Lessons from Developed countries’s experiences in electronic communications regulation

1. Dialogue between media and telecom regulators in times of convergence Lessons from Developed countries’s experiences in electronic communications regulation By: Gaston Zongo gzongo@sentoo.sn gastonzongo@yahoo.com

2. Content I. Convergence and the changing era of the electronic communications sector II. Regulatory challenges: What is at stake? III. Key Address-strategies from the developed countries: IV. Lessons and exploring possible avenues for west and central Africa

3. Convergence and the changing era of the electronic communications sector I.1. The global picture of the dynamics of environment- change Policy and regulation are the main drivers of the change with a market-shift from infrastructure towards services

4. Market e.Services Technology e-applications Hardware Software Infrastructure Monopoly Constestability Competition Multimedia Metcalfe’s law (Network effect) Moore’s law Regulatory policy Deregulation, regulation

5. I.2 Greedy demand for broadband communications even at the end-user’s level Source: Digital Lifestyles: 2006 Outlook from Sparks Associates, US

6. I.2 Shake-up of the industry players at all levels • Declining revenue from traditional fixed wireline are pushing Telcos to build Broadband and IP-enabled networks (NGN): e.g: British Telecom 21th Century Network (BT21CN);

7. IPv6 poised to leave the labs into the market arena • New media challenge old ones including the entertainment business and the enabling of the arrival of new journalists: • (MP3, iPod, blogs, Poscasting, RSS), boosted by the power of the network-effect of P2P softwares • the upcoming of digital radio as well as the development of TV content delivered to the small screen (handheld) 9% of American Internet users (6% of the entire U.S. adult population) have created their blogs and 25 % (or 16 % of the entire adult population) are reading blogs, 5% use RSS (Really Simple Syndication) [SOURCE: Pew Internet & American Life Project]http://www.pewinternet.org/press_release.asp?r=104

8. Renewed fever of mergers and acquisitions irrespective of the original business area of the players • Ebay, the US auction site, to buy Skype for $2.3bn • ITV, the terrestrial broadcaster, acquires likely Friends Reunited, an online communities company for close to $255 m. • British Sky Broadcasting to buy Easynet • Creation of a BB TV mobile alliance between Vodafone and Broadcasters, • The US big telco’s number shrinjing from 12 to 3,

10. II. Regulatory challenges: What is at stake? • Creating an enabling environment that fosters competition leading to a vast variety of innovative services benifiting consumers and impacting the national economic growth and competitiveness : That is building a sustainable networked economy • Protecting consumer’s interest and user’s rights (indecency, child porgraphy, scams, spams, phising, …) • Ensuring national security (cyberterrorism and other e.criminilaty,…)

11. III. Key Address-strategies from the developed countries: USA: the Federal Communication Commission • 5 Commissioners, appointements to be approved by Congress, usually a bi-partisan commission with its Chair appointed by the President, subject to approval by the Congress • Regulation of all the electronic communication sector (media including newspapers, telecom, internet,…) • Sector subject to federal laws and/or state laws for some issues

12. Third-party regulatory interventions: • National Association of Counties (NACO) • State Public Utilities Commission (National Association of Regulatory Utility Commissioners ) • Federal Trade Commission • Association of Counties (NACO) • State Public Utilities Commission • Federal Trade Commission

13. Associations and NGOs • Consumers Union, the Consumer Federation of America and Public Knowledge, Freepress, etc. (DIGITAL MEDIA CONSUMERS' RIGHTS ACT OF 2005), • Industry: CTIA,

14. Role of the Congress: Senate and house commerce committes A Congressional Review Act allows Congress by joint resolution to overturn regulatory agencies' rules.

15. ‘’According to the Supreme Court, the First Amendment protects the American public’s right to “an uninhibited marketplace of ideas in which truth will prevail” and “suitable access to social, political, esthetic, moral and other ideas and experiences.” Moreover, it is “the right of the viewers and listeners, not the right of the broadcasters, which is paramount.” · Bill of Media Rights - Word .doc (38.5KB)

16. Association of ISPs The Broadband Bill of Rights :

17. FCC PRIORITIES FOR 2006Media: 1. Facilitate the transition to digital television 2. Roll-out digital radio, 3. Auction of FM licences 4) Initiate a review of media ownership rules.

18. Wireline Competition: 1. Improve 911 services for consumers of nomadic Internet telephone services (VoIP), 2. Support continued broadband deployment, 3. Reform the universal service fund.

19. Congress Committes Federal Trade CommissionTC Consumers unions and NGOs Justice Department and FBI FCC Industry PUC Other Departments

20. UK: Ofcom Media and telecoms convergence should be reflected in regulation. Ofcom’structure based of the EC directive resulting on the packet telecom directives, March 2002 "Our ambition is to be measured by growth in the sector but not growth in regulation,“ Stephen Carter , CEO

21. Ofcom rules Party Political, Party Election and Referendum Broadcasts. Under section 333(1) of the Communications Act, commercial public service TV channels and national commercial radio services must include referendum, as well as party political/party election broadcasts. But as required by statute, Ofcom must consult and have regard to any views expressed by the Electoral Commission, before making these rules.

22. Ofcom rules on Public Service Boradcasting Section 264 of the Communications Act 2003 required Ofcom to report on the effectiveness of the existing television public service broadcasters - BBC, ITV, Channel 4, S4C, five and Teletext - in the delivery of their PSB obligations; and to make recommendations for maintaining and strengthening the quality of PSB for the future http://www.ofcom.org.uk/consult/condocs/psb3/

23. Ofcom rules on spectrum issues Ofcom expects that spectrum liberalisation and trading will make it easier for entrepreneurs and innovators to enter the market, deploy new technologies and applications, and compete with existing players; they will make it easier for spectrum to migrate from relatively low value uses to higher value ones. Although spectrum trading and liberalisation are distinct developments, they are complementary. A recent report for the European Commission1 estimated the benefits of spectrum trading with liberalisation to be some €9bn per year across the EU, predominantly arising from the earlier adoption of new technologies and applications that trading and liberalisation would allow. The benefits of spectrum trading alone, without liberalisation, were estimated to be about one tenth of this. Spectrum liberalisation

24. ERG EC Industry (media and telecm) The Advertising Standards Authority Ofcom Research firms and the academia Consumers unions and NGOs Deparment of Trade Industry

26. European TV DSO: Germany will complete the changeover by 2016 compared with the scheduled 2010 Italy, which has announced a switchover by 2006, will only switch off its analogue signal in 2020. UK, where the government is aggressively pushing for a switchover by 2012, the date is projected to slip to 2015. Source: Adam Thomas Informa Telecoms Media, a research and publishing group.

27. IV. Lessons and exploring possible avenues for west and central Africa • Current situation • Threats of connectedness divide • Missing development opportunities • Not emulating African pioneers (SA, Mauritius, Kenya, etc.) • 5. Global trend • A ‘’must- do’’ ; sooner or later?; Better sooner or better later?

28. ‘’The opportunity costs of not developing an appropriate policy and regulatory framework are high and are globally evidenced in what has been coined the digital divide. Countries that are unable to take up the challenges posed by global technological and economic trends are increasingly marginalised, not only from the global network economy, but in their ability to deliver on their own developmental objectives’’.

29. Some food for thoughts: • Advocacy and capacity building at all levels of stakeholders (CSO, Government, parliaments operators, regulators, Private sector in IT, consumers, other relevant stakeholders • Tapping into the local resources • Regional approach and partnership • International cooperation • What next from Cotonou?

30. ‘’The opportunity costs of not developing an appropriate policy and regulatory framework are high and are globally evidenced in what has been coined the digital divide. Countries that are unable to take up the challenges posed by global technological and economic trends are increasingly marginalised, not only from the global network economy, but in their ability to deliver on their own developmental objectives’’.

31. Thank you