1 NATIONAL TELECOMMUNICATIONS AGENCY MULTIMEDIA IN THE FIXED SWITCHED TELEPHONE SERVICE the of information Edmundo Antonio Matarazzo Superintendent for Public Services June 2001

2 Objectives 4to provide a broad and integrated overview of the regulations and their evolution. 4to present key issues for action by telecommunications service providers.

3 Broad and integrated overview 4Information represents a mobile, transferable, and highly marketable asset; 4Information access represents the possibility of society to make giant strides; 4What’s important is the evolution of the capacity to communicate, access and exchange information, reduce distances, and rapidly perform actions that produce better results.

4 Guidelines to be considered Fulfillment of government obligations b g uarantee access to services by the population. b stimulate expanded service to the benefit of the populaton. b strengthen the State’s regulatory role. b create investment opportunities and stimulate the technological and industrial development. b harmonize the development of the telecommunications sector and the nation’s social development. Other guidelines b safeguard the national sovereignty. b assegurar a função social; b repress violations against the economic order. b reduce regional and social inequalities. b Protection of user rights bensure access to services throughout the national territory. b ensure users right to choose service provider. b guarantee the continuity of services provided under the public regime. b ensure dissemination of conditions for provision of services. bprevent discrimination against users.

5 Key issues 4Can the failure to adopt a cooperative attitude in the relationship with competitors afect the development of the necessary interactions for the fruition of the services? 4How to ensure that the use of the infrastructure implemented by various competitors will stimulate the development of this necessary user base for the telecommunications sector?

6 Key issues 4In addition to competitors, what other service providers can be providers of infrastructure, facilities, and services? 4What is the impact of coordinated actions intended for the implementation of shared systems on telecommunications services?

7 Overview of regulatory framework 4 Deployment of networks 4infrastructure sharing; 4 provision of facilitie; 4 information exchange 4 resale. 4 Interconnection 4infrastructure sharing; 4 provision of facilities; 4 interoperability of networks and services; 4 integrated planning. 4Service offerings 4independent plans; 4 varied range; 4 user satisfaction.

8 Recommendations 4Given the different states of service provision, their evolution models, and the development of the competitive environment, it is necessary to: + prioritize services; + know the regulatory framework; + adjust the way to plan and negotiate.

9 Key issuesuestões-chave 4Can the fixed switched telephone service be replaced with another service? 4Can the failure to adopt a technological standard affect the development of the multimedia environment? 4How to ensure the use of the same media for different services and applications be permitted without impairing the services provided under the public regime?

10 Key issues 4Can the failure to adopt a standard for access protocols and information transfer affect the development of such applications? 4How to ensure that the use of the infrastructure deployed by various competitors will stimulate the development of the user base necessary for the telecommunications sector?

11 Key issues 4In addition to the Fixed Switched Telephone Service, what other services should be provided under the public regime? 4What is the impact of systems for measuring results such as the EVA (Total Economic Value) or of compensation mechanisms on telecommunications services?

12 Recommendations 4Given the different states of the services, their evolution models, and the development of the competitive environment, it is necessary to: + prioritize services; + identify regulatory leverages; + adjust the ways to regulate.

13 Services attributes ¶Quality and credibility consumer information & compliance with obligations ·Prices (tariffs) and billing system different charges/plans & customer services ¸Product modernity (terminal) technological complexity & intelectual and social characteristics technological complexity & intelectual and social characteristics ¹Coverage area domestic and international, according to the interest of the user domestic and international, according to the interest of the user ºTerminal diversity and portability device for personal use & user terminal portability »User mobility possibility to use any resources from any service provider ¼Access capacity communications environment, access, and information exchange

14 User satisfaction WFI, 1999, USA

15 Scenario ¶Content origin and destination ·Access and provisioning element resources involving arrangement and presentation to users ¸Distribution resources to cover each household or user ¹Telecommunications Services attributes of a form of telecommunications attributes of a form of telecommunications ºTelecomunications Networks facilities for transport of the various forms of tlecommuncations facilities for transport of the various forms of tlecommuncations

16 TerminalsDistribuition Networks Content Telecommunications services Telecommunications scenario

17 The new paradigms ¶Deregulation and privatization mergers and acquisitions x competition ·Convergence technological x intelectual heritage ¸Standards governamental action x market drive (coalition) ¹Elimination of frontiers alliances among competitors x identification of competitors alliances among competitors x identification of competitors ºVolatility faster to market x shorter operating cycle »Elimination of intermediaries brings manufacturer/consumer together x produts and services analyst ¼Globalization global view x different views (locations, cultures, etc.)