International Insights – February 2010
An Update on Global Communications Issues
Communications is critical to disaster recovery in Haiti
As the desperate situation in Haiti became clear after the earthquake, one key priority in restoring some degree of order amongst the chaos was restoration of telecommunications. One remarkable personal story reported by AFP is a good example of the importance of telecommunications and wireless applications.
A man, trapped in the ruins of his hotel, with severe cranial hemorrhaging and a fractured leg used a medical application on his iPhone to obtain advice on how to deal with his injuries and state of shock. He used the phone’s more traditional functionality, its alarm, to stop him falling asleep or into a coma. He was rescued 66 hours after his ordeal began.
Voila provides mobile service to more than one million customers in Haiti and was one of the first operators to restore service. Within two days of the earthquake both its switches were operational and around 70 per cent of its sites were on the air.
In addition to the work done by local operators, several overseas mobile operators and equipment manufacturers assisted the relief effort by donating portable mobile phone towers, wireless terminals, handsets, mobile phone solar chargers, mobile cells and generators.
The ITU led the global effort to help rebuild infrastructure. ITU and Collabria are working to provide a secure, interoperable software platform for emergency communications, which enables personnel to collaborate across wired and wireless private networks and the Internet, using one application for all desktops, laptops, mobile phones and IP-based devices.
ICT investment continues to be seen as a crucial enabler to economic recovery
As the economic crisis deepens in many countries, with tight controls over borrowing and investment plans under threat in many areas, the ICT industry and telecommunications in particular remain high on many government agendas as one area where investment will generate positive economic impact.
Despite huge government debts, which are increasing further with falling tax revenues, there are still strong commitments politically to investing in ever faster broadband infrastructure. With the arrival of smart computing grids, clouds and software as a service solutions, demand for super fast broadband access is growing.
Some believe 2010 will be a crunch year for smart grids. By the middle of the year the outlines of Australia’s first smart grid project should become visible, and over the next three years important lessons will be learned for a national roll out. This is just one example of the “joined-up” government ICT planning, which INTUG and others have been advocating.
There will be pressure on governments to align energy and environmental policies, electricity regulations and ICT strategies. Government procurement policies can give a lead, but this requires a competitive market for communications access circuits.
New devices and applications put strain on broadband capacity
The progressive announcements of ever more bandwidth hungry handheld devices and networked applications by Google, Apple, Microsoft and others continue to put stress on the current offerings of broadband by operators around the world, as they struggle to keep up with demand, whilst preserving some acceptable level of service quality and reliability.
This is of particular concern to business users, who share the same infrastructure in much of the backhaul and core network, and in some cases in the access infrastructure as well.
Business applications compete with video uploads and downloads, streaming web sites, podcasts and the plethora of social networking applications, which seem as indispensable in the work place as at home and on the move for the mass market consumer.
Revenue per user is a concern for operators seeking to convince investors that new infrastructure will produce good returns. But there seems to be insatiable demand for more capacity.
Interoperability is the common priority for all ICT sectors
The key to generating use which creates value, and which thus drives profitable provision of service by operators, is the removal of barriers to implementation usage by opening up reach to the maximum number of potential participants. This is true of consumer-oriented applications, but is even more important for connecting end-to-end supply chains globally.
The market for goods and services is now international, and SMEs as well as MNCs depend on being able to extend their scale and scope by seamless communications.
Interoperability between applications, management systems, and within the information which the applications generate, access and distribute, is also vital. The best method for achieving interoperability is a combination two vital components.
The first is having an effective sector regulatory regime internationally which enables and sustains competition. The second is the adoption of global standards in all parts of the ICT industry to avoid silos, lock-ins, walled gardens, proprietary islands or restrictive practices by providers.
India shows that lower prices for mobile generate growth, Vietnam rockets
INTUG member Paul Budde reports that India finished 2007 with 233 million mobile users, according to the telecom regulator’s figures, which cover GSM, CDMA and WLL. By the end of 2008, there were 330 million mobile users and the growth continued into 2009, when by August there were half a billion, with growth running at more than 50 per cent.
India’s mobile operators have been attracting new customers with call rates as low as USD0.01 a minute and by offering cheap handsets. The market has some of the lowest mobile tariffs in the world, but also the highest average use per customer at 500 minutes per month.
After a slow start, Vietnam’s mobile market has also been growing fast – at an annual rate of 50-100 per cent per year. This pattern continued through 2009, with growth running at more than 70 per cent mid-year – helped by a highly competitive market, which became more so when 7th operator VimpelCom-backed GTEL-Mobile arrived. Penetration was already 100 per cent.
Europe: Commissioners appointed, BEREC officially established to supersede ERG
Ms. Neelie Kroes was duly appointed as the Digital Agenda Commissioner, following the formal “interview” process by Members of the European Parliament. Concern was raised by an apparent statement she made saying that her aim was to eliminate sector-specific ex-ante regulation during her 5 year term.
INTUG has already met with members of her cabinet to stress the need for continued regulatory effectiveness to enable competition in the international business market, which is at best stalling, and is in some situations in reverse, with ex-monopoly incumbents increasing still dominant market shares. INTUG has requested a meeting with Commissioner Kroes to present business users’ concerns.
After the due processes had been completed, the old European Regulators Group (ERG) held an extraordinary meeting on 28 January to allow BEREC to begin its work. Decisions included:
- Approval of the BEREC rules of procedure (voting by two thirds majority, one vote per Member State);
- Election of the 2010 Chair (John Doherty from COMREG, Ireland) and 2011 Chair (Chris Fonteijn from OPTA, Netherlands) who will also be a Vice Chair in 2010, alongside Matthias Kurth (BNetzA, Germany) and Reinaldo Illera (CMT, Spain). The Vice Chair roles are largely for representational purposes given the demand on the Chair to attend and speak at events; the three Vice Chairs will operate as a non-executive “troika’;
- Adoption of the 2010 work programme based on the ERG Work Programme;
- Agreement of the permanent BEREC Administration Manager recruitment process;
- Agreement of the BEREC 2010 Budget at EUR3.67m; and discussion of the location of the BEREC office, which is likely to be in Brussels, as most convenient for communications.
The new Spanish Presidency produced a draft Digital Agenda report for the Industry Research and Energy Committee (ITRE) in mid-January. Amongst 25 recommendations, were:
- “ubiquitous and high speed access to fixed and mobile Internet for all citizens and consumers”;
- “access to broadband Internet at a competitive price for all EU households by 2013”;
- “75% of mobile subscribers on at least 3G by 2015”;
- “50% of EU households on high speed networks by 2015”;
- “transposition of the new Framework before the formal deadline of May 2011, especially for NGA and spectrum”;
- “reduced ex-ante sector specific rules” (endorsing the statement by Commissioner Kroes and presumably a political objective);
- “net neutrality where citizens have the right to access and distribute information or run applications and services of their choice” (see above comments re interoperability needed to make this possible);
- “a long term solution to roaming” (welcome acknowledgement that it is still a problem);
- “removal of obstacles to cross-border online transactions by 2015” (reinforcement of the need for international interoperability);
- “updating of Data Protection and linked Directives”;
- “doubling the EU ICT Research budget for collaborative innovation”.
INTUG is in communication with Rapporteur Pilar del Castillo on this important work.
INTUG Report – International Mobile Services Position Paper completed
This position paper analyzes shortcomings of the international market for business users of mobile services and makes specific recommendations for action by service providers, regulators and by multinational companies themselves, and is now being distributed.
Cloud Computing Position Paper in final drafting
This position paper addresses the broader ICT issues involved with the various flavors of off-site computing including managed services, software as a service (SaaS) and service oriented architectures (SOA), all using Unified Collaboration and Communications (UCC). It produces a check list of best practice actions for any enterprises planning for clouds.
Regulatory Best Practice Position Paper
INTUG is planning a position paper for national associations to use in discussions with NRAs, not just in Europe, although it will cover the key elements for transposition of the new EU Telecommunications Framework. The aim is to facilitate sharing of best practice and to encourage international competition via more consistent sector ex-ante regulation.
INTUG attends public hearing on Business Services market
Having finally convinced the ERG of the distinctly different needs of business users, they published the results of the survey of users and suppliers in January. INTUG attended a public hearing in Brussels the day after the formal launch of BEREC, where the findings were discussed with interested parties, including ETNO who were critical of the initiative.
INTUG is pleased to report that, despite the survey being limited in generating conclusive results, BEREC has agreed to include follow up work on analysis of the business services market during 2010. INTUG is submitting a formal comment on the 2010 programme.
INTUG plans next meeting in Madrid
The first meeting of 2010 is being arranged for 12-13 May in Madrid, Spain, hosted by AUTELSI, INTUG’s Spanish member. This is highly appropriate as Spain holds the EU Presidency for the first half of 2010. The draft agenda includes presentations from the Spanish Presidency, the Spanish Ministry, the Spanish regulator CMT, Telefonica, Colt and Microsoft, as well as contributions from INTUG and AUTELSI .
The second INTUG meeting will also be in Europe, towards the end of November or early in December 2010.
INTUG has a busy representational Calendar for 2010
Representatives from INTUG will participate in international fora during 2010. It is hoped to include APECTEL in Chinese Taipei in May, in Brunei in August and Japan in October, ICANN in Brussels in June, IGF in Lithuania in September, OECD CISP in Paris in June and December, ECTA in Brussels in June and December, and CITEL In Mexico in March, as well as other ad hoc events including public hearings on EU Regulatory matters.
This newsletter was coordinated by Nick White, Executive Vice President, INTUG
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