ENUM/Convergence Workshop Regulatory Environment for ENUM & Internet-Telephony Convergence

Overview Traditional telecoms world Traditional mode of regulation Converging market Regulatory challenges Regulatory responses Conclusion

Traditional telecoms world… regulation incumbents numbers prices fixed voice services mobile voice services data services addresses radio spectrum costs telephone users new entrants

…Traditional telecoms world

Traditional mode of regulation…

Converging market… Demand-side fixed & mobile telephone-based users +users communicating via computer & other information-based terminals Supply-side traditional fixed & mobile network operators +virtual network operators ISPs ASPs etc.

…Converging market Services traditional voice & data communications +chat instant messaging downloads desktop videoconferencing interactive games voice over IP

…Converging market +alternative pricing models: Economics familiar pricing models +alternative pricing models: recipient pays for communication (for example, mobile location-based services) free supply of communication service — revenue based on advertising, sale of mailing lists, etc. shift from revenue derived from communications, to revenue derived from content linked to particular communications

…Converging market +alternative name & address schemes: Resources existing spectrum & numbering plans +alternative name & address schemes: country-based, hierarchical structure OR globally-based, flat structure country-based, hierarchical structure public OR proprietary public shift from names linked to addresses, to names linked to user profiles

Regulatory challenges… Supply-side New suppliers do not have characteristics of traditional suppliers How can a new supplier be recognised? How can control over who is permitted to supply services be maintained? How can new supply monopolies be avoided, and how can end users be ensured of choice of supplier? How can controls be exerted over suppliers that are based outside national jurisdiction?

…Regulatory challenges Services New communications services do not fit traditional categories of services How can a new communications service be recognised? How can user data (or user profile) associated with services be protected from inappropriate use?

…Regulatory challenges Economics Reliance on cost determination and price control may not be useful or relevant — for example, provision of service at no charge Issues of bundling of services and predatory market behaviour may continue become increasingly significant — for example, recent U.S. Microsoft Internet Explorer court case

…Regulatory challenges Resources… New resources may not be under national control, or administered in familiar hierarchical manner How can users have confidence that resources are universally available and accessible? How can users be confident that they will have reasonable rights over resources they are assigned?

…Regulatory challenges …Resources How can private monopolies or monopolistic behaviour over new resources be avoided? How can bottlenecks be avoided in availability of resources, and in access to databases in which these resources are recorded? How can connectivity be achieved between services that are similar but use different resources?

Regulatory responses… Possible shifts in approaches to regulation… Reduce reliance of regulatory obligations on licensing arrangements Promote diversity of suppliers & services AND resources & resource databases Explore potential for global regulatory strategies, in conjunction with national regulatory strategies

…Regulatory responses …Possible shifts in approaches to regulation: Create economic rather than punitive incentives for proper & fair market behaviour, & for connecting services Explore potential for industry to regulate itself Ensure end users are properly informed about characteristics of converging market

Conclusion… Internet-telephony convergence challenges assumptions underlying current regulatory practices and strategies ENUM is one realisation of convergence in area of naming & numbering Familiar pieces in telecommunications jigsaw puzzle are changing — familiar regulatory approaches may no longer be workable

…Conclusion Approaches to administration of communications resources need to deal with issues around new types of communications identifiers, especially: different sources of demand & supply for services using these identifiers different nature of services using these identifiers different economics of services using these identifiers different (& diverse) sources of authority over these identifiers nature of sources of demand for these identifiers