atc presentation nbp

Association of Telecommunications Industry of Cambodia.

Association of Telecommunications Industry of Cambodia (“ATC”): Forming a National Broadband Plan for Kingdom of Cambodia and its key challenges A presentation to ITU and TRC by : Firdaus Fadzil 5 December 2012


AGENDA

1.  Cambodia’s Policy Aspirations

2.  Key Structural Issues

3.  Digital Dividend

4.  Harmonization Efforts

5.  Key Takeaways


•  National Strategic Development Plan 2009-2013

Descriptions of main commitments made by the Government

•  In Fourth Legislature, the Government is planning to implement the following reforms:

•  Expedite the adoption of Law on Telecommunications and

associated legal and regulatory framework; •  Building capacity in the sector; •  Improve and modernise the equipment and technology to ensure

effectiveness and a wider coverage of the services; •  Foster competition to ensure efficiency; •  Increase efficient use of IT system and promote e-government; and •  Build and enhance efficiency of backbone infrastructure.

•  ASEAN ICT Masterplan 2015

•  Consist of six strategic thrusts i.e. Economic transformation, People Engagement and Empowerment, Innovation, Infrastructure Development, Human Capital Development and Bridging the Digital Divide.

•  The Masterplan will be funded via existing ASEAN financing sources

which include the ASEAN ICT Fund, ASEAN Dialogue Partners, International Organizations and other public and private institutions.

•  Progress of commitment has been slow with limited participation from

the industry.

CAMBODIA’S POLICY ASPIRATIONS Absence of well articulated MBB/ICT policy target.


AGENDA




4.  Harmonization Efforts 5. Key Takeaways


Interconnection regime and its wholesale and retail tariff

BWA spectrum allocation and assignment

Key challenges

•  Domestic TDM voice traffic is subjected to mandatory transit arrangement which works against any-to-any connectivity principles.

•  The interconnection rates favor fixed operators and outdated

(discriminatory). •  Competition rules and pricing control mechanism need to be re-defined

e.g. minimum retail pricing and bundling restriction.

•  Allocation of Broadband Wireless Access (BWA) spectrum suitable for LTE services have been done on a non-transparent basis.

•  Spectrum dispute due to overlapping licenses in 2.5 GHz – 2.7 GHz

remain largely unresolved. •  Terms and conditions of the licenses are not publicly available. •  No clear separation of power between Ministry of Post and

Telecommunications (MPTC) and Ministry of Information (MoI).

•  No updates on ITU’s Radio communications Law study.

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KEY STRUCTURAL ISSUES Key issues to be addressed to create vibrant MBB market.


Key challenges

Capacity building and human capital development

•  Limited local resources especially experts in the area of technical, economic and competition areas.

Creation of local content

•  The local content industry is evolving and would require some incentives to promote the creation of local digital content especially in local language.

• Weak framework in promoting Intellectual Property Rights (IPR) to safeguard innovation.

Absence of strong governing structure and policy

•  No Telecommunications Law and its implementing regulations. •  Issues surrounding the implementation of Cambodia’s commitment to

World Trade Organisation (WTO) especially on matters related to the transparency.

•  The absence of national policy objectives and aspirations create

moving target for the Government.

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KEY STRUCTURAL ISSUES Key issues to be addressed to create vibrant MBB market.


AGENDA





5.  Key Takeaways


POLICY OBJECTIVES Creation of positive effects to economy and social

•  National GDP •  GDP per Capita •  Productivity •  Innovative intensity

•  Better access to efficient and productive public services

•  More informed and engage citizen •  Better quality of life •  Connected community

• Economy

• Social


1.  Governments should recognize the economic value of 700MHz spectrum, and move it to more economically efficient use.

2.  Governments should designate the spectrum for mobile broadband services (against allocating for PPDR, PMSE or other services) via public policy statements.

3.  Governments should adopt the harmonized APT 700 (2x45MHz) band plan for Region 3.

4.  Assign the spectrum at soonest on transparent basis and push for digital switchover by 2017.

Source: SCF Associates Study

Number of base stations

2 5 7 10 20 15

x1 x1.5 x3

x5

x7

x12

UHF Band

GSMA/BCG Study: Economic Benefits for AP (2014 – 2020)

MBB Broadcast

GDP Increase USD729 billion USD 71 billion

Business Creation 1.1million new biz Very limited

New Jobs Creation 2.3 million < 100,000

Increase in Tax Revenue USD131 billion USD 28 billion

DIGITAL DIVIDEND (“DD”) DD present unique opportunity to enable MBB market.


AGENDA





5.  Key Takeaways


HARMONIZATION EFFORTS (698-806 MHz) APT Wireless Forum ‘Common View’ 700MHz band plan

45 MHz 45 MHz

Harmonised FDD Arrangement of 698-806 MHz band

698 MHz

806 MHz

694 MHz

PPDR/LMR DTTV

10 MHz centre gap 5 MHz 3 MHz

PPDR/LMR 806 MHz

DTTV 698 MHz

694 MHz

Dual Duplex due to limita5ons to RF filters at UE

Critical for Kingdom of Cambodia to adopt 700MHz harmonized band plans (TDD/FDD): •  Economies of scale => cheaper handsets and network equipment; •  Facilitate international roaming at lower long-term costs; and •  Minimize border coordination issues.


AGENDA





5.  Key Takeaways


1.  Policy should be developed based on two-pronged approach: •  Transformation of the telecom industry by addressing the structural issues; •  Trans-sector policies e.g. e-health, tele-education, digital media, e-commerce, smart

grid, Internet of Things, e-government, etc.

2.  Government needs to lead the change due to: •  The incumbent telecom industry is reluctant to transform - no clear incentive and

regulatory uncertainty; •  Benefits generated consist of social and economic.

3.  Transformation has more to do with national infrastructure than with telecom

infrastructure. Transformation should be based on national policies rather than telecom policies. As such, government commitment towards the use of that infrastructure from the trans-sector services is required.

4.  For mobile operators, we would like to have a clear and timely policy and regulatory framework especially on the spectrum management e.g. 700MHz LTE Band, Digital Switchover .

KEY TAKEAWAYS Holistic (Mobile) Broadband Policy covering transformation of the telecom industry as well as trans-sector policy.