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A C onverged E gypt. The Address of Dr. Amr Badawi, NTRA Executive President to the Convergence of ICT and Broadcasting Conference 'Regional Prospective and Opportunities ' Sharm El Sheikh, 19th of May, 2006. C ontents:. Introduction Convergence at a Glance The ‘Converged’ Telecom Scene
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AConverged Egypt The Address of Dr. Amr Badawi, NTRA Executive President to the Convergence of ICT and Broadcasting Conference'Regional Prospective and Opportunities'Sharm El Sheikh, 19th of May, 2006
Contents: • Introduction • Convergence at a Glance • The ‘Converged’ Telecom Scene • The Impact of Convergence on Regulation • The Convergence Roadmap • Convergence Challenges • Issues for Debate
Introduction: • Egypt possesses a number of comparative advantages which positively positions it as a promising market for ICT and Media convergence: • infrastructure • talented ICT professionals • efficient service providers • empowering regulatory framework. • Content is a key word in the convergence game. • Egypt has always been, and continues to be, the leading source of culture and entertainment in the Arab world. • Egypt could become an exporter of content to the Arab world; consequently economies of scale could be achieved.
Convergence at a Glance: • So what is convergence? In a nutshell, it is the ability to provide a range of services (voice, data, and broadcasting) over a single network (‘triple play’). • Examples: • Voice over IP, which makes very low and flat rate calling plans possible. • Television over IP, which provides much more flexible access • Radio over IP, which enable users to listen in real time or on demand • Convergence is being applied to many fields; commerce, education, health, publishing, and manufacturing, etc.
Convergence at a Glance: (cont..) • It has changed many aspects of our everyday life: the way we communicate, the way we access content and entertainment, the way we make our purchases, even our own mobility. • A phone is no longer used for merely exchanging conversations, but also for watching movies, listening to MP3s or even watching and listening to the finals of the World Cup, live. • The NTRA has been active in convergence: • Cooperation between MCIT and RTU (Radio and Television Union) • VoIP • BGAN
The ‘Converged’ Telecom Scene: • Since its introduction, convergence has had a profound impact on the telecommuncation field and media sector, dramatically changing its infrastructure, services and overall environment. • Infrastructure: - digitalized • Competition: • diversity of service providers and offers • low and affordable prices • wide range of complementary services • Innovation: • new services • new business models • new devices • content creation industry to support demand • local loop unbundling
The ‘Converged’ Telecom Scene:(cont..) • Examples: • Gradual shift to VoIP and VOB (Voice over Broadband); now almost 15% of voice traffic is through VoIP. • CATV (cable TV) systems are now offering video on demand, broadband access and voice telephony. Consequently, CATV operators are now competing with telecom operators. • The current trend in several parts of the world is for service providers to offer triple play service bundles in inclusive packages (ex. monthly) • There is a steady growth in 3G networks and wireless broadband services
The Impact of Convergence on Regulation: • Convergence is reshaping regulation and policy and raising several implications: • Convergence is leading to a rise in the number of wireless services, which in turn raises the need for spectrum management reform. • Convergence entails revisiting current licensing regimes and favors regimes that are technologically neutral. • Convergence might lead to the broadening of certain market definitions, with the result that several narrowly defined markets are replaced by a single more broadly defined market. • Convergence may pose a threat on the industry if it induces mergers of large scale operators and drives out small local operators.
The Impact of Convergence on Regulation: (cont..) • Access to communication channels and access to content • New issues of competition and monopoly • Privacy, security, IPR • A transition from monopoly/oligopoly direction to maximizing participation via open access • Target is not technological neutrality, but maximum development of all technology & services advantages • Maximum opportunities for competing firms to achieve public interest goals • Maximum stimulation to market development through both private and public participation
The Convergence Roadmap: • For any country to successfully integrate convergence into its communication and media sector, it must develop the following convergence pillars: • Technical: 1) Digitalized Infrastructure - Broadband - Wireless and mobile technologies High-speed backbone networks 2) Digitalized Media Content - DRM - DAM
E.The Convergence Roadmap:(cont..) • Regulatory: - Conducive Market Conditions (supply, demand, competition) - Technological Neutrality • Intellectual Property Rights and GATS agreement • Business: • Encourage investment • More service providers • Diverse services; options • Digital content creators
F.Convergence Challenges: • Political and Legal: • Law restrictions • National security considerations • Politically acceptable • Business: • Must find feasible business models: • Revenue: from customers and advertisers • Evidence of demand is still very unclear • Which firms have the expertise to make profits in these areas? (telecom co. vs. content providers) • Social: • Socially acceptable content • Literacy (traditional and ICT literacy)
F.Convergence Challenges: (cont) • Economy: • Income levels: low GDP per capita misdistributions of wealth within countries • Spending capacity: Are people willing to spend on entertainment? And if so, how much? • Infrastructure: • which networks are best and cheapest? • availability of electricity • availability of computers • availability of telecommunications networks • availability of investment
G.Issues for Debate: • Convergence is raising a wide array of regulatory and legislative issues that should be addressed by both policy makers and regulators • The need to : - encourage investment - lower market entry barriers • Policy should: • ensure competitive markets • encourage the provision of better and cheaper services - be responsive to market changes; updated upon need • Need to avoid regulatory arbitrage and gamesmanship • Reducing the digital divide: Universal Service
G.Issues for Debate: (cont…) • Is the trend of institutional convergence (the example of Ofcom) really the best way to address Convergence? • Are current telecom or ICT regulators competent to regulate “content”? • Can content regulation be avoided? • What is the most effective role for national telecom regulators?