TRA OMAN TELECOM FORUM: LAW, REGULATION & ENFORCEMENT Telecoms Services – Competition and Regulatory Trends Ann LaFrance Coordinating Partner, EMEA Communications.

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TRA OMAN TELECOM FORUM: LAW, REGULATION & ENFORCEMENT Telecoms Services – Competition and Regulatory Trends Ann LaFrance Coordinating Partner, EMEA Communications Law Global Chair, Data Privacy and Cybersecurity Practice Muscat 9 th February 2016

2 squirepattonboggs.com 2 KEY QUESTIONS (1)Is the “Ladder-of-Investment” theory still plausible? (2)Key regulatory and competition concerns – Is functional separation the ultimate answer? (3)What policy objectives should apply to online messaging services and platforms? (4)How are policy priorities evolving in this area?

3 squirepattonboggs.com 3 1.Is the “Ladder-of-Investment” theory still plausible? (1)Concentration is the trend in telecoms markets globally – policy success no longer measured by number of new licensees. (2)Infrastructure investments required for advanced fixed and mobile networks follow a step-function: steep up-front costs and gradually increasing demand. (3)Economic (dominance-based) regulation geared to promoting pure service-based telecoms competition vs. symmetrical “infrastructure sharing” models – shifting focus? (4)Bundles and margin squeeze concerns (5)Quality of service and provisioning concerns

4 squirepattonboggs.com 4 2.Key regulatory and competition concerns – Is functional separation the answer? (1)Different root policy objectives for functional separation in the case of NGNs/NBNs: a. NBN investment incentive? b. Regulatory solution of last resort (with a focus on transparency and arm’s- length treatment on QoS and internal transfer prices)? c. Both? (2)Duct access, dark fibre and competitive infrastructure build – prohibit or promote? (3)Mobile equivalents a. Network infrastructure/spectrum sharing b. MVNOs

5 squirepattonboggs.com 5 3.What policy objectives should apply to online messaging services and platforms? (1)Demand creation for data services – Is there a problem? (2)Promoting the development of local apps and content (3)Net Neutrality/Open Internet (4)Consumer protections (subscriber contracts, data privacy, etc.) a. User expectations b. User experience c. Suitability and relevance of telecoms regulation, including licensing requirements, to online services (5)SMP regulation (6)Other considerations – cybersecurity, cybercrime and law enforcement access

6 squirepattonboggs.com 6 4.How are policy priorities evolving in this area? (1)EU consultations: Review of the Regulatory Framework for Electronic Communications and Digital Platforms (2)Ofcom and Arcep Strategic Communications Reviews (3)India-TRAI Consultation on Regulatory Framework for OTT Services (4)Intensified focus on data: a. EU review of the e-Privacy Directive provisions on use of subscriber, traffic and location data b. Extraterritorial application of national laws – the US-EU Safe Harbor controversy and the new EU GDPR c. Data localization and sovereignty d. Rise of the “Splinternet”?