Economic and institutional implications of network convergence Dr. - - PowerPoint PPT Presentation

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Economic and institutional implications of network convergence Dr. - - PowerPoint PPT Presentation

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Economic and institutional implications of network convergence Dr. Zsuzsanna KOSA, Budapest University of Technology and Economics Faculty of Informatics: kosa@tmit.bme.hu Faculty of Economics: kosa.zsuzsa@itm.bme.h u 5-7/10/2004 Vilnius,

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SLIDE 1

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 1

Economic and institutional implications of network convergence

  • Dr. Zsuzsanna KOSA,

Budapest University

  • f Technology and

Economics

Faculty of Informatics:

kosa@tmit.bme.hu

Faculty of Economics:

kosa.zsuzsa@itm.bme.h u

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SLIDE 2

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 2

Convergence model: 3 dimensions

  • Convergence is a

technology based market restructuring development process

  • Regulation reacts to

technology and market features and changes

  • The ICT sector

extends

technology market regulation T I M sectors d n s s s n n d d

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SLIDE 3

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 3

Dependency from networks

  • Networked industries

extend and influence the economy

  • Reliability and

security of these networks become essential

  • Dependency asks for

regulation

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SLIDE 4

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 4

Oligopol structure leads to asymmetry

  • There are few

providers and capital concentration

  • There are differences

in market power and information asymmetry

  • Asymmetry asks for

regulation

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SLIDE 5

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 5

Stakeholder structure & convergence

Stakeholder groups: Customers Providers Suppliers Investors Workers Redistributors General public Convergence aspects: Growing supply Restructuring markets Rearrange supply chain Growing risk Less staff needed More regulation needed Interested in involvment

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SLIDE 6

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 6

Historical regulation approaches

  • Sector specific

regulation for telecom

  • Self-regulation for

informatics,

  • Technical regulation

for scared resources for media

  • Content providing as
  • ther media
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SLIDE 7

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 7

Co-regulation approach

Distributed duties among:

  • Sector-specific

Regulator

  • General Market

Regulatory Authorities

  • Industrial self

regulators

  • Civil Society
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SLIDE 8

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 8

Co-regulation for convergence

Stakeholders:

  • Sector-specific- and

general- market regulatory institutions: (Governmental Authorities)

  • Industrial self co-

regulators (Industrial associations)

  • Civil associations,

consumer groups, workers groups, public

Regulation:

  • Legislative framework,

direct regulatory empowerment is needed, co-opetition for duties

  • Fight for more self-

regulation, they ask for funding, risk of dominants

  • Weak on the market, but

public is sensitive on them

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SLIDE 9

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 9

Globalization of networked industries & regulation

Networked industries become Global:

  • Operators, consumers

from the whole World

  • Network density grows,

networks extend

  • Internationalisation

extends The relevance of the industrial co-regulation increases

Regulation tends to be Global too:

  • ITU as a global regulator

seeks for consensus

  • WTO & UN-WSYS tries to

enhance the development

  • EU has intensive internal

market regulation

  • US is a benchmark for EU
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SLIDE 10

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 10

Institutional framework scenarios: “Let it be”

  • Let the spontaneous

convergence process to

  • act. Handle only the

emerging market failures

  • Happy incumbents
  • Rather happy customer

and regulator

  • Unhappy newcomers

workers and social groups

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SLIDE 11

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 11

Institutional framework scenarios: “Look it after”

  • Extend the existing

regulatory institutions towards information and media technologies

  • Happy customers,

newcomers and investors

  • Rather happy regulators
  • Unhappy incumbents
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SLIDE 12

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 12

Institutional framework scenarios “Merging”

  • Merge sector-specific

regulation with regulation of content

  • On stop shopping for

consumers

  • Merges political issues

with technical ones

  • Risky scenario in

CEEC

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SLIDE 13

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 13

Institutional framework scenarios “Federalisation”

  • Public utility

regulatory institutes in each EU member states,

  • Extended sector-

specific regulator at EU administration

  • Not matured scenario

in Europe yet

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SLIDE 14

5-7/10/2004 Vilnius, Lithuania, EU ITU-D Seminar on CEE Telecommunications Markets 14

Focuspoint options of sector-specific regulation

Extend the competency

  • f sector specific

regulator Co-regulate in aliance with Competition Authority Co-regulate with industrial bodies Regulate based on communication with civil society