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Voice over IP The EU Regulatory Perspective 17 May 2005 - Reykjavik

Voice over IP The EU Regulatory Perspective 17 May 2005 - Reykjavik. Alain Van Gaever DG Information Society & Media European Commission. Challenges 3. For Industry For Consumers For Regulators.

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Voice over IP The EU Regulatory Perspective 17 May 2005 - Reykjavik

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  1. Voice over IPThe EU Regulatory Perspective 17 May 2005 - Reykjavik Alain Van Gaever DG Information Society & Media European Commission

  2. Challenges3 • For Industry • For Consumers • For Regulators “It's probably the most significant paradigm shift in the entire history of modern communications, since the invention of the telephone.” (former FCC Chairman Powell) “ There are two risks for consumers, one of confusion and the other that the choice is lost to a simple bundle tied up with broadband Internet access from the incumbent operators ” (INTUG in response to EC Consultation on VoIP)

  3. Promote Competition Foster innovation Offer more choice, quality,... Liberalisation of market Simplify Market Entry Promote interest of citizens Protection of Citizens Universal Service Consumer Protection Privacy Dispute Resolution Challenges3 for Regulators Objectives of the EU Regulatory Framework • Promote Single European Market • + Technology Neutral Regulations

  4. Q : Does VoIP need to be regulated ? A : It depends … IP Space Planet PSTN

  5. Does VoIP need to be regulated ? • Some issues with Voice over IP • VoIP cannot deliver exactly the same services as traditional PSTN • e.g. Emergency Service access & routing (nomadic) • Regulations perfectly sensible for PSTN, sometimes an issue for VoIP • e.g. in-line powering • ------------------------------------------------------------------------------------- • Consumer expectations aligned to traditional PSTN type services • e.g. in-line powering, access to emergency services • Ensuring level playing field (competition)

  6. Direction of Regulation “ Light Regulatory Touch” “I intend to strongly promote an open, pro-competitive approach to Voice over IP in all 25 Member States of the European Union” “I am convinced that, as the market develops, the European Commission and national regulators will jointly ensure that throughout the EU, the roll-out of new IP-based services will not be hindered by regulatory hurdles.” Vivianne Reding, EU Commissioner for Information Society & Media

  7. Overview • Regulation of VoIP in EU • Types of Regulation • Rights & Obligations • Telecom Markets & VoIP • What has been done & What is on the horizon

  8. Types of Regulation • 3 Broad Regulatory Issues: • Application of the EU Regulatory Framework to VoIP • VoIP Consultation Document issued 14th of June 2004 • Regulatory safeguards needed to ensure fair competition; • European Regulators’ Group ongoing work on Remedies; • The impact of VoIP based services on the definition of relevant markets. • Revision of Commission’s recommendation on relevant markets (end 2005). Also : Naked DSL Data Retention Mobile Termination Universal Service Review …

  9. Publicly Available IP Telephony  PATS  ECS What type of VoIP is regulated in the EU ? • EU Framework applies, conditions depend on precise service offered • Self Provisioned • Corporate/Internal Use • EU Framework does not apply if no • provision of a “service” • EU Framework applies, but • no specific conditions PATS : Publicly Available Telephone Service ECS : Electronic Communication Service

  10. PATS vs. ECS • PATS / ECS distinction • relates to rights and obligations • relevant to market entry • Note : PATS/ECS definition differs in EU 25 ECS : Electronic Communication Service PATS : Publicly Available Telephone Service

  11. Obligations : PATS vs. ECS Directory * For complete and accurate list of obligations see Directives. Publication of price & tariffs Integrity & Availability Number Portability Emergency Services Security & Privacy Security & Privacy Conditions ~ use of numbers Conditions ~ use of numbers Directory entry information & access Directory entry information & access Quality of Service - publishing Quality of Service - publishing Contracts to Consumers Contracts to Consumers Universal Service Financing Universal Service Financing Notification of NRA Notification of NRA PATS ECS

  12. Rights & Obligations • Numbering • Number Portability • Interconnection • Access to emergency services

  13. Numbering Numbering ranges available for VoIP suppliers ? • All providers of VoIP that are classified as ECS or PATS have a right to numbers (Geographic and non-Geographic) • Procedures must be open, transparent and non-discriminatory

  14. Number Portability Can VoIP suppliers benefit from number portability ? • In almost all EU countries the right to numbers is linked with the right (& obligation) to number portability* * : In some countries, the right to porting in numbers from another provider, is limited to PATS.

  15. Interconnection Applicable rules to VoIP interconnection • All public network operators have a right and a duty to negotiate interconnection • Interconnection with PSTN operators with SMP (significant market power) is regulated * • IP- IP interconnection is commercially negotiated * : Should a standard VoIP interconnection protocol (e.g. SIP) be imposed ?

  16. Access to Emergency services • Not able to handle emergency calls ?  No classification as PATS possible  Has impact on ability to port-in numbers in some countries • Clear description required of services offered, in contracts & marketing materials In some countries it is required to have access to emergency services, as soon as a VoIP service gives access to the PSTN Note :

  17. Overview • Regulation of VoIP in EU • Types of Regulation • Rights & Obligations • Telecom Markets & VoIP • What has been done & What is on the horizon

  18. Market defintions and VoIP • National Regulatory Authorities (NRA) • Investigate & Define separate ‘product markets’ • Once markets defined … • NRA determines if operator has SMP (significant market power)  Price controls, interconnection obligations, . . . • What about VoIP ? • Likely to be included in some markets . . .

  19. Market defintions and VoIP • Market Analysis vs. PATS/ECS • When analysing the 18 markets in the Recommendation, • NRAs apply competition law principles of supply side and demand side substitutability, • regardless of any labels attached to an offering (ie PATS or ECS)

  20. Overview • Regulation of VoIP in EU • Types of Regulation • Rights & Obligations • Telecom Markets & VoIP • What has been done & What is on the horizon

  21. Situation in the EU • What has happened • June 2004 : E.C. Information & Consultation Paper • Feb 2005 : ERG Common Statement on VoIP • What is happening • Q2/Q3 2005 : Member States publish national guidelines : Follow-up of VoIP by ERG and Commission • What will happen ... • (If needed) Commission will publish additional guidelines (End 2005)

  22. Situation in the EU Differences or Barriers ? • “The application of the European regulatory framework may • vary between Member States. • These differences are recognised by the ERG – also the fact • that therefore barriers to market entry specific to certain • Member States may be experienced. • Member States should commit to addressing barriers to • market entry if they arise and in accordance with the European • regulatory framework.”

  23. Situation in the EU • Numbering & Number Portability • ... • ... • Emergency Access • ... • ... • Nomadicity • ...

  24. Overview • Regulation of VoIP in EU • Types of Regulation • Rights & Obligations • Telecom Markets & VoIP • What has been done & What is on the horizon Questions ?

  25. Documents & Contact Information Information & consultation document http://europa.eu.int/information_society/topics/ecomm/ useful_information/library/commiss_serv_doc/index_en.htm Regulatory framework http://europa.eu.int/information_society/topics/ecomm/ all_about/todays_framework/index_en.htm Contact information infso-b1@cec.eu.int (note “1” is the number one) Disclaimer : The information in this presentation is provided on an informal basis and does not necessarily reflect the official position of DG Information Society or the European Commission. The Commission accepts no responsibility or liability whatsoever with regard to any information or data referred to in this presentation.

  26. Annex Electronic Communication Service (ECS) Service (normally) provided for remuneration Consists wholly or mainly in the conveyance of signals on Electronic Communication Networks Public Available Telephone Service (PATS) = Public Available Service = Originating & Receiving (inter)national calls = Access to Emergency Service (112) = E.164 numbering scheme Universal Service (US) Services to be made available to all end-users in territory Designated by National Regulatory Authority ECS vs. PATS ECS PATS US

  27. Annex Issues covered in E.C. information & consultation document (14/06/2004) • Licensing / authorisation􀂋 • Numbering, number portability􀂋 • Access to emergency services, caller location, in-line powering􀂋 • Interconnection􀂋 • Universal service 􀂋 • Integrity, availability, quality of service, 􀂋 • Extra-territorial supply 􀂋 • Traffic data retention, legal interception

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