REGULATORY ISSUES IN THE ERA OF CONVERGENCE

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REGULATORY ISSUES IN THE ERA OF CONVERGENCE

• BY
• SAMEER SHARMA
• Dy. Advisor
• Telecom Regulatory Authority of India
• (16.5.02)

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How A Regulator Looks to the New Challenges?

• 1. What is Convergence?
• 2. Type of convergence
• 3. Genesis and manifestation of Convergence.
• 4. Drivers of Convergence
• 5. Indian Experience with convergence
• 6. Highlights of Draft Communication Convergence
  Bill,2001
• 7. Challenges to Convergence
• 8. Conclusions

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1.What is Convergence?

• There is no universal definition of Convergence.
• Convergence can mean-
• Provision of various communication services
  like text, data, image and video over the
  existing infrastructure
• Development of new infrastructure for handling
  multimedia transmission.
• Managing of technologically and commercially
  distinct markets such as Broadcasting,
  Publishing, Cable TV, Fixed Voice, Cellular
  Mobile Services and Internet Services

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2. Type of Convergence ?

• Convergence of Technologies
• A common platform to deliver Voice, Data and
  Video services
• Convergence of Services
• Delivery of multiple services to the end users
  over the same medium/ network.
• Regulatory Convergence
• Establishing a single Regulatory Authority by
  blurring
• the regulatory boundaries for telecommunication,
  information technology and broadcasting

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3.Genesis and Manifestation of Convergence?

• Driven by technological innovations
• Progressive integration of distinct markets such
  as IT, telecommunications, broadcasting, cable
  television into a single value chain.
• Regulation as enabler to convergence

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4. Drivers of Convergence

• 1) Technology
• Digitisation of transmission and switching
  networks
• Global networks based on packet switching and
  open standards (IP)
• Increase in Processing power of Computers.
• Emergence of new applications (ICT) leveraging
  enhanced software capabilities
• Evolution of Broadband technologies(xDSL, CMTS,
  HFC, Broadband wireless- Fixed/ Mobile,
  Satellite).
• 2) Market
• New markets and services such as Multimedia
  services,Video on demand, Interactive TV, Pay
  TV,Cable telephony,Unified Messaging services,
  Internet Telephony etc.
• Integration of content service providers with
  access providers.
• Emergence of new Market players based on
  Potential of ICT

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Drivers of Convergence (Contd)

• 3) Customers
• Option for new value added services in a modular
  fashion
• Cheaper access to communication
• Single Information Socket (for phone, data,
  video)
• 4) Regulation
• Reduction in cost of regulation by optimum
  utilisation of regulatory resources
• Ease of Regulation and Interconnection

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5. Indian Experience with Convergence

• Information Technology Act 2000.
• Draft Communication Convergence Bill
  2001(Introduced in Parliament) envisages
• Establishment of an Autonomous Commission
  (Convergence Commission of India) to regulate
  carriage and content of all forms of
  communication, and
• Establishment of Communications Appellate
  Tribunal.
• Liberalisation of Internet Telephony by ISPs.

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6. HIGHLIGHTS OF DRAFT COMMUNICATION CONVERGENCE
BILL, 2001

• A regulatory framework for carriage and content
  of communications in the scenario of convergence
  of telecommunications, broadcasting, data
  communication, multimedia and other related
  technologies and services.
• Creation of new technology neutral licensing
  categories based on network infrastructure
  facilities, network services, network
  application services, content application
  services and value added network application
  services.
• To provide for the powers, procedures and
  functions of a single regulatory licensing
  authority and of the Appellate Tribunal.
• Efficient management of spectrum.

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7. Challenges to Convergence

• Migration to converged licence regime
• Technical standards
• Fair and non-discriminatory access
• Competition Issues
• Frequency Spectrum
• USO and Digital Divide

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Challenges to ConvergenceContd

• (i) Migration to converged licensing regime
• Maintenance of Level Playing Filed between
  existing and new players.
• Service based licenses with heterogenous terms
  and conditions of licenses.
• The existing service provider may need multiple
  licenses to provide services.
• Licence mapping for all current licenses from old
  to new licence categories.
• License transitions process
• Licence structure design and drafting

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Challenges to ConvergenceContd

• (ii) Technical standards
• Standards supporting convergence still evolving
• Availability of multiple standards by different
  agencies (ITU, IETF, ETSI, ANSI, IEEE etc).
• Problems of inter-working between various
  standards.
• Standards for Quality of Service not yet matured.
• Need for Technology Neutral Regulations.

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Challenges to ConvergenceContd

• Fair and non-discriminatory access
• Complex Regulations governing access to
  bottleneck facilities
• Transparent , Non- discriminatory Cost based
  access.
• Access to contents Program access regime

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Challenges to Convergence Contd

• (iv) Competition Issues
• Removal of industry specific regulations and its
  replacement with general competition law applied
  equally to all industries.
• Legal framework aiming at promoting competition
  and prohibiting a range of anti-competitive
  practices including
• Anti-competitive Agreements
• Anti-competitive mergers and
• Misuse of market power
• Cross-boarder mergers and cross- media ownership
  restrictions in certain parts of the media
• Foreclosure of markets by anti- competitive
  conduct

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Challenges to ConvergenceContd

• (v) Frequency Spectrum
• Possible reallocation of frequency spectrum.
• Optimum allocation of spectrum to the new
  licensees.
• No precedence for allocation of the spectrum in
  the new regime.
• De-licensing of bands for certain applications.

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Challenges to ConvergenceContd

• (vi) Universal Service Obligation and
  bridging Digital Divide
• Redefining the scope of Universal Service.
• Identifying contributors for USO?
• Formulation of regulatory policy to bridge the
  Digital divide.

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8. Conclusions

• Technology changes quickly, regulation changes
  slowly.
• Legacy regulation not relevant in convergence
  era.
• Prioritisation of Regulatory Challenges for
  optimum utilisation of regulatory resources.
• Drawing the Road Map for implementation of
  convergence.
• Need for efficient and timely dispute Resolution
  mechanism for converged licensing regime.
• Capacity and expertise building in the
  regulatory bodies to meet the challenges of
  convergence.

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