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United States Federal Communications Commission's Experience in

VIEWS: 8 PAGES: 19

									The Regulator’s Role in ICT
Policymaking – U.S. Federal
Communications Commission
        Experience
   Patrick A. Boateng, International Bureau, FCC
            COMESA ICT Policy Forum
                Kigali, Rwanda
              September 1-3, 2004
                   OUTLINE

   Introduction
   FCC Policy Development Background
   Internet & Convergence
   FCC Policy Actions
   Regulatory Challenges/Conclusions



                 COMESA ICT Policy Forum,
                Kigali, Rwanda, Sept 1-3, 2004   2
                         INTRODUCTION

Today’s Regulator’s Challenge:
 ―With convergence, everything –video,
  audio, text, and so forth – has become a
  digital stream that can be transported
  across the Internet.‖
 (Broadband: Bringing Home the Bits, The National Academy of Science, 2002)




                               COMESA ICT Policy Forum,
                              Kigali, Rwanda, Sept 1-3, 2004                  3
    INTRODUCTION-DIGITAL MIGRATION
   OLD WORLD                  High
Analog/Narrowband             Risk       Massive                                                             NEW WORLD
                                         Cap/Ex      Political                                             Digital/Broadband
                                                     Anxiety
 Copper   Coax    Spectrum
                                                                  Great
                                                                                                     APPLICATIONS
                                                                  Uncertainty
                                                                                                Voice; Video; Data
                                                                            Consumer
                                                                            Excitement          Cable         3G
                                                                            /Conf usion
  Voice   Video   Radio/ TV                                                                    DSL           Wi-Fi
                                New
                               Markets                                                         FTTH          UWB
                                           New
                                         Revenue
                                                                                               Powerline Fixed
                                         Streams                                               Satellite     Mesh
                                               Investment/
                                                Innovation       Economic                       Laser        DTV
                                                                  Growth
                                                                                   Int’l      ANYTHING ELSE!
                                                                                Competitive
                                                                                  Edge




                                            COMESA ICT Policy Forum,
                                           Kigali, Rwanda, Sept 1-3, 2004                                                  4
                        INTRODUCTION

   Old World                                   New World
   Competition—Limited/Govt.                   Competition—Multiple Facilities-
    Sanctioned Monopolies                        Based
   Market Structures—Balkanized—               Market Structures—Converged—
    2-Dimensional—One                            3-Dimensional—One
    Network/One Service                          Network/Many Services
   Consumer—Regulated Prices;                  Consumer—Lower Bundled Prices;
    No/Little Product Differentiation;           More Innovation/Product
    Limited innovation                           Differentiation;
   Innovation—Significant But Slow              Personalization/Customization
   Ubiquitous Networks—Universal               Innovation—Dynamic at all levels
    Service Subsidies                            (Network/Applications/CPE)
   Regulatory—Heavily Regulated                Ubiquitous Networks—
    with Strong Jurisdictional                   technological advances
    Boundaries                                  Regulatory—Less Regulated—
                                                 boundaries blur




                             COMESA ICT Policy Forum,
                            Kigali, Rwanda, Sept 1-3, 2004                          5
           FCC POLICY DEVELOPMENT
                 BACKGROUND
   1934 Communications Act
       Authority over common carriers engaged in interstate or foreign
        communication service by wire or radio
   Pre-1996 Computer Inquiries
       FCC began proceedings in 1966 that recognized the
        interdependence of computers and communications services and
        facilities
       Onset of decisions to ―unregulate‖ the data service industry
       Exempted data industry from numerous common carrier
        requirements, boosting development of innovative computer-
        based services and the growth of the Internet



                          COMESA ICT Policy Forum,
                         Kigali, Rwanda, Sept 1-3, 2004               6
          FCC POLICY DEVELOPMENT
                BACKGROUND
   1996 Telecommunications Act
       Broad and unprecedented authority for FCC to
        ensure competition in the telecommunications
        sector
       Codified Telecommunications (Basic) Services.
        (Per FCC, subject to common carrier
        regulations)
       Codified Information (Enhanced) Services.
        (Per FCC, includes Internet, and unregulated)

                     COMESA ICT Policy Forum,
                    Kigali, Rwanda, Sept 1-3, 2004   7
          INTERNET & CONVERGENCE
   Computer Inquiries created the foundation for
    deregulatory treatment of the Internet

       Market for enhanced (data) services exhibited
        ―effective competition‖

       Competitive safeguards for the provision of enhanced
        services by platform (bottleneck facility) owners

       Telephone platform owners required to make access
        available to competing providers at a regulated rate


                       COMESA ICT Policy Forum,
                      Kigali, Rwanda, Sept 1-3, 2004           8
          INTERNET & CONVERGENCE

   IP Telephony: Convergence of services
       Old services provided through new
        applications using existing platform–IP
        Telephony
       Blurring distinction between basic telecom
        service and information or enhanced service
       Services provided by new telecom entity-
        Cable

                     COMESA ICT Policy Forum,
                    Kigali, Rwanda, Sept 1-3, 2004    9
              FCC POLICY ACTIONS

   On IP Telephony
       1998 Stevens Report to Congress
       Pulver.com Free World Dialup Declaratory
        Ruling
       AT&T Declaratory Ruling




                     COMESA ICT Policy Forum,
                    Kigali, Rwanda, Sept 1-3, 2004   10
              FCC POLICY ACTIONS

   1998 Stevens Report to Congress
       FCC declined to draw any final conclusions re
        IP telephony/VOIP
       Concluded that computer-to-computer VOIP is
        not a telecommunications service
       Under certain circumstances, phone-to-phone
        VOIP may be treated as telecommunications
        service

                     COMESA ICT Policy Forum,
                    Kigali, Rwanda, Sept 1-3, 2004   11
              FCC POLICY ACTIONS

   Pulver.com Free World Dialup (FWD)
       FCC concluded that Pulver.com’s FWD should
        be classified as an information service under
        U.S. law
       Formalized the FCC’s policy of not imposing
        traditional telecommunications rules to new
        Internet applications


                      COMESA ICT Policy Forum,
                     Kigali, Rwanda, Sept 1-3, 2004     12
                FCC POLICY ACTIONS

   AT &T Declaratory Ruling
       AT&T sought ruling that when it used IP transport for
        PSTN to PSTN calls, access charges should not apply
       FCC ruled that, under the current rules, the service at
        issue that AT&T provides is a telecommunications
        service upon which interstate access charges may be
        assessed
       Narrow decision
       The services at issue use IP technology in a manner
        that does not offer consumers any variation in
        experience or capability
                        COMESA ICT Policy Forum,
                       Kigali, Rwanda, Sept 1-3, 2004         13
              FUTURE FCC ACTIONS

   Law Enforcement and IP
       FCC plans to examine impact of IP-enabled
        services on Communications Assistance for
        Law Enforcement (CALEA)
       Will address the scope of covered services,
        assign responsibility for compliance, and
        identify the wiretap capabilities required


                      COMESA ICT Policy Forum,
                     Kigali, Rwanda, Sept 1-3, 2004   14
               FUTURE FCC ACTIONS

   VOIP/IP-Enabled Services NPRM
       The FCC has initiated a proceeding to examine the
        social and regulatory obligations for services and
        applications making use of the Internet Protocol
   Social Issues:
       What universal service obligations and benefits should
        apply
       How to address needs of individuals with disabilities
       How to address public safety and law enforcement
        concerns

                        COMESA ICT Policy Forum,
                       Kigali, Rwanda, Sept 1-3, 2004        15
          REGULATORY CHALLENGES

   New realities confront old rules
   Technology changes faster than rules
   Rules based on non-competitive ―one
    platform one application‖ world
       Assumed monopolies or regulated oligopolies
       Rules considered substitutes for competition
       Price as well as entry and exit decisions closely
        regulated
                      COMESA ICT Policy Forum,
                     Kigali, Rwanda, Sept 1-3, 2004   16
           REGULATORY CHALLENGES

   What regulatory approach should be
    used?
       Market power competition analysis
       Ex ante vs. ex post approach
       Inter-modal/inter-platform competition
   What should we regulate?
       Application vs. technology

                      COMESA ICT Policy Forum,
                     Kigali, Rwanda, Sept 1-3, 2004   17
    CONCLUSIONS (Points to Consider)

   Lessons from the Internet and enhanced services
    experiences
       Do not automatically impose old rules designed for monopolies
        on new service and entrants
       Transition from monopoly to competitive market-- prevent
        anticompetitive behavior by dominant incumbents
       Let market choose winners and losers
       Minimum regulation of nascent applications and technologies
   As new applications compete with existing applications,
    begin deregulating old applications


                          COMESA ICT Policy Forum,
                         Kigali, Rwanda, Sept 1-3, 2004                 18
              Thank You!

For additional information, please visit
          http://www.fcc.gov




             COMESA ICT Policy Forum,
            Kigali, Rwanda, Sept 1-3, 2004   19

								
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