Trends on telecommunication/ict services regulation and Costs and Tariff Policies
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1 ITU/BDT Regional Economic and Financial Forum of Telecommunications/ICT for Asia Pacific Yangon, The Republic of the Union of Myanmar, 1-2 September 2014 Trends on telecommunication/ict services regulation and Costs and Tariff Policies Carmen Prado-Wagner Regulatory and Market Environment Division IEE Department/Telecommunication Development Bureau (BDT) International Telecommunication Union
2 Active mobile-broadband subscriptions are increasing world-wide Active mobile-broadband subscriptions per 100 inhabitants, * Globally, mobile-broadband penetration will reach 32% by end 2014 almost double the penetration rate just three years earlier (2011) and four times as high as five years earlier (2009).
3 Mobile-broadband penetration continues to show double-digit growth rates Mobile-broadband penetration by region, 2014* 3
4 The good news is that fixed-broadband prices drop by 82% Prices Penetration As fixed-broadband services become more affordable, penetration increases 4
5 But Mobile broadband continues to be much more expensive in developing countries But considerably cheaper than fixedbroadband services By early 2013, the price of an entry-level mobile-broadband plan represents between % of monthly GNI p.c. in developed countries and between % in developing countries, depending on the type of service. 5
6 And the average price of mobile-broadband services remain largely unaffordable for LDCs A regional comparison highlights that mobile-broadband services remain largely unaffordable in LDCs, for instance in Africa, where the price of a computer-based plan with 1GB of data volume represents on average more than 50% of GNI p.c. 6
7 Is interesting to note that for Broadband wholesale Fixed services are more regulated than Mobile services Wholesale fixed broadband access and services, % 80% 70% 60% 50% 40% 30% 20% 10% 0% Africa Arab States Asia & Pacific CIS Europe The Americas with price control without price control Wholesale mobile broadband access and services, 2013 An analysis on the correlation between regulated services and price reduction is expected to be done by BDT. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Africa Arab States Asia & Pacific CIS Europe The Americas Source: ITU World Telecommunication Tariff Policies Database with price control without price control
8 How are the Broadband wholesale tariffs regulated? 60% Wholesale Services by region - World, % 40% 30% 20% 10% 0% Price ceiling set by the State Cost orientation Benchmarking of tariffs Retail minus approach Rate of return regulation Price cap Source: ITU Tariff Policies Survey ICTEye Africa Arab States Asia & Pacific CIS Europe The Americas 8
9 Wholesale tariffs regulation in Asia and the Pacific region Wholesale Services Asia and Pacific, 2013 Price cap Rate of return regulation Retail minus approach Benchmarking of tariffs Cost orientation Price ceiling set by the State 0% 5% 10% 15% 20% 25% 30% Source: ITU Tariff Policies Survey ICTEye 9
10 Type of cost allocation on which cost models are based 80% 70% 60% 50% 40% 30% 20% 10% 0% Retail Services Africa Arab States Asia & Pacific CIS Europe The Americas Historical costs Current costs 80% 70% 60% 50% 40% 30% 20% 10% Wholesale Services 0% Africa Arab States Asia & Pacific CIS Europe The Americas Source: ITU Tariff Policies Survey ICTEye Year 2013 Historical costs Current costs 10
11 Which methodology is used as the basis for calculating telecommunication service tariffs? Retail telecommunication services The Americas Europe & CIS Asia & Pacific Arab States Wholesale telecommunication services Africa The Americas 0% 20% 40% 60% 80% 100% LRIC FDC Source: ITU Tariff Policies Database, Europe & CIS Asia & Pacific Arab States Africa 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% LRIC FDC Source: ITU Tariff Policies Database, 11
12 All the Tariff Policies data is available on the 12
13 ITU/BDT Reports Trends in Telecommunication Reform Special Edition New! 4th generation regulation: Driving digital communications ahead Regulatory, Economic and Financial Reports : New A Practical Guide on Benchmarking Telecommunications Service Prices New Regulatory analysis of international mobile roaming services ITU Report on International Mobile Roaming services: Facilitating competition and protecting users Competition and regulation in a converged broadband world ITU Study on Taxing telecommunications/ict services: an overview Strategies for the deployment of NGN and NGA in a broadband environment regulatory and economic aspects Interconnection Charging Models in a national Broadband network environment
14 Thank you for your attention prado[at]itu.int 14
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