The New Paradigm for the Convergence Phenomenon

Egyptian Vision

15 June, 2010Smart Village, Egypt

Paradigm Shift and Sector ReformParadigm Shift and Sector Reform

• Two major changes with paradigm shifts: Towards Regulated Competition

Towards Convergence

• “The introduction of NGNs is the most significant change to telecoms networks since competition was

introduced two decades ago” Ofcom

“How, in a fast moving technological environment, effective policy and regulatory policies may be

developed to fully leverage the opportunities created by rapid technological changes?"

The special issue of 'communications & strategies‘, Nov. 2005 Technological convergence and regulation, Challenges facing developing countries ,

Edited by Jérôme BEZZINA & Bernard SANCHEZ with the support of InfoDev.

Highlights on the Egyptian Telecom LawHighlights on the Egyptian Telecom Law

• The NTRA shall aim to regulate the (Tele)communication Service and to enhance and

deploy services in compliance with the most advanced technology means satisfying the Users’

needs at the most appropriate prices;

• The NTRA shall also encourage national and international investment in this field within free

competition rules, …

Highlights on the Egyptian Telecom LawHighlights on the Egyptian Telecom Law

• The NTRA shall, in regard of achieving its goals, have the right to take all the necessary actions,

especially the following: Setting up the strategies, programs, rules and

management techniques according to its activity in compliance with the provisions of this Law and the

resolutions issued for its execution, without limitation to the governmental rules and regulations.

Keeping up with the technical and technological advancement in the telecommunication field in compliance

with health and environmental standards.

The Phenomenon DefinitionThe Phenomenon Definition

• Convergence can be defined as the technological improvements by which a number of

networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that

one concrete service may be provided over a number of different networks. Convergence has,

therefore, important consequences for market players and consumers, requiring regulators to

adapt to this new paradigm.

CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

The Phenomenon DefinitionThe Phenomenon Definition

• Convergence can be defined as the technological improvements by which a number of

networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that

one concrete service may be provided over a number of different networks. Convergence has,

therefore, important consequences for market players and consumers, requiring regulators to

adapt to this new paradigm.

CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

The Phenomenon DefinitionThe Phenomenon Definition

• Convergence can be defined as the technological improvements by which a number of

networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that

one concrete service may be provided over a number of different networks. Convergence has,

therefore, important consequences for market players and consumers, requiring regulators to

adapt to this new paradigm.

CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

The Phenomenon DefinitionThe Phenomenon Definition

• Convergence can be defined as the technological improvements by which a number of

networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that

one concrete service may be provided over a number of different networks. Convergence has,

therefore, important consequences for market players and consumers, requiring regulators to

adapt to this new paradigm.

CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

The Phenomenon DefinitionThe Phenomenon Definition

• Convergence can be defined as the technological improvements by which a number of

networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that

one concrete service may be provided over a number of different networks. Convergence has,

therefore, important consequences for market players and consumers, requiring regulators to

adapt to this new paradigm.

CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

Second Wave of ReformSecond Wave of Reform

• Main Driver: Move towards Convergence.

• Effects: Collision of originally separate sectors;

changing the competition paradigm;

Alliance, merger and acquisition between companies;

Service value chain restructure, decoupling the service layer and

the network layer;

Emergence of NGNs;

Different customer experience;

More regulatory challenges.

The Phenomenon and trade-offsThe Phenomenon and trade-offs

• Potential increase in the number and type of competitors for different services; making the

general competition and regulatory assessments more complex and challenging.

• Innovation, greater choice and better prices; increasing complexity for consumers, who will from

now on need to compare different services, price offers and schemes, technologies and devices.

• Opportunity to provide more than one service; increased competition from other providers

Egyptian VisionEgyptian Vision

• “Convergence in this respect is perceived as one of the most significant alterations taking place in the market, it is a new wave of change that opens new horizons and

explores new areas… it promises further growth and new opportunities, for developed as well as developing

nations”. – H.E. Dr. Tarek Kamel

Critical FactorsCritical Factors

• Provision of qualified manpower and brain-ware: Knowledge transfer partnership programs with the private

sector

professional training institutions, the ITI and the NTI

Grants to sponsor research and academic institutes

Critical FactorsCritical Factors

• Enhancement of public-private-partnership Multi-stakeholder dialogue

Cooperative series of executive workshops and awareness seminars

Consultation on “Implications of ICT and Media Convergence”

Critical FactorsCritical Factors

• Guaranteeing an enabling regulatory environment Reviewing the current regulatory regime to remove any

bottleneck that might slow down the migration process and to ensure technology, network and service neutrality

The challenge of “NGN Access Divide”

The digital dividend

Cooperating with European partners to set a medium and long term plan for convergence

Critical FactorsCritical Factors

• Digital Content and Cultural Identity Egypt has always been and remains to be a leading

source of cultural and entertainment content in the Arab world that it holds a tremendous potential to become a major exporter of digital content feeding into the convergence machine

Critical FactorsCritical Factors

• Development of a strong ICT infrastructure Granting two licenses to provide triple-play services in new

gated compounds

Drafting the “Broadband National Plan”

Broadband National PlanBroadband National Plan

• Consultation activity with the World Bank:

• The activity looked at technological, policy and regulatory measures.

• It provided elements to assess whether the emerging business and policy models in the area of broadband

internationally can be introduced and sustained in Egypt’s current regulatory framework and business

environment.

• It assessed measures likely to improve the supply of broadband, and to enhance the demand and use of

broadband by the final user.

Broadband National PlanBroadband National Plan

• Deliverable #1: Broadband Policy: International assessment of options Technology

Service delivery Policy and regulatory framework

• Deliverable #2: Benchmarking Broadband Development: Case studies covering: Canada

Chile Republic of Korea

Malaysia Singapore

Turkey

• The Next phase is supposed to measure the impact of Broadband on the National Economy in terms of growth rate and employment.

Broadband National PlanBroadband National Plan

• Short Term Objectives (2014) Increase BB penetration

Reach critical mass

• Long Term Objectives (2020) Increase BB speeds

Reach international BB penetration rates Minimize urban vs. rural BB gap

Broadband National PlanBroadband National Plan

• Short Term: 25% HH penetration

(4 Million fixed BB subscribers) 5% Mobile BB penetration of population

(4 Million mobile BB subscribers)

• Long Term: High-speed BB (min. 10Mbps) for 90% of HH in urban areas

40% overall BB penetration of population

Existing Convergence FormsExisting Convergence Forms

• 3 Mobile operators with 3G+ licenses

• 2 licenses for triple-play services in closed compounds

• TE plans to roll out NGN in certain places

• Shofha.com VoD services over the internet

• 2006 world-cup Webcast

• Double play bundled offers (Voice + fixed / mobile broadband)

• Merger and acquisitions between mobile and data operators

THANK YOUTHANK YOU

Ahmed HefnawyAhmed HefnawyManager, Converging ServicesManager, Converging Services

ahefnawy@tra.gov.eg