The New Paradigm for the Convergence Phenomenon

1
The New Paradigm for the Convergence
Phenomenon Egyptian Vision
15 June, 2010 Smart Village, Egypt
2
Paradigm 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

3

• 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.
4
Highlights 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,

5
Highlights 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.

6
The 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
7
The 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
8
The 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
9
The 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
10
The 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
11
Second 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.

12
The 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

13
Egyptian 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

14
Critical 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

15
Critical 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

16
Critical 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

17
Critical 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

18
Critical Factors

• Development of a strong ICT infrastructure
• Granting two licenses to provide triple-play
  services in new gated compounds
• Drafting the Broadband National Plan

19
Broadband 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 Egypts 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.

20
Broadband 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.

21
Broadband 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

22
Broadband 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

23
Existing 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

24
THANK YOU
Ahmed Hefnawy Manager, Converging
Services ahefnawy_at_tra.gov.eg