This section features background information and resources relevant to the current research theme. It includes resources produced by WDR and external sources and is organised by regions and topics. An archive of resources recommended in previous research cycles is also available along with news from the WDR/Intelecon Regulatory News Service.
Regulatory challenges for Universal Service Print E-mail
Written by Amy Mahan   
Friday, 23 June 2006
Evolving technology and new services and delivery platforms are challenging regulatory practices and principles. With falling revenues and a de facto separation of services and infrastructure, there are particular implications for Universal Service Obligations (USOs) in terms of their design, implementation, and of course, funding. In this ITU background paper, "What rules for Universal Service in an IP-enabled NGN environment," [download paper from ITU website] Patrick Xavier assesses regulatory complexity and responses, and provides a collection of rules for USOs.

Extending ICT networks to under served communities continues to be a challenge for many countries. While universal service initiatives have bridged some of the many access gaps that persist, new technology platforms offer potential to further extend the network to less commercially viable markets – especially in rural and remote areas. This potential, however, requires the context of a supportive regulatory environment that allows for alternative infrastructure delivery of services and effective USO policies that take existing and emerging technologies and market structures into account.

The emergence of next generation networks (NGNs) is already impacting on current market structures with the separation of infrastructure and services provisioning – an obvious example of this being internet protocol (IP) based services. Naturally this raises challenges for regulators in developed telecom markets where this transition to NGNs and take-up of their corresponding services is already taking place. Universal service issues that had been more-or-less settled for monopoly markets and then revisited in a privatised context now need to be reviewed again (including quality of service, emergency services, directory assistance, itemised billing and public pay phone provision).

For developing countries, universal service challenges translate into pernicious trade-offs for their under-developed telecom markets, where regulators will increasingly be faced with negotiating an uneven migration to NGNs. Traditional fixed line infrastructure may still be needed for some time to come especially in developing country markets. This implies the need to for the regulator to be able to continue to attract investment to the sector; while simultaneously, as much as possible, encouraging NGN development in the continual race to bridge digital divides and attain information society opportunities available in the developed countries.

There are no easy answers and ultimately, universal service will need to evolve in the NGN context – especially in terms of scope and funding. Xavier provides a map through the terrain as it stands now, beginning with a survey of the current state of the art of USO models and approaches and traversing the implications of technical change for universal service.

As illustrated in the overview of existing universal service programmes, national level responses are varied and address the particular circumstances of each country. There will be no overarching solution for migration to NGNs and crossing the bridge over to the Information Society side of the digital divide. But, there are some underlying principles. In particular, Xavier emphasises recommendations for technological neutrality and USO funding from government coffers. The key contribution made by this paper is a collection of rules for USOs generally and for the future in an NGN environment:

  • Rules for the systematic development of universal service strategy
  • Rules for designing USOs in an NGN environment
  • Rules for assessing universal access/service delivery mechanisms
  • Rules for considering USO status for broadband
  • Rules for appraising USO funding

This paper was prepared for the “What Rules for IP-enabled NGN environments,” conference,  March 23-26 2006, ITU, Geneva.

This paper, together with the others relevant for NGN debate and prepared under ITU New Initiatives Programme, can be found at:
http://www.itu.int/osg/spu/ngn/event-march-2006.phtml.

ITU's New Initiatives Project on “What  rules for IP-enabled NGNs?” is managed by Jaroslaw Ponder under the direction of Robert Shaw.