1. 1 Telecommunication Services & Latest Developments in Regulatory & Institutional Frameworks Session 1: Trends in Infrastructure Services UNCTAD, Palais des Nations, Geneva Mr. Houlin Zhao Deputy Secretary-General, ITU International Telecommunication Union – March 2010

2. 2 Telecom Infrastructure Services & Regulatory Frameworks Telecom Infrastructure Services & Regulatory Frameworks 1) First wave of regulatory reform 2) Telecom Markets on the Move 3) Convergence & transition to IP 4) Conclusions

3. International Telecommunication Union – March 2010 3 First Wave of Regulatory Reform - Aims First Wave of Regulatory Reform - Aims 1) Overseeing the introduction of competition & curbing anti-competitive behaviour 2) Safeguarding social interests which the market may be unable to meet (e.g. market failures, externalities) - including universal service 3) Consumer protection 4) Establishing ground rules over common resources (spectrum, numbering & addresses).

4. 4 First wave of regulatory reform Privately-owned fixed-line incumbents in %, by region, 2009 Growth of Regulators, worldwide 2009 Source: ITU World Telecommunication Regulatory Database. International Telecommunication Union – March 2010

5. 5 Competition in selected ICT services, 2009 Source: ITU World Telecommunication Regulatory Database. International Telecommunication Union – March 2010

6. 6 Telecom markets on the move Growth in ICTs, 1998-2009 Source: ITU World Telecommunication/ICT Indicators Database International Telecommunication Union – March 2010

7. Strong growth in mobile & 3G telephony 5 bn total cellular subscribers, 1 bn mobile broadband subscribers in 2010. 6.5 bn total cellular mobile subscribers, of which 43% 3G in 2014. Source: ITU (left); Morgan Stanley, Ovum (right). International Telecommunication Union – March 2010

8. Mobile broadband overtook fixed broadband in 2008 & growing fast Source: ITU World Telecommunication/ICT Indicators Database. International Telecommunication Union – March 2010 8

9. Growth in countries with 3G networks 9 Source: ITU World Telecommunication Regulatory Database. International Telecommunication Union – March 2010

10. Network convergence driving regulatory reform Network convergence enables convergence of services. With the shift to NGNs, distinctions between network infrastructure, technology, and the services and application become blurred. International Telecommunication Union – March 2010

11. 11 Growth of social networking services - Twitter International Telecommunication Union – March 2010

12. Confidential information stored in a regular smartphone: Passwords Contacts Social networks App information Banking transactions Email account information GPS location and mobility patterns! 12 A data / privacy time bomb? International Telecommunication Union – March 2010

13. 13 Second wave of regulatory reform Independent converged regulators - From separate telecom & broadcasting regulatory institutions to converged regulatory institutions with responsibility for content Licensing –From service licenses to general authorizations, unified & class licenses –From technology-specific licenses to technology-neutral licenses More flexible spectrum allocation –From administrative approach towards flexible spectrum allocation practices (sharing, trading, etc.) for new access networks Network & bottleneck facilities –From exclusive ownership to passive & active infrastructure-sharing –Open access to network and bottleneck facilities (fibre backbones, LLU) –great national gateway liberalization Universal access & services - From fixed-line voice towards broadband universal access International Telecommunication Union – March 2010

14. 14 Impact of Financial Crisis on ISS Regulation Impact of Financial Crisis on ISS Regulation 1) Investment in telecom sector continues, but investors cautious & want concrete business plans 2) In response, regulators are prioritizing incentives for investment and working closely with investment promotion agencies (IPAs) 3) Government stimulus packages announced in 50 countries are an opportunity for financing as many prioritize broadband investments (mainly in fixed networks).

15. ITU Confronting the Crisis series of reports: 1) Its Impact on the ICT Industry - February 2009 2) ICT Stimulus Plans for Economic Growth - October 2009 www.itu.int/crisis2009/

16. International Telecommunication Union – March 2010 16 Conclusions Conclusions 1) Regulatory reform enables technological change & must be able to adapt to accommodate it 2) The financial crisis has made business conditions more challenging, but ICT sector has proved resilient. 3) Government stimulus packages are an important opportunity for the sector 4) New issues are arising all the time, discussed annually at ITU Global Symposium for Regulators

17. Thank you for your attention 17 International Telecommunication Union – March 2010