axiata jakarta may 2011 convergence law licencing fnl 1

8/3/2019 Axiata Jakarta May 2011 Convergence Law Licencing FNL 1

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PRESENTATION TO MCIT STUDY GROUP ON

CONVERGENCE REGULATION

CONVERGENCE LAW AND REGULATION:SOME LESSONS FROM MALAYSIA

Jakarta4 May 2011

AXIATA GROUP BERHAD (242188-H)


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AGENDA

1. WHY CONVERGENCE REGULATION

2. INTEGRATION OF POLICY SETTINGS AND REGULATORY FRAMEWORKS

.

4. INSTITUTIONAL FRAMEWORK - THE CONVERGENCE POLICY MAKER

AND SECTOR REGULATOR

6. CLOSING KEY POINTS TO NOTE ON CONVERGENCE LICENSING

22


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1. WHY CONVERGENCE LEGISLATION

33


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What is convergence all about?

The term has variously been used to describe recent technological developments,merger and acquisition strategies and new service and application types. Major globalinstitutions have been attempting to define convergence for the purpose of legislative

The ability of different network platforms to carry essentially similar types of services andapplications. European Union (1998)

Digital convergence can be seen as the coming together of previously technologicallyand commerciall distinct markets such as broadcastin rint ublishin cabletelevision, fixed wire voice telephony and cellular mobile and fixed wireless access.

ITU (1999)

The rocesses b which communications networks and services which were reviousl

considered separate, are being transformed such that: different networks and servicescarry a similar range of voice, audio-visual and data transmission services, differentconsumer appliances receive a similar range of services and new services are beingcreated. OECD 2004

GRA/Presentation Convergence Law and Licensing /4 May 2011


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As a prelude, convergence strategies are now following broader market

liberalisation and has led to new licensing approaches

South Africa

Establishment of ICASA Electronics Comms Act

- Convergence regulator established

- Technical neutral licensing- Encouraging alternative facilities

operators (eg power utilities etc)

Korea

e-Korea Plan

- Expansion of broadband

- Promotion of cross platform

competition (especially cable v DSL)

India

National Telecommunications

Policy

Communications Convergence

Bill

Australia

Telecommunications Act

- Technical neutral licensing

- Service and facilities exemptions +class licensing

- General competition provisions

Market Conver ence

Malaysia

National Telecommunications

Policy

- Convergence regulator established- Technical neutral licensing

- Service and facilities exemptions +class licensingCommunications and

Multimedia Act


1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

liberalisation Provisions


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So, who has adopted a convergence framework closer home?

Countries Technology Neutral Convergent Framework/

Licensing Convergence Regulator

Malaysia Singapore *n ones a un erway un erway

Philippines **

Thailand ** rune

Cambodia X X

Vietnam X X

Laos X X

Note: (*) Convergence at Ministerial level


(**) Single Regulatory body


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Emerging characteristics are now beginning to define the licensingdynamics in convergence markets

Past

Segmented modes of servicedelivery

Future

Integrated modes of servicedelivery

Market pressures

Fluid market boundaries and customer segments Increasingly diverse, hybrid solutions for connectivity

Analogue, dedicated channel,

circuit switched

Vertically integrated, end-to-end delivery

Digital, synchronous channel,

packet switched

Highly segmented,specialised delivery

Shift from time-based to flat rate (eg VoIP) charging

Shift to commodity based pricing (eg international bandwidth)

Multi-carrier markets have become the norm Continuing growth of niche market opportunities and vendors

Distribution networks as anatural monopoly

Investment dominated by

Customer access is fullycontestable

Investment dominated by

Substantially lower barrier to market entry Alternative access technologies (eg cable, fixed wireless)

Increased focus on wholesale markets and competition

p ys ca p an

Key regulatory focus oninterconnection

so ware an sys ems

Key regulatory focus onaccess and interworking

Calls for an adaptive and flexible regulatory environment General competition principles apply to sector management

Chan in economics of network investment

innovation and rollout

Discrete national andinternational markets

applications

Interdependent national andinternational markets

Emphasis on retail distribution and service applications

Communications industry globalised and trade exposed Alignment of national regulations with global realities


Stable comparativeadvantage

Dynamic comparativeadvantage

Skills and IP are key sources of competitive advantage Increasing propensity and velocity of customer churn


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Convergence in the Malaysian context integration of value chainsof the information & multimedia industries

Integrated convergence business models and policy solutions

ices

ostalSer

Legacy Business & PolicyFrameworks

New Imperatives



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Convergence in the Malaysian context defined contd

Convergence is the progressive integration of the value chains of theinformation and multimedia content industries telecommunications, posts,broadcastin , rint, multimedia, e-commerce and data rocessin into asingle value chain based on the use of distributed digital technology.

Convergence markets are economic markets for:

Network services and related services pp cat ons serv ces, nc u ng content app cat ons serv ces, an re ate

services

Access to necessary facilities



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Scope of the convergence regulatory framework networkedservices

Substitutable services

Postal, physical transport, logistics services

NETWORK SERVICES MARKET

TRANSPORT

network facilities & services

licensing and conditions

Network Services Provider

Connectivity services

Networked a lications rovider

Network

Facilities Providers

Operating systems

voice & data services, transaction services

(financial, education, health services)

& hardware Networked content providers

radio, cable, free-to-air TV,

Interactive content servicesSubstitutable

services

Content/applications

licensing and conditions

Non - networked contentapplications providers

Newspapers, magazines, CDs, books

Traditional

financial,

education

health,

media services


- economic & social

APPLICATIONS SERVICES MARKET

FUNCTION


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Scope of the convergence regulatory framework networkedservices, contd

Network Facilities

Operating systems &

Network Service

Connectivity

Content andApplications

Voice, data, interactiveserv ces content, e-transactions,

radio, TV, Internet


Networked Environment convergence between telecoms and broadcasting


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2. INTEGERATION OF POLICY SETTINGS &

1212


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General Overview of ICT Policy and Initiatives in Malaysia 1983 2010:Clear policy settings & regulatory mechanisms essential

Privatisation

Policy

Science &

TechnologyPolicy

National IT

Policy

National

DevelopmentPolicy

1983 1986 1991 1996 1997 1998 2005

licies

NationalBroadband Plan

& MyICMS 886

National

TelecommsPolicy

1994 2010

EconomicTransformation

Program

Digital SignatureAct

Co ri ht Act

Communications &Multimedia Act

P

Computer

Crimes Act

Telemedicine

MalaysianCommunications &

MultimediaCommission ActL

aws

Electronic

Government Act

Vision2020

Multimedia

Super Corridor

KnowledgeEconomy Framework forIndustry

Development

MSC Flagship

E-Government Smart School Tele-health Multi Purpose Cardp

lementation 10 Entry PointProjects (EPP)

MY CreativeContent

1MY Pa ment

E-GovernmentBroadband forall


uster Cross Flagship

I Connecting1MY

E-LearningE-Healthcare

BroadbandReach

Smart NetworkRegionalNetwork


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3 KEY THEMES DRIVING THE 10 EPPs - REFOCUSING IN STIMULATING DEMANDS

DRIVETOWARDSCONTINUEDHIGHGROWTHINCOMMUNICATIONSERVICESANDENABLEPARADIGMSHIFTFROMINFRASTURE&ACCESSTOAPPLICATION&CONTENT

Theme1:ServingTomorrowPlatform,Application,ContentTheme1:ServingTomorrowPlatform,Application,Content Theme2:PushingBoundariesIndustryEnablementTheme2:PushingBoundariesIndustryEnablement Theme

3

:Enhancing

Foundations NextGeneration

Infrastructure

Theme3

:Enhancing

Foundations NextGeneration

Infrastructure

EPP1

NurturingMYs

creative

EPP4

EstablishingELearning

EPP7

EnsuringBroadbandforall

con en n us ry

EPP2

Deploying1MY EPP5Launchin EHealthcare

EPP8

ExtendingBroadbandReach

EPP9

payments

EPP3EPP6

Deepening

OfferingaSmartNetwork

EPP10


EGovernment

Network


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Capturing policy intent in legislation:The 10 National Policy Objectives for Communications & Multimedia: Section 3(2) CMA 98

1. Creating a global hub:

To establish Malaysia as a major global centre and hub for communications and multimediainformation and content services

2. Building a civil society:

To promote a civil society where information-based services will provide the basis of continuing

3. Nurturing local content & culture:o grow an nur ure oca n orma on resources an cu ura represen a on a ac a es e

national identity and global diversity

-.

To regulate for the long term benefit of end users


.

To promote a high level of consumer confidence in service delivery from the industry


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Capturing policy intent in legislation: ContThe 10 National Policy Objectives for Communications & Multimedia: Section 3(2) CMA 98

6. Promoting access & equityTo ensure an equitable provision affordable service delivery over ubiquitous national infrastructure

7. Creating a robust applications environment

To create a robust applications environment for end users

8. Facilitating efficient allocation of resources

To facilitate the efficient allocation of resources such as skilled labour, capital, knowledge and

national assets

9. Developing industry capabilities

To promote the development of capabilities and skills within Malaysias convergence industries

10.Promoting secure and safe networking

To ensure information security and network reliability and integrity



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An explicit statement of regulatory guiding principles is essential

1. Transparency and clarity:

Transparency and clarity are necessary to ensure that all market participants have a full understanding ofthe way the regulator implements the Governments policies and have confidence in their investmentdecisions.

2. Less rather than more regulation:In line with the liberalisation policy for the sector, the focus of the legislation has been in the context ofmoving towards less regulation where market participants play key roles in developing voluntary industry

3. Flexibility:

Elements of flexibility have been incorporated to enable long lasting application in line with rapid changesin the industry environment.

4. Focus on generic rules:

In developing the new legislative rules, the bias was towards establishing generic rules which havewidespread application to provide flexibility so that when there is need for amending any of its provisions,

Source: MCMC 2002



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Key legislation and initial regulatory instruments (1998 2002)

LEGISLATION

Communications and Multimedia Act 1998 came into force 1 April 1999 law to regulate the converging communications & multimedia

10 national policy objectives enshrined

principles of new regime: transparency and clarity, less rather thanmore regulation, flexibility, focus on generic rules, technologyneutra , se -regu at on, soc a respons ty, consumer nterest

Malaysian Communications and Multimedia Commission Act 1998

setting up of the independent regulatory authority

Communications & Multimedia (Licensing) Regulations 2000 Communications & Multimedia (Licensing) (Exemption) Order 2000 Communications & Multimedia ((Spectrum) Regulations 2000 Communications & Multimedia (Spectrum) (Exemption) Order 2000

REGULATIONS

-

Gazette 1 April 2000 Communications & Multimedia (Technical Standards) Regulations 2000


Chronology and timing of issuance of instruments is important to provide transparency, clarity and certainty to process


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Key legislation and initial regulatory instruments (1998 2002), contd

Ministerial Direction on Universal Service Provision (Direction No. 1 of 2000) Ministerial Direction on Universal Service Provision (Direction No. 1 of 2001) Ministerial Direction on Equal Access (Direction No. 2 of 2001) Ministerial Direction on General Licensing Policies (Direction No. 3 of 2001)

INSTRUMENTS

.2001)

Ministerial Direction on the Standards on International Mobile Telecommunications2000 Terrestrial Component(Direction No. 5 of 2001)Ministerial

Ministerial Direction on Quality of Service (Direction No. 1 of 2002) Ministerial Direction to Determine a Mandatory Standard on Access Pricing

(Direction No. 1 of 2003)

Ministerial Direction to Determine a Mandatory Standard on Access

ns rumen s

. Ministerial Direction on Quality of Service, Phase Two (Direction No. 3 of 2003)

Ministerial Determination on Spectrum Reallocation (Determination No. 1 of 2002)

omm ss on eterm nat on on ccess st eterm nat on o. o Commission Determination on Universal Service Provision

(Determination No. 2 of 2001) Commission Determination on the Mandatory Standards for Quality of Service

Public Switched Tele hone Network Service

CommissionInstruments


(Determination No. 1 of 2002) Commission Determination on the Mandatory Standards for Quality of Service

(Public Cellular Service) (Determination No. 2 of 2002)


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3. THE IMPORTANCE OF PRACTICAL

2020


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Broad overview of the Communications & Multimedia Act 1998:Clear Transition Provisions Essential for Regulatory Certainty

Legislation divided into 11 Parts

Part II: Ministerial Powers & Procedures

Ministerial Determination

Part VI: Economic Regulation

Licensing

Prohibition on anti-com etitive conduct

Ministerial Declaration

Power to make regulations

Part III: Appeal Tribunal

Access regime

Part VII: Technical Regulation

Prohibition to use spectrum without assignment

Judge) by Minister

Review decision/direction of MCMC

Part IV: Licences

Part VIII: Consumer Protection

Consumer complaints

Universal Service ypes o cences n v ua an c ass

Part V: Powers & Procedures of the MCMC

Commission Direction & Determination

Conduct of public inquiry

Part IX: Social Regulation

Licensing of content

Prohibition on offensive content

Content Forum

Resolution of disputes Power to gather information / investigate

Industry forums

Part X: General

Offences/penalties/general enforcement


ar : rans ona prov s ons

Transition process


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Transition Process

The CMA has specific provisions to address the transition processfrom old regime to new regime.

A clear transition process is important as it provides certainty toexisting licensees.

What happens to the existing licence?

Is there a requirement to migrate?

If yes, what are the advantages and disadvantages of migrating

to a new licence?

e evant proce ures or trans t on or ma ntenance o anexisting licence



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Transitional Provisions Under CMA

Operator

Licences

New Operator

Licences CoTe

lecom

Broad

to new licences

or remain

on old licence

mmunicat

unication

asting

Ac Regulations

Determination of initial

Listed services & facilities

ions&

Mu

Act1950

t1988

Preserved timediaA

Customer equipment licensing

Equipment retail licensing

tariffs

New Regulations

Su ersede old re ulations

t1998



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Transitional Provisions Under CMA, contd

Existing licensees have certain transitional obligations

Licensee indicatesIntention to Intention to

intention to migrate or

remain on existing licence

m gra e o new

licence

re a n ex s ng

licence

Register existing licence Register existing licence

Apply for new licenceOld licence continues

New licence granted / refused



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Transitional Provisions Under CMA, contd

Commencement of

new regime

Last day for existing licensees

to register existing licence (s 278)

& indicate intention to migrate (s 280)

1 April 1999 1 April 2000

Re istered licencesLicensees indicate intention

to migrate or not migrate (s 280)

Licensees register existing licences

Holders of registered

licences may seek

new licence (s 281)Holders of registered

Continue in existence (s 278)


licences may seek

new licences (s 281)


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4. INSTITUTIONAL FRAMEWORK : THE CONVERGENCE

2626


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Institutional FrameworkThe set up

prpr

Redefinition ofthe Ministrys

Ministry of Energy,Telecommunications & Post

ovov

Ministry of Energy,Communications & Multimedia*

functions and

formation of MCMC

Malaysian Communications and

Multimedia Commission formed

Replacementof sectoral Acts

by a convergence

Act

Telecommunications Act 1950

Broadcasting Act 1988

Communicationsand Multimedia Act 1998

Replacementof sectoral

JTMMalaysian Communications

regu ators y aconvergence

regulator

Ministry of Information(Licensing Division)

an u t me aCommission Act 1998


(*) Note:7 January 2003 - Ministry of Energy, Water & Communication (MEWC)

9 April 2009 Ministry of Information, Communications & Culture (MICC)


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Institutional FrameworkThe set up..

Parliament

Ministry

(Policy Setting)

Commission

(Regulator)Industry Fora

Appeal

Tribunal

Self-regulation:

Access

ecommen a onrec on

Referral Liaison

Consumer

Content

Technical

C&M

Postal

Digital

Industry

Signature


Players


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Institutional FrameworkRoles and Responsibilities of Policy Maker

Ministry of Information, Communications & Culture

To PLAN, IMPLEMENT, FACILITATE AND RE-EVALUATE policies and information programs to elevate

peoples receptiveness towards Vision 2020 To PLAN, IMPLEMENT AND FACILITATE management services and delivery systems

,knowledgeable, informative and cultured community.

To DEVELOP, SET UP AND REGULATE communication facilities and services and content industry

To INSTILL arts, culture and heritage through arts and culture programs and activities towards One Malaysia

To ENHANCE national revenue through contribution from creative and communication industry

To PRODUCE knowledgeable, creative and innovative human capital



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Institutional FrameworkRoles and Responsibilities of Regulator

Regulator - Malaysian Communications and Multimedia Commission (MCMC)

to ADVISE the Minister on all matters concerning the national policy objectives for communications and

multimedia activities; to IMPLEMENT and ENFORCE the provisions of the CMA

to CONSIDER and RECOMMEND reforms to the law;

to SUPERVISE and MONITOR communications and multimedia activities;

to ENCOURAGE and PROMOTE the develo ment of the C&M industr

to ENCOURAGE and PROMOTE self-regulation;

to PROMOTE and MAINTAIN the integrity of all persons licenced or otherwise authorised;

to RENDER ASSISTANCE in any form to, and to promote cooperation and coordination amongst, personsengage n & act v t es; an

to CARRY OUT ANY FUNCTION under any written law as may be prescribed by the Minister by notificationpublished in the Gazette.


Note: on 1 November 2001 MCMC took over the regulatory functions of the Postal Services Act 1991 and the Digital Signature Act 1997.


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Institutional FrameworkRoles and Responsibilities of Industry Fora

Industry Fora Self Regulating Bodies

Access Forum Content Forum Consumer Forum Technical Forum

participation from both consumer and service suppliers for the benefit of consumers



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5. LICENSING KEY PRINCIPLES, MAPPING AND

3232


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Licensing under the CMA

Its role:

To facilitate market access and competition - via a transparent licensingframework where the rocesses to a l and ualif for a licence are clear

To control market behaviour once a licensee, there are conditions and rulesto govern what conduct is permissible and what is not

To promote the national policy objectives espoused under the CMA and

development of the C&M industry

Implementation involved:

Facilitatin the entr of new la ers into the market

Migrating the old licensees issued under the repealed TelecommunicationsAct and Broadcasting Act into the new converged licensing framework under


the CMA


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What economic licensing for convergence actually means

Communications andMultimedia Act 1998

Repealed Telecommunications Actand Broadcasting Act

ing

Content ServicesContent Services

Br

oadcas

licenc

Network ServicesNetwork Services

Applications ServicesApplications Services

Network FacilitiesNetwork Facilities

* In total, there were 29 types of telecom licences

vertical separation between facilities,network, applications, and content

Under the old licensing framework, allactivities related to the provision of a

particular service are vertically integrated


may not be in market today

or e prov s on o a serv ce

Source: MCMC presentation to industry 2005


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Thus, service-specific licenses are no longer issued

CASPCASP

Various licensing combinations

NSPNSP

ASPASP ASPASPNSPNSPASPASP

NFPNFPService specific licenses, e.g.

for the provision oftelecommunications orbroadcasting services will nolonger be issued.

,provide facilities-basedtelecommunications and wholesaleservices need only be issued with

Provi ers can t ere ore nowchoose which segment of amarket they wish to enter facilities and or service.

individual NFP and NSP licences.

This company will not require separateor additional licensing if it wishes to


ep oy new ec no og es, e.g. .



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Types of economic licences under the CMA

Two types of licenses areissued for each category, Less re ulation

CASP CASP

excep or .

Only activities withsignificant economic or CASP

ASP ASP

social impact areindividually licensed.

ASPASPASP

NSP NSP NSP

to move towards lessregulation.

Individual Class Exempt


Licensed UnlicensedSource: MCMC presentation to industry 2005

* From 1 April 2005


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CMA Licensing Environment

Generic rovisions of Act a l to all relevant activities

Standard licence conditions commonto Individual and Class licences

Standard Licence

Conditions commonto Individual Licences

Special conditions

Undertakings


Individual Class Exempt



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Licence mapping process

Old Licence UnderTelecommunications Act /

Broadcasting Act

CMA Licence Remarks

Domestic Network O erators NFP individual Control market entr and ownershi of

Mobile Cellular

Very Small Aperture TerminalServices

NSP individual

significant national assets

Monitor operations

Compliance with minimum standards

ASP class Monitor operations & compliance withminimum standards

Trunk Radio System

NSP class

ASP class

minimum standards

Commercial free-to-air TV Commercial radio

broadcasting

CASP individual Control market entry & monitoroperations

Protect community values &standards


Compliance with minimum standards


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Snapshot of licensable activities under CMA

INDIVIDUAL LICENCE CLASS LICENCE EXEMPTED ACTIVITIES

CASP Satellite broadcasting

Subscription broadcasting

Limited content applications service limited in itsavailability to (i) vehicles, vessels, etc; (ii) singlecommercial or residential building; (iii) restricted

Internet content services

erres r a ree o a r

Terrestrial radio broadcasting

geographical area

ASP PSTN, Public cellular services, IP telephonyPSTN, Public cellular services, IP telephonyPSTN, Public cellular services, IP telephonyPublic payphone servicePublic payphone servicePublic payphone service

Public switched data servicePublic switched data servicePublic switched data service

PSTN, Public cellular services, IP telephony

Public payphone service

Public switched data service

Electronic transaction services

Interactive transaction services

Networked advertising boards

(note: shifted to class from 1 April 2005)

Audiotext hosting services, Directory services

Internet access services, Messaging services

Web hosting or client server

NSP Bandwidth services

Broadcasting distribution services

Niche customer access

Niche connection service

Incidental network services

LAN service

Cellular mobile services

Access applications services, Space services

Switching services, Gateway services

Private network service

NFP Earth station, Fixed links and cables Niche or limited purpose network facilities Broadcasting and production

Radio communications transmitters and links

Satellite hubs, Satellite control station, Space

station, Submarine cable landing centre, Towers,

poles, ducts and pits used in conjunction with

other network facilities

s u os

Incidental network facilitiesPrivate network facilities


Source: MCMC website

Technical authorisation for spectrum use options available


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Technical authorisation for spectrum use options available

Spectrum Assignment Apparatus Assignments Class Assignment

Overall purpose: Overall purpose: Overall purpose:

Control the use of scarce

spectrum resources Minimise spectrum interference

Control the use of devices which

use scarce spectrum resources Minimise spectrum interference

Minimise spectrum interference

Ensure compliance with minimumstandards

or more specfied frequencybands for any purpose inaccordance with the assignment

conditions

specified frequency band tooperate a network facility of aspecified kind or for a specified

purpose

When used:

Spectrum frequencies which are

When used:

Apparatus which use spectrum for

When used:

Apparatus which use spectrum

communication services orcommand a high market value

communications services

with other licensed activities


Technical authorisation for spectrum use contd


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Technical authorisation for spectrum use, cont d

Spectrum Assignment Apparatus Assignments Class Assignment

Previously under old regime, no Fixed e.g. coast station, Amateur stationspectrum assignments wereissued. There is no migrationissues to be dealt with.

First spectrum assignment was

aeronautical fixed station, landstation.

Space e.g. space station,broadcasting satellite station,

Cellular station

Citizen band station

Cordless telephone

ssue or n . xe sate te stat on

Mobile e.g. aircraft station, shipstation, aeronautical mobile

station, mobile station, cellular

Medical and biological telemetry

Security devices

Wireless microphone station

,station, paging base station,

Broadcasting e.g. broadcastingtransmitter, broadcasting repeater Liberalisation

regulated as radiostationlicences under old regime.


The migrating process was most challenging migrating old


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The migrating process was most challenging migrating oldlicensees to new regime

19981999 - 2000

2001 20022003

MCMCRegulations

Migration IMigration II

MCMC - 1 Nov 08 Industry sessions Series of consultations Staffing Resources

Drafting subsidiarylegislations

Managing transition

process

with licensees Mapping process Principle of no worse off

Draft licence template

of licensees toclass licence regime from Jan 03 onwards

-on access, numbering

- registration of oldlicences by designateddate (1.4.00) to ensure

intention to migrate All major telcos issued

their individual licencesfrom May 2001 onwards

continued validity Migration for radio &

broadcasters completedfirst by July 2000

Minister issues niche

guidelines & NFP/NSPclass licences Sept 02

Briefing to licensees- Nov 2002 & break- out


sessions

Number of CMA licensees (as at Quarter 4 2010)


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Number of CMA licensees (as at Quarter 4 2010)

600 526

NumberofLicences

400

500

Individual

200

300

114 116

0

10052

29 30 29

Network

Facilities

Provider NFP Network

Service

provider NSP Applications

Service

Provider ASP Content

ApplicationsService

provider CASP


Note: Licenses issued under the repealed Acts but registered pursuant to s 278 of CMA.

Some suggested overarching principles that can govern licence


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gg g p p gmigration are as follows:

Facilitate entry into convergence markets (including ability to offer content servicesif applicable;

Is not inconsistent with the local Companies Act and does not jeopardise listing on

any stock exchange, where applicable;

,as to increase a companys market capitalisation;

Conditions leave the company no worse off than its old licence;

Avoids the imposition of asymmetrical regulation on the company which reducesits freedom and ability to compete;

Allows cor orate restructurin to meet the challen es osed b market and

technology convergence;

Minimises licence fees, administration and compliance costs;



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6. CLOSING SIGNIFICANT POINTS TO NOTE ON

4545

The push for convergence licensing arrangements should focus on


46/47

p g g gthe following:

Clear policy settings and national vision for the ICT sector;

Adopting industry licensing structures where there is a split between facility and,

etc).

Endorsing a framework where there is both individual and class licensing

unnecessary and intrusive regulation in certain parts of the industry.

Creating a set of practical transitional mechanisms for existing licenses (such as.

Ensuring fair and transparent conditions and obligations should be universal in thelicence, that leave the company no worse off than its old licences.

Making the reasons for not granting a license [or an extension to a license]transparent and known to the applicant.


licencees and potential investors.


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Thank You

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