1. Voice & Data Convergence and its Regulatory Implications Facing MENA Regulators Telecommunications Regulatory Authority PO Box 10353 Manama Bahrain www.TRA.org.bh contact@tra.org.bh 16 th June 2004 Regulating Competition in a Converging Market A.Andreas Avgousti General Director

2. 2 Commercial in Confidence Voice Vs. Data From –Voice to fax –Fax to VoIP –VoIP to Broadcasting –Broadcasting to ?

3. 3 Commercial in Confidence Stay Connected A need for constant and continuous connectivity through : »Access to telephony, internet, information –Any time, any place. »Technology convergence : Fixed, mobile, 3G mobile, broadband, VoIP, WiFi »Information delivery to multi-functional personal devises : PDA, handset, etc Regional difference – still to meet basic needs of all our communities and ensure availability for all Accessibility to content

4. 4 Commercial in Confidence Availability of Content Entertainment Games Broadcasting TV, Radio streaming Location Specific Information Content convergence in terms of delivery : Telephony, Internet, 3G mobile technology, Broadcasting,

5. 5 Commercial in Confidence Opportunities Investment opportunities in new technologies without interference from incumbent in terms of infrastructure and access to consumers Reduced cost in investment Development of local content and delivery that addresses local demands Development of personalized content Use of Arabic language allowing access to all citizens in the region

6. 6 Commercial in Confidence Role of Regulator? How should regulators position themselves in new era? –To lead? –To follow? –To stop?

7. 7 Commercial in Confidence Regulators moving with speed of industry as opposed to lacking behind and delaying it. »Right set of skills (telecoms, IT, law, economics, …) »Clear policies taking in mind international best practice attuned to local needs »Fair and effective enforcement of the law Working together - exchange of knowledge with international and regional regulators Regional Integration & Regulatory Challenges

8. 8 Commercial in Confidence Regional Integration & Regulatory Challenges Liberalization of telecommunications markets is still new to the region- only a handful countries have fully liberalized markets Introduction of competition and competition safeguards Universal Service Obligations (USO) Light- handed regulation for new technology to allow development Firm hand on anti-competitive conduct to ensure fair development of competition Copyright and IPR ownership and infringement

9. 9 Commercial in Confidence Cross sector regulation ? »TelecomsTransmission »Broadcasting »Content Content Need independent regulatory regimes that –recognizes the needs of convergent industry; –Focuses on market forces whilst keeping in mind on welfare needs, company objectives and consumer demands. Regional Integration & Regulatory Challenges

10. 10 Commercial in Confidence Results New Market opportunities New jobs Reduced costs Increased Quality Accessibility

11. 11 Commercial in Confidence Convergence is an opportunity not a challenge