Kosa Presentation


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Kosa Presentation

  1. 1. Economic and institutional implications of network convergence Dr. Zsuzsanna KOSA, Budapest University of Technology and EconomicsFaculty of Informatics:kosa@tmit.bme.huFaculty of Economics:kosa.zsuzsa@itm.bme.h u5-7/10/2004 Vilnius, ITU-D Seminar on CEE 1Lithuania, EU Telecommunications Markets
  2. 2. Convergence model: 3 dimensions• Convergence is a s n technology based d regulation market restructuring development process s n• Regulation reacts to market d technology and market s features and changes n d technology• The ICT sector T I M extends sectors5-7/10/2004 Vilnius, ITU-D Seminar on CEE 2Lithuania, EU Telecommunications Markets
  3. 3. Dependency from networks• Networked industries extend and influence the economy• Reliability and security of these networks become essential• Dependency asks for regulation5-7/10/2004 Vilnius, ITU-D Seminar on CEE 3Lithuania, EU Telecommunications Markets
  4. 4. Oligopol structure leads to asymmetry• There are few providers and capital concentration• There are differences in market power and information asymmetry• Asymmetry asks for regulation5-7/10/2004 Vilnius, ITU-D Seminar on CEE 4Lithuania, EU Telecommunications Markets
  5. 5. Stakeholder structure & convergenceStakeholder groups: Convergence aspects:vCustomers Ø Growing supplyvProviders Ø Restructuring marketsvSuppliers Ø Rearrange supply chainvInvestors Ø Growing riskvWorkers Ø Less staff neededvRedistributors Ø More regulation neededvGeneral public Ø Interested in involvment5-7/10/2004 Vilnius, ITU-D Seminar on CEE 5Lithuania, EU Telecommunications Markets
  6. 6. Historical regulation approaches• Sector specific regulation for telecom• Self-regulation for informatics,• Technical regulation for scared resources for media• Content providing as other media5-7/10/2004 Vilnius, ITU-D Seminar on CEE 6Lithuania, EU Telecommunications Markets
  7. 7. Co-regulation approachDistributed duties among:• Sector-specific Regulator• General Market Regulatory Authorities• Industrial self regulators• Civil Society5-7/10/2004 Vilnius, ITU-D Seminar on CEE 7Lithuania, EU Telecommunications Markets
  8. 8. Co-regulation for convergenceStakeholders: Regulation:• Sector-specific- and • Legislative framework, general- market direct regulatory regulatory institutions: empowerment is needed, (Governmental Authorities) co-opetition for duties• Industrial self co- • Fight for more self- regulators (Industrial regulation, they ask for associations) funding, risk of dominants• Civil associations, consumer groups, workers • Weak on the market, but groups, public public is sensitive on them5-7/10/2004 Vilnius, ITU-D Seminar on CEE 8Lithuania, EU Telecommunications Markets
  9. 9. Globalization ofnetworked industries & regulationNetworked industries Regulation tends to be become Global: Global too:• Operators, consumers • ITU as a global regulator from the whole World seeks for consensus• Network density grows, networks extend • WTO & UN-WSYS tries to enhance the development• Internationalisation extends • EU has intensive internalThe relevance of the market regulation industrial co-regulation • US is a benchmark for EU increases5-7/10/2004 Vilnius, ITU-D Seminar on CEE 9Lithuania, EU Telecommunications Markets
  10. 10. Institutional framework scenarios: “Let it be”• Let the spontaneous convergence process to act. Handle only the emerging market failures• Happy incumbents• Rather happy customer and regulator• Unhappy newcomers workers and social groups5-7/10/2004 Vilnius, ITU-D Seminar on CEE 10Lithuania, EU Telecommunications Markets
  11. 11. Institutional framework scenarios: “Look it after”• Extend the existing regulatory institutions towards information and media technologies• Happy customers, newcomers and investors• Rather happy regulators• Unhappy incumbents5-7/10/2004 Vilnius, ITU-D Seminar on CEE 11Lithuania, EU Telecommunications Markets
  12. 12. Institutional framework scenarios “Merging”• Merge sector-specific regulation with regulation of content• On stop shopping for consumers• Merges political issues with technical ones• Risky scenario in CEEC5-7/10/2004 Vilnius, ITU-D Seminar on CEE 12Lithuania, EU Telecommunications Markets
  13. 13. Institutional framework scenarios “Federalisation”• Public utility regulatory institutes in each EU member states,• Extended sector- specific regulator at EU administration• Not matured scenario in Europe yet5-7/10/2004 Vilnius, ITU-D Seminar on CEE 13Lithuania, EU Telecommunications Markets
  14. 14. Focuspoint options of sector-specific regulationqExtend the competency qCo-regulate in aliance of sector specific with Competition regulator Authority qCo-regulate with qRegulate based on industrial bodies communication with civil society5-7/10/2004 Vilnius, ITU-D Seminar on CEE 14Lithuania, EU Telecommunications Markets