information on the thai interconnection regulation and the role of nbtc… · 2012. 10. 3. ·...

Information on the Thai Interconnection Regulation and the Role of NBTC, Thailand

Dr. Suthiphon Thaveechaiyagarn National Broadcasting and Telecommunications Commissioner, Thailand

The 12th Global Symposium for Regulators (GSR), Colombo, Sri Lanka, 3rd October 2012

สํานักงานสํานักงาน กสทชกสทช..Agenda of the presentation

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Agenda1. What is interconnection issue from regulatory point of view?2. Background at a glance3. How liberalization in Thailand relate to interconnection?4. Interconnection regulation in Thailand5. Role of regulator6. What will consumer benefit from interconnection?7. Conclusion

สํานักงานสํานักงาน กสทชกสทช..

IP-based communication is another popular means.Advance of technology and new platform contribute the regulator to raise questions:

Should it be regulated?If the answer is ‘yes’, ‘how’ and ‘what’ to be regulated?

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1.What is interconnection issue from regulatory point of view?

Normal IP-based Network (NGN)Single Circuit-based Network Internet Protocol (IP)Interconnection charge based on ‘time’ (/per min)

Delivered in form of ‘Package’ (no time)

Regulated interconnection at POI (Point of Interconnection) agreed by contractual operators

Unregulated


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Regulatory FrameworksRegulatory Frameworks

Significant factors for Thai telecoms industry in the age of convergence



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New establishment of regulator (The NBTC)New establishment of regulator (The NBTC)

Change on spectrum allocation conceptChange on spectrum allocation concept

2.Background at a glance


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The NBTC Act 2000 (B.E. 2543)The NBTC Act 2000 (B.E. 2543)

The NBTC Act 2010 (B.E. 2553)The NBTC Act 2010 (B.E. 2553)

NTC

NBC

Single entity

Two-separated entities NBTC

-Single entity Reason: Law delegates the authority of NBTC through two commissions -Why separate into 2 commissions? Reason: Perform their own duties which fit most in each specific field

Only NTC responsible for telecoms area was

set up



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Thailand context on telecoms: The major changes

Result: The NBTC allows operators to run business based on ‘technology neutrality’.The NBTC Act 2010 provides that the NBTC must regulate in line with the

advancement of technology.

Result: The NBTC allows operators to run business based on ‘technology neutrality’.The NBTC Act 2010 provides that the NBTC must regulate in line with the

advancement of technology.


First-time liberalization in telecoms market

3.How liberalization in Thailand relate to interconnection?


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LiberalizationLiberalization

In practice, cost and data submitted by operators do not show the real economic cost as they are supposed to be .

Regulator can truly determine if price is appropriate or overcharged.

3.How liberalization in Thailand relate to interconnection?1.More efficient Interconnection charging rate

สํานักงานสํานักงาน กสทชกสทช..3.How liberalization in Thailand relate to interconnection?

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3G utilization leads to better situation for Interconnection charge. (lower price)


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Under revision process(every 5-year review)

Interconnection RegulationNBTC Act 2010 (B.E. 2553)Telecommunications Business Act 2001

(B.E.2544)Notification regarding

Telecommunications Network Access and Interconnections 2006 (B.E. 2549)

Notification regarding Telecommunications Network Access and Interconnections 2006 (B.E.2549)

Regulation regarding NGNAs of now, no regulation regarding IP-based interconnection

Notification on Technical Standard for Next Generation Network (NGN) Interconnection 2007 B.E. 2550

Notification on Voice Over Internet Protocol (VoIP) 2006 (B.E.2549)

4.Interconnection regulation in Thailand


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Any-to-Any principle- every network needs to be able to complete calls to

other network.Right to communication

- right to communication is guaranteed constitutionally. Interconnection enables them to make and receive calls.

Compliance with international best practice- WTO (Global)- AEC Commitment (Regional)

Result:The law requires “upon request, operators with telecoms network shall provide interconnection services on their networks.”

Result:The law requires “upon request, operators with telecoms network shall provide interconnection services on their networks.”



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Compliance with international best practice (WTO (GATS annex to 4th protocol)

- requires that interconnection must be ensured, under non-discriminatory terms and conditions.

- requires for dispute settlement to an independent domestic body.

Preparation for compliance with AEC RoadmapAEC deals mainly with

1. technical interoperability and 2. facilitate interconnectivity

AEC regards that information infrastructure is important for sustaining region’s economic growth & competitiveness.

AEC aims at developing high-speed interconnections among all national information infrastructures.

Result: Thailand hasn’t yet issued any specific

regulations on IP interconnection issue.However, there is a preparation towards

the ASEAN Economic Community (AEC) in 2015, i.e. The Telecoms Master Plan also contains a strategy for the AEC integration in the telecoms area.

Result: Thailand hasn’t yet issued any specific

regulations on IP interconnection issue.However, there is a preparation towards

the ASEAN Economic Community (AEC) in 2015, i.e. The Telecoms Master Plan also contains a strategy for the AEC integration in the telecoms area.

4.Interconnection regulation in ThailandGlobal

Regional


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Cost-oriented basis- The interconnection charge is calculated on cost-based

rate and to be approved by the NBTC.

Transparency and Accuracy Principle- The calculation of network interconnection shall be

disclosed to avoid overcharge or charges for unnecessary components.



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Shall treat all operators requesting interconnection fairly, reasonably, non-discriminatory , i.e. no granting preferential treatment to other operators.



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At domestic level, the Notification sets up the procedure for resolving disputes on interconnection.

The Dispute Resolution Committee are appointed by the former NTC, comprise 5 experts with experiences from different professional field.



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5.Role of regulator ?

Expectations from stakeholders on regulator

No absolute single pricing model that fits for all IP-based interconnection charging like one-size-fits-all model.

No absolute single pricing model that fits for all IP-based interconnection charging like one-size-fits-all model.


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PriceQuality of Service

Abuse market by anti-competitive behavior

Market failure


Balance


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What might happen in IP-based interconnectionwithout regulation ?5.Role of regulator ?


Vertical integration in IP-based interconnection

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Operator X

Operator Y

Non-discrimination principle Traditional pricing model cannot be applicable.

Traditional pricing model cannot be applicable.

Why?Ans: mixture between traditional and new services

Why?Ans: mixture between traditional and new services

What are potential problems for regulator to deal with?

Competition regulation for interconnection issue5.Role of regulator ?


Situation:

Principle: IP-based network can offer services at different levels of quality – up to premium.Problem: Consumers seem to accept and do not pay for upgrading.Regulator: Encourage ‘consumer empowerment’. Make sure that consumers are informed & aware of provided quality.

Situation:

Principle: IP-based network can offer services at different levels of quality – up to premium.Problem: Consumers seem to accept and do not pay for upgrading.Regulator: Encourage ‘consumer empowerment’. Make sure that consumers are informed & aware of provided quality.

Quality of Service



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6.What will consumer benefit from Interconnection?

International Level

National Level

สํานักงานสํานักงาน กสทชกสทช..ConclusionConclusionWhat will we get from IP-based network society?

How should we prepare for?


Thank you for your attentionขอบคุณครับ/คะ

National Broadcasting and Telecommunications Commission (NBTC)

information on the thai interconnection regulation and the role of nbtc… · 2012. 10. 3. ·...

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