7 - GR - CR Trends & Challenges
7 - GR - CR Trends & Challenges
http://ctpr.mmu.edu.my
Current & Future Trends in International Telecommunications
Regulations
TOPICS
Telecommunications today
Future Challenges
1. Telecommunications Today
A typical day in the Exponential growth of
Digital World
telecommunications:
legal, technical,
financial, and
commercial issues:
• acquisition,
management, use, and
disposition of
telecommunications
resources ensuring
quality service
• speed, usefulness,
service availability
• managing risks and
reducing costs.
Prof. Ian Brown, Regulation and the Internet of Things
<http://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/GSR_DiscussionPaper_IoT.pdf>
1.1 Current Trends in Telecommunications
Transnational character of the ICT market – expanding networks and services – anytime ,
anyone, anything, anywhere.
Seamless interoperability of networks and services – voice, video and text, Cloud-based
applications eg. Dropbox, Skype etc. and synchronisation of applications overcome
challenges of real-time access to data across different devices.
The cloud is enabling new innovation across the economy, at all levels for everyone.
The Internet of Things - everything becomes a connected computing device - car, fridge, a
pair of glasses, wrist watch or a digital mirror.
Fixed Line
1. 2 International Frameworks
The extremely global nature of telecommunications has necessitated the formation
of certain global or regional organisations to offer guidance on best regulatory
practices, facilitating a degree of harmonisation in telecommunications
regulations internationally. Members voluntarily commit themselves to legally
binding obligations relating to the telecommunications sector. Egs.
It coordinates :
• The global use of radio spectrum,
• Promotes international cooperation in assigning satellite orbits,
• Works to improve telecommunication infrastructure in the developing world
• and establishes worldwide standards.
licensing,
pricing
Network Standards
Standards/
convergence Org
Recommen
Regulator dations
Converged
Internet ICANN
Services
Self/ Regulation
coregulation
ly
Supp
chain
Commercial
Consumer impact
companies
& response
behaviour
l ic
Pub ion
n
opi
Alan Horne, Fourth-Generation Regulation: A New Model Of Regulation For The Digital Ecosystem. ITU, Trends in
Telecommunications 2014. <https://www.itu.int/dms_pub/itu-d/opb/pref/D-PREF-TTR.15-2014-PDF-E.pdf>
3. Regulatory Challenges
- at retail level the specific network over which services are delivered becomes less
relevant, and the characteristics of the service bundle are more important.
- at the wholesale - greater variety of services provided over different networks. The
bundling of services at the retail level is not necessarily reflected at the wholesale level.
Market and Services Structures in the Convergence Sector
Market definition in the ICT sector can
be difficult. Effective substitutes could
include services other than those
supplied by similar
telecommunications carriers or by non-
carriers eg:
• Does the regulatory framework allow service providers to offer multiple services?
• What are the regulatory policies for these new technologies and services with regard to
numbering, spectrum, universal service, and interconnection?
• Does the country’s legal framework contain the necessary legislation to support an ICT
environment (eg., intellectual property laws, computer crime, electronic transactions,
data privacy and security)?
• How much turn-around time and process is required for the country's legal framework
to respond to future changes in the sector?
3.2 Regulatorory Responses
3 approaches:-
(i) a legislative approach
Creating new laws and / regulations to meet convergence. Could involve a reform of the
entire legal framework for telecommunications or by amendments to existing laws.
Some jurisdictions, such as the EU and Malaysia, undertake a continuous review of their
legislation relating to convergence.
(ii) a regulatory approach
Countries modify existing regulations or institute new regulations to address new
convergence technologies. A faster response time since quicker to introduce regulations
rather than new laws.
Eg. The United States, the Federal Communications Commission
(FCC) introduced regulatory modifications to allow new technologies,
such as power line communications (PLC), also referred to as
broadband over power lines.
Eg. In Australia the Communications Alliance was formed in 2006 from the
merger of the Australian Communications Industry Forum (ACIF) and
the Service Providers Association Inc (SPAN)). The Communications Alliance
implements and manages industry self-regulation in the interests of both
industry and consumers. However there is the risk that existing operators
may inhibit new entrants into the industry. Policy-makers need to manage these risks to
avoid regulating convergence according to certain special interests and against consumers
and the public welfare.
multi-sector regulator
single-sector regulator Accommodate within the existing legal and
regulatory framework by offering multiple
Shift to a single integrated regulatory services over multiple platforms in fully
structure by merging the competitive markets, Only possible where there
telecommunications, broadcasting, are no barriers to market entry or restrictions on
and information technology sectors the type of service offering. However it is a
under a single regulator. Eg. cumbersome process requiring multiple licences
Malaysia, Singapore, and the United and regulatory oversight by different institutions.
Kingdom, Republic of Korea Alternatively establish cross-sectional regulators
with non sector or equipment specific regulations.
The US pioneered this model merging
technology-specific regulators across
converged regulator telecommunications, media, and broadcasting
services
Shift towards an equal or technology-neutral
regulatory treatment of different ICTs. Eg. European
Union (EU), India, and Kenya1 introduced, legal
frameworks and regulations to regulate aspects of no specific regulatory authority per se
convergence through a flexible and a technology
neutral approach. Some countries integrate but rather a general competition authority
infrastructure regulation and content regulation eg.
with responsibility for overseeing the
telecommunications sector.
the UK, Malaysia, Singapore and India.
The Internet of Things (IoT) refers to an infrastructure where billions of sensors are
embedded in common, everyday devices – “things” which link to other objects or individuals
– designed to record, process, store and transfer data and, as they are associated with
unique identifiers, interact with other devices or systems using networking capabilities.
http://www.itu.int/en/ITUConferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/GSR_DiscussionPaper_IoT.pdf
3.3 The Evolving Role of Regulators
Universal Service
Net Neutrality
spectrum management
Self-Regulation and Netiquette
standards
Regulation of digital content
Green ICT – carbon dioxide
competition, emissions, cyber waste
ii. Ensure that the principles of fair, equal and non-discriminatory treatment of all market
players continue to prevail, fostering a level playing field among regulated and
unregulated players;
iii. Apply administratively simplified and flexible models to facilitate market entry and
stimulate competition and innovation;
vi. Include competitive provisions that guarantee a healthy relationship between all
authorized players in the relevant market (operators, Internet providers, OTT providers,
etc.);
vii. Empower consumers to make informed decisions through the development of online
tools to check download speeds, quality-of-service and prices for access and data plans;
viii. Implement measures to monitor the use of traffic management techniques to ensure
that they do not unfairly discriminate between market players;
ix. Encourage network and facility sharing through “soft” measures such as cross-sector
infrastructure mapping that enables the coordination of civil works.
x. Ensure the highest level of transparency and openness, such as by making relevant
market data and regulations publicly available;
xiii. Work with other interested stakeholders to reduce or remove practical barriers to
broadband infrastructure deployment.
4th. Generation & IOT: EU studies recommend a licence-exempt model to support IoT.
Avoids contractual negotiations before devices are manufactured and used. Competition
regulators will need to monitor any abuse of market dominance and foster a competitive
and innovative market
ISSUES
OTT services: Licensed telecommunication service operators demand OTT
services, eg. Skype, be licensed.
• OTT services currently fall outside of the regulatory service definitions
because they are not directly provided to customers but accessed over a
network that is already licensed.
• OTTs are not using any scarce resources such as numbering, spectrum or
access to land.
• Customers pay the licensed service provider for Internet connectivity, and
the OTT providers also pay to be connected to licensed operators
• OTT service providers are providing services that consumers want to buy.
• Network operators benefit through increased demand and traffic but have
no control, no rights, no responsibilities and no claim on the OTT provider.
Question
• Should an OTT like the Uber ap website be blocked?
• Is it the same as blocking online gambling sites?
• Should OTTs like Uber be licensed?
• Is the law being used in an anti-competitive manner to
sustain existing business as against online businesses?
• Will the public interest be served?
Over-The-Top (OTT) Services
(i) Broadcasting - Video / audio content refers to delivery of audio, video, and other media over
the Internet without the involvement of a multiple-system operator in the control or distribution of the
content.
• The Internet provider may be aware of the contents of the Internet Protocol packets but is not
responsible for, nor able to control, the viewing abilities, copyrights, and/or other redistribution of
the content.
• It is unlike the purchasing or rental of video or audio content from an Internet service provider
(ISP), such as pay television video on demand or an IPTV video service, like AT&T U-Verse.
• OTT refers to content that arrives from a third party – eg. Hulu, Netflix, Popcorn Time – and is
delivered to an end-user device.
• The ISP merely transports the IP packets from source to destination.
• taken away traditional (mobile) phone operator business by using open internet communication to
replace and enhance existing operator controlled services.
• Consumers can access OTT content through internet-connected devices such as desktop and laptop
computers, smart phones, tablets, gaming consoles etc.
(iii) Application eco-systems (mainly non-real time), linked to social networks, e-
commerce,eg. Ola, Uber, e-payments, e-banking, entertainment apps, mobile location, based
services and digital advertising, Cloud Servises eg. Google, Dropbox etc.
Security concerns - legally approved Security concerns - no such provision exists for
surveillance of a telecom network. OTTs – offensive content.
Threat to privacy – trace user’s location – lawful Threat to privacy – Most applications can trace
use. the user’s location . Confidential information is
lost or intercepted – crowd sourcing of
information.
3.3.2 Search for new Spectrum
- ‘licensed shared access’ (LSA) - Cellular network operators in Europe and the USA are
developing a framework that gives operators priority access. This involves management
and co-ordination eg. Similar to white space databases. This would provide quality
service, regulatory stability and incentives for investment.
3.3.3. Privacy and Data protection across Borders and in the cloud
3 main areas for consumer protection
Risk
• intruders can break into IoT systems and networks to access sensitive personal information
about users, and using vulnerable devices to attack local networks and other devices.
EU studies recommend:
• IoT companies follow a security and privacy “by design” approach, building security and
privacy functionality into the device from the outset of the development process.
• Companies developing and operating IoT systems need to conduct security testing, and
consider how security vulnerabilities discovered after devices are sold can be fixed during
their likely lifetime.
• data minimisation in consumer IoT devices - limiting the amount of personal data collected
or retained, to reduce the risk of data breaches and/or use of the data for other than the
intended purpose(s).
.
• Austria – limited
Generally, defined as treating all IP traffic equally, regardless of the type of content,
service, application or device (BEREC) i.e. independent of
(i) content,
(ii) application,
(iii) service,
(iv) device,
(v) sender address, and
(vi) receiver address. Sender and receiver address implies that the treatment is independent
of end user and content/application/service provider.
Defn: Traffic management: collection of techniques that an ISP may use, involving the
delay of certain types of IP packets and the prioritization of others, which enables the ISP
to allocate available network resources and attain or guarantee optimum performance for
diverse classes of users across the network.
Objectives:
Traffic management necessary to ensure:
(i) Quality of service in the converged environment – realtime services - such as
streaming video, video conferencing and chatting, Internet telephony and online
gaming but can also be abused by the ISP
(ii) Necessary to: improve transparency and reduce switching costs for consumers; and,
potentially, to introduce powers to restrict specific behavior, such as traffic blocking
and unreasonable discrimination. Provide network security
• What if your house knew when you'd left home for the weekend and could turn off all
power to non essential devices you've identified?
• What if this was fed back to the electricity company so they could make smart
decisions about routing power to consumers, allowing them to optimise production,?
• What if the electricity companies then fed back into a national grid that could make
smarter decisions nationally, requiring less power stations to be built and constantly
producing power in the first place.
Gartner Estimates ICT Industry Accounts for 2 Percent of Global CO2 Emissions <http://www.gartner.com/newsroom/id/503867>
Green ICT . Org.uk <http://greenict.org.uk/intro>
REFERENCES
Ajay Jakhar, Wearable Technology, The Future of Privacy? http
://www.slideshare.net/ajay_jakhar/wearable-technology-the-future-of-privacy?qid=b46f26a7-ce1a-40f7-b1ba-ae699e74ecd7&v=default&b=
&from_search=1
Alan Horne, Fourth-Generation Regulation: A New Model Of Regulation For The Digital Ecosystem. ITU, Trends in Telecommunications
2014. <https://www.itu.int/dms_pub/itu-d/opb/pref/D-PREF-TTR.15-2014-PDF-E.pdf>
Article 29 Data Protection Working Party, Opinion 8/2014 on the on Recent Developments on the Internet of Things http://
ec.europa.eu/justice/data-protection/article-29/documentation/opinion-recommendation/files/2014/wp223_en.pdf
Gartner Estimates ICT Industry Accounts for 2 Percent of Global CO2 Emissions <http://www.gartner.com/newsroom/id/503867>
Green ICT . Org.uk http://greenict.org.uk/intro
Ian Brown GSR discussion paper Regulation and the Internet of Things
<http://www.itu.int/en/ITUConferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/GSR_DiscussionPaper_IoT.pdf
Iot Governance, Privacy And Security Issues European Research Cluster On The Internet Of Things (Jan. 2015)
http://www.internet-of-things-research.eu/pdf/IERC_Position_Paper_IoT_Governance_Privacy_Security_Final.pdf
Colin Blackman and Lara Srivastava, Editors, Telecommunications Regulation Handbook ,Tenth Anniversary Edition
<https://openknowledge.worldbank.org/bitstream/handle/10986/13277/74543.pdf?sequence=1>
The Guardian 1 Nov. 2013 < http://www.theguardian.com/world/interactive/2013/nov/01/snowden-nsa-files-surveillance-revelations-
decoded#section/1