1. The Impact of Convergence on the Communications Sector World Electronics Forum September 14-16, 2005 London, UK

2. 2 Presentation Overview  TIA Overview  Policy Issues – U.S.-Specific Challenges – Regulation – Investment and Competition – Spectrum  Conclusions / Possible WEF Action?

3. 3 TIA Overview  Trade organization serving the communications and information technology industry  Three primary activities: – Domestic and international advocacy – Trade shows and marketing support – Standards Development Organization

4. 4 TIA Overview  TIA’s Offices –Arlington, VA: Headquarters –Beijing, China: USITO  TIA Staff: 53

5. Convergence: Policy Issues

6. 6 U.S.-Specific Challenges  1996 Telecommunications Act – Technological change surpassing the 1996 Act – Law is unable to cope with an IP-based world – No easy solution Multiple legislative fixes? Eliminate technology “silos”? Focus on service definitions?  Universal Service Fund

7. 7 Regulation  Challenges are regulatory more than technological  TIA supports competition among multiple platforms for delivery  Regulators may need to focus on service definitions rather than platforms of delivery or technology

8. 8 Regulation  The regulatory structure must be able to cope with rapid innovation in an IP-based world  Consumers should be free to choose both the service and the service provider

9. 9 Regulation  Regulation should be – Used only where absolutely necessary – Light-handed – Narrowly focused – At the national level – Uniform – Technology-neutral

10. 10 Investment and Competition  Onerous regulation will stifle investment  Regulatory uncertainty will also stifle investment – Example = last mile issue in the United States – Triennial Review decisions on broadband triggered billions of dollars in investment

11. 11 Investment and Competition  Next Generation Networks (NGN) – Reduce market entry costs – Increase flexibility – Enhance competition Any network will provide any service to any device Competing infrastructures can offer the same types of service

12. 12 Spectrum  Need flexible, market-driven spectrum policies  Need technology neutrality  Need to continue to find more spectrum where possible – In the U.S., it is critical to release analog TV spectrum for other uses – Need hard date for digital TV transition

13. 13 Conclusions (1)  Technology and NGN work continues to advance rapidly – Multiple platforms – Innovative services – Increased competition  An entirely new regulatory mindset must be created

14. 14 Conclusions (2)  Industry must work with regulators (and consumers)  Industry and government should strive to agree to common principles  Regulatory policies – last-mile access, spectrum have the potential to chill investment  WEF members must continue to work together on these issues

15. 15 Matthew J. Flanigan President TIA 2500 Wilson Boulevard, Suite 300 Arlington, VA 22201 Telephone: +1-703-907-7700 Fax: +1-703-907-7727