to my colleagues for a
  decision the question of whether VoIP services
  like Vonage - should be subject to exclusive
  federal jurisdiction. We cannot avoid this
  question any longer.
• To hold that packets flying across national and
  indeed international digital networks should be
  subject to state commission economic regulatory
  authority is to dumb down the Internet to match
  the limited vision of government officials. That
  would be a tragedy.
• I look forward to working with my state and
  federal colleagues indeed my international
  colleagues to ensure that a minimal,
  well-harmonized regulatory environment is applied
  to VoIP services.

http//hraunfoss.fcc.gov/edocs_public/attachmatch/
DOC-253325A1.pdf
What are the implications of this to Europe?
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A Change of Perspective
Cable
Traditional View
Broadcast
Telephony
Data
Wireless
Kevin Werbach
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A Change of Perspective
Cable
Current View
Data
Broadcast
Telephony
Wireless
Kevin Werbach
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A Change of Perspective
Content
Data
Reality
Web
Devices
Apps
Voice
Users
Video
Email
File Transfer
Cable
Wireless
Kevin Werbach
Satellite
Fiber
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Top 15 broadband economies
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Example Korean IT 8-3-9 Strategy

• The Korean Ministry of Information and
  Communication (MIC) launched in September their
  IT 8-3-9 Strategy (The Road to 20,000
  GDP/capita), a brainchild of their IT Minister
  Daeje Chin (formerly VP of Samsung), to stay on
  top of the Broadband Technology.
• Basically, IT 8-3-9 Strategy involves
• Introducing and promoting Eight Services WiBro
  (Wireless Broadband), Digital Multimedia
  Broadcasting, Home Network, Telematics,
  RFID-based, W-CDMA, Terrestrial D-TV and IP
  Telephony
• building Three Infrastructures BCN (Broadband
  Convergence Network), U-Sensor Network and NGN
  Protocol (IPv6)
• and development of Nine IT New Growth Engines NG
  Mobile Communication, Digital TV, Home Network,
  IT SoC (System-on-Chip), Next-Generation PC,
  Embedded Software, Digital Contents, Telematics
  and Intelligent Service Robot.

http//www.mic.go.kr/eng/res/res_pub_it839.jsp
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First results VoIP increase 41/year

• The Ministry of Information and Communication
  revealed plans end of September 2004 to encourage
  VoIP operations by allocating an IP-only prefix,
  070, that can be used anywhere in the country.
  The government expects around 4 million VoIP
  subscribers by 2007.
• Based on this statement, International Data Corp.
  (IDC), predicts Korea's IP-based telephone
  equipment market to increase 41 percent annually
  over the next five years, from an expected 70.3
  billion Won this year 257.9 billion Won (226
  million) by 2008.
• "The VoIP equipment market is responsive to the
  development stage of the service market, and the
  lack of regulations regarding numbering and
  interconnection have kept the domestic sector
  from taking off," said Jung Kwang-jin, a senior
  analyst at IDC Korea.
• IDC expects the market for private branch
  exchange systems and VoIP gateway devices to grow
  annually by 50.9 percent and 33.7 percent,
  respectively, through 2008.

http//www.koreaherald.co.kr/SITE/data/html_dir/20
04/10/12/200410120015.asp
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The End

• Thank you

Richard Stastny ÖFEG 43 664 420
4100 richard.stastny_at_oefeg.at