Based on our work in INTUG, the International Telecommunications Users Group
| 1. | Common Agenda Worldwide - Broadband is the new Electricity | | 2. | Regulation of broadband services will be crucial for Business customers | 3. | Independent study demonstrates that competition brings benefit to all | 4. | Cloud Computing moves to Centre Stage | 5. | IPv6 and new Top Level Domains on Internet Governance Forum (IGF) agenda | 6. | International Roaming, Broadband and Geographic Segmentation on OECD agenda | 7. | Europe: New Commission, Framework adopted, IPR Compromise reached | 8. | BEREC - New Regulatory Body is formed and new ICT Strategy for Europe | 9. | International Mobile Services remain inadequate for business users | 10. | INTUG Report | 11. | BELTUG agenda |
| International Insights - an Update on Global Communications Issues - from the International Telecommunications Users Group (INTUG) | |
1. Common Agenda Worldwide - Broadband is the new Electricity | |
| | The last months have been very busy months on the international scene in telecommunications, reflecting remarkable consistency in the agenda of organisations around the world. Governments have acknowledged the key role that very high speed broadband can play in economic recovery and social inclusion, but have been challenged by the political reality that budget deficits hamper their ability to fund what is needed. Nevertheless, some claim it will transform business processes and public services as much as electricity did, and a few Governments have actually committed large sums of public money to get their nation fully up to speed with new Internet-based opportunities. Australia with US$32B, Japan with US$28B and the US with $7B lead the way.
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2. Regulation of broadband services will be crucial for Business customers | |
| | Investment in ultra high-speed broadband capacity must be efficient and effective, as must the use by public and private enterprises. In the debate on how best to achieve this, two service issues have been of particular importance for international business users:
a) Can wireless or mobile broadband be considered a viable alternative to fixed networks? This has major implications for the regulated market definition and assessment of dominance. Austria decided it is a substitute for the consumer market and the European Commission has accepted their case. b) What performance characteristics are appropriate for judging if a service is suitable for business use? Upstream capacity is important for businesses. Symmetric services are needed, and latency and contention ratios of the offerings are critical.
It would be a dangerous precedent if regulators combined wireless and fixed broadband in a single market for all customers, potentially leaving business users with no choice at all. | |
3. Independent study demonstrates that competition brings benefit to all | |
| | A study for the European Competitive Telecommunications Association (ECTA) shows conclusively that competition encourages investment, rather than the reverse as claimed by some incumbent operators seeking regulatory flexibility (known as regulatory ‘holidays’) as a condition for building Next Generation Access Networks. Markets with open access for competitors actually have higher investment in telecoms, which drives economic growth and lowers risk to investors, whereas fibre investment in markets where earlier regulation is relaxed is lower than the EU average. It is also clear that such regulation doesn’t impact incumbents’ financial performance, nor do later fines. Incumbents are still considerably more profitable than rivals and are gaining market share. The study also confirmed the findings of a study that expensive fibre nets cannot be profitably duplicated and hence the pursuit of infrastructure competition per se is wrong. These findings are likely to be applicable to other parts of the world with similar situations. The Study becomes available next week.
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4. Cloud Computing moves to Centre Stage | |
| | Many pressures have attracted clouds over the horizon. Economic reality has forced international companies to consider going one step further than plain outsourcing deals.
Political pressures have driven governments to consider stricter public procurement rules, to harmonize the ICT strategy between sectors, to reduce costs and facilitate e-services, for example in health and education. Technical pressures have produced a generation of Unified Collaboration and Communication (UCC) tools, many of which are already offered on a virtual basis, like Google mail. Cloud computing can bring lower capital expenditure (currently in short supply or non-existent), faster introduction of new services, and more flexibility in the use of applications and devices. However, fears of customer lock-in, privacy, security, interoperability, and the relative immaturity of suppliers and services, makes decisions in this area worthy of serious examination before major commitments are made. Current experience, confirmed by an EVUA survey, suggests that most take up is by smaller companies for non-core applications, and that multinationals remain cautious.
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5. IPv6 and new Top Level Domains on Internet Governance Forum (IGF) agenda | |
| | The gathering of the IGF in Sharm-el-Sheikh, Egypt debated Internet address exhaustion, the need for transition from IPv4 to IPv6, and new Top Level Domains (TLDs) where those using non-Latin characters have already been announced. The Forum also considered the way forward as it approached the end of the five-year deadline for deciding how best to govern the Internet. The Forum was attended by 1800 delegates and also discussed data security, openness and privacy, the contextual integrity of data in social networks, and human rights regarding access, including finding ways of allowing for diversity, disabilities, and multiple languages.
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6. International Roaming, Broadband and Geographic Segmentation on OECD agenda | |
| | The Communications Infrastructure and Services Policy (CISP Committee of OECD), on which INTUG is an expert participant, is also addressing similar priority topics to those in other international fora. The future of fixed and wireless broadband was discussed at the December meeting to define how best to track service deployment and pricing. Global action to reduce international roaming charges remains a priority topic. The meeting also considered the impact of sub-national or geographic segmentation of relevant markets.
This is a concern for business users, since it presents them and their service providers with the prospect of a mixed environment where some of their sites are deregulated for access, resulting in a risk that their service providers may not be able to deliver access.
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7. Europe: Neelie Croes Commissioner ICT, Framework adopted | |
| | New Commissioners have been nominated for the next 5 years. Neelie Kroes will be the Commissioner for the Digital Agenda. A new regulatory Framework is approved. The Commission said this would give: fixed and mobile number portability in 1 day; better customer information; user rights to an open and neutral Internet; better user protection against data breaches and spam; better emergency service access; more NRA independence with greater consistency; more Commission power over remedies; a new functional separation remedy; acceleration of broadband roll-out; and enhanced Next Generation Access competition and investment. The deadline for transposition of the new Framework in the Belgian law is May 2011. INTUG prepares a paper for national associations to use in discussions with NRAs, not just in Europe, although it will cover the key elements for transposition of the new EU Telecommunications Framework. INTUG has already met with members of her cabinet to stress the need for continued regulatory effectiveness to enable competition in the international business market, which is at best stalling, and is in some situations in reverse, with ex-monopoly incumbents increasing still dominant market shares. | |
8. New Regulatory Body (BEREC) formed and new ICT Strategy for Europe | |
| | The former European Regulators Group (ERG) is transformed into the Body of European Regulators of Electronic Communications (BEREC). With the help of INTUG, ERG completed a survey of business user requirements. BELTUG/INTUG were represented at the first hearing of BEREC, on the business market. INTUG generally welcomes the BEREC work programme for 2010, but believes as stated in its response to the ERG Draft Programme, that significant prioritisation will be needed. The Spanish Presidency produced a draft Digital Agenda. Amongst 25 recommendations, were “ubiquitous and high speed access to fixed and mobile Internet for all citizens and consumers”; “access to broadband Internet at a competitive price for all EU households by 2013”; 75% of mobile subscribers on at least 3G by 2015”; “50% of EU households on high speed networks by 2015; “reduced ex-ante sector specific rules” (endorsing the statement by Commissioner Kroes and presumably a political objective);
“net neutrality where citizens have the right to access and distribute information or run applications and services of their choice” (see above comments re interoperability needed to make this possible); “a long term solution to roaming” (welcome acknowledgement that it is still a problem); “removal of obstacles to cross-border online transactions by 2015” (reinforcement of the need for international interoperability); “updating of Data Protection and linked Directives”; “doubling the EU ICT Research budget for collaborative innovation”.
INTUG is in communication with Rapporteur Pilar del Castillo on this important work.
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9. International Mobile Services remain inadequate for business users | |
| | INTUG has produced a position paper analysing shortcomings of the international market for business users of mobile services. The conclusions state that International Mobile Service operators are not providing appropriate services for the enterprise customer segment. Buyers of mobile services have to deal with a patchwork of national mobile operators offering different pricing schemes, service offerings and service level agreements. There is a lack of effective transnational mobile virtual network operators (MVNOs). The paper makes specific recommendations for action by service providers, regulators and by multinational companies themselves.
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10. INTUG REPORT | |
| | INTUG reviews Global agenda and priorities in Paris
INTUG was represented at the IGF in Egypt, at the meeting of the Internet Corporation for Assigned Names and Numbers (ICANN) in Seoul, Korea. This was INTUG’s first appearance, and Rosemary Sinclair from the Australian user group has joined the Board of Non-Commercial Organisations. INTUG spoke at ECTA’s annual regulatory event in Brussels, prior to INTUG’s own meeting in Issy-les Moulineaux, Paris, hosted by French User Association CRESTEL.
Representatives from INTUG will participate in international fora during 2010: APECTEL in Chinese Taipei in May, in Brunei in August and Japan in October, ICANN in Brussels in June, IGF in Lithuania in September, OECD CISP in Paris in June and December, ECTA in Brussels in June and December, and CITEL In Mexico in March, as well as other ad hoc events including public hearings on EU Regulatory matters.
Leonard Pera from Spanish User Group AUTELSI, Jon Neville from EVUA and Rob Matthijssen from BTG (The Ducth user group) were elected to the INTUG Board. Danielle Jacobs from BELTUG is member of the INTUG Board too.
The next INTUG meeting will be in Spain in May 2010, hosted by AUTELSI.
Web Reminder - don’t forget to look at www.intug.org
Remember to check the INTUG web site regularly. BELTUG Members can also sign up for access to restricted area of the site, and to receive an alert service based on selected topics. | |
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