Telecom Industry Highlights
Regulatory Perspectives
Dr. Amr Badawi
Executive President
Outline
• Convergence
• Re-Structuring Broadband
• Challenges of Restructuring Broadband
• WiMAX
• VOIP
• Market Overview
Fixed Lines
Mobile Lines
Internet
1
Convergence Roadmap
Technical Side:
1.
1.
Digitalized Infrastructure
•
•
•
2.
2.
Broadband;
Wireless and mobile technologies;
High-speed backbone networks;
Digitalized Media Content
•
•
DRM
DAM
Convergence Roadmap Cont’d
Regulatory view:
1.
1.
Conducive Market Conditions (supply, demand, competition);
2.
2.
Technological Neutrality;
3.
3.
Intellectual Property Rights and GATS agreement
Business view:
1.
1.
Investment incentives;
2.
2.
Additional service providers;
3.
3.
Diverse services; options;
4.
4.
Digital content creators
2
Impact of ‘Converged’ Telecom
• Gradual shift to VoIP and VOB (Voice over Broadband)
• CATV systems
offering video on demand, broadband
access and voice telephony. CATV operators are now
competing with telecom operators.
• Trend
offer triple play service bundles in inclusive
packages
• Steady growth in 3G networks and wireless broadband
services
• Threat on the industry
Impact of Convergence on
Regulation
Implications:
Rise in the number of wireless services
for spectrum management reform.
raises the need
Revisiting current licensing regimes & favors regimes that
are technologically neutral.
Broadening market definitions, with the possibility of
replacing several narrowly defined markets by a single
more broadly defined market.
3
“Regulations in the Era of
Convergence”
• Sharm El Shiekh, Egypt.
th – 29th
th 2007.
• March 27th
Re-Structuring Broadband
• Increasing broadband penetration
• Promoting ADSL higher speeds by getting their prices
down (starting from USD 16 per month)
• Paving the road for eContent market by availing high
speed connections
• Providing special services for buildings as an alternative
to ADSL line sharing
• Considering WiMax technology as a possible solution to
BWA in Egypt
4
Challenges of Restructuring
Broadband
• Impact on Free Internet market
• ADSL business model and pricing scheme
• ADSL line sharing and unlicensed service providers
Evolution of ADSL Subscribers
May04 – Oct06
Total number of subsribers 170,093
M
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180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
5
Evolution of International
Capacity May04 – Apr06
Mbps
6,000
5,000
4,000
3,000
2,000
1,000
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WiMAX
Traditional Technologies
can deliver
WiMAX Will Meet Emerging
Customer Demand
Broadband,
but Fixed
Mobile,
but Narrowband
Fixed & Nomadic
Data, Voice,
Video
6
Consultation Procedures
• First Phase – April 05
Hearing Session
• Second Phase – within June
Publishing a Consultation Paper (draftframework)
• Third Phase – within July
Workshop discuss the Consultation Paper and feedback
and adopt final framework
BWA Hearing Session
• Discussed different applications
Nationwide Network
Backhauling
Last-Mile Access Network
• Scenarios for Regulatory Models
Nationwide Service Provider
Regional Service Provider
Network Operator
• Licensing issues
• Concentrated on WiMax technology
7
Food for Thought
• WiMAX will become the dominant standard for
Wireless LAN in fixed broadband networks
• Focus is too often on technologies:
Subscribers pay for services, not technologies
Technologies enable services, but should not be a burden
on users
Broadband capabilities are important, but bandwidth is not
the only meter to assess service.
VOIP: Introduction
• Transformation in Internet technologies
• Transition from circuit switched services to digital,
Internet, packet-based networks and technologies —
such as VOIP
• VOIP offers service at lower cost
• Uncharted legal, financial and technological challenges
• Ways to fit the new technology into existing regulatory
frameworks.
8
VOIP
Regulatory Framework
• Security Issues
• Voice Quality
• Interconnection Requirements
• Emergency Services
• Universal Service
• Interoperability between VOIP Operators;
• Compatibility & Interoperability between VOIP and PSTN
Operators
• Numbering in Nomadic and non-Nomadic VOIP services
Egyptian Market
Development
9
Fixed Line Market
• Fixed Network
Unbundling of the Local Loop
TE Licensing
• Market Access permitted for
Domestic payphones
Domestic value-added services allowed (e.g. PPCC)
• Domestic Voice
Resale of Telecom Egypt’s domestic service allowed
• International Voice
International voice liberalized
Fixed Line Market cont’d
• Telecom Egypt has privatized
20% of its shares.
• Telecom Egypt may continue
the privatization up to 49% of its
shares in subsequent stages.
• All licensees must be companies
registered in Egypt
• All companies must train local
human resources
Telephone
main lines in
operation
10.6 Million
Lines
Total
Public Pay
phones
55683
Cabins
10
Mobile Market
• Increase in mobile subscribers
• Usage of mobile phones surpassed the usage of fixed
telephone lines
• Prices decrease gradually, especially with a third
operator entering the market
• Services offered by both mobile operators are very
similar to each other
3rd Mobile Network
• NTRA issued an RFP for 3rd mobile network in February
2006
• It will use both 2G & 3G technology
• 11 consortia from international companies in partnership
with Egyptian companies applied
• NTRA formed a high-level committee to conduct the
technical evaluation of bids
• Financial bidding process
• Consortium of Etisalat of Emirates, Egypt Post, and CIB
won the bid with 16.7 billion Egyptian Pounds
11
Steady Increase in Fixed Lines &
A Boom In Mobile Phone Users
14
Mobile
penetration
Rate
12
18.5%
16
10
mobile
fixed
8
6
4
2
0
1998
2000
2002
2004
2006
Fixed Line
penetration
14.8 %
Internet Market
• Enabling Internet access on all fixed phone lines without monthly
fees
• Same cost as a local call since Jan 2002
• Provided by Telecom Egypt in conjunction with 210 Egyptian ISPs
• Beneficiaries: > 6 million users
• International Bandwidth:
8.3 Gbps
• Data Backbone Providers:
7
• Target within a year
Linking
Linking 1.7
1.7 million
million households
households to
to the
the Free
Free Internet
Internet service
service
Getting
Getting 77 million
million users
users online
online while
while doubling
doubling the
the international
international
capacity
capacity
12
Major Increase in the number of
Internet Users
6
5
4
3
internet
2
1
0
1999 2000
201
2002 2003 2004 2005 2006
• For more information, please contact:
• Ms. Nermine El Saadany; nermines@tra.gov.eg
• Ms. Shahira Selim; shahiras@tra.gov.eg
13
THANK
YOU
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