1. (c) 2003 Charles G. Gray1 Telecommunications Regulation Domestic and International MSIS 5600 International Industry Overview Charles G. Gray

2. (c) 2003 Charles G. Gray2 Introduction Global telecommunications encompasses a number of diverse interests: Politics Economics Law/treaties Labor relations Social objectives Foreign relations National security Technology

3. (c) 2003 Charles G. Gray3 Technology/Industry Segments Local telephone service (POTS) Private networks Long distance providers Cellular telephones Pagers Radio Satellites Video services Data services

4. (c) 2003 Charles G. Gray4 Technology/Industry Segments Internet access/services Call centers Voice processing Toll-free telephone service Microwave transmission Fiber optic transmission Infrastructure management

5. (c) 2003 Charles G. Gray5 Rule of “C’s” in International Telecommunications Consensus Compromise Collaboration Coordination Consultation Culture

6. (c) 2003 Charles G. Gray6 Rule of “C’s” in International Telecommunications Clubbiness Cooperatives/Consortia/Cartels/Collusion Constraints/Comity Commingled costs Closed/conditional market access Corporatization

7. (c) 2003 Charles G. Gray7 Rule of “C’s” in International Telecommunications Consensus Compromise Collaboration Coordination Consultation Culture

8. (c) 2003 Charles G. Gray8 Rule of “C’s” in International Telecommunications Clubbiness Cooperatives/Consortia/Cartels/Collusion Constraints/Comity Commingled costs Closed/conditional market access Corporatization

9. (c) 2003 Charles G. Gray9 The BIG C CHANGE

10. (c) 2003 Charles G. Gray10 The Old Telecommunications World Order Monopoly Inflexible Closed market Nationalistic Government control

11. (c) 2003 Charles G. Gray11 The Emerging New Order Privatization –Change of legal status of the PTT from public to private ownership (may still be a monopoly) Deregulation –Reduction of regulatory requirements and reduces or removes structural safeguards that insulate the PTT from competition Liberalization –Government allows the PTT greater flexibility to enter new markets

12. (c) 2003 Charles G. Gray12 The Emerging New Order Globalization –The PTT is allowed to invest in foreign markets Competition –New entrants are allowed to participate, usually first on a resale basis, and ultimately with their own facilities Flexibility –All players have to become more agile in the market in order to survive

13. (c) 2003 Charles G. Gray13 Challenges to Sovereign Control Technological innovation Geographically dispersed nodes and hubs Broadcast signals traverse national borders Easy access to news, databases and entertainment from other nations

14. (c) 2003 Charles G. Gray14 Reinforcing the Status Quo Government social objectives (e.g., universal service) Incumbent carriers Political issues PTT employees (large numbers of citizens) Policy makers desire to preserve the rate base (taxes)