The Impact of Convergence on the Communications Sector

The Impact of Convergence on the Communications Sector World Electronics Forum September 14 -16, 2005 London, UK

Presentation Overview § TIA Overview § Policy Issues – U. S. -Specific Challenges – Regulation – Investment and Competition – Spectrum § Conclusions / Possible WEF Action? 2

TIA Overview § Trade organization serving the communications and information technology industry § Three primary activities: – Domestic and international advocacy – Trade shows and marketing support – Standards Development Organization 3

TIA Overview § TIA’s Offices – Arlington, VA: Headquarters – Beijing, China: USITO § TIA Staff: 53 4

Convergence: Policy Issues

U. S. -Specific Challenges § 1996 Telecommunications Act – Technological change surpassing the 1996 Act – Law is unable to cope with an IP-based world – No easy solution • Multiple legislative fixes? • Eliminate technology “silos”? • Focus on service definitions? § Universal Service Fund 6

Regulation § Challenges are regulatory more than technological § TIA supports competition among multiple platforms for delivery § Regulators may need to focus on service definitions rather than platforms of delivery or technology 7

Regulation § The regulatory structure must be able to cope with rapid innovation in an IP-based world § Consumers should be free to choose both the service and the service provider 8

Regulation § Regulation should be – Used only where absolutely necessary – Light-handed – Narrowly focused – At the national level – Uniform – Technology-neutral 9

Investment and Competition § Onerous regulation will stifle investment § Regulatory uncertainty will also stifle investment – Example = last mile issue in the United States – Triennial Review decisions on broadband triggered billions of dollars in investment 10

Investment and Competition § Next Generation Networks (NGN) – Reduce market entry costs – Increase flexibility – Enhance competition • Any network will provide any service to any • 11 device Competing infrastructures can offer the same types of service

Spectrum § Need flexible, market-driven spectrum policies § Need technology neutrality § Need to continue to find more spectrum where possible – In the U. S. , it is critical to release analog TV spectrum for other uses – Need hard date for digital TV transition 12

Conclusions (1) § Technology and NGN work continues to advance rapidly – Multiple platforms – Innovative services – Increased competition § An entirely new regulatory mindset must be created 13

Conclusions (2) § Industry must work with regulators (and § § § 14 consumers) Industry and government should strive to agree to common principles Regulatory policies – last-mile access, spectrum have the potential to chill investment WEF members must continue to work together on these issues

Matthew J. Flanigan President TIA 2500 Wilson Boulevard, Suite 300 Arlington, VA 22201 Telephone: +1 -703 -907 -7700 Fax: +1 -703 -907 -7727 15