Luiz Fernando Ferreira Silva, Ph.D., Anatel, Brazil IP Networking and MEDIACOM 2004 Geneva, 24 - 27 April 2001 Contents Introduction The Technological Convergence Regulations toward Convergence Future Actions Concluding Remarks Introduction Objective To describe the extent to which Brazil has positioned itself to respond to the impact of the technological telecommunication regulation in the country. convergence on the Argument The implications of the technological convergence on current regulatory regimes clearly indicate that they will be subject of revisions. The actions to be taken on these regimes, it is argued, need to be in line with the expectations of service providers and consumers in the sense of promoting greater benefits for the society as a whole under an increasing availability of convergent services. The Technological Convergence Conceptual Approach Technological convergence is defined as a process of formation of successive similarities amongst technologies that had been distinct from one another. They have once established clear borderlines amongst the services they have enabled the provision but now share a common digital environment. The Technological Convergence Response of Regulatory Authorities Full legislation and regulatory reform requires a long-term in-depth assessment of the technological convergence; Technologies and services are evolving rapidly and leaving a large number of legal and regulatory provisions lagging behind; Regulatory uncertainties must be expeditiously and timely removed, in order for the pertaining industries to continue to grow; Initial step toward a future flexible regulatory framework: to consider technology and platform as neutral so that new developments in services, be they incremental or radical innovations, can be easily accommodated. The Technological Convergence Users Perspective Contents Voice Documents/Data Pictures Broadcasting Telephone/Fax Yes Yes No - Mobile Yes Yes No - Computer ? Yes ? ? Terrestrial Radio/Television Yes ? - Yes Yes Yes Yes Yes Services Cable TV /Broadband Wireless Cable Source: Elaborated from Bill Wigglesworth and Jill Hills. Convergence of Broadcasting and Telecommunications, 1999 (mimeo). Regulations toward Convergence General Aspects: Anatel’s regulatory actions in the light of the technological convergence are mainly concerned with: The support for the creation of a modern, efficient infrastructure of telecommunications in Brazil; The supply for the entire Brazilian telecommunications services at fair prices; population of The re-organization of its own structure and of the telecommunications industry. Regulations toward Convergence Regulation for the Use of Paid Mass Communication Service Networks for the Provision of Value Added Services (VAS) Approved through Anatel’s Resolution nº 190 in 1999. The purpose of this regulation is: To make mass communication service networks (DTH, MMDS, and Cable TV) available for providers of VAS; To allow the network holder to explore VAS only through a separated company established specially for the rendering of VAS; To promote free-market competition features between Access Network Providers; To make it possible the interconnection of Cable TV, MMDS, and DTH Networks to the Internet. Regulations toward Convergence Regulation for Mass Subscribers (SCEMa) Electronic Communication Services for Public Consultation yet to be published; The purpose of this regulation is: To introduce the term “electronic” and adequate the regulatory framework to the current context of the telecommunications sector; To review and consolidate a single regulatory Act for pay-TV services; To license services and radio-frequencies separately; To regulate this service independent of the technology employed in its provision. Regulations toward Convergence SCEMa can be provided over technologies as follows: Coax and Fiber (Cable TV); Terrestrial radio-electric waves (MMDS); Satellite (Direct-to-Home). Systems Characteristics MMDS Characteristics Telecommunication service which uses radio-frequency spectrum (2.5 GHz - 2.686 GHz) to distribute signals (any telecommunication signal) within the licensed area; Return channel in the frequency band of 2.170 to 2.182 GHz (differs from the U.S. and Canada); 6 MHz channels; EIRP Max - 33 dBW considering a 50 Km radius; The signal transmitted shall be coded by the operator; Systems Characteristics MMDS Characteristics Most of the operations are currently analogue, but the digitalisation of this system is taking place and its capacity will increase for the provision of services; MMDS uses a cellular configuration also split into sectors; Average Rate of 144 Kbps from the user to the head-end, using digital modulation. Systems Characteristics MMDS Systems Characteristics Cable TV Characteristics Cable television network is built up as a public and unique network; Telecommunication service, which distributes sound and video programs to subscribers by using cables (Mainly fiber and coax); Approximately 80 video channels (6 MHz); The return channel is available in the cable infrastructure; The modulation techniques most used are Quadrature Phase Shift Keying (QPSK) and Quadrature Amplitude Modulation (QAM); Cable TV operators are currently using the Cable Modem technology to provide interactive services to users. Systems Characteristics Cable TV Systems Characteristics Cable TV Interactivity Internet User equipment Cable TV Network Internet Cable TV Programming Television Until 10 Mbps to the user WWW Server Link Headend 128 Kbps from the user Computer Modem Systems Characteristics Characteristics DTH Telecommunication service which distributes audio and video programs through satellites to subscribers within the licensed area; The operator can use satellite systems either of its own or leased from a satellite operator; The operator must establish a Monitoring Center within the Brazilian territory; The transmission of DTH signal is digital; DTH has approximately 120 video and audio channels. Systems Characteristics DTH Regulations toward Convergence Regulation for the Multimedia Communication Service (SCM) Anatel’s Public Consultation nº 246 (under analysis); Holds capacity for providing multimedia applications, such as data, image, audio & video, text, etc. (a convergent service indeed); Can be provided over any telecommunications network; Public Switched Telephone Service, Broadcasting Service and Pay-TV Service are excluded. Regulations toward Convergence SCM Characteristics Licensed area may be local, regional or national; Can be provided over various radio-frequencies, including 2,5 GHz, 3,5 GHz, 10,5 GHz and 24 - 31GHz, known as Fixed Broadband Wireless Access (FBWA); Point to multi-point, uni and bi-directional. Regulations toward Convergence SCM will support applications such as: High speed Internet access; Data communication; Corporate voice; Audio and video; Teleconference; Tele-medicine; Tele-education; Video-on-Demand; Other. Systems Characteristics SCM can be provided over various technologies, mainly over Local Multipoint Distribution/Communication System (LMD/CS). LMD/CS has the following features: Capacity to provide convergent services; Capacity to provide telecommunication services at high bit rate; Use radio-frequencies around 28 GHz; Cellular architecture; Frequencies reuse; Limited coverage area. Systems Characteristics LMD/CS Systems Characteristics LMD/CS Strengths Potential to provide a ‘full multimedia service network’ package of integrated voice, video and high-speed data services; Rapid deployment of a multimedia network and the lower costs for the installation of related accesses; A point to multi-point network, which offers further advantages such as: faster realisation of revenue, demand-based buildout, a sort of fibre-like quality of service, quick response to market demand and lower network maintenance, management and operating costs. LMD/CS Weaknesses One of the main problems to be faced by operators of this system is rain, foliage and dust attenuation effects causing reduction in the signal level due to its operation at 28 GHz frequency band. Anatel’s Regulatory Action Public Consultation nº 291 On April 17, Anatel published the Public Consultation nº 291 which has the purpose of stimulating and broadening the debate on the choice of the countries’ DTV standard; This Public Consultation has as its Annexes: Annex I - Integrated Technical and Market Report; Annex II - Analysis of Tests (Field/Laboratory) performed in Brazil. Anatel’s Regulatory Action The factors that Anatel is to take into account in the adoption of a Digital TV broadcast Standard: Penetration rate of analogue, off-the-air TV in Brazilian households; Importance of the Brazilian market in the consolidation of the standard selected on a global scale; Business and transition models that meet the needs of the Brazilian population; Identification and analysis of all the factors involved in the introduction of digital technology in terrestrial TV transmissions. Future Actions Introduction Analysis of the impact of the technological convergence on the Brazilian telecommunication market to be carried out by Anatel and Specialized Consultants. Objective Expose about the impact of technological convergence in telecommunications sector, including the radio broadcast and IT sectors. the Review the telecommunications regulatory regime in the country, including the radio broadcast and IT regimes presently in force; Develop a regulatory framework that do not hinder the growth of the telecommunications sector, including the radio broadcast and IT sectors, and that foster, at the same time, technological innovations that can be extended to all associated industries. Future Actions Expected Products An analysis of the current and future setting, the risks and opportunities for the development of the telecommunication sector, including the radio broadcast and IT sectors; A description of the future scenarios for the technological development of these sectors and how these elements can contribute to the various modes of telecommunications (voice, data, video, multimedia, etc. signal transmissions) in urban and rural areas; A regulatory and licensing framework that is capable of promoting the compatible development of communications, the redesign of Anatel’s organizational structure and competencies, and the establishment of an action plan for adjusting to the changes. Conclusion While the process of technological convergence progresses the world over, policy strategies need to be found on the extent to which the pace toward the establishment of multimedia services can be accelerated, whereas we all share the idea of the direction the whole global society is heading; Back to the concept of evolutionary process that telecommunication, broadcasting and computing technologies have embarked on, it can be asserted that the digital environment has set the direction for an ubiquitous provision of convergent services in the very near future. Luiz Fernando Ferreira Silva, Ph.D. Anatel, Brazil lffs@anatel.gov.br (55) (61) 312-2393