Overview of Convergence APT-ITU workshop on the International Telecommunications Regulations Bangkok, 6-8 February 2012 Preetam Maloor, ITU

Presentation Outline – Understanding the shift from a telecom to an ICT environment led by the advent of the Internet and electronic communications to illustrate the impact of convergence on ITRs – The impact of convergence on regulation and policy, what the ITU has done in this area, best practices guidelines, international agreements (e.g. WTO, EU, G8/20 etc.) and national contributions submitted on the topic of ITRs – Proposals from the membership for dealing with the matter. 2

Background No unique definition of convergence – however generally seen as a process of technological and market developments which have led towards the merging of networks, services, firms, devices, etc. Continued ICT sector convergence has presented organizations and regulators with new challenges associated with vertical and horizontal integration of on-line services and applications. 3

Increased mobile cellular, and mobile broadband subscriptions globally are driving development and reform Convergence of Internet and mobile cellular services over shared platforms is being witnessed and is facilitated by the rapid take up of smartphones and mobile broadband devices. New business opportunities are being created, and convergence has led to the emergence of new players and new markets 4 Source: ITU World Telecommunication/ICT Indicators Database, Background (2)

5 ITU has carried out a large set of activities to address the many aspects of convergence, such as: - reviewing standards (e.g. dealing with fixed-mobile convergence, IP-based NGN) - considering frequency spectrum to address and facilitate the convergence of radiocommunications, - considering costing models applicable to new IP based networks, and - creating an enabling environment to adapt to the rapid ICT market changes. Background (3)

Meeting the challenges of convergence and the digital economy will require cross-sectoral approaches to ICT going forward (PP Resolution 71, Rev. Guadalajara, 2010) A broader perspective will need to be embraced which moves from a network–centric approach to encompassing applications and services, content, consumer rights and responsibilities. 6 Key principles relating to convergence have been reiterated and reinforced during WRC, WCIT, WTPF, GSR and in numerous ITU reports Key principles relating to convergence have been reiterated and reinforced during WRC, WCIT, WTPF, GSR and in numerous ITU reports Background (4)

Regulatory Responses Regulation historically based on clear distinction between different services and 1-1 mapping of service to network – recent developments have blurred such differences. Convergence is technology and market- driven and is most likely to thrive in an environment which allows competition The right regulatory framework needs to take into account the structural differences typical of a converged environment in comparison to the peculiarities of the sectors – a significant increase in converged or unified regulators recently 7 Source: ITU Source: ITU World Telecommunication/ICT Regulatory Database

International Context – WSIS: encouraged Governments to establish comprehensive, forward-looking and sustainable national e-strategies… as an integral part of national development plans and poverty reduction strategies, in order to achieve the full potential of ICT for development. – G8: has committed to strengthen cooperation to improve access to the Internet for the poor and to protect intellectual property rights (Okinawa Summit, 2000). – EU 2002 New Regulatory Framework : established a unified, technology-neutral system of authorization, the objective of the is to address convergence between different electronic communications and services, and stimulate their further development. – The Asia Pacific Telecommunity (APT): the Strategic Plan for the period , as laid down in the Bali Statement of the Asia-Pacific Ministers in 2009, includes among others the following principles: to widen broadband connectivity; provide a secure, safe and sustainable environment through ICT initiatives, facilitate effective convergence of services... – The Caribbean Community (CARICOM), the Southern African Development Community (SADC) and the Economic Community for West Africa (ECOWAS/ UEMOA): frameworks to facilitate the harmonisation of approaches to the development and enforcement of ICT legislation, policy and regulations in light of convergence 8

Proposals made Proposals from Member States regarding the review of ITRs can be broadly divided into two types – – changes relating to updating and aligning the language of the ITRs with current language, and – changes relating to updating and aligned the ITRs through substantive changes relating to developments in technology, markets and institutions – broadly convergence. The latter changes, related to technology, market and sector developments, require the updating of the ITRs to accommodate convergence, and refer to the need to incorporate technology neutrality in the ITRs. 9