1. The New Paradigm for the Convergence Phenomenon Egyptian Vision 15 June, 2010 Smart Village, Egypt

2. Paradigm Shift and Sector Reform Two major changes with paradigm shifts:  Towards Regulated Competition  Towards Convergence “The introduction of NGNs is the most significant change to telecoms networks since competition was introduced two decades ago” Ofcom

3. “How, in a fast moving technological environment, effective policy and regulatory policies may be developed to fully leverage the opportunities created by rapid technological changes?" The special issue of 'communications & strategies‘, Nov. 2005 Technological convergence and regulation, Challenges facing developing countries, Edited by Jérôme BEZZINA & Bernard SANCHEZ with the support of InfoDev.

4. Highlights on the Egyptian Telecom Law The NTRA shall aim to regulate the (Tele)communication Service and to enhance and deploy services in compliance with the most advanced technology means satisfying the Users’ needs at the most appropriate prices; The NTRA shall also encourage national and international investment in this field within free competition rules, …

5. Highlights on the Egyptian Telecom Law The NTRA shall, in regard of achieving its goals, have the right to take all the necessary actions, especially the following:  Setting up the strategies, programs, rules and management techniques according to its activity in compliance with the provisions of this Law and the resolutions issued for its execution, without limitation to the governmental rules and regulations.  Keeping up with the technical and technological advancement in the telecommunication field in compliance with health and environmental standards.

6. The Phenomenon Definition Convergence can be defined as the technological improvements by which a number of networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that one concrete service may be provided over a number of different networks. Convergence has, therefore, important consequences for market players and consumers, requiring regulators to adapt to this new paradigm. CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

7. The Phenomenon Definition Convergence can be defined as the technological improvements by which a number of networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that one concrete service may be provided over a number of different networks. Convergence has, therefore, important consequences for market players and consumers, requiring regulators to adapt to this new paradigm. CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

8. The Phenomenon Definition Convergence can be defined as the technological improvements by which a number of networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that one concrete service may be provided over a number of different networks. Convergence has, therefore, important consequences for market players and consumers, requiring regulators to adapt to this new paradigm. CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

9. The Phenomenon Definition Convergence can be defined as the technological improvements by which a number of networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that one concrete service may be provided over a number of different networks. Convergence has, therefore, important consequences for market players and consumers, requiring regulators to adapt to this new paradigm. CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

10. The Phenomenon Definition Convergence can be defined as the technological improvements by which a number of networks arise with enhanced capabilities to provide multiple services. This implies, at the same time, that one concrete service may be provided over a number of different networks. Convergence has, therefore, important consequences for market players and consumers, requiring regulators to adapt to this new paradigm. CONVERGENCE: CHALLENGES FOR REGULATORS, Sara Callegari

11. Second Wave of Reform Main Driver: Move towards Convergence. Effects:  Collision of originally separate sectors;  changing the competition paradigm;  Alliance, merger and acquisition between companies;  Service value chain restructure, decoupling the service layer and the network layer;  Emergence of NGNs;  Different customer experience;  More regulatory challenges.

12. The Phenomenon and trade-offs Potential increase in the number and type of competitors for different services; making the general competition and regulatory assessments more complex and challenging. Innovation, greater choice and better prices; increasing complexity for consumers, who will from now on need to compare different services, price offers and schemes, technologies and devices. Opportunity to provide more than one service; increased competition from other providers

13. Egyptian Vision “Convergence in this respect is perceived as one of the most significant alterations taking place in the market, it is a new wave of change that opens new horizons and explores new areas… it promises further growth and new opportunities, for developed as well as developing nations”. –H.E. Dr. Tarek Kamel

14. Critical Factors Provision of qualified manpower and brain-ware:  Knowledge transfer partnership programs with the private sector  professional training institutions, the ITI and the NTI  Grants to sponsor research and academic institutes

15. Critical Factors Enhancement of public-private-partnership  Multi-stakeholder dialogue  Cooperative series of executive workshops and awareness seminars  Consultation on “Implications of ICT and Media Convergence”

16. Critical Factors Guaranteeing an enabling regulatory environment  Reviewing the current regulatory regime to remove any bottleneck that might slow down the migration process and to ensure technology, network and service neutrality  The challenge of “NGN Access Divide”  The digital dividend  Cooperating with European partners to set a medium and long term plan for convergence

17. Critical Factors Digital Content and Cultural Identity  Egypt has always been and remains to be a leading source of cultural and entertainment content in the Arab world that it holds a tremendous potential to become a major exporter of digital content feeding into the convergence machine

18. Critical Factors Development of a strong ICT infrastructure  Granting two licenses to provide triple-play services in new gated compounds  Drafting the “Broadband National Plan”

19. Broadband National Plan Consultation activity with the World Bank: The activity looked at technological, policy and regulatory measures. It provided elements to assess whether the emerging business and policy models in the area of broadband internationally can be introduced and sustained in Egypt’s current regulatory framework and business environment. It assessed measures likely to improve the supply of broadband, and to enhance the demand and use of broadband by the final user.

20. Broadband National Plan Deliverable #1: Broadband Policy: International assessment of options  Technology  Service delivery  Policy and regulatory framework Deliverable #2: Benchmarking Broadband Development: Case studies covering:  Canada  Chile  Republic of Korea  Malaysia  Singapore  Turkey The Next phase is supposed to measure the impact of Broadband on the National Economy in terms of growth rate and employment.

21. Broadband National Plan Short Term Objectives (2014)  Increase BB penetration  Reach critical mass Long Term Objectives (2020)  Increase BB speeds  Reach international BB penetration rates  Minimize urban vs. rural BB gap

22. Broadband National Plan Short Term:  25% HH penetration (4 Million fixed BB subscribers)  5% Mobile BB penetration of population (4 Million mobile BB subscribers) Long Term:  High-speed BB (min. 10Mbps) for 90% of HH in urban areas  40% overall BB penetration of population

23. Existing Convergence Forms 3 Mobile operators with 3G+ licenses 2 licenses for triple-play services in closed compounds TE plans to roll out NGN in certain places Shofha.com VoD services over the internet 2006 world-cup Webcast Double play bundled offers (Voice + fixed / mobile broadband) Merger and acquisitions between mobile and data operators

24. THANK YOU Ahmed Hefnawy Manager, Converging Services ahefnawy@tra.gov.eg