1. Re-thinking the Regulatory Quality Framework in Brazil Tiago Sousa Prado Specialist on Regulatory Affairs - Advisor - ANATEL/Brazil tiago.prado@anatel.gov.br ITU Workshop on QoS and QoE of Multimedia Applications and Services Haarlem, The Netherlands, 9-11 May 2016

2. AGENDA

3. Why regulate quality? Continental territory and 200 million inhabitants Strong socioeconomic differences between regions Lack of infrastructure at small and medium cities Lack of competition in service provision at small cities High level of complaints regarding quality

4. Current Quality Regulatory Framework (2002-2016) Customer Perception Survey Specific indicators related with the provision of Fixed and Mobile Broadband. Broadband Assess the key aspects and requirements for delivering an adequate service. Network Quality of Customer Services, including their perception about the service provision. Customer Services Consumer complaints about the service provision. Customer reaction Quality Managementt

5. Current Quality Regulatory Framework (2002-2016) Several overlaping indicators to monitor the QoS provided by the same networks/operators Broadband Fixed Telephony Paid-TV Mobile 21 indicators 17 indicators 21 indicators 20 indicators 79 indicators  Regulatory overburden  Expensive to measure and to certify the collection methods  Hard to monitor and compare  Poor consumer awareness

6. Re-thinking the strategy ANATEL’s Strategic Plan for the next 15 years:  Strategic Objective: create conditions for improvements in QoS/QoE  Operational Plan: issue a new regulatory framework on quality  Key drivers: o Monitor just the most relevant KPIs in convergent operations o Focus on transparency and consumer empowerment o Flexibility o Raise the effectiveness of the regulation

7. Re-thinking the strategy ITU/Anatel partnership to contract consulting services to support Anatel on the implementation of the strategic projects RFP issued in March/2015 by ITU Project duration: 18 months (until the end of 2016) Phase 1:  International benchmarking of standards and regulatory quality framework, (considering countries sizes, socioeconomic conditions and level of competition) Phase 2:  Analyse all quality indicators defined in the current regulation  Propose a new framework and report a quantitative analysis on economic, social, and competitive impacts of the proposals

8. ITU/ANATEL Partnership for a new regulatory quality framework Regulation Procurement Monitoring Competion Enforcement IT Resources Surveillance International consortium All departments involved

9. Benchmarking Regulatory Approaches  No regulation on quality USA UK Germany Australia Malaysia India  QoS survey among users  Quality Regulation on wholesale products  Data collected by operators  Regulation with targets for KPIs and  May apply fines  Regulation with detailed performance requirement s  May apply fines Methodology of Data collection Regulatory approach  No regulation on quality  Data collected by operators when requested  No regulation on quality  Quality reports Quality analysis periodicity  Data collected by operators  Data collected by operators  Anual  Quarterly or biennial  Anual  Quarterly  Biannual  Quarterly

10. Changing Regulatory Framework atual future Ex-post intervention Consumer Empowerment Consumer Experience Naming and Shame Responsive approach (risks and evidences) Performance obligations Network KPIs monitoring Transparency of the results Automatic sanction (fines) Viable movement considering the current diversity and maturity of the brazilian telecom markets Ex-ante intervention

11. Changing Regulatory Framework atual future Ex-post intervention Consumer Empowerment Consumer Experience Naming and Shame Responsive approach (risks and evidences) Less Performance obligations Monitoring most relevant network KPIs More Transparency of the results Automatic sanction (fines) Viable movement considering the current diversity and maturity of the brazilian telecom markets Ex-ante intervention

12. Broaden the concept of Quality Coverage Network Respect of consumer rights Customer Service Data Collection Municipal granularity (users context) Biannual/Anual analysis Flexibility (Apps, embeded APIs, drive tests, probes) Clear targets for relevant KPIs Operators ranked by Network, Customer Service and Quality Survey results Consumer Empower ment Fonte: Anatel, Consórcio ADVISIA Smartphone App for quality testing and results transparency New Regulatory Framework Enforcem ent Responsive approach (cycles) Customer compensation Fines applied just in last cases

13. Thank you! Tiago Sousa Prado Specialist on Regulatory Affairs - Advisor - ANATEL/Brazil tiago.prado@anatel.gov.br ITU Workshop on QoS and QoE of Multimedia Applications and Services Haarlem, The Netherlands, 9-11 May 2016