ACCC Regulation Conference 2004 Evaluating the effectiveness of - PowerPoint PPT Presentation

Rosemary Sinclair ACCC Regulation Conference 2004 ACCC Regulation Conference 2004 Evaluating the effectiveness of regulation 29-30 July 2004 Telecommunications: Competition Regulation and Communication via the Internet www.atug.com.au

Our Aims • Real and effective competition Rosemary Sinclair ACCC Regulation Conference 2004 • Genuine choice for users • Lower prices • Higher quality • More innovative services • Constructive co-operation with – International bodies www.atug.com.au – Governments – Regulators

A changing world It is not easy to adjust to these changes Rosemary Sinclair ACCC Regulation Conference 2004 • Privatisation • liberalisation • regulation • competition • new technologies www.atug.com.au • new business models

Changing Importance of Sectors Share of GDP by broad sector Primary Rosemary Sinclair ACCC Regulation Conference 2004 100% Secondary 90% 80% Tertiary 70% 60% Quaternary 50% (Information-based) 40% Quinary 30% (H’hold services based) www.atug.com.au 20% O/Ship of Dwellings 10% et al 0% 1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 IBIS World: 23/04/02

After the bubble E-Commerce and the Internet are still growing Rosemary Sinclair ACCC Regulation Conference 2004 Nasdaq Telecom. Index 3000 Nasdaq Computers Index 120000 Number of Secure Servers in the United States 2500 100000 2000 80000 1500 60000 1000 40000 www.atug.com.au 500 20000 0 0 1 1 9 9 9 9 0 0 0 0 1 1 2 9 9 0 0 1 1 0 9 9 9 9 0 0 0 0 0 0 0 0 9 9 0 0 0 0 0 - - - - - - - - - - 0 - - - - - - - b n t c b n t c b n 2 b r g r g r g 2 c c p p p e u e e u e e u e u u u O O c A D A D A t F J F J F J F A A A c e O D

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au Next Generation Network

Converged Architecture Carrier Integration I-invoice & EBPP IP Telephony & Security Business Continuity and Conferencing Hosted Services Desk top solutions 2.5 & 3G Services Contact centre, NLSR Web Services & XML integration & CRM Identity Management Powering of IP Terminals Security Biometrics Wireless LAN Application Integration CRM & Knowledgebroker Interoperability & Standards Servers, SAN & HPC Unified Messaging Building Management Data Products ECP & IP Telephony Foyer Directory Converters & Gateways Applications Management Converged Infrastructure And NOC Reception & PC Based Implementation Issues Console Integration Video Security Professional Services

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au Yahoo BB

Examples of Commercial offers: • www.skype.com Rosemary Sinclair ACCC Regulation Conference 2004 • www.stanaphone.com • www.freenet.de/freenetiphone • www.vonage.com www.atug.com.au

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au Peer to Peer

Issues • Appliances – safety Rosemary Sinclair ACCC Regulation Conference 2004 • Applications – content standards, service features, security:spam, fraud, data protection • Access – availability, affordability, numbering/addressing, market power, speed. www.atug.com.au • Any to Any connectivity – QoS, cost based inter-connection, USO, 000, LLU, IXPs

What is the biggest obstacles to the widespread take-up of VoIP • Consumer Awareness 21.14 % (470) Rosemary Sinclair ACCC Regulation Conference 2004 • Broadband Availability 13.41 % (298) • Large Telcos 12.06 % (268) • Government Regulation 12.28 % (273) • Voice Quality 18.71 % (416) • E911 Issues 7.65 % (170) • Interoperability Problems 11.61 % (258) • Other 3.15 % (70) www.atug.com.au Total Votes: 2223 www.pulver.com

Australia’s Regulatory Regime Rosemary Sinclair ACCC Regulation Conference 2004 ACCC • XIC - Access Regime • XIB - Anti-competitive conduct MINISTER • USO www.atug.com.au • Price Controls • Regional telecommunications

Australia’s Regulatory Regime Rosemary Sinclair ACCC Regulation Conference 2004 ACA • Consumer toolkits • Number portability • Number Plan • Customer Service Guarantee www.atug.com.au • National Reliability Framework • ACIF Code Compliance

Self Regulation ACIF Rosemary Sinclair ACCC Regulation Conference 2004 16 Registered codes 11 companies are code signatories 7 revised technical standards Issues Timeframes ISPs www.atug.com.au Industry based enforcement Consumer awareness

Decision making - MODELS As taught by Professor Bill Birkett, JCU Rosemary Sinclair ACCC Regulation Conference 2004 • Rational – TSLRIC • Satisificing – Benchmarks • Standard Operating Procedures – Accounting Separation • Political – USO, NRF, CSG • Incremental – mobile termination www.atug.com.au • Garbage Can – Internet?

5 Years On Rosemary Sinclair ACCC Regulation Conference 2004 ATUG Assessment from Corporate Users on the current state of play in the telecommunications market www.atug.com.au

ACA Telecommunications Performance Report 2002-03 Rosemary Sinclair ACCC Regulation Conference 2004 Estimated incremental benefits in 2002-03 attributable to 1997 changes, $AUD Benefit type Value/growth Benefits per household $759 Total household benefits $5.7 Billion Growth in economic output More than $12 billion (1.61 per cent of GDP) Benefits to small business About $1.8 billion (1.67 per cent growth) www.atug.com.au

ACCC - Price Index services for all consumers Index for telecommunications services Rosemary Sinclair ACCC Regulation Conference 2004 1997-98 to 2002-03 www.atug.com.au

ACCC - Price Index services for all consumers Year-on-year percentage changes in the Rosemary Sinclair ACCC Regulation index for telecommunications services, Conference 2004 1997-98 to 2002-03 www.atug.com.au

User goals keeping moving Rosemary Sinclair ACCC Regulation Conference 2004 The crucial next step in 'future proofing' is to ensure that all Australians have access to affordable broadband services. www.atug.com.au

What is the best practice regulation for emerging markets? Rosemary Sinclair ACCC Regulation Conference 2004 Full weight vs Forbearance www.atug.com.au

Will markets deliver competition? Rosemary Sinclair ACCC Regulation Conference 2004 Will dominance in an existing market distort competition in an emerging market? www.atug.com.au

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au 10 12 Line share of new entrants in % 0 2 4 6 8 Australia Canada 2000 Japan Access Korea Mexico New Zealand United States 2001 1997

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au 1000 1500 2000 2500 3000 Telephone charges USD PPP August 2002 500 Business composite basket - domestic, international, F2M 0 Australia Canada Japan Korea Prices Mexico New Zealand United States OECD

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au 10 20 30 40 50 60 70 80 0 Australia Canada Mobile market share % Japan Korea Mexico New Zealand United States 4 3 2 1

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au 1000 1200 1400 1600 200 400 600 800 0 Mobile charges, USD PPP August 2002 Australia Canada Prices – Higher User Japan Korea Mexico New Zealand United States

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au 10 12 14 16 18 20 0 2 4 6 8 Broadband per 100 inhabitants, June 2002 Australia Canada Japan Korea Access Mexico New Zealand United States OECD

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au Access prices

What is the Regulator’s Role? Rosemary Sinclair ACCC Regulation Conference 2004 A level or Even playing field? The need for Speed www.atug.com.au

New Services are Born Global • Global Service Providers and Rosemary Sinclair ACCC Regulation Conference 2004 Users • National Regulators • Is SPAM providing a new model of co-coordinated regulation? www.atug.com.au • WTO • ITU

Examples of policy discussions http://www.intug.net/views/ip_telephony_discussion.html Rosemary Sinclair ACCC Regulation Conference 2004 http://www.acif.org.au/current_activities/ industry_facilitation/NGN/ngn_fog http://www.accc.gov.au/content/index.phtml/ itemId/517683 at page 29, 5.4 New and Emerging Technologies www.atug.com.au

Rosemary Sinclair ACCC Regulation Conference 2004 www.atug.com.au Thank you