IP Voice and Associated Convergent Services : IP Voice and Associated Convergent Services 15 March 2004
Agenda : Agenda 2.30 Opening
2.35 David Cleevely: introduction
2.50 James Allen: the New Regulatory Framework and voice over IP
3.25 Michael Kende: the NRF and associated convergent services
3.45 James Allen: summary of issues arising from the study
4.10 Short commission presentation
4.25 Question and answer session
5.30 Close
Introduction : Introduction David Cleevely
Aims of the study : Aims of the study The study aims to identify and explain the important issues associated with the transition from the existing circuit switched PSTN to IP-packet switched networks in providing voice and associated convergent services:
these issues encompass: regulation, technology, economics, and the structure of the telecoms market
The target audience is staff within National Regulatory Authorities (NRAs) and governments Introduction
Context : Context We are raising issues
We are working from the current legal position in each Member State (i.e. the NRF as transposed into national law is a given):
in keeping with the NRF, we are deregulatory in stance
The opinions expressed in this study are those of the authors and do not necessarily reflect the views of the European Commission Introduction
Slide6 : “It's probably the most significant paradigm shift in the entire history of modern communications, since the invention of the telephone.”
FCC Chairman Michael Powell
World Economic Forum in Davos, Switzerland 2004 Introduction
The transition to VoIP will take time : The transition to VoIP will take time Equipment replacement cycles
Broadband access network deployment
Take-up of broadband Internet access by end-users
Attractiveness of the new VoIP service offers (strongly affected by existing competition within the voice calls market)
The impact of these factors will vary by country and region Introduction
In January 1994, we asked ‘How long will it be before you can download a PBX from the Internet?’ : In January 1994, we asked ‘How long will it be before you can download a PBX from the Internet?’ Source: VoiSpeed, 2004 Introduction
“Nothing less than the demolition of Japan’s telecom industry” – Wired Magazine, August 2003 : “Nothing less than the demolition of Japan’s telecom industry” – Wired Magazine, August 2003 Source: http://bbpromo.yahoo.co.jp Introduction
The New Regulatory Framework and Voice over IP : The New Regulatory Framework and Voice over IP James Allen
Agenda : Definitions
New Regulatory Framework
VoIP business models
Issues that arise from VoIP services under the NRF
Views of other regulators Agenda The New Regulatory Framework and VoIP
Internet protocol (IP) : Internet protocol (IP) The protocol standards used by the Internet (strictly, only the Internet networking protocol, but commonly used to include a whole related set of protocols) The New Regulatory Framework and VoIP Definitions
Voice over Internet Protocol (VoIP) : Voice over Internet Protocol (VoIP) Used here as a generic term for the conveyance of voice, fax and related services, partially or wholly over packet-switched, IP-based networks
The New Regulatory Framework and VoIP Definitions
Public switched telephone network (PSTN) : Public switched telephone network (PSTN) A synonym for traditional circuit-switched telephone networks offered by public telecommunication operators (PTOs), as well as integrated services digital networks (ISDN), and public land mobile networks (PLMN)
Source: ITU World Telecommunication Policy Forum report
The New Regulatory Framework and VoIP Definitions
Electronic communications service (ECS) : Electronic communications service (ECS) The New Regulatory Framework and VoIP Definitions A service normally provided for remuneration which consists wholly or mainly in the conveyance of signals on electronic communications networks, including telecommunications services and transmission services in networks used for broadcasting, but exclude services providing, or exercising editorial control over, content transmitted using electronic communications networks and services; it does not include information society services, as defined in Article 1 of Directive 98/34/EC, which do not consist wholly or mainly in the conveyance of signals on electronic communications networks
Publicly available telephone service (PATS) : A service available to the public for originating and receiving national and international calls and access to emergency services through a number or numbers in a national or international telephone numbering plan, and in addition may, where relevant, include one or more of the following services: the provision of operator assistance, directory enquiry services, directories, provision of public pay phones, provision of service under special terms, provision of special facilities for customers with disabilities or with special social needs and/or the provision of non-geographic services
Publicly available telephone service (PATS) The New Regulatory Framework and VoIP Definitions
Public telephone network : Public telephone network An electronic communications network which is used to provide publicly available telephone services; it supports the transfer between network termination points of speech communications, and also other forms of communication, such as facsimile and data The New Regulatory Framework and VoIP Definitions
Slide18 : Definitions
New Regulatory Framework
VoIP business models
Issues that arise from VoIP services under the NRF
Views of other regulators The New Regulatory Framework and VoIP
What is the regulatory framework? : What is the regulatory framework? The new (2003) directives governing the regulation of electronic communications in Europe:
Framework
Authorisation
Access and Interconnection
Universal Service
Data Protection The New Regulatory Framework and VoIP New Regulatory Framework
Under the NRF how a service is classified determines its regulation : Under the NRF how a service is classified determines its regulation PSTN-equivalent voice Data services e.g. IM and PM Regulated as public electronic communications services Regulated as Publicly Available Telephone Services Convergent services Looks like data Looks like voice Unregulated (not electronic communications services) Public Private Regulated as private electronic communications services The New Regulatory Framework and VoIP New Regulatory Framework
Summary of the powers of NRAs : Summary of the powers of NRAs General conditions of authorisation for providers of:
Private ECS
Public ECS
PATS:
PATS at a fixed location
PATS providers which are USO providers The New Regulatory Framework and VoIP New Regulatory Framework
Summary of powers of NRAs beyond general conditions of authorisation : Summary of powers of NRAs beyond general conditions of authorisation Certain ex-ante powers (e.g. under Article 5 of the Access directive) can be applied to a wide set of operators
A range of proportionate, ex-ante remedies can be applied to SMP operators in relevant markets:
the EC has a role in ensuring relevant markets and market definitions are appropriate
Ex-post competition law can be applied The New Regulatory Framework and VoIP New Regulatory Framework
Slide23 : Definitions
New Regulatory Framework
VoIP business models
Issues that arise from VoIP services under the NRF
Views of other regulators The New Regulatory Framework and VoIP
We divided VoIP into five business models : We divided VoIP into five business models Self-provided ‘DIY’
Voice service independent of ISP – ‘Vonage’
Voice service sold by ISP – ‘Yahoo!BB’
Corporate internal use
Carrier internal use The New Regulatory Framework and VoIP VoIP business models
Self-provided VoIP: DIY : Self-provided VoIP: DIY Software available to download from the Web:
might be ‘goods’ not services
Use a broadband connection to chat online:
Skype, ichatAV, etc.
Not simple to use: mostly hobbyists
Not a cost saving on mobile networks
‘Free’, but no interface to the PSTN:
however, 0800 numbers can now be called from Free World Dialup and others The New Regulatory Framework and VoIP VoIP business models
Commercial model and implications : Commercial model and implications I carry my own costs, you carry yours
Traffic relies on the Internet access you already have
Small amount of revenue may disappear from the telecoms market
The New Regulatory Framework and VoIP VoIP business models
Voice service independent of ISP: Vonage : Voice service independent of ISP: Vonage Software download or an ATA
needs broadband
Can provide interface to PSTN
Can provide extra services: virtual numbers, “Blast me”
Can cause big changes in tariffing:
flat-rate national calls
Hard to guarantee quality due to large number of intermediate players The New Regulatory Framework and VoIP VoIP business models
Commercial model and implications : Commercial model and implications Economics depends on margin between retail voice calls and termination costs
Small, but growing (~100k in US)
Low barrier to entry
Very similar to indirect access in many ways
The New Regulatory Framework and VoIP VoIP business models
Voice service sold by ISP: Yahoo! BB : Voice service sold by ISP: Yahoo! BB Service provider controls access network
Can guarantee QoS
With high bandwidth codecs, quality can be better than the PSTN
Typically bundles calls with Internet access
ATA is integrated into DSL modem
Yahoo!BB and Fusion in Japan are the best known examples (5 million lines)
The New Regulatory Framework and VoIP VoIP business models
Commercial model and implications : Commercial model and implications Free on-net calls often offered
Cheap off-net calls (including to other VoIP users)
But why haven’t big European ISPs done it yet?
Not such a straightforward cost saving if there is vigorous PSTN competition The New Regulatory Framework and VoIP VoIP business models
Corporate internal use : Corporate internal use Could be self-provided or outsourced
Uses common IP network with data communications
Big opportunity through the PBX replacement cycle
The New Regulatory Framework and VoIP VoIP business models
Commercial model and implications : Commercial model and implications Can be ‘goods’ rather than ‘services’
Now economic in greenfield sites
Early adopters are using it
Many users worried about resilience
Opportunity for non-traditional vendors:
IT services outsourcers
IP equipment manufacturers The New Regulatory Framework and VoIP VoIP business models
Carrier internal use : Carrier internal use Services continue as now
End-user is unaware of change:
does not necessarily use an IP device or get access to the Internet
Last mile is unchanged
Local concentrator, switch are utterly transformed
In mobile networks, depends on adoption of 3GPP releases The New Regulatory Framework and VoIP VoIP business models
Commercial model and implications : Commercial model and implications Motivation is cost savings:
one network rather than N networks
Capex required is very significant
May take ten years to complete
May take ten years before it starts!
Regulatory costing will change
Interconnection will be a major cause of disputes between operators The New Regulatory Framework and VoIP VoIP business models
Slide35 : Definitions
New Regulatory Framework
VoIP business models
Issues that arise from VoIP services under the NRF
Views of other regulators The New Regulatory Framework and VoIP
The business models and how they are classified under the NRF [1] : The business models and how they are classified under the NRF [1] ‘DIY’ Maybe not a service, maybe private or public ECS
‘Vonage’ Public ECS, maybe PATS
‘Yahoo!BB’ Public ECS, maybe PATS
Corp. int. use Maybe not a service, maybe a private ECS
Carrier int. use Public ECS, likely to be PATS, possibly with SMP The New Regulatory Framework and VoIP VoIP business models
The business models and how they are classified under the NRF [2] : The business models and how they are classified under the NRF [2] Carrier internal use Regulated as public ECS Regulated as PATS Vonage Looks like data Unregulated (not electronic communications services) Public Private Regulated as private ECS Yahoo!BB Corporate internal use DIY The New Regulatory Framework and VoIP VoIP business models
Looks like voice
Two key questions : Two key questions Which regulatory obligations will apply to VoIP service providers?
None / private ECS / public ECS / PATS / PATS at a fixed location /SMP in relevant markets
Specifically, when would service providers be providing PATS? The New Regulatory Framework and VoIP VoIP business models
Slide39 : Definitions
New Regulatory Framework
VoIP business models
Issues that arise from VoIP services under the NRF
Views of other regulators The New Regulatory Framework and VoIP
Issues arising from VoIP : Issues arising from VoIP Definition of PATS and its interpretation
Why this matters:
Obligations of providers of PATS:
Emergency service access
Network and service resilience
Obligations of providers of PTNs The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Definition of PATS and its interpretation : Definition of PATS and its interpretation Narrow view: any VoIP provider which does not offer access to the emergency services is not PATS, and any that does is PATS (which is clear and simple, but will lead to a disincentive to provide access to the emergency services)
Broad view: any VoIP provider that provides a service in direct competition with (and as a substitute for) the PSTN is PATS The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Obligations of providers of PATS : Obligations of providers of PATS Providers of PATS are subject to additional duties over and above providers of public ECS under the Universal Service Directive
These conditions include:
Article 23: All necessary steps to maintain proper and effective functioning of network and access to services (provided “at fixed locations” only)
Articles 26+27: National and single European emergency number access The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
There is a balance between users’ needs and disincentives to provide 112 : There is a balance between users’ needs and disincentives to provide 112 In order to avoid becoming PATS, operators may exclude access to emergency services:
loss to end users: it may cause lives to be lost if a user has a “telephone” that cannot call 112
work-arounds like plugging into a PATS telephone line rather than a DSL ATA are not perfect
It is undesirable to remove the requirement within the definition of PATS for “access to emergency services”, because it would widen the PATS category too far The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Location independence and quality of emergency service access [1] : Location independence and quality of emergency service access [1] IP access services break the link between network address and physical location:
mobile telephony services suffer in a similar way
End users will need to be educated that the quality of access to emergency services provided on a VoIP connection will be lower in some circumstances The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Location independence and quality of emergency service access [2] : Location independence and quality of emergency service access [2] It seems feasible for VoIP service providers to provide a form of access to the emergency services that is at least as good at that provided by existing mobile networks
This ought to be acceptable as long as the reduced quality is made very clear to end users
The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Network resilience [1] : Network resilience [1] Providers of PATS at fixed locations are required to take measures to ensure the availability of services in the case of force majeure and catastrophic network breakdown The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Network resilience [2] : Network resilience [2] VoIP service providers, particularly those using the public Internet (Vonage) or reliant on other operators access networks (a subset of the Yahoo!BB model), may not be able to do this:
a broad definition of PATS could place these operators in an impossible position
Seeking to claim IP voice is not provided “at fixed locations” as a get-out will have undesired consequences
The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Public telephone networks : Public telephone networks Providers of public telephone networks are subject to similar, additional obligations over and above the obligations of providers of public electronic communications networks
The Universal Service Directive defines a public telephone network as “an electronic communications network which is used to provide publicly available telephone services”
Thus, it matters to the underlying network providers whether the service provider is considered to be offering PATS The New Regulatory Framework and VoIP Issues that arise from VoIP services under the NRF
Slide49 : Definitions
New Regulatory Framework
VoIP business models
Issues that arise from VoIP services under the NRF
Views of other regulators The New Regulatory Framework and VoIP
Historic position of the Commission : Historic position of the Commission VoIP was not public voice telephony if it failed to simultaneously meet each of the four elements of the Services Directive’s voice telephony definition:
voice telephony is offered commercially
it is provided for the public
it is provided to and from public switched network termination points
it involves direct speech transport and switching of speech in real time, in particular the same level of reliability and speech quality as produced by the PSTN The New Regulatory Framework and VoIP Views of other regulators
Views of other regulators – Ofcom : Views of other regulators – Ofcom The UK regulator’s historic position is a VoIP service should be regulated as PATS if any of the following apply. The service:
is marketed as a substitute for the traditional public telephone service, or
appears to the customer to be a substitute for the traditional public telephone service, or
provides the customer’s sole means of access to the traditional circuit switched public telephone network
This is a “broad” view of the definition The New Regulatory Framework and VoIP Views of other regulators
Views of other regulators – FCC [1] : Views of other regulators – FCC [1] Telecommunications Act of 1996 classifies two services:
Telecommunications:“[T]he transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information as sent and received.” (regulated)
Information services: “[T]he offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications.” (not regulated)
The FCC has not yet classified all types of VoIP services The New Regulatory Framework and VoIP Views of other regulators
Views of other regulators – FCC [2] : Views of other regulators – FCC [2] The FCC recently decided that Free World Dialup is an unregulated information service
AT&T has asked the FCC to rule that phone-to-phone VoIP is not subject to long distance access charges
Vonage has asked the FCC to rule that its service is an information service
The FCC has announced a Notice of Proposed Rulemaking regarding regulatory issues surrounding VoIP The New Regulatory Framework and VoIP Views of other regulators
The NRF and Associated Convergent Services : The NRF and Associated Convergent Services Michael Kende
Associated convergent services : Associated convergent services Definitions
Examples
Regulatory jurisdiction
Issues The NRF and Associated Convergent Services
What is an associated convergent service? : What is an associated convergent service? A data service that is convergent with voice services because it:
uses common technologies and protocols (e.g. SIP, IP), and/or
has some of the elements of a voice call (transmits sound/speech, uses telephone numbers, etc)
Instant messaging is just one example The NRF and Associated Convergent Services
What is an associated facility? : What is an associated facility? Associated facilities means those facilities associated with an electronic communications network and/or an electronic communications service which enable and/or support the provision of services via that network and/or service. It includes conditional access systems and electronic programme guides The NRF and Associated Convergent Services
IM and PM as an example of an associated convergent service : IM and PM as an example of an associated convergent service Instant messaging (IM) is a service that can be used to exchange small, text-based messages not unlike email, but in near-real-time, allowing users to chat informally
Both fixed and mobile versions of this service are available
Presence management underlies IM. It is a service for finding, retrieving, and subscribing to changes in the current status of other users The NRF and Associated Convergent Services
IM and PM within the NRF : IM and PM within the NRF It is not clear, but certainly arguable, that IM is a public ECS:
if there were a gateway between voice enabled IM and the PSTN, and access to emergency service, then it could be PATS
It is also arguable that PM, specifically access to the PM database, is an associated facility
The Commission has not defined a relevant market for IM and PM
Regulators have limited powers under the NRF The NRF and Associated Convergent Services
Powers regulators have (if they were to need them) : Powers regulators have (if they were to need them) General conditions on providers of electronic communications networks, associated facilities, public ECS, or PATS
Using Article 5 of the Access Directive
Ex-ante regulation of players with SMP in a relevant market (e.g. via Article 12 of the Access Directive)
If there were a relevant market defined
Other measures, including standardisation
Ex-post competition law The NRF and Associated Convergent Services
Issues arising particularly from associated convergent services : Issues arising particularly from associated convergent services What kinds of facilities are associated facilities?
Clarifying “control of access to end users” The NRF and Associated Convergent Services
What kinds of facilities are associated facilities? : What kinds of facilities are associated facilities? Various regulators believe the DNS may be an associated facility
We have already argued that a PM database might be an associated facility
It would help if there were well understood procedures for designation of associated facilities The NRF and Associated Convergent Services
Clarifying “control of access to end users” : Clarifying “control of access to end users” Article 5.1 of the Access Directive could be used to impose obligations on certain players even if they are not dominant (i.e. potentially all players), if they control access to end users
The question is whether associated convergent service providers (or operators of associated facilities) are undertakings that control access to end-users The NRF and Associated Convergent Services
Summary and Conclusions : Summary and Conclusions James Allen
Summary of issues arising from the study [1] : Summary of issues arising from the study [1] Impact on national numbering plans
Impact of extraterritorial service providers
Impact on the relevant markets defined by the EC
Whether VoIP services on fixed networks are provided “at a fixed location”
Treatment of free services
Treatment of self-provided services
Impact on lawful intercept Summary and Conclusions
Summary of issues arising from the study [2] : Summary of issues arising from the study [2] Interconnect to the PSTN
Interconnect to other VoIP service providers’ networks
The possibility of commercial barriers erected by access operators
Security issues
Effects on USO funding
Changes to regulatory costing Summary and Conclusions
Impact on national numbering plans : Impact on national numbering plans The existing national numbering plans could prove wholly inadequate if VoIP users (and hence service providers) require significant additional volumes of geographic and other types of numbers
NRAs should consider the implications of such a development now
Summary and Conclusions
Extraterritoriality of service providers : Extraterritoriality of service providers VoIP makes it possible to provide domestic or EU-wide voice services (or components of those services) from other countries
this may make it hard for NRAs to take action as their jurisdiction may not apply
We recommend that the Member States and the NRAs consider whether this merits any change to current policy
Summary and Conclusions
Impact on the relevant markets defined by the EC : Impact on the relevant markets defined by the EC Presence management in combination with voice services could, in certain circumstances, create a link between the fixed and mobile wholesale markets for voice termination, or indeed between different networks (Markets 9 and 16 of the EC Recommendation):
the fixed and mobile termination markets would still be distinct in some circumstances (e.g. when the user is away from their desk or home)
This potential linkage will complicate the regulation of these relevant markets, because it means that the “monopoly of termination to customers on a network” may no longer exist Summary and Conclusions
Whether fixed network VoIP services are provided “at a fixed location” [1] : Whether fixed network VoIP services are provided “at a fixed location” [1] Providers of PATS at a fixed location are subject to additional obligations
VoIP service providers could argue that the services are not provided “at a fixed location” because they are substantially location independent Summary and Conclusions
Whether fixed network VoIP services are provided “at a fixed location” [2] : Whether fixed network VoIP services are provided “at a fixed location” [2] Regulators might seek to consider only some VoIP network architectures as “provided at a fixed location”. Such an approach is dangerous, as it will be very difficult to draw this distinction without causing distortions in the market
Consequently, all types of VoIP provided over fixed networks should probably be considered as provided “at a fixed location” Summary and Conclusions
Treatment of free services [1] : Treatment of free services [1] It is unclear whether a ‘free’ service, such as AOL IM or Skype, is included in the definition of an ECS
Case law shows:
a bundle of services can be considered as provided for remuneration even if some of the services are ‘free’
the remuneration does not have to be paid by the end user of the service Summary and Conclusions
Treatment of free services [2] : Treatment of free services [2] As a result,
AIM would probably be considered a service provided for remuneration, because it is provided to some users as part of a bundle of paid-for services
whereas it remains unclear whether a peer-to-peer application, which is truly ‘free’, is currently a ‘service’ at all
Summary and Conclusions
Treatment of self-provided services (DIY and Corporate internal use) : Treatment of self-provided services (DIY and Corporate internal use) Though unclear, it seems very likely that a self-provided service is not a “service normally provided for remuneration” at all
If it is not a “service normally provided for remuneration”, then it is not subject to the NRF. For example, it would not be subject to general conditions of authorisation
The fact that paid-for equipment and software are used may be irrelevant as these are goods, not services Summary and Conclusions
Impact on lawful intercept : Impact on lawful intercept Lawful intercept of voice telephony using IP could take place at a variety of locations within the network
We recommend that some form of common approach between legal interception agencies (e.g. location of intercept, format of intercept) would help minimise the cost to service providers, in particular, pan-national service providers). This would help reduce barriers to entry in providing voice services
We note that the usefulness of lawful intercept may be decreased once VoIP calls use strong end-to-end encryption
Summary and Conclusions
Interconnect to the PSTN : Interconnect to the PSTN We expect NRAs will be drawn into difficult arguments about:
interconnect SLAs and pricing
costing for operators who are dominant and are undertaking major network transformations
These are just part of the normal operation of telecoms regulation
VoIP affects these arguments because it is the cause of the major network transformations, and can cause increased competition Summary and Conclusions
Interconnect to other VoIP service providers’ networks : Interconnect to other VoIP service providers’ networks Analysys expects three models for interconnect:
via the PSTN
VoIP peering (free of payment, with conditions)
VoIP termination (paid-for)
At this stage, we recommend that regulators need only monitor the emergence of the new forms of interconnect, bearing in mind that interconnect disputes are almost certain to arise Summary and Conclusions
The possibility of commercial barriers erected by fixed access operators : The possibility of commercial barriers erected by fixed access operators Operators who have a vested commercial interest can make VoIP commercially unattractive
Fixed broadband access providers cannot do this given the very low incremental price per bit on almost all wholesale broadband tariffs, and the nature of the relevant market (which means it is very likely to be ex-ante regulated) Summary and Conclusions
The possibility of commercial barriers erected by mobile access operators : The possibility of commercial barriers erected by mobile access operators Mobile operators do not generally offer flat-rate pricing for data services with access to the Internet. Consequently VoIP over mobile networks rarely offers a substantial cost saving for end users (which suits the mobile operators)
Competition should ensure a wide range of competitive mobile data tariffs and services, although we do not expect these to lead to widespread take-up of VoIP on mobile networks except for carrier internal use Summary and Conclusions
Security issues : Security issues End users expect their calls to be secure and their bills accurate
This is not just a matter for those operators providing PATS; providers of ECS are also obliged to have accurate bills, end-user data privacy is protected by national data protection laws, and, in particular, the Directive on Privacy and Electronic Communications (2002/58/EC)
Regulators will need to support efforts to build a service that meets users’ needs and expectations for privacy, and may also have a role in educating the public about the security of the system Summary and Conclusions
Effects on USO funding [1] : Effects on USO funding [1] Changes to the telecoms market arising from VoIP will change the net cost of providing universal service. Three effects contribute to this:
long-distance and international voice call profits will be reduced
access network costs will be spread over fewer lines
there will be a loss of revenue as a result of ‘free’ services Summary and Conclusions
Effects on USO funding [2] : Effects on USO funding [2] Regulators will need to monitor these effects, all three of which are relatively small in Europe. In the medium term, these effects will gradually increase pressure on the funding of USO
Summary and Conclusions
Changes to regulatory costing : Changes to regulatory costing IP-based voice technologies may change the underlying costs of providing certain regulated telecoms services (e.g. voice termination):
this implies that in cases where the costs are used to set regulated prices (e.g. as a result of long-run incremental cost (LRIC) models), a forward-looking costing based on modern equivalent assets could, in some cases, use IP technologies
In Analysys’s view this is not a new issue, although it may create considerable work for the regulators’ economists Summary and Conclusions
Overall conclusions [1] : Overall conclusions [1] A transition to IP voice and associated convergent services is taking place
The NRF is suitable for handling this transition, but it would be best to address a number of issues before they become significant blocks to future market development Summary and Conclusions
Overall conclusions [2] : Overall conclusions [2] The most significant issue is whether – and under what circumstances – VoIP is classified as PATS (with all the attendant obligations, of which the most important are access to emergency services and network integrity):
early clarification of the policy in this area would be useful Summary and Conclusions
Matters that merit further consideration [1] : Matters that merit further consideration [1] It may not be possible to provide the location of a caller making an emergency call using VoIP:
Is this acceptable?
How should users be made aware of this?
What other steps are needed to provide such location information?
VoIP services may not be as robust as the existing PSTN voice service:
To what degree is a VoIP network carrying voice calls expected to be available? Summary and Conclusions
Matters that merit further consideration [2] : Matters that merit further consideration [2] The existing national numbering plans could prove wholly inadequate if VoIP users (and hence service providers) require significant additional volumes of geographic and other types of numbers:
NRAs should consider the implications of such a development now
Summary and Conclusions
Matters that merit further consideration [3] : Matters that merit further consideration [3] VoIP makes it possible to provide domestic or EU-wide voice services (or components of those services) from other countries:
we recommend that the Member States and the NRAs consider whether this merits any change to current policy
Summary and Conclusions
Commission Presentation : Commission Presentation
Question and Answer Session : Question and Answer Session
Slide91 : James Allen, Michael Kende, David Cleevely, Margaret Hopkins
Analysys Consulting Limited
24 Castle St
Cambridge CB3 0AJ
www.analysys.com
james.allen@analysys.com
michael.kende@analysys.com
david.cleevely@analysys.com
margaret.hopkins@analysys.com