Infrastructure for eInclusion

1
Infrastructure for eInclusion Regulation and
Policy Initiatives

• Marianne Røgeberg
• Ministry of Transport and Communication
• Norway

2
Overall Objective - An Information Society For All

• Pro-competitive Regulatory Framework
• Accessibility, Security and Infrastructure
• Research and Development
• Skills and Education
• High Quality Content
• A Forward-looking Public Sector

3
Regulatory Framework

• Transposition of EU-directives complete in Norway
• New Act on Electronic Communications into force
  25. July 2003
• Access to Affordable High-Quality Products and
  Services by Promoting Competition
• Technological Neutrality
• Scope All Electronic Networks And Services
• Secondary Legislation in Place (Feb 2004)

4
Telecommunications Sector

• Important Role in the Economy Technological
  Diffusion and Productivity
• 2004 No OECD Country with Fixed-Line Monopoly.
  Norwegian Market Fully Liberalised in 1998
• Sector Emerging from Financial Setback 2001-2003
• Competition Intensifying in Most Markets
• Continued Need for Sector-specific Regulation to
  Ensure Competition in all Market Segments

5
NRA Market Analysis

• Analyse Relevant Markets (1-18) to Identify
  Operators with Significant Market Power. All but
  one (17 wholesale international roaming)
  Finalised
• Draft Decisions on Remedies on National
  Consultations Summer/Early Autumn
• Decisions based on EEA consultation End of Year
• Incumbent Telenor SMP in all but two markets
  (entry-barriers, market share)

6
Specific Developments

• Broadband
• Fixed and Mobile Telephony
• Voice over IP
• Spectrum Management
• Privacy and Security

7
Broadband Roll-out

• Political Aim Marked-Driven Roll-out in All
  Parts of the Country
• Rapid Increase in Take-up
• 116 Operators (2004)
• 23 Penetration Rate (2004)
• Accessibility Expected to Reach 90-95 by end of
  2005

8
Technology Platforms
9
Broadband Roll-out

• No Public Funding for Infrastructure
• Support for Local Administrations to Stimulate
  Demand
• Broadband Access for All Primary Schools,
  Libraries and Local Administrations 2005
• Increasing Supply in Rural Areas
• Competition not Satisfactory (Telenor SMP in
  Market 11 and 12)
• Appropriate Remedies to be Considered

10
Fixed Telephony

• Declining Market (Value, Revenues, Subscriptions)
• New Entrants, Carrier Selection, Price
  Competition
• Fall in Time-Metered Traffic Substitution to
  VoIP and Always On Broadband
• Telenor SMP in All Fixed Line Markets (1-6)
• Appropriate Remedies to be Considered by the end
  of 2005

11
Mobile telephony

• Main Driver in the Electronic Communications
  Markets Turnover Exceed Fixed Tlph
• Total Revenues Up 8.4 2003-2004. 19 Traffic
  Growth Last Year, up from 14 2002-2003
• SMS Major Part of Traffic Proportion, MMS on the
  Increase (160 2003-3004)
• Telenor SMP in Market 15, All Operators SMP in
  Market 16
• NetCom and Telenor Only Network Operators.
  Combined GSM Market Share 84 - Decreasing
• Number Portability Dec 2001 450.000 Changed
  Operator in 2004

12
Mobile Penetration Rates
13
Mobile Traffic
14
3G

• 4 Operators Licenced in 2000 after Beauty Contest
• 2 Commercial UMTS Networks launched, by Telenor
  and NetCom recently
• Hi3G Access Norway (Licenced 2003) to launch this
  year
• CDMA NMT Awarded Licence in the 450-band Last
  Year

15
Voice over IP

• First Commercial Offerings Launched 2004
• Today More than 40 Operators, 50000 Customers
• Main Driver in the Broadband Market
• Increased Pressure on Traditional Carriers
• TV over DSL New Opportunities

16
Voice over IP Regulatory Issues

• Future Regulation under Consideration
• Balance Needs of Industry and Consumers
• Calls to Emergency Services/Caller Location,
  Geographical Portability Main Challenges
• National Work by NRA in Light of ERG Common
  Position and EC Initiatives (Light Touch
  Regulation)

17
Radio Spectrum

• Harmonised Management Across EEA Essential to an
  Internal Market for Electronic Communications
• Secondary Trading Provides Opportunities for New
  Innovative Technologies and Services in Europe
• National Legislation Opens Up For Spectrum
  Trading, in line with Framework Directive and RSD
• Safeguards for Public Interests Must be in Place

18
Regulatory Outlook

• Main Challenges Develop Competition in All
  Segments while Safeguarding Consumers (USO)
• New Technological Developments to be Taken into
  Account
• Revision of Regulatory Framework by 2006 in line
  with EC Revision of Directives for Electronic
  Communications
• Regulatory Challenges Scope (USO) Convergence,
  Sector Specific vs Competition Regulation