1. www.3wan.net 1 Cairo 3.iii.06 User issues Ewan Sutherland

2. www.3wan.net 2 Cairo 3.iii.06 Introduction Introduction Fixed networks Broadband Mobile networks International mobile roaming Conclusions

3. www.3wan.net 3 Cairo 3.iii.06 Multi-national corporations Global sourcing of goods and services Looking for telecommunications: –global –failing that, at least continental Low and falling prices Service level agreements

4. www.3wan.net 4 Cairo 3.iii.06 Fixed networks Monopoly on infrastructure construction: Monopoly on international gateways Monopoly on access to undersea cables Delays and prohibitions on VoIP Uncertainty on IP-VPN regulation Odd regulations on encryption

5. www.3wan.net 5 Cairo 3.iii.06 2 Mbps half-circuit

6. www.3wan.net 6 Cairo 3.iii.06 Delivery period 64kbps (days)

7. www.3wan.net 7 Cairo 3.iii.06 Broadband Clear economic benefits Yet many countries have weak policies Enormous variations in: –prices –speeds –bundles Causes vast differences in adoption rates Absence of a mass market delays creation of content industries

8. www.3wan.net 8 Cairo 3.iii.06 OECD Broadband Dec. 2005 http://www.oecd.org/sti/telecom

9. www.3wan.net 9 Cairo 3.iii.06 Mobile networks Customers tied to handsets by “discounts” Handsets locked to one operator Numbers not portable to other operators Lack of transparency in tariffs and contracts Excessive fixed to mobile rates Excessive prices for SMS Excessive prices for mobile Internet

10. www.3wan.net 10 Cairo 3.iii.06 Collusion Ireland – ComReg –found joint dominance in mobile call market Spain – CMT –found joint dominance in mobile call market France – Conseil de la concurrence –fined the three mobile operators EUR 534 millions –evidence of Yalta-style market sharing agreement Greece – EETT –fined operators for synchronised SMS price increases

11. www.3wan.net 11 Cairo 3.iii.06 Mobile data Hyped as a technological solution Seldom delivers anything of interest Operators are asking too much profit Unattractive environment for: –corporate users –content owners

12. www.3wan.net 12 Cairo 3.iii.06 International mobile roaming Excessive prices Inability of European authorities to resolve the problem Long running DG Competition cases NRAs given powers to regulate in 2002 Now, the EC proposes a regulation: –yet this may prove counter-productive

13. www.3wan.net 13 Cairo 3.iii.06 Customer care Most operators show limited interest in customers after making the sale Unresponsive Reluctant to: –issue Service Level Agreements (SLAs) –publish statistics They talk about partnership and strategy, but do little if anything to justify it

14. www.3wan.net 14 Cairo 3.iii.06 Conclusions Still many failings in markets Too nationalistic Too little competition Too much collusion and shadowing Too much lobbying by operators

15. www.3wan.net 15 Cairo 3.iii.06 Ewan Sutherland http://.www.3wan.net/ 3wan [at] 3wan.net ewan [at] gstit.edu.et skype://sutherla +44 141 416 06 66