Coherent Regulatory Framework for transforming ICT industry

Muhammad Yousaf SheikhAssistant Director (WLL)

June 2015

INTRODUCTIONSelection of Topic From GSMATimotheus Hoettges CEO Deutsche Telekom

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Presentation outline1. Introduction

2. Generations of Telecom Regulation

3. Fourth Generation of Telecom Regulation

4. Key Trends (MBB,TVWS,OTT,FMC)

5. Policies of Pakistan Telecom Sector

6. Conclusion

7. Recommendations

Generations of Telecom Regulations

4Source- Trends in Telecommunication Reform Special Edition: 4th Generation Regulation- ITU

1st GenerationState owned Monopolies

2nd GenerationPrivatization, Regulatory bodies

3rd GenerationCompetition, Expansion of Services

4th GenerationICT Industry, Constant Innovations

Fourth Generation of Telecom Regulation

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Converge Network Services

Universal Access to Broad Band

Consumer Protection-

Unwanted privacy

Spectrum Management

Balanced Regulation-Co/Self Regulation

Co operational –Inter regional-

regional

Consultation Collaboration

Interconnection

Licensing Authorizations

Net Neutrality

Source- Trends in Telecommunication Reform Special Edition: 4th Generation Regulation- ITU

4th Generation Regulator

Driving Digital Communications

Ahead

Key Trends 1- Mobile Broadband Expansion

Source- GSMA- Intelligence The Mobile Economy 2015

Source- Cisco VNI Mobile 2013-2015,GSMA- The Mobile Economy 2015

Global Mobile Data Traffic –(Per Month, Peta Bytes)

Key Trends 2- Applications and Data Traffic

Source- Cisco VNI Mobile 2015,GSMA- The Mobile Economy 2015

3GPPBand No.

Commonly used band name

Uplink (MHz)

Downlink (MHz)

3GPP Band No.

Commonly used band name

Uplink (MHz)

Downlink (MHz)

1 2.1 GHz (UMTS) 1920-1980 2110-2170 18 850 MHz (Japan) 815-830 860-875

2 1900 MHz (PCS) 1850-1910 1930-1990 19 850 MHz (Japan) 830-845 875-890

3 1800 MHz (DCS) 1710-1785 1805-1880 20 800 MHz (CEPT) 832-862 791-821

4 AWS 1710-1755 2110-2155 21 1500 MHz (Japan) 1447.9-1462.9 1495.9-1510.9

5 850 MHz 824-849 869-894 22 3500 MHz 3410-3490 3510-3590

6 850 MHz (Japan) 830-840 875-885 23 AWS-4 (USA) 2000-2020 2180-2200

7 2600 MHz paired 2500-2570 2620-2690 24 L-Band (USA) 1626.5-1660.5 1525-1559

8 900 MHz 880-915 925-960 25 PCS 1900 G 1850-1915 1930-1995

9 1700 MHz (Japan) 1749.9-1784.9 1844.0-1879.9 26 850 MHz (Ext. upper) 814-849 859-894

10 1700/2100 MHz (3G Americas)

1710-1770 2110-2170 27 850 MHz (Ext. lower) 806-824 851-869

11 1500 MHz (Japan) 1427.9-1447.9 1475.9-1495.9 28 APT 700 MHz 703-748 758-803

12 US700 (Lower A,B,C) 699-716 729-746 29 700 de - 717-728

13 US700 (Upper C) 777-787 746-756 30 2300 (WCS) 2305-2315 2350-2360

14 US700 (Upper D) 788-798 758-768 31 450 MHz 452.5-457.5 462.5-467.5

15 Reserved 32 1500-Lband - 1452-1496

16 Reserved TDD Bands (33-44)

17 US700 (Lower B,C) 704-716 734-746 Source: 3GPP TS 36.101 V12.2.0

Key Trends 3- Spectrum Requirements

Source- Cisco VNI Mobile 2015,GSMA- The Mobile Economy 2015

Global Mobile Data Traffic –(Per Month, PB)

Key Trends 4- Defining BroadBand limits

Source: ITU World/ Telecom/ICT indicators Database

BB QoS Regulation 2014- BB speed 256Kbps or as adopted by Authority inline with GOP policies

• Portions of spectrum left unused by terrestrial broadcasting in VHF (54-216 MHz) & UHF (470-698MHz).

• Advantageous propagation properties, including excellent outdoor and indoor coverage and non-line-of-sight propagation.

• Alternative for providing commercial wireless/Broadband services.

• Uses White Spaces Database after registration.

Source- Carlson Wireless, OFCOM,Commscope

Current Standards for TVWSa) Wireless Regional Area Network (WRAN)- On Non

Protection Non Interference basis based on IEEE 802.22 Standard.

b) Machine to Machine (M2M) Communication- very low-power radio transmitters that are used for low-data-rate industrial and commercial applications, such as monitoring, tracking, metering and control

Carlson Wireless USA distributes Broadband using white space in 470-698 MHz in Rural areas.

Key Trends 5- TV White Spaces (TVWS)

Any application or service that

provides a product over the Internet

and bypasses traditional distribution

(Viber, Skype, Whats app, Netflix ).

2014=1.24 billion OTT subscribers.

2017=1.95 Billion

Regulatory Challenges:

•Consumer Security

•Sustainable Business Model for

telcom operator

•Cybercrimes,

•National Security

Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014, https://clt.vtc.edu.hk/about-clt/

Key Trends 5- Over The TOP (OTT) Application

OTT- Uneven Regulatory Playing Field (continued)

Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014

Area of Regulation Telecom Operator OTT Provider

Licensing Yes-Individual licensing required

Often Exempted or Class licensing

Provision of LI Required as License obligation No LI.

Quality of Service Included in licensed obligation No. QoS (specifically speed) problems generally blamed on network provider.

Net Neutrality Assumes “best effort” transport of data without discrimination, independent of source or nature of data. However, Concept not applied in some countries.

No obligations. Their control over the content and freedom of choice concerning customers releases them from restrictions.

InterConnection Yes, Required toterminate Voice/Data traffic.

Doesn’t Require

OTT- International Practices(continued)

Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014TRAI- Consultation paper on OTT 2015

Country Treatment of OTT Voice Providers

Singapore Specific licenses for VOIP connecting to PSTN.P2P not licensed, subject to competition law

US Licenses not necessary but obligations concerning emergency numbers and LI

EU Licenses not necessary bit in individual countries (France, Spain) OTT providers (skype) have been blocked when offering voice services that connect to PSTN.

UAE OTT not allowed if they work with licensed telecom companies. VOIP defined as a regulated activity.

Egypt Legislation expected soon, but none at present. VOIP using mobile network is forbidden. International calls have to go via international gateway.

S. Arabia Few OTTs blocked because of Legal interception issues.

Bahrain Voice Services connected to PSTN only allowed for license holders but foreign providers not actively marketing their services in the country will not be pursued.

India TRAI issued consultation “Regulatory Framework for OTT” in March 2015. Regulate OTT, New Licensing Regime, Commercial Agreement b/w OTT and Telcos, Voice traffic management techniques for OTT.Response- NO OTT Reg Framework required, Regulatory Equivalence approach, Light touch regulations

Management of OTT

Unlimited use

BanTechnical

Measures-monitor, filter

ITU-T recommendation Q.1762 defines Fixed

Mobile Convergence (FMC) as

Mechanism that provide services and

application to the end user regardless of the fixed

or mobile access technologies being used and

independent of the user's location.

Source- ITU -T Recommendation Q.1762,

Benefits : • Bundling of services reduces the cost for consumer.

• Convenient usage of the bundled services (Configuration, single billing)

• Seamless service experience.

• Provide services to a mobile user in an area where a radio network is not deployed

• Better utilization of radio spectrum in IMT-2000, IMT-Advanced networks

• Network deployment and operational cost reduction.

• Reuse of fixed line assets.

Key Trends 6- Convergence (FMC)

FMC Success Stories(continued)

Source- Fixed Mobile Convergence for Cellular Service Providers -Cisco

SwissCom FMC Deployment T Mobile FMC-HotSPot@home

User can roam across fixed-line DSL and mobile GPRS, UMTS, EDGE, HSDPA, and wireless LAN hotspot networks with service automatically switching to the best possible connection.

User with dual-mode cellular/Wi-Fi handset can handoff with the standard cellular network and Wifi/unlicensed mobile access calls/Data.

Key Policies for Telecom Sector in Pakistan

• Fixed line Sector Policy.• Open and Technology Neutral• License Term - 20 Years• Local Loop (LL) – ILF US$

10,000 / region - 14 Regions• Scope- LL services In a

licensed region. LM for WLL.• Wireless Local Loop Option

(Spectrum Auctioned)• Long Distance and

International (LDI) – ILF US$ 500,000

• Deregulated incumbent operator PTCL.

• Introduced APC, USF, R&D, ARFSF Regime.

De-Regulation Policy 2003

• Mobile Sector Policy.• Technology Neutral • 2 New cellular Licenses were

issued for 15 years.• Open Auction.• Promoted efficient use of

Spectrum.• Fair Competition amongst

mobile and fixed line operators• Existing Operators to Pay

Same Amount for Renewal.• Promoted Infrastructure

sharing, National Roaming, Mobile Number Portability.

• ASAF, R&D,USF,ARD Fees.

Cellular Mobile Policy 2004

• Mobile Sector Policy.• Technologies 3G/4G and

above.• 4 New NGMS Licenses were

issued for 15 years.• Open SMRA Auction.• Promoted efficient use of

Spectrum.• Existing Operators to Pay

Same Amount for Renewal.• Promoted use of advanced

technologies, Infrastructure sharing, National Roaming, Mobile Number Portability.

• ASAF,R&D,USF,ARD Fees.

NGMS Policy 2013-14

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Draft Telecom Policy Oct 20146.2 Licensing framework 6.2.1 The current licensing framework shall continue to apply subject to the introduction of

class licenses associated with satellite services.

6.2.2 The present licensing regime already distinguishes between those operators that provide infrastructure as well as services and those that provide services alone. Nevertheless, there are gaps and inconsistencies in the licensing framework that should be addressed.

6.2.3 MoIT, in consultation with the PTA, will therefore review the licensing framework, in

recognition of the market state at that time, the move to regulation through Competition Rules, changes in the technology used to provide services, and consequential changes in the types of organizations that are telecommunications service providers. It is expected that this review will take place by 31st December 2016. Any proposed changes to the licensing framework will be made in consultation with the sector stakeholders and subject to approval by Government.

6.2.4 Any new licensing regime will be based on international best practices. It will enable new services to be readily provided while meeting service specific requirements (including but not limited to quality of service, customer protection, content acceptability and national security) as they are defined. The licensing regime will continue rights and obligations associated with scarce resources and any obligations on network roll out.

Case Example-Speak XYZ OTT

Voice Call PSTN/Mobile Operator any where OTT / FLL / Mobile User

anywhere in the world

OTT Call

OTT Call

PSTN/Mobile Operator from any where

OTT Call

OTT Call

OTT Call

Speak XYZ OTT Product installed in

Smartphone

XYZ Domestic / LDI

Switch

Free of cost over IP

• OTT to OTT (Voice, Video, Messaging).• OTT to Fixed line/Mobile (Voice) using LL/LDI Gateway.

Source- XYZ Licensee Proposal

ConclusionCurrent licensing framework of Pakistan requiring:

• LL operators to establish switching systems within their local licensed region.

• Handing over LL traffic to LDI outside their licensed region.

• Restricting the use of same LL number in geographical licensed region

boundaries .

• Restricting use of fixed line infrastructure to provide mobile services to end

customer (Femto Cell).

• Restricting FLL/WLL licensee to provide OTT service to Mobile Subscriber.

(XYZ example).

• Restricting use of VH,UHF spectrum on non protection, non interference basis

Are incoherent with the transforming ICT industry in the light of enabling technologies.

Recommendations

1. Study and Review the existing and latest licensing trends Worldwide and prepare a comprehensive

framework.

2. Consultation with stakeholders on proposed framework for introducing unified technology neutral

license based on industry best practices focused on self regulatory principles, consumer choice,

competition, transparency, and effective multi-stakeholder processes.

3. Finalizing the new licensing framework for smooth transition of existing LL/LDI licenses after initial

license tenure.

4. Summarizing the stakeholders responses and submit the same to Federal Government (MoIT) as

per draft policy condition 6.2.1.

THANKS