VoIP in South and Eastern Europe - ITU: Committed to ...€¦ · VoIP in South and Eastern Europe:...

VoIP in South and Eastern Europe:Strategy and Policy Considerations

Anna RiedelThe views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the ITU. Anna Riedel can be contacted at [email protected] or [email protected].

This presentation was held in the framework of the ITU New Initiatives Programme project “The Future of Voice”

26 June 2006, ITU Headquarters, Geneva, Switzerland

http://www.itu.int/osg/spu/ni/voice/meeting.phtml

26 June 2006 [email protected]@hotmail.com

2

Market Overview SEE

• Between 2003-2005 telco markets grew by ~ 11% (EU 15 3.4%)

• Strongest growth seen in Bulgaria (16.4% p.a.) and Romania (15.9% p.a.)

• Nevertheless total market value remains behind that in Western Europe


3

Mobile Markets in Eastern Europe

140%

120%

100%

80%

60%

40%

20%Moldavia Belarus

Albania, SerbiaBosniaRomaniaUkraine

Macedonia Latvia, BulgariaCroatia, Poland

Czech Republic

Lithuania

Estonia

Montenegro

Slovenia, HungaryRussia

Slovakia

Per

cent

of P

opul

atio

n

Market maturity stage Embryonic Early stage Developing Advanced Mature

Turkey

Source: A. D. Little


4

Romania in 2005

Population:22,329,977

GDP:Total: € 77.6 bn

€ 3,589 per capita(4.1 % yoy growth)

Telecom service market:€ 2.71 bn

(23.3% yoy growth)


5

Market data (mobile & fixed)

Fixed and Mobile Penetration rates

010203040506070

2000 2001 2002 2003 2004 2005

in %

Fixed line penetration rate Mobile peenetration rate

Aggregatedrevenues of four

main mobile players up 33% in

2005


6

Internet

0

25

50

75

100

2000 2001 2002 2003 2004 2005

%

0

1000

2000

3000

4000

Internet penetration rate % number of w eekly internet users (thou)

Market data II (Internet)

+ 327%

Source: http://rbd.doingbusiness.ro/


7

Market data III (Internet)

Narrow- vs. Broadband

0

500

1000

1500

2003 30.06.2004 2004 30.06.2005

thou

sand

s

number of narrowband connections Number of broadband subscribers


8

Regulatory Overview• 1st of January 2003 fixed-line telephony market was

liberalized and opened to private competition (all platforms)

• Has implemented the authorization directive given by the EU 2003 package

• no legal entry barriers (no charge for entry license, numbering, etc.)

• 3 GSM providers and one CDMA 2000 operator (450 MHz); two 3G licenses and two more to come

• National Regulatory Authority for Communications (ANRC) has authorized more than 2,600 companies to offer electronic communications services in 2005


9

VoIP regulation

Official position on VoIP Date of liberalization Licensing requirements

• the principle of technological neutrality• considered telephony services if they fall within the scope of the definition of the publicly available telephony services• ANRC is currently reviewing its position on other types of VoIP services

• Jan. 1, 2003• Article 2, par (1) (c) of Law No. 304/2003 on the universal service and users’rights relating to electronic communications networks and services

• General authorization with notification

• Max. 0.5% of annual revenue


10

Recent Developments1. Atlas Telecom will deliver residential VoIP over a

fixed-wireless network using DECT* cordless technology

• Is uses the SIP-based BroadWorks VoIP application platform in tandem with DECT wireless nodes and cordless phones

• The bases will be posted on lamp posts with 200m signal each (4thou per city)

2. Combridge SRL launched a new telecom brand: Eufonika

• It uses the RomTelecom network and customers have to access a free number in order to get connected to the VoIP offer

3. Orange launches first 3G offer in Bucharest* Digital Enhanced Cordless Telecommunications


11

Bulgaria in 2005

Population: 7,761,000

GDP:Total: € 21.4 billion€ 2,779 per capita(5.2% yoy growth)

Telecom service market:1.2 bn

(10.9% yoy growth)


12

Market Data

ITC Market Overview

0

20

40

60

80

2000 2001 2002 2003 2004 2005 2006

per 1

00 p

eopl

e

Telephone main lines Mobile subscribers

Internet users Broadband subscriber lines


13

Regulatory Overview

• Has completely privatized the incumbent operator (except golden share) by June 2004

• BTC still holds 97% market share• Individual licenses for fixed telephony

needed (network or carrier)• Communications Regulations Commission

(CRC) has licensed 3 2G and one analogue (RTC) and 658 local cable operator


14

VoIP regulation


•No official position, if VoIP services do not meet the QoS parameters for fixed voice telephony service•they are not allowed to apply for a voice license with rights to interconnect under reference connection offer (RIO)

• not regulated• (Art. 3, all. 2 of Regulation No. 12 of May 5, 2004 for fixed voice telephony)

•No licensing/ authorization regime for VoIP as long as minimum QoSrequirements for voice telephony are not met•otherwise a fixed voice telephony license is required


15

Recent Developments 1. Bulgarian triple play provider CableTel

agreed to buy majority stake in Evrotur Sat TV (local key competitor)

2. Internet telephony provider Ekstel received license to provide street phone services

3. VoIP connecting Bulgarian Sea central administration of Port Infrastructure State Enterprise through a VoIP information technology system


16

Croatia in 2005

Population: 4,551,000

GDP:Total: € 28.07 bn€ 6,079 per capita(4.3% yoy growth)

Telecom service € 1.5 bn (2004)


17

Market Data

Penetration rates in %

01020304050607080

2000 2001 2002 2003 2004 2005

Fixed line Mobile Internet

0.04 0.10 0.210.41 0.69

1.08

Broadbandsubscriber linesper 100 people

Source 2005: GI


18

Regulatory Overview

• Liberalized from Jan 2003• Incumbent is held by Deutsche Telekom

(51%)• Various cable operators licensed and 3

2G operators (active)


19

VoIP regulation


• The right to provide VoIP telecommunications services is acquired by a legal or natural person by submitting a written notification to the Agency

• June 30, 1999

• General authorization with notification• € 670 one-off fee plus 0.1% of annual revenue


20

Recent Developments1. Slovenia's national telco Telekom Slovenije

wants to acquire one of the largest Internet service providers Vodatel while T-HrvatskiTelekom (incumbent) is in talks on acquiring Iskon Internet

2. Italy-based systems integrator Essentia will distribute broadband solutions (G6), including VoIP in Croatia

3. WiMAX Telecom Group’s bid for Zagreb region got accepted (will start wireless broadband incl. VoIP this year)


21

Turkey

Population:70,413,958

GDP (2004):Total: € 242.598 bnper capita € 3,393

Telecom service market:€ 8.4 bn (2004)


22

Market Data

ICT Market Overview

0

20

40

60

80

2000 2001 2002 2003 2004 2005 2006

Pene

trat

ion

Telephone main lines (per 100 people) Mobile subscribers (per 100 people)Internet users (per 100 people) Broadband subscriber lines (per 100 people)

Source: ITU/ 2005 EIU est./ 2006 forecast


23

Regulatory Overview

• the Ministry of Transportation is responsible for operational activities of Turk Telekom (45% state owned)

• Independent NRA: Telecommunications Authority

• Fixed wholly liberalized in July 2005• Neither call termination nor call origination

model is used for interconnection agreem. between ISP and incumbent


24

VoIP regulation


• No specific position on VoIP • VoIP requires a long distance telephony service license

• Jan. 1, 2004

• Individual license•fee: same as long distance tel. plus 0.5% of net annual sales


25

Recent Developments

1. French B3G Telecom offers white label Broadband Telephony Services in Turkey

2. Damaka announced operator launch with Mortel Telecom

3. Teletek Telekom, Turkeys leading IP carrier, integrates next gen SIP service architecture


26

ObligationsUniv.

ServicesUSO cost compens.

USO elig.for mob.

operators

QoSmeasure

Yes**

Yes

Yes**

Yes**

Yes Yes Yes

Yes Yes No

Yes Yes* Yes

Yes (No: NA, DIS) Yes* No

NA: Network Access DIS: Directory Inquiry Service* Not in practice ** not yet published


27

Considerations

Mobile vs. Fixed

0

20

40

60

80

100

RO BG HR TR

in %

Mobile Jan 2005 Mobile Nov 2005 Fixed Nov 2005

Mobile penetration EU average


28

ConsiderationsWhat is the future of voice in SEE?

Difficult to foreseeDepends also on EU accessionsVery tight regulation with VoIP seen as substitution for fixed => many obligations, higher market barriers to entry, less competitionOr: laisser-faire => QoS, interconnection, USOs, numbering?Esp. in SEE: low broadband penetration => mobile VoIP (3G or WiMAX)NRAs have to focus on universal access


29

Considerations

1. Universal access approach2. Regulatory holidays in order to give

incumbent the chance to deploy the infrastructure, therefore broadband and possibility for VoIP


30

Thank you very much for your attention.Contact:

[email protected]@hotmail.com

This presentation was held in the framework of the ITU New Initiatives Programme project

“The Future of Voice”

mailto:[email protected]

mailto:[email protected]

http://www.itu.int/osg/spu/ni/voice/meeting.phtml

VoIP in South and Eastern Europe - ITU: Committed to ...€¦ · VoIP in South and Eastern Europe:...

Documents

Transcript of VoIP in South and Eastern Europe - ITU: Committed to ...€¦ · VoIP in South and Eastern Europe:...