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Policy and Regulation in an Era of Convergence

Policy and Regulation in an Era of Convergence. Terms of Reference. We have been invited by the Select Committee on Labour and Public Enterprise to provide an objective overview on Convergence and Convergence experiences internationally. Delegation. Benito Lekalakala Executive

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Policy and Regulation in an Era of Convergence

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  1. Policy and Regulation in an Era of Convergence

  2. Terms of Reference We have been invited by the Select Committee on Labour and Public Enterprise to provide an objective overview on Convergence and Convergence experiences internationally Policy & Regulation in the Era of Convergence

  3. Delegation • Benito Lekalakala Executive • Nozicelo Ngcobo Senior Manager (Parliament) • Keso Mbali Senior Specialist (Convergence) • Kenny Pasensie Specialist • Leanda Kleinbooi Specialist Policy & Regulation in the Era of Convergence

  4. Definitions of Convergence Types of Convergence Drivers of Convergence Key principles on Convergence Pre and post Convergence Mapping Convergence in Malaysia Key policy considerations w.r.t. Convergence Convergence and Social Obligations Discussion Points Policy & Regulation in the Era of Convergence

  5. What is Convergence? • There is no universal definition of Convergence. • Convergence can mean:- • “Provision of various communication services like text, data, image and video over the existing infrastructure” • “Development of new infrastructure for handling multimedia transmission” • “Managing of technologically and commercially distinct markets such as Broadcasting, Publishing, Cable TV, Fixed Voice, Cellular Mobile Services and Internet Services Most countries had adopted definitions closely aligned to the achievement of national objectives through use of ICT Policy & Regulation in the Era of Convergence

  6. Types of Convergence • Convergence of Technologies : • A common platform to deliver Voice, Data and Video services • Convergence of Services: • Delivery of multiple services to the end users over the same medium/ network • Regulatory Convergence: • Establishing a single Regulatory Authority by blurring the regulatory boundaries for telecommunication, information technology and broadcasting Policy & Regulation in the Era of Convergence

  7. Drivers of Convergence • Technology • Markets • Customers • Regulation Policy & Regulation in the Era of Convergence

  8. Drivers of Convergence…1 • Technology • Digitisation of transmission and switching networks • Global networks based on packet switching and open standards (IP) • Increase in Processing power of Computers • Market • New markets and services such as Multimedia services,Video on demand, Interactive TV, Internet Telephony, MNet, etc. • Integration of content service providers with access providers e.g. SABC’s NewsBreak • Emergence of new Market players based on potential of ICT e.g. 35050 services Policy & Regulation in the Era of Convergence

  9. Drivers of Convergence…2 • Customers • Cheaper access to communication • Option for new value added services in a modular fashion • Single Information Socket (for phone, data, video) • Regulation • Reduction in cost of regulation by optimum utilisation of regulatory resources e.g. merger of SATRA and IBA • Ease of Regulation and Interconnection Policy & Regulation in the Era of Convergence

  10. Convergence Mapping: Pre-Convergence BROADCASTING (Broadcasting Act, IBA Act, ICASA Act, Sentech Act) Broadcasters Broadcast Content Signal Distribution (Sentech, Orbicom, etc.) TV & Radio Sets End Users ENHANCED DATA SERVICES (Telecommunications Act, ECT Act , ICASA Act) VANS, ISP, etc. Information Services Telecommunication Networks (Telkom, SNO, Sentech, USALs) Computers & Data Terminals End Users VOICE/DATA CONVEYANCE SERVICES (Telecommunications Act, ICASA Act) Fixed Networks (Telkom, SNO, USALs) Voice/Data Terminals End Users End Users Voice Data Mobile Networks (MCOs, USALs) Policy & Regulation in the Era of Convergence

  11. Convergence Mapping: Post Convergence ORIGINATION TRANSPORT DESTINATION C0MMUNICATION SERVICES (Convergence Bill) SERVICE PROVIDERS (Broadcasters VANS, ISP, etc.) APPLICATION SERVICES (Content Services) (Information Services) NETWORK SERVICES CUSTOMER PREMISES EQUIPMENT END USERS END USERS END USERS VOICE DATA Policy & Regulation in the Era of Convergence

  12. Types of Licenses • Individual licenses • Radio Frequency Spectrum licences • Communications network services • Broadcasting services • Other services (as may be prescribed) • Class licenses • Communications services • Application services • Other services (as may be prescribed) • Licence exemptions Policy & Regulation in the Era of Convergence

  13. Convergence in Malaysia • Malaysia considered a good case study in understanding and implementing Convergence • Malaysia follows a dual licensing regime • Malaysia has experienced some market failure from which SA can draw lessons: • 138 individual licensees; 123 class licensees * • Majority of licensees are unprofitable • Investment in the sector is low • * Source: Impact Survey 2004 conducted by NRA Malaysia Policy & Regulation in the Era of Convergence

  14. Key Principles on Convergence • Clear Regulatory Environment • Effective & Independent Regulator • Self-regulation & Co-regulation • Technology-neutral • Fair & Balanced outcomes • Consultative & Public process Policy & Regulation in the Era of Convergence

  15. Licensing in an era of Convergence • Rethinking the basic tenets of telecommunications regulation, licensing and spectrum management • Convergence is raising a dizzying array of regulatory and legislative issues that policy-makers and regulators will have to address: • How can they move to a converged licensing framework without unduly benefiting either incumbents or new market entrants? • How can the licensing regime attain societal objectives such as universal service? Policy & Regulation in the Era of Convergence

  16. Key regulatory considerations to narrow the digital divide • The link between convergence and competition has a direct impact on the movement of the digital divide • While infrastructure roll-out is key, it is not the only way to narrow the digital divide: • Content, via that infrastructure, must be accessible and relevant to those at the ‘bottom’ of the digital divide • Access, interconnection and interoperability: • Thereby supporting a consistent horizontal approach to regulation and licensing • Licence conditions: • Efficacy of USO schemes to determine whether they are assisting those who cannot to pay for ICT services Policy & Regulation in the Era of Convergence

  17. Convergence and Social Obligations • “You play, you pay” • From a societal perspective, what does a license mean in terms of improving quality of life • ICT represents an opportunity for economic development and poverty alleviation • How can convergence benefit a normal man on the street? • “Unrealistic” comparisons to countries such as S.Korea should be reconsidered • SA needs a South African approach to convergence Policy & Regulation in the Era of Convergence

  18. Concluding remarks • South Africa needs a South African approach to Convergence • Prioritisation of regulatory challenges for optimum utilisation of regulatory resources • Drawing the roadmap for implementation of convergence • Need for efficient and timely dispute resolution mechanisms for converged licensing regime • Capacity and expertise building in the regulatory bodies to meet the challenges of convergence Policy & Regulation in the Era of Convergence

  19. Thank you 2nd Floor SBG Building 1 Mostert Street Cape Town 012 469 9600 office

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