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

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

ACCC Regulation Conference 2004

Evaluating the effectiveness of regulation 29-30 July 2004

Telecommunications: Competition Regulation and Communication via the Internet

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Our Aims

• Real and effective competition
• Genuine choice for users
• Lower prices
• Higher quality
• More innovative services
• Constructive co-operation with

– International bodies – Governments – Regulators

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

A changing world

It is not easy to adjust to these changes

• Privatisation
• liberalisation
• regulation
• competition
• new technologies
• new business models

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Changing Importance of Sectors

IBISWorld: 23/04/02

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 2020 2040

Primary Secondary Tertiary Quaternary

(Information-based)

Quinary

(H’hold services based) O/Ship of Dwellings et al

Share of GDP by broad sector

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

After the bubble

500 1000 1500 2000 2500 3000 F e b

• 9

9 A p r

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9 J u n

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9 D e c

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20000 40000 60000 80000 100000 120000 Nasdaq Telecom. Index Nasdaq Computers Index Number of Secure Servers in the United States

E-Commerce and the Internet are still growing

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Next Generation Network

Converged Architecture

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

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Yahoo BB

Rosemary Sinclair ACCC Regulation

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Conference 2004

Examples of Commercial offers:

• www.skype.com
• www.stanaphone.com
• www.freenet.de/freenetiphone
• www.vonage.com

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Peer to Peer

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Issues

• Appliances – safety
• Applications – content standards,

service features, security:spam, fraud, data protection

• Access – availability, affordability,

numbering/addressing, market power, speed.

• Any to Any connectivity – QoS, cost

based inter-connection, USO, 000, LLU, IXPs

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

What is the biggest obstacles to the widespread take-up of VoIP

• Consumer Awareness

21.14 % (470)

• 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) Total Votes: 2223 www.pulver.com

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

ACCC

• XIC - Access Regime
• XIB - Anti-competitive conduct

MINISTER

• USO
• Price Controls
• Regional telecommunications

Australia’s Regulatory Regime

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

ACA

• Consumer toolkits
• Number portability
• Number Plan
• Customer Service

Guarantee

• National Reliability

Framework

• ACIF Code Compliance

Australia’s Regulatory Regime

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

ACIF 16 Registered codes 11 companies are code signatories 7 revised technical standards Issues Timeframes ISPs Industry based enforcement Consumer awareness

Self Regulation

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Conference 2004

Decision making - MODELS

As taught by Professor Bill Birkett, JCU

• Rational – TSLRIC
• Satisificing – Benchmarks
• Standard Operating Procedures –

Accounting Separation

• Political – USO, NRF, CSG
• Incremental – mobile termination
• Garbage Can – Internet?

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

5 Years On ATUG Assessment from Corporate Users on the current state of play in the telecommunications market

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

ACA Telecommunications Performance Report 2002-03

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)

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

ACCC - Price Index services for all consumers

Index for telecommunications services 1997-98 to 2002-03

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

ACCC - Price Index services for all consumers

Year-on-year percentage changes in the index for telecommunications services, 1997-98 to 2002-03

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

User goals keeping moving

The crucial next step in 'future proofing' is to ensure that all Australians have access to affordable broadband services.

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

What is the best practice regulation for emerging markets? Full weight vs Forbearance

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Will markets deliver competition? Will dominance in an existing market distort competition in an emerging market?

Rosemary Sinclair ACCC Regulation

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Conference 2004

2 4 6 8 10 12 Australia Canada Japan Korea Mexico New Zealand United States

1997 2001

2000

Line share of new entrants in %

Access

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Conference 2004 Business composite basket - domestic, international, F2M

Telephone charges USD PPP August 2002

500 1000 1500 2000 2500 3000 Australia Canada Japan Korea Mexico New Zealand United States OECD

Prices

Rosemary Sinclair ACCC Regulation

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Conference 2004

10 20 30 40 50 60 70 80 Australia Canada Japan Korea Mexico New Zealand United States

1 2 3 4

Mobile market share %

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Conference 2004

200 400 600 800 1000 1200 1400 1600 Australia Canada Japan Korea Mexico New Zealand United States

Mobile charges, USD PPP August 2002

Prices – Higher User

Rosemary Sinclair ACCC Regulation

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Conference 2004

2 4 6 8 10 12 14 16 18 20 Australia Canada Japan Korea Mexico New Zealand United States OECD

Broadband per 100 inhabitants, June 2002

Access

Rosemary Sinclair ACCC Regulation

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Conference 2004

Access prices

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Conference 2004

What is the Regulator’s Role?

A level or Even playing field? The need for Speed

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

New Services are Born Global

• Global Service Providers and

Users

• National Regulators
• Is SPAM providing a new model of

co-coordinated regulation?

• WTO
• ITU

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Examples of policy discussions

http://www.intug.net/views/ip_telephony_discussion.html 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

Rosemary Sinclair ACCC Regulation

www.atug.com.au

Conference 2004

Thank you