CONTRIBUTION TO GSR 2018 GLOBAL SYMPOSIUM FOR REGULATORS (GSR-18)

Transcription

1 CONTRIBUTION TO GSR 2018 GLOBAL SYMPOSIUM FOR REGULATORS (GSR-18) The Supervisory Agency of Private Investment in Telecommunications (OSIPTEL) of Peru submits the following contribution on the topic of Regulatory Frontiers. I EMERGING TECHNOLOGIES New technologies that enhance access networks: 5G and FTTH (Fibre to the Home) The ongoing development of mobile Internet services calls for the adoption, as quickly as possible, of the facilities needed for the commercial deployment of 5G technologies. This means requirements to work on radio spectrum issues and facilities for the deployment of infrastructure (and in particular, antennas), among other factors, to improve mobile Internet service parameters. Similarly, in fixed Internet, use of optical fibre technology in the user access segment (FTTH technology) is beginning to be adopted in Peru by operators, which are replacing their conventional copper-wire networks with this new technology. There is a general global trend in favour of both these technologies, and the hope is that they will be adopted in Peru s market to the same degree as elsewhere. Our national standards need to consider, on the basis of their underlying principle of technological neutrality, ways of ensuring that these new technologies provide better connectivity with due regard to basic standards regarding Quality of Service and network neutrality. IoT / Smart Cities It is increasingly the case that all devices need to be able to connect to the Internet in such a way that they can be monitored and controlled remotely. This is a part of what IoT (the Internet of Things) can offer. Applying IoT in a larger environment, such as a city, brings to life the concept of smart cities with the aim of creating autonomous and sustainable cities that can provide technological solutions of greater benefit to citizens. Along these lines, IoT and smart city technologies, in order to be implemented and developed, require robust telecommunication networks that will allow end-to-end transport of data to data centres where the data can be collected and managed. For this, the essential support/medium to ensure the correct deployment and development of these technologies will be adequate telecommunication networks providing high-quality services and ensuring effective operation for communications that rely on critical connectivity schemes. Big Data Processing of data will be very useful, in particular because it will enable us to predict potential future scenarios. Deployment of IoT and smart city technologies will generate increasing quantities of data which will necessitate the use of specialized technologies for processing and analysis, in the most effective possible way, as the information thus obtained must be accurate and timely. Given that the State is the largest entity to hold data, it is essential to reinforce the mechanisms whereby we can start developing big data technologies, handling and storing information in large

2 2 public/state data centres that will facilitate access to information in order to promote development of new services. II BUSINESS APPROACHES Companies in particular are fostering the rapid adoption of new technologies with a view to having more attractive products and simpler and more effective relations with their customers, thus setting themselves apart from the rest of the market and stimulating competition. Some of these innovations are related to applications and services that use artificial intelligence, more widespread use of OTT (over-the-top) services, or e-cash services. Artificial intelligence (AI) The adoption of artificial intelligence for providing different types of service by different companies results in benefits for service providers and their users. Thanks to these AI systems, it is possible to improve Quality of Service and reduce the associated costs. One example of this is provided by the bots or robots that banks are making available for the customers via social networks for general consultation regarding their services. It should be noted that the application of AI systems in business requires processing of large volumes of information on users (big data), which takes place at data centres, all these services being interconnected via telecommunication networks. The competent authority will need to provide the necessary connectivity schemes, taking into consideration such aspects as wireless connectivity (and the spectrum required for this), potential incompatibilities of wireless systems, and facilities for the deployment of IoT networks, as well as other factors. For example, in the financial and banking sector, AI can help to prevent fraud, improve forecasts of customer defaults, and identify consumption patterns. In the education sector, AI can be applied to devise personalized study programmes (for example) based on students own preferences and interests, which can improve learning motivation. OTT and APPs OTT (Over the Top) companies provide their applications, services and content to customers with only one Internet access, without network infrastructure that reaches the user. This type of new service is among other resources that are now available through Internet access. Most of these OTT services are starting to be so successful that they are starting to overtake conventional telecommunication services, in some cases competing directly with them. Examples of these new services include WhatsApp, Skype, Netflix, Google, Facebook and Google Maps. It is important for national regulatory authorities to keep track of the adoption of this type of service and, where necessary, to ensure that the necessary policies are developed to ensure that these new services produce benefits for society. Nevertheless, the availability of these new products has also helped to ensure that Internet access has greater added value as a product for users. Operators have also benefited as the value their Internet access service has been enhanced. Many companies are innovating as regards the way in which they communicate with their customers and their own staff by using mobile applications ( apps ). One of the main innovations are unified communications, a form of communications based on cloud services that allows mobility, simplicity of use and accessibility from any location.

3 3 E-money E-money is a value or pre-paid product stored on electronic devices such as e-wallets, computers or mobile phones. It is used as a means of payment for low-value transactions, facilitating buying and sale of goods and services such as transfers and cash withdrawals. The importance of e-money lies in the fact that it enables sectors traditionally excluded from the financial system whether because of difficulties in access to bank branches, of because of fear or lack of awareness to access these financial services in easy ways. It thus enables such population groups to make payments or withdrawals and to become integrated in markets beyond the local level. This is done mainly through mobile phone services, the medium used to access e-money platforms. III REGULATORY FRAMEWORK FOR THE DIGITAL TRANSFORMATION Under current conditions of constant innovation and accelerating technological progress, it is essential to define an appropriate regulatory framework that will allow the promotion and adoption of new technologies. For example, it is important to define such a framework to promote information and communication technologies (ICTs) and encourage companies and government bodies to embrace the digital transformation. It is important to consider that the digital transformation, as outlined schematically in the figure below, comprises three main elements: artificial intelligence, data governance and connectivity. The latter is the main means of developing the other technologies of the digital transformation. Digital transformation Artificial intelligence (AI) Data governance Industry 4.0 Sensors Data Centres OSIPTEL, as telecommunications regulator, ensures optimal conditions at this level, resulting in a form of connectivity that enables the development of AI and IoT. Access Connectivity Transport Source: Regulatory Analysis Division - GPRC, OSIPTEL Availability Competition The digital transformation goes far beyond merely digitizing a company s conventional processes, as it enables us to optimize processes, create new ways of carrying out conventional processes, and build digital technologies into the daily routine and into company strategies, resulting in multiple benefits including reductions in costs and work time A key element in the successful implementation of the digital transformation, especially in government institutions, is an effort to raise awareness that the digital transformation creates many benefits and must be adopted in order to improve productivity and competition, and that it

4 4 must not be seen as a threat to the job security of some workers. ICT professionals should take the lead in bringing about this transition within their own companies or public bodies. One example of the implementation of digital transformation practices for telecommunication processes is the use of biometric mechanisms (fingerprints) for providing services. This simplifies the process of service provision and adds a robust security element that can prevent identity theft for the purpose of obtaining services or terminal devices. ICTs (information and communication technologies) ICTs aim to boost the use of technology for more specific purposes that can contribute to solutions in fields such as education, security, data security, and inclusion. More specifically, once communication infrastructure has been developed to allow connectivity and access to the Internet, it is essential to apply tools allowing the development of applications and services that can improve citizens lives. In this context it is essential that any ICT policy consider the importance of data and the associated infrastructure. This will mean developing services in the cloud, which just means geographical locations where all these data are collected and processed, by promoting the deployment and use of sites specially designed for this purpose as data centres, as well as the related infrastructure needed to provide services such as data storage, real-time support and data processing. Finally, at government level, a public policy is needed for the management of government data centres for the collection of relevant information at national level, which can be easily shared for the purpose of developing solutions and services of national benefit. Network neutrality Network neutrality is a regulatory principle enshrined in Peru in Law No and its associated regulations. This legislation seeks to protect the right to freedom of choice for Internet access users, which means the right to legally access any applications, protocol, service or traffic available as part of his or her Internet service. The safeguard provided by this principle guarantees the right environment for encouraging the development of new Internet content, services and applications. The importance of network neutrality for the digital transformation lies in the fact that it enables us to set parameters to ensure that users Internet access is not subject to any form of manipulation by the operator providing this service (Internet access). With due regard to the provisions of the Regulations on Network Neutrality, it is possible to ensure that the new developments arising from the digital transformation will have an equitable platform, with a neutral Internet. E-money OSIPTEL, through Law No , sets out the provisions ensuring access to telecommunications for companies providing financial services in conditions of equality. In the event that parties fail to reach an agreement, OSIPTEL issues instructions setting out the conditions required to guarantee such access. Quality of Service Given that, under certain conditions, and in particular when there is insufficient competition, telecommunication operators may have an incentive to offer low levels of quality, OSIPTEL promotes optimal provision of quality in public telecommunication services. To that end, certain quality indicators have been established and are applied to telecommunication operators, in

5 5 particular fixed telephone services, mobile phone, Internet, subscription TV, bearer services and data switching services.