INTUG CONFERENCE MADRID 21 de mayo de 2013 Global Developments in Telecommunications Nick White, EVP, INTUG

Enabling the Economy 1. Business communications – an engine of growth 2. Removing national barriers to international trade 3. Focusing on big picture, not the means to the end 4. Focusing on today’s big issues for business users 5. Balancing global, regional and national objectives 6. Regulation as an enabler not a constraint 7. Infrastructure: Investment and Competition? 8. Fixed and Mobile convergence 9. INTUG strategy and key priorities 10. INTUG key relationships and activities

1: Business Communications The engine of growth – lifeblood of the economy A single EU telecoms market would add 0.6% GDP Every 10Mbps broadband generates c0.1% growth Online business is driving SME global explosion Smart devices increase mobile data exponentially Digital exclusion is a barrier to social progress Internet of Things will add Billions of connections Machine to Machine (M2M) communications

2: Barriers to Trade Current environment is a fragmented patchwork Multiple contracts add inefficiency and cost Inconsistent approaches block interoperability Incumbent dominance is a barrier to new entrants Access to local infrastructure is discriminatory Roaming charges deter on-line process investment Lack of pan-EU MVNOs fragment contracts Blocking of gateways limit private network reach

3: Focusing on the Big Picture It’s about the economy……(not the telecoms industry) ICT is only 4-5% of GDP: Business use is 35-40% GDP Fragmentation in Europe is hurting the EU economy The “Ladder of investment” forces unwise choices Productivity, job creation and growth are priorities - but not in telecoms at the expense of the rest!

4: Focus on the Big Issues Business Users face major communications challenges: Cloud Services, Big Data: Security Mobile Communications: Roaming Availabillity and Quality of Service Competition, Lock-in and Switching Acquisitions and Disposals Supply Chain interoperabilty

5: Global v Regional v National New Telecoms Framework: BEREC Harmonisation and consistency Commission Serious Doubts/Article 7 Converged and Consumed and Diverged NRAs Regulating Content and Carriage Global Context: ITU, WARC, WSIS, WCIT, ICANN Regional Context: APECTel, CITEL, SAMENA Political Pressures: OECD, Digital Agenda

6: Regulation: Enabler or Constraint Telecoms still needs sector specific ex-ante Competition/Fair Trade ex-post too late Some Relevant Markets in Retail still required But business and consumer markets differ Right-sizing the competitive landscape is needed The US has a continental operator structure Transational consolidation is needed in Europe Mergers have often forced disposal not aggregation Spectrum allocation should facilitate scale economy Aim is enabling the economy not telecom growth

7: Investment and Competition Current debate appears to suggest that there is a political choice between investment (in infrastructure) and sustaining a competitive environment This is influencing decisions on pricing wholesale copper access, and the cinsequent service cost to customers and deterring market entry There is extensive evidence to prove that duplicated fibre infrastructure to the cabinet or home in most countries is unjustifiable and unaffordable In some countries there will never be FTTH and wireless will provide ubiquitous broadband so FTTM (Fibre to the Mast) become the best apprach

8: Fixed and Mobile Convergence Businesses use electricity regardless of generating technology and expect comparable performance, availability and price Telecommunications should become the same, with the distinction between fibre, copper, WiFi, Wimax, mobile etc invisible and irrelevant Industry structure is currently geographically and technologially fragmented and divergent The next generation of technology and industry structure should be able to resolve this

9: INTUG Strategy and Priorities Removing barriers for online businesses of all sizes – SMEs an engine for growth Enabling innovative business processes in public and private sectors Addressing the cloud challenge of service quality, security and cost Supporting anywhere, anytime anything, anyhow connectivity and usage

10: INTUG Relationships/Activities Key Relationships Global: ITU, OECD, Service providers Europe: Commission, BEREC AsiaPacific: APECTel Americas: CITEL, Regualtel Africa: Correspondents National: Government Ministries, NRAs Key activities Meetings with key Individuals, eg VP Kroes Consultation submissions, letters Conference presentations, media interviews Position papers, Press articles Website, news alerts

INTUG CONFERENCE MADRID 21 de mayo de 2013 Global Developments in Telecommunications Nick White, EVP, INTUG Thank You! Questions?