Telecom Regulatory Updates

1. Coherent Regulatory Framework
for transforming ICT industry
Muhammad Yousaf Sheikh
Assistant Director (WLL)
June 2015

2. INTRODUCTIONSelection of Topic From GSMA
Timotheus Hoettges CEO Deutsche Telekom
2

3. Presentation outline
1. Introduction
2. Generations of Telecom Regulation
3. Fourth Generation of Telecom Regulation
4. Key Trends (MBB,TVWS,OTT,FMC)
5. Policies of Pakistan Telecom Sector
6. Conclusion
7. Recommendations

4. Generations of Telecom Regulations
4
Source- Trends in Telecommunication Reform Special Edition: 4th Generation Regulation- ITU
1st Generation
State owned Monopolies
2nd Generation
Privatization, Regulatory bodies
3rd Generation
Competition, Expansion of Services
4th Generation
ICT Industry, Constant Innovations

5. Fourth Generation of Telecom Regulation
5
Converge
Network Services
Universal Access
to Broad Band
Consumer
Protection-
Unwanted
privacy
Spectrum
Management
Balanced
Regulation-Co/Self
Regulation
Co operational –
Inter regional-
regional
Consultation
Collaboration
Interconnection
Licensing
Authorizations
Net Neutrality
Source- Trends in Telecommunication
Reform Special Edition: 4th Generation
Regulation- ITU
4th Generation Regulator
Driving Digital Communications
Ahead

6. Key Trends 1- Mobile Broadband Expansion
Source- GSMA- Intelligence The Mobile Economy 2015

7. Source- Cisco VNI Mobile 2013-2015,
GSMA- The Mobile Economy 2015
Global Mobile Data Traffic –
(Per Month, Peta Bytes)
Key Trends 2- Applications and Data Traffic

8. Source- Cisco VNI Mobile 2015,
GSMA- The Mobile Economy 2015
3GPP
Band No.
Commonly used
band name
Uplink
(MHz)
Downlink
(MHz)
3GPP
Band No.
Commonly used
band name
Uplink
(MHz)
Downlink
(MHz)
1 2.1 GHz (UMTS) 1920-1980 2110-2170 18 850 MHz (Japan) 815-830 860-875
2 1900 MHz (PCS) 1850-1910 1930-1990 19 850 MHz (Japan) 830-845 875-890
3 1800 MHz (DCS) 1710-1785 1805-1880 20 800 MHz (CEPT) 832-862 791-821
4 AWS 1710-1755 2110-2155 21 1500 MHz (Japan) 1447.9-1462.9 1495.9-1510.9
5 850 MHz 824-849 869-894 22 3500 MHz 3410-3490 3510-3590
6 850 MHz (Japan) 830-840 875-885 23 AWS-4 (USA) 2000-2020 2180-2200
7 2600 MHz paired 2500-2570 2620-2690 24 L-Band (USA) 1626.5-1660.5 1525-1559
8 900 MHz 880-915 925-960 25 PCS 1900 G 1850-1915 1930-1995
9 1700 MHz (Japan) 1749.9-1784.9 1844.0-1879.9 26 850 MHz (Ext. upper) 814-849 859-894
10 1700/2100 MHz
(3G Americas)
1710-1770 2110-2170 27 850 MHz (Ext. lower) 806-824 851-869
11 1500 MHz (Japan) 1427.9-1447.9 1475.9-1495.9 28 APT 700 MHz 703-748 758-803
12 US700 (Lower A,B,C) 699-716 729-746 29 700 de - 717-728
13 US700 (Upper C) 777-787 746-756 30 2300 (WCS) 2305-2315 2350-2360
14 US700 (Upper D) 788-798 758-768 31 450 MHz 452.5-457.5 462.5-467.5
15 Reserved 32 1500-Lband - 1452-1496
16 Reserved TDD Bands (33-44)
17 US700 (Lower B,C) 704-716 734-746 Source: 3GPP TS 36.101 V12.2.0
Key Trends 3- Spectrum Requirements

9. Source- Cisco VNI Mobile 2015,
GSMA- The Mobile Economy 2015
Global Mobile Data Traffic –
(Per Month, PB)
Key Trends 4- Defining BroadBand limits
Source: ITU World/ Telecom/ICT indicators Database
BB QoS Regulation 2014- BB speed 256Kbps or as adopted by Authority inline with GOP policies

10. • Portions of spectrum left unused by terrestrial
broadcasting in VHF (54-216 MHz) & UHF
(470-698MHz).
• Advantageous propagation properties,
including excellent outdoor and indoor
coverage and non-line-of-sight propagation.
• Alternative for providing commercial
wireless/Broadband services.
• Uses White Spaces Database after
registration.
Source- Carlson Wireless, OFCOM,Commscope
Current Standards for TVWS
a) Wireless Regional Area Network (WRAN)- On Non
Protection Non Interference basis based on IEEE
802.22 Standard.
b) Machine to Machine (M2M) Communication- very
low-power radio transmitters that are used for low-
data-rate industrial and commercial applications, such
as monitoring, tracking, metering and control
Carlson Wireless USA distributes Broadband using
white space in 470-698 MHz in Rural areas.
Key Trends 5- TV White Spaces (TVWS)

11. Any application or service that
provides a product over the Internet
and bypasses traditional distribution
(Viber, Skype, Whats app, Netflix ).
2014=1.24 billion OTT subscribers.
2017=1.95 Billion
Regulatory Challenges:
•Consumer Security
•Sustainable Business Model for
telcom operator
•Cybercrimes,
•National Security
Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014, https://clt.vtc.edu.hk/about-clt/
Key Trends 5- Over The TOP (OTT) Application

12. OTT- Uneven Regulatory Playing Field (continued)
Source- Dotecon –Policy & Regulatory Framework for governing Internet Application 2014
Area of Regulation Telecom Operator OTT Provider
Licensing Yes-Individual licensing
required
Often Exempted or Class
licensing
Provision of LI Required as License obligation No LI.
Quality of Service Included in licensed obligation No. QoS (specifically speed)
problems generally blamed on
network provider.
Net Neutrality Assumes “best effort” transport
of data without discrimination,
independent of source or
nature of data.
However, Concept not applied
in some countries.
No obligations. Their control
over the content and freedom
of choice concerning customers
releases them from restrictions.
InterConnection Yes, Required to
terminate Voice/Data traffic.
Doesn’t Require

13. OTT- International Practices(continued)
Source- Dotecon –Policy &
Regulatory Framework for
governing Internet Application
2014
TRAI- Consultation paper on
OTT 2015
Country Treatment of OTT Voice Providers
Singapore Specific licenses for VOIP connecting to PSTN.P2P not licensed,
subject to competition law
US Licenses not necessary but obligations concerning emergency
numbers and LI
EU Licenses not necessary bit in individual countries (France, Spain) OTT
providers (skype) have been blocked when offering voice services
that connect to PSTN.
UAE OTT not allowed if they work with licensed telecom companies. VOIP
defined as a regulated activity.
Egypt Legislation expected soon, but none at present. VOIP using mobile
network is forbidden. International calls have to go via international
gateway.
S. Arabia Few OTTs blocked because of Legal interception issues.
Bahrain Voice Services connected to PSTN only allowed for license holders
but foreign providers not actively marketing their services in the
country will not be pursued.
India TRAI issued consultation “Regulatory Framework for OTT” in March
2015. Regulate OTT, New Licensing Regime, Commercial Agreement
b/w OTT and Telcos, Voice traffic management techniques for OTT.
Response- NO OTT Reg Framework required, Regulatory Equivalence
approach, Light touch regulations
Management of OTT
Unlimited
use
Ban
Technical
Measures
-monitor,
filter

14. ITU-T recommendation Q.1762 defines Fixed
Mobile Convergence (FMC) as
Mechanism that provide services and
application to the end user regardless of the fixed
or mobile access technologies being used and
independent of the user's location.
Source- ITU -T Recommendation Q.1762,
Benefits :
• Bundling of services reduces the cost for consumer.
• Convenient usage of the bundled services (Configuration, single billing)
• Seamless service experience.
• Provide services to a mobile user in an area where a radio network is not deployed
• Better utilization of radio spectrum in IMT-2000, IMT-Advanced networks
• Network deployment and operational cost reduction.
• Reuse of fixed line assets.
Key Trends 6- Convergence (FMC)

15. FMC Success Stories(continued)
Source- Fixed Mobile Convergence for Cellular Service Providers -Cisco
SwissCom FMC Deployment T Mobile FMC-HotSPot@home
User can roam across fixed-line DSL and mobile
GPRS, UMTS, EDGE, HSDPA, and wireless LAN
hotspot networks with service automatically
switching to the best possible connection.
User with dual-mode cellular/Wi-Fi handset
can handoff with the standard cellular network
and Wifi/unlicensed mobile access calls/Data.

16. Key Policies for Telecom Sector in Pakistan
• Fixed line Sector Policy.
• Open and Technology Neutral
• License Term - 20 Years
• Local Loop (LL) – ILF US$
10,000 / region - 14 Regions
• Scope- LL services In a
licensed region. LM for WLL.
• Wireless Local Loop Option
(Spectrum Auctioned)
• Long Distance and
International (LDI) – ILF US$
500,000
• Deregulated incumbent
operator PTCL.
• Introduced APC, USF, R&D,
ARFSF Regime.
De-Regulation Policy 2003
• Mobile Sector Policy.
• Technology Neutral
• 2 New cellular Licenses were
issued for 15 years.
• Open Auction.
• Promoted efficient use of
Spectrum.
• Fair Competition amongst
mobile and fixed line operators
• Existing Operators to Pay
Same Amount for Renewal.
• Promoted Infrastructure
sharing, National Roaming,
Mobile Number Portability.
• ASAF, R&D,USF,ARD Fees.
Cellular Mobile Policy
2004
• Mobile Sector Policy.
• Technologies 3G/4G and
above.
• 4 New NGMS Licenses were
issued for 15 years.
• Open SMRA Auction.
• Promoted efficient use of
Spectrum.
• Existing Operators to Pay
Same Amount for Renewal.
• Promoted use of advanced
technologies, Infrastructure
sharing, National Roaming,
Mobile Number Portability.
• ASAF,R&D,USF,ARD Fees.
NGMS Policy 2013-14
16

17. Draft Telecom Policy Oct 2014
6.2 Licensing framework
6.2.1 The current licensing framework shall continue to apply subject to the introduction of
class licenses associated with satellite services.
6.2.2 The present licensing regime already distinguishes between those operators that provide
infrastructure as well as services and those that provide services alone. Nevertheless,
there are gaps and inconsistencies in the licensing framework that should be addressed.
6.2.3 MoIT, in consultation with the PTA, will therefore review the licensing framework, in
recognition of the market state at that time, the move to regulation through Competition
Rules, changes in the technology used to provide services, and consequential changes in
the types of organizations that are telecommunications service providers. It is expected
that this review will take place by 31st December 2016. Any proposed changes to the
licensing framework will be made in consultation with the sector stakeholders and subject
to approval by Government.
6.2.4 Any new licensing regime will be based on international best practices. It will enable new
services to be readily provided while meeting service specific requirements (including but
not limited to quality of service, customer protection, content acceptability and national
security) as they are defined. The licensing regime will continue rights and obligations
associated with scarce resources and any obligations on network roll out.

18. Case Example-Speak XYZ OTT
OTT / FLL /
Mobile User
anywhere in the
world
Speak XYZ
OTT Product
installed in
Smartphone
XYZ
Domestic / LDI
Switch
• OTT to OTT (Voice, Video, Messaging).
• OTT to Fixed line/Mobile (Voice) using LL/LDI Gateway.
Source- XYZ Licensee Proposal

19. Conclusion
Current licensing framework of Pakistan requiring:
• LL operators to establish switching systems within their local licensed region.
• Handing over LL traffic to LDI outside their licensed region.
• Restricting the use of same LL number in geographical licensed region
boundaries .
• Restricting use of fixed line infrastructure to provide mobile services to end
customer (Femto Cell).
• Restricting FLL/WLL licensee to provide OTT service to Mobile Subscriber.
(XYZ example).
• Restricting use of VH,UHF spectrum on non protection, non interference basis
Are incoherent with the transforming ICT industry in the light of enabling technologies.

20. Recommendations
1. Study and Review the existing and latest licensing trends Worldwide and prepare a comprehensive
framework.
2. Consultation with stakeholders on proposed framework for introducing unified technology neutral
license based on industry best practices focused on self regulatory principles, consumer choice,
competition, transparency, and effective multi-stakeholder processes.
3. Finalizing the new licensing framework for smooth transition of existing LL/LDI licenses after initial
license tenure.
4. Summarizing the stakeholders responses and submit the same to Federal Government (MoIT) as
per draft policy condition 6.2.1.

21. THANKS