Regulation 2.0 the future challenges in telecom regulation

Transcription

1 Regulation 2.0 the future challenges in telecom regulation Dr. Georg Serentschy CEO Telecommunications and Postal Services, RTR-GmbH BEREC Chairman 2012

2 Europe is loosing ground in five areas against N-America and Asia. Investor s focus is no more on Europe. Europe North America Asia Innovation potential Infrastructure Roll-out Attractivity for capital, ideas and new jobs Vendor landscape Comments to the situation in Europe No European Silicon Valley Companies do not invest against declining revenues Uncertain regulatory framework, lack of venture capital No effective industry policy in Europe in place Over-the-Top Players N.A. regional No European Silicon Valley Regulation 2.0 the future challenges in telecom regulation 2

3 Europe needs to draw the right conclusions from the MENETEKEL: bold action is key for ensuring Europe s future welfare. Solutions for the challenges ahead Regulation has to provide incentives for investments Level playing field between Telcos and OTTs Strengthening of the demand side of the market (eliteracy, transparency, tools etc.) Flexible interpretation of the existing regulatory framework no regulatory µ-management More flexibility for NRA s to apply the legal framework Regulation 2.0 the future challenges in telecom regulation 3

4 Initial overview shows, that apart from regulation also other policy areas are key for improving the European telecom ecosystem. Regulation is a key factor Other important policy fields Industrial policy Availability of venture capital Innovation Ecosystem Education policy Fiscal policy General climate for investments in infrastructure Regulation is a key factor for the future development What can the regulatory framework and regulators do in order to enable the European telecommunication market to contribute to European welfare? Growth, increase of productivity, innovation and investments in new infrastructures and services? Regulation 2.0 the future challenges in telecom regulation 4

5 Regulation has created a highly competitive environment in Europe now new approaches are required for telcos and regulation. Consequences and outlook Challenges for telcos mean also challenges for current regulation ( Regulation 1.0 ) Do we regulate the market right do we regulate the right markets? Through the exponential growth of traffic, huge investments in networks are needed Technical changes needs to be implemented in networks ( all-ip ) Competition causes increasing cost- and consolidation pressure for telcos. Consolidation and the creation of the digital single market contrasts sometimes with maintaining competition. This challenges policy makers, regulators and competition watchdogs Situation calls for a strategic new positioning of telcos and regulation Regulation 2.0 the future challenges in telecom regulation 5

6 Europe needs new strategies to compete successfully with North America and Asia Regulation 2.0. Key pillars - Regulation 2.0 Independent infrastructures as key drivers for competition (Infrastructure based competition) Fibre, cable (DOCIS 3.0), mobile (LTE) Regulation to offer long-term investment incentives to attract investors Level playing field between telcos and OTTs necessary Measures to strengthen the demand side (clear cut rules for net neutrality, eliteracy, transparency, tools for users etc.) A flexible interpretation of the current regulatory framework in order to better deal with a fast moving sector Single European digital market is key, but it s not a silver bullet Regulation 2.0 the future challenges in telecom regulation 6

7 What next? Regulation 2.0 the future challenges in telecom regulation 7

8 The regulatory system in Europe is based on three pillars (1) EU framework, (2) national legislation and (3) BERECs work. The European Framework For all member states Focus on fixed networks (so far) Harmonisation as a key issue Digital Agenda Making Europe real Review upcoming Focus: Investment incentives, Digital Agenda, intermodal competition BEREC Key tasks: Harmonize the application of EU framework Advisory role towards EU institutions Expert working groups (i.e. work on NN, Roaming, BBpromotion, ) Article 7/7a proceedings National legislation in 27 member states EU Framework determines the national legislation (minimum requirement). National legislation goes sometimes beyond EU framework. EWR countries bound to EU system CH as a special case Regulation 2.0 the future challenges in telecom regulation 8

9 Implementation of a new strategy requires smooth hand-in-hand operation by EU, BEREC and NRA s. Bold action for Europe required 12. July Initiative : Neelie Kroes announced the ambition to create an attractive environment for broadband investments - details tbd Level playing field for Telcos and OTTs, Neutrality for technology, Long term regulatory stability and Stimulation of investments for the development of NGA BEREC deals with the challenges ahead in it s strategy process and the work programme 2013 NRAs need headroom to apply the framework in a flexible manner to deal with a rapidly changing market Remaining issues might be handled in a new regulatory framework and the recommendation of relevant markets Regulation 2.0 the future challenges in telecom regulation 9

10 BEREC plays an important role as an adviser of the European Institutions and NRAs. The tasks of BEREC EP Advise Council Advise Best Practice EC Advise and assistance NRA s Advise and assistance Regulation 2.0 the future challenges in telecom regulation 10

11 Creating awareness of important developments/issues EP Advice Council Advice Best Practice EC Advice and assistance NRA s Advice and assistance Board of Regulators Telecom Operators New players/other Innovators Vendors Mid-term Strategy Work Programme Topic Harmonisation Consumer (private/business) Regulation 2.0 the future challenges in telecom regulation 11

12 Conclusions Bold action for Europe required The existing regulatory framework and its implementation are not future-proof (lack of incentives for investors, level playing field between telcos and OTT s, etc.) Regulation 2.0 proposes a set of measures based on the current regulatory framework and might also impact a new regulatory framework: Investment-friendly regulation for infrastructure- and service providers Technological neutrality and focus on the infrastructure based competition Clear cut net neutrality rules and empowerment of the demand side (eliteracy, transparency, tools etc.) Need for bold action in other policy fields and the industry Regulation 2.0 the future challenges in telecom regulation 12

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14 Regulation 2.0 the future challenges in telecom regulation Dr. Georg Serentschy CEO Telecommunications and Postal Services, RTR-GmbH BEREC Chairman 2012