WEEK 1: Introduction
Technological developments in the field of telecommunications
● Telecommunications/electronic communications
○ Transmission of signals that carries information/data transmitted through
networks/services via signal carriers (wired (copper wires, optical fibers) or
wireless (radio waves, satellite signals)
■ It is not about the content & message transmitted (which is regulated
under media/Internet law), but the (technical) means of transmission
● Telegraph, telephone, radio, television, and communication satellites
● Circuit switching, message switching and packet switching (and networks)
○ Circuit switching: creates an end-to-end between devices during connection
(from point A to point B)
○ Message switching: messages are transmitted between nodes in the network
○ Packet switching: data split into packets, transmitted independently and
reassembled at destination to (re)create message
■ All computer networks are packet switched!
● NCP and TCP/IP
○ NCP: early protocol that helped connect first computer networks; no longer in use
○ TCP: protocol that ensures information/data is sent correctly over the Internet
○ IP: protocol that gives every device on the Internet a unique address so that
information can be routed to the right place
● Email, HTML, and Mosaic/Netscape
● OTT services
○ Services delivered directly to consumers over the Internet, bypassing traditional
cable, satellite, or telecom provider
+ 3-layer model: physical network, telecommunications services and
content-related (communications) services, and OTT fall under the last notion
+ There is a distinction between legacy networks (not part of the modern TCP/IP
protocol) and Next-Generation Networks (NGN), which are digital networks —
legislators may apply more favorable rules to promote the deployment and usage
of NGNs; focus of regulation should shift from access to existing infrastructure to
creating new networks
Politics & regulation of telecommunications
Telecommunications revolve around the conveyance of signals over large distances,
driven by the desire for power through control of information. Telecom regulation is
complex, politically charged, and involves multiple actors and levels, as the
infrastructure is shared and requires cooperation between states, with national
regulatory authorities being the most relevant institutions.
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,Regulatory policies and laws in the telecoms sector are often structured based on
industry, sector, and type of content (silo approach). Networks and services belonging to
a particular type are regulated together. However, challenges arise when the same type of
service is provided by different networks, which is known as convergence.
Reason for regulation:
● Bring consumer prices close to competitive levels in networked industries that
behave like natural monopolies (due to high costs & network effects which make it
difficult for new entrants to (easily) replicate required assets and compete
effectively)
● Ensure competition, avoid market failure, protect consumers, and promote
investment & welfare
Competition law & regulatory approach:
- Competition law targets abuses after they occur and operators on a case-by-case
basis
- Ex ante rules are combined with ex post remedies to prevent issues & address
violations
Infrastructure vs service-based competition::
● Infrastructure-based: allowing new entrants to build infrastructure
● Service-based: allow incumbents to access networks to offer their own services
EU legal framework on telecommunications
Regulations
● Roaming Regulation
● Open Internet Access Regulation
Directives
● Access Directive
● Authorisation Directive
● Framework Directive
● Universal Service Directive
● ePrivacy Directive
● Competition Directive
Four Directives (Access, Authorisation, Framework & Universal Service Directive) have been
replaced by the new Directive combining them all → European Electronic Communications
Code (which is the current law regulating telecommunications)
The EU started developing its telecommunications policy in 1987, initially focusing on
liberalization of the telecom sector and later harmonization of laws among Member States. The
history of EU telecommunications policy is divided into four periods:
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, a. Pre-1987: The telecommunications market was primarily under the control of Member
States
b. 1987-2002: The EU focused on liberalization and harmonization of laws to eliminate
monopolies
c. 2002-2016: Introduction of a new framework in 2002 and its revision in 2009
d. 2016 onwards: An updated framework based on EECC
EU's role in liberalization and competition:
- Commission engaged in deregulation and privatization to break monopolies and
promote competition
- EU positioned as a promoter of competition and user choice
Objectives:
● Boost infrastructure development & protect consumers/end-users
● Improve coordination between EU bodies & national authorities
● Effective enforcement of EU rules
● Simplify framework, reduce legal measures & increase focus
Subsidiarity & cross-border element
- EU intervention justified in telecoms due to pronounced cross-border elements
and different policies in Member States — EU should intervene when better
positioned to regulate than Member States
Features of EU telecoms regulation:
● Technology neutrality to address convergence
● Flexibility in level of regulation imposed
● Enforcement by national regulatory bodies
○ Sector-specific regulation by telecom NRAs and competition law by
national competition authorities
● Framework based on combination of competition law & sector-specific regulation
● Asymmetric & symmetric regulation, although predominantly asymmetric (eg.
SMP)
● Content & carrier layer
● Mixed competence: EU intervention in terms of liberalisation & harmonisation
○ Liberalization: EU aims to break up monopolies and promote new market
players
○ Harmonisation: efforts to unify disparate laws in Member States
● Non-economic issues addressed (eg. universal service, digital divide, consumer
protection, network neutrality & privacy)
, ○ Companies offering live streaming television programs through websites do not
qualify as electronic communications networks (France Télévisions SA /
Playmédia and Conseil supérieur de l’audiovisuel)
● Electronic communications services
○ Internet access service
○ Interpersonal communications service (number-based and number-independent)
■ Number-based interpersonal communications service: SkypeOut
■ Number-independent: Gmail (or WhatsApp, for example)
○ Service consisting wholly and mainly in conveyance of signals
■ For broadcasting: UPC Nederland BV/Gemeente Hilversum
■ For services based on conditional access to package of radio and
television services transmitted by satellite: UPC DTH Sàrl / Nemzeti
Média- és Hírközlési Hatóság Elnökhelyettese
+ OTT services (which are provided over public internet without involvement of traditional
communications operators) fall within scope
○ Gmail: Gmail is not an OTT service
○ Skype: Skype is an OTT service
● Public electronic communications networks and publicly available electronic
communications services
○ Private network/service do not have to comply with EECC
○ Circle of users should not be specific and not constitute a clearly limited target
group inaccessible to general public
Important actors
EECC requires Member States to establish national regulatory authorities (NRAs) in order to
carry out certain tasks. NRAs, other competent authorities, BEREC, the Commission and the
Member States are required to pursue the objectives the EECC encapsulates.
+ International Telecommunications Union (ITU) beyond EU at a global level
WEEK 2: Market access, interconnection & standardisation
The problem with telecoms
Networks & network externalities
● We have physical networks that enable us to telecommunicate → generates network
externalities
○ Ability to telecommunicate is valuable & network connects everyone around the
world; the more people join the network, the more valuable it becomes = positive
negative externality
■ Providers are driven by these network externalities — commercial parties
invest greatly & need to be profitable; as a result of these network
externalities, they will be → market side of telecoms is thus very important
● Also negative externalities involved: data, metadata, spam bots,
privacy, security, environment, etc.
Connectivity is increasingly important
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