Telecommunications’ Regulatory Framework in Switzerland : Situation, Challenges & Perspectives Hassane MAKKI, OFCOM, Switzerland Experts’ Group meeting for Q8.1 (ITU-D) Geneva, 22 - 23 June 2000

General Plan Introduction : reminder of the situation before 1998 1 - Legal and institutional Framework 2 - Tasks of the OFCOM 3 - « Telecom PTT » Operator 4 - Balance and transient measures I - Present Situation : Total Liberalization since 1998 1 - New Regulatory Framework 2 - Legal Framework 3 - Institutional Framework II - Challenges III - Perspectives Useful Information

I - Introduction 1 - Legal and Institutional Framework Legal Framework : Law on Telecommunications (LTC of 7.12.91) : coming into force : April 1992 Ordinances (CF, DFTCE, OFCOM, etc.) Institutional Framework : Creation of the OFCOM (April 1992), new regulatory Authority in charge of application of two laws : LTC (Telecom) et LRTV (Radio-TV) OFCOM integrated in the DFTCE (Ministry)

I - Introduction 2 - Task of the OFCOM Data transmission services User’s equipment : technical specification & type approval by the OFCOM Accreditation of test laboratories de test for technical conformity (others than the one of « Telecom PTT ») Frequency Management &Attribution

I - Introduction 3 - « Telecom PTT » Operator Monopoly of « Telecom PTT » on infrastructures and voice telephony service Exception : voice telephony service for “Closed Users Group” Monopoly of « Telecom PTT » on leased lines services Monopoly on mobiles services (NMT & GSM) Frequency Monitoring & Frequency Assignment

I - Introduction 4 - Balance & Transient Measures Balance : market of user’s Equipment More choice to the users Price’s decrease Transient Measures for total liberalization : provisional licenses for test purposes Internet access through CATV networks > 30 licenses granted

I - Total Liberalization 1 - New Regulatory Framework Refounding of the juridical instruments New Law and Ordinances Creation of a new Regulatory Authority (RA-1) ComCom (Federal Commission for Communication) : ==> independence Restructuring/Reorganization of the OFCOM (RA-2) : stills in charge of application of two laws : LTC (Telecommunications) & LRTV (Radio-TV) Privatization of Swisscom (former “Telecom PTT”)

I - Total Liberalization 2 - Legal Framework 2a - Law on Telecommunications CH.1: General Provisions Scope, Objet & Definitions CH.2: Telecommunications Services Licenses, Universal Service, etc. CH.3: Wireless Communications Licenses, Frequency Management, etc. CH.4: Addressing Resources CH.5: Telecommunications’ Installations CH.6 : Fees CH.7 : Statistics of Telecommunications CH.8 : Important National Interests CH.9 : Penal Provisions CH.10 : ComCom (Authority) Status, Independence, Competencies, etc. CH.11 : Supervisory and Appeal CH.12 : Final & Transient Provisions

I - Total Liberalization 2 - Legal Framework 2b - Ordinances (Decrees) of the Federal Council (Government) O. Telecommunications Services O. Frequency management & Licenses for Wireless Communications O. Addressing Resources O. Telecommunications Installations O. Fees O. Supervisory (Post & Telecommunications)

I - Total Liberalization 3 - Institutional Framework 3a - ComCom : Competencies of RA-1 Granting of licenses : Public tender, Universal Service, GSM .. Decisions related to interconnection Approval of national plan frequency attribution and the numbering plans Supervisory Measurements Ordinance : CSC, NP & delegation of some competencies to the OFCOM (RA-2)

II - Total Liberalization 3 - Institutional Framework 3b - OFCOM : Competencies of RA-2 Decisions Preparations to the ComCom (RA-1) Granting of licenses without public tender & licenses for wireless communications Instructions of procedures for interconnection & conciliation between parties Frequency Management & attribution of Addressing Resources Type approval & market control of installations

II - Total Liberalization 3 - Institutional Framework 3c - Relationship ComCom / OFCOM DETEC ComCom Directives Supervisory 51% OFCOM Swisscom OFCOM : 250 full-time employees in the Federal Administration ; ComCom : 6 part-time employees DETEC : Federal Department for Environment, Transports, Energy & Communication

Administrative Appeal II - Total Liberalization 3 - Institutional Framework 3d - Other Concerned Authorities Federal Court Administrative Appeal DETEC ComCom Appeal Commission Directives Supervisory 51% OFCOM Swisscom

II - Challenges (1/2) Interconnection Costs Complaints, in particular related to LRIC (Long Run Incremental Costs) Advise of Charge Display of CLI (Calling Line Identification) Number Portability Local Loop Unbundling

II - Challenges (2/2) Y2k (the bug of year 2000) Digital Signature (Electronic Commerce) Directories Change of numbers following the closed numbering plan (9 digits numbers) Convergence Information Society . .

III - Perspectives WLL (Wireless Local Loop) : user’s wireless connection 48 licenses under auction bidding rule (3 on the national level + 5 per area (x 9 areas) Auctions between February and May 2000 Universal Service 1998 - 2002 : National license granted for 5 years to Swisscom without compensation License(s) granting for 2003 Mobiles Services (UMTS) : public tender in 2001

Useful Information OFCOM Homepage http://www.bakom.ch ComCom Homepage http://www.fedcomcom..ch OFCOM Address Office fédéral de la communication 44, rue de l‘Avenir CH - 2501 Bienne, Suisse T: +41 - 32 - 327 55 11 F: +41 - 32 - 327 55 55 ComCom Address Commission fédérale de la communication Marktgasse 9 CH - 3003 Berne, Suisse T: +41 - 3 1 - 323 52 90 F: +41 - 31 - 323 52 91