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Converged & Efficient Licensing Framework


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Converged & Efficient Licensing Framework

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Converged & Efficient Licensing Framework

  2. 2. SCOPE • Individual & Class Licensing Regime [ICLR] • Sector Statistics : Bangladesh • What & Why • How & Efficient Approach • Licensing Principle • Unified Licensing Regime [ULR] • Proposed Transition : ICLR to ULR • ITU Recommended Model • Common Practice in Asia-Pacific Region • International Best Practice • Convergence in Licensing Regime • Example : Asia-Pacific Countries • Case Study : Myanmar • Vertical Convergence : Bangladesh • Horizontal Convergence : Bangladesh • Hybrid Convergence : Proposed Model • Recommendation 2
  3. 3. INDIVIDUAL & CLASS LICENSING REGIME • Technology Defined Licensing • 2G CMPO (GSM / CDMA) • Standardization Based Licensing • BWA (WiMAX 802.16e) • Resource Defined Licensing • 3G CMPO (Allocation of 2100 MHz Frequency-Band) • Network Topology Based Licensing • Carrier (SC , ITC) ; Gateway (IGW , IIG) ; Exchange (ICX , NIX) ; Access Network Service (ISP , IPTSP , PSTN) ; Over The Top (VTS , CC , CP) ; etc. • Open Licensing Regime • Remains Open To Acquire by Eligible Applicant(s) , Not-Revenue Focused • Close Licensing Regime • Available as per Govt. Wish , Limited Number of License , Revenue Focused 3
  4. 4. SECTOR STATISTICS 6 CMPOs 11 PSTNs 3 BWAs 482 ISPs 39 IPTSPs 5 NTTNs 6 ITCs 1 SC 29 IGWs 840 VSPs 26 ICXs 37 IIGs 2 NIXs 282 CCs 14 VTSs 8 CPs Number of License 2000 (approximately)
  5. 5. LICENSING : WHAT & WHY What Is Licensing Licensing is a Key Regulatory Instrument that is Integral to the Successful & Efficient Supply of Telecom/ICT Services to the Citizen. It is a Grant of Right to Operate & Provide Services by Regulator / Government. It Imposes General & Specific Obligations / Restrictions etc. Why Licensing  Administrative Control on an Essential Public Service  Expansion of Networks & Services and Other Universal Service Objectives  Privatization / Commercialization [FDI + Innovation]  Regulating Market Structure  Establishing a Competition Framework  Allocation of Scare Resource  Generating Government Revenue  Consumer Protection  Ensuring Availability, Affordability & Quality of Service  Regulatory Certainty [Assurance of Level Playing Field to the Licensees] 5
  6. 6. LICENSING : HOW & EFFICIENCY How to Frame License • Balance between efficiency and effectiveness • Key principles of effectiveness are, simplicity, flexibility, certainty of service and technology neutrality, and equal treatment of licensees • Efficiency involves reducing use of resources such as costs and time in licensing process • A key current challenge is how / whether to license “over the top” or OTT services which are extra-territorial in nature and often do not have any facilities within a jurisdiction Efficient Approach of Licensing • An authorization-based approach, which has been adopted in other regions, while licensing remains the predominant approach in Asia • Distinguishing between licensing of services that are offered to the public and those that are offered to a limited group, with no significant impact on public welfare • Service and technology neutrality allowing operators to maximize their use of the latest technology while reducing administrative costs • Adopting a unified licensing regime 6
  7. 7. LICENSING PRINCIPLE  International Licensing Principle Licenses Should be Issued to the Entity Which Can Bring Maximum Socio-Economic Benefits for the Country  Licensing Principle for BTRC BTRC is Actively Considering to Move Towards an Effective, Forward-Looking Licensing Framework Which would Enable the Nation to Realize the Full Potential of Telecommunications and Information Technology. In fact, this Enables Growth and Support National Aspirations of Becoming a Middle Income Country.  Unified Licensing Regime : Key Issues of to Consider Effectiveness, Efficiency, Tech-Neutrality and Convergence of ICLR 7
  8. 8. UNIVERSAL LICENSING REGIME [ULR] Key Elements 8 Simplified,UnifiedRegime Migrate to ULR Remove Categories of Licences That Add No Value and Represent Artificial Constraints, Exclusive Licensing Arrangements Minimize license provisions Technology & Service Neutral: Ensure That Licensing is as Neutral in Technology and Service Terms as Possible CertaintyinLicensing Clear, Open Processes with Public Consultation Means of Administrative Appeal No Open-Ended Discretion ConsistentTreatmentofLicensees Enable Private Sector and FDI Participation on Equal Basis
  9. 9. PROPOSED TRANSITION FRAMEWORK : CLR - ULR The implementation of ULR requires careful planning and comprehensive assessment of a range of issues. Industry consultation should be a part of the transition process at each step. An effective transition process involves: • Assessment of the current licensing framework and identification of amendments required to ensure the unified licensing regime fits within the existing legislative and regulatory framework; • Assessment of the appropriate level of regulatory intervention required (i.e. individual licence versus class licence) and the licence terms and conditions; • Development of the process for issuing new licences and whether there should be any restrictions on the number of licences issued; • Determination of which licensing regime is more appropriate, the right licensing structure/categorisation, and the nature/scope of the new licences; • Development of the transition/migration process and terms for transition (e.g. whether mandatory or voluntary migration, and the time period for transition); and • Undertaking of licence mapping/conversion on how existing service and facilities specific licences will fit into the new unified licensing categories. 9
  12. 12. INTERNATIONAL BEST PRACTICE • Rights and obligations of licensees should be clear and consistent, with changes resulting only from transparent consultation • Licensees should have recourse to independent and transparent dispute resolution or appeals processes where there are disputes with the regulator • Regulators should move towards a unified licensing framework by consolidation of existing service specific license categories • Licensing framework should consist of both individual licenses for public telecommunications providers and class licenses for non-public services with limited scope • Licensing framework should meet the regulatory requirements of a converged telecommunications sector, licenses should be technology neutral • Where there is insufficient competition in a market, licensing should be used as a means of facilitating competition (including new market entry if needed) 12
  13. 13. TOWARDS CONVERGENCE : ASIA-PACIFIC 13 Australia The Telecommunications Act 1997 regulates ‘carriers’ and ‘service providers’. ‘Carriers’ basically own specified infrastructure facilities or ‘network units’ and subjected to individual licensing. Service providers’ are ‘carriage service providers’ and ‘content service providers’ and are not subjected to individual licensing requirements. HongKong Hong Kong introduced unified carrier licensing in August 2008, which authorizes the provision of any combination of fixed, mobile and converged services. There is no restriction on the types of services which may be authorized under the said licenses India India introduced unified licensing regime in 2003, which was implemented in two phases. During the first phase, basic (fixed) and cellular services were transitioned to the unified access service license. The second phase commenced in 2005 and involved full transition of all services to the unified licensing regime and ended service based licensing Malaysia Malaysia has two broad types of licenses, namely individual licenses and class licenses, which are applied to four categories of activity, namely ownership of network facilities, network services, applications services and content applications services
  14. 14. TOWARDS CONVERGENCE : ASIA-PACIFIC 14 NewZealand There are no licensing requirements in New Zealand. However, the Minister may declare operators to be network operators for the purposes of the Telecommunications Act 2011, thereby subjecting them to the provisions of the Act as they relate to network operators. Singapore Singapore has two classes of licenses, namely the facilities-based operator (FBO) license and service- based operator (SBO) license. FBO license is always an individual license whilst SBO license can be individual or class license Thailand Thailand introduced its current licensing system in 2001. This included three licensing categories: Type 1 licenses for operators who do not own their own network infrastructure; Type 2 licenses for operators with or without their own network infrastructure but who target only a segment of the market; and Type 3 licenses for operators with their own network infrastructure who provide services to the general public.
  15. 15. CASE STUDY : MYANMAR 15
  16. 16. VERTICAL CONVERGENCE : BANGLADESH Transmission system is the integral part of the telecommunication service delivery. Due to vertical separation of licensing scope, mobile operators are not allowed to lay fiber and it has been made mandatory to get the fiber transmission service from the NTTN licensee. In most cases, it is found that NTTN licensees are unable to cater the demand of service providers. This is impacting the growth of sector, infrastructure and telecom penetration in remote rural areas. In case of vertical convergence from Bangladesh context, ULR may consolidate the business scope of access network, transmission and gateway services. 16
  17. 17. HORIZONTAL CONVERGENCE : BANGLADESH • Next generation telecommunication network are built on common and IT based technology standards like IP, which is making it possible to run myriad of services on the same network infrastructure built for different access technologies. The same core network, transmission network, service network and billing/charging could be used to serve both fixed and mobile customers. • Segregation of licenses based on access technology would lead to duplicity of infrastructure deployment and would be a national loss. Convergence on the access side would be allowed and encouraged, and necessary changes in the regulatory framework would be brought. • Any new licensing regime should undergo a thorough economical analysis to ascertain whether the country resources can be used most optimally and the value created for the customer and society is maximum and sustainable. • License gives an investor or, a service provider the authority to enter into a service market, hence the licensing process determines the level of competition in the market. To create a competitive environment no artificial entry barriers should be created and wherever it is possible the entry should be made open; but it has to be ensured that the policy and licensing criteria should not impede competition among the players. • The licensing regime should also be non-discriminatory and should not favor any particular type of investor, ethnicity and nationality. 17
  19. 19. RECOMMENDATION : NETWORK & SERVICE 19 Column : Operator Node Row: Communication Type Voice Communication Data Communication ILDC Submarine Cable + ITC = ILDC Operator Gateway IGW, VSP + IIG NTTN + Tower & Infrastructure Company ICX [LI Probe] + NIX [LI Probe] Infrastructure Exchange Access Network CMPO, IPTSP, PSTN + CMPO, ISP, BWA = ANS Operator End User Quad-Play + Cellular Mobile Service  Converged Scenario  ILDC Operator : Raw Bandwidth  Infrastructure Operator : Ex-Gateway + Ex-Infrastructure along with the LI Probe & Monitoring Platform [International + Domestic Routing]  ANS Operator : Ex-Voice + Ex-Data [Voice + Data : Managed]  End User : Single Connectivity for Quad-Play + Cellular Mobile Service
  20. 20. RECOMMENDATION : REGULATORY ARRANGEMENT 20 Operator Type Required Amendment ILDC Operator Policy : ILDTS ; License : ITC + SC , IGW + IIG , NTTN Infrastructure Operator Policy : ILDTS ; License : IGW + IIG , NTTN , ICX + NIX ANS Operator Policy : ILDTS ; License : CMPO , ISP , IPTSP , PSTN , BWA , NTTN , ICX + NIX ; Directive & Approval : Several  Implementation Road-Map  Policy Amendment : 1 – 2 Year (If Govt. Understood the Necessity)  Licensing Guidelines : 1 – 2 Year, After Policy Amendment (If Ministry Remains In-Line)  Business Migration/Merger/Amalgamation/etc. : 1 – 2 Year, After Policy Amendment  Commercial Launch of Convergence / ULR : 1 – 2 Year, After License Amendment  Development of License Awarding Matrix (Resource Allocation vs. License Tenure vs. Upstream Connectivity vs. Downstream Connectivity vs. Revenue Sharing) : 1 Year, after License Amendment  Issuance of Access Regulation, Competition Regulation, Consumer Protection Guidelines, Standardization & QoS Guidelines, Subscriber Registration & NEIR Guidelines (minimum requirement for the industry right now) : 2 Years, After License Amendment  Total Time Required for Full Implementation of Converged/ULR : 6 Years [Will Govt. Start Now]
  21. 21. WHAT WE [REALLY] NEED TO DO • ULR : Let Us Visualize A Smart License Awarding Scheme • Do Bangladesh Really Need Any Transition Towards ULR • Technology Based Licensing : Too Many Class License • Network Topology based Licensing : Too Many Class License • Difficult To Cater In Synchronized Manner • Difficult To Set Licensing Principle • Do We Really Need Any ‘Convergence’ Prior To ULR • Recommendation on Licensing Regime Reform-Model 21
  22. 22. Interactive Session 22