* Regulators/policymakers need new approach to the five-layer structure of broadband telecoms (ducts, cables, network transmission, services, content & applications)
* Regulatory policy must consider the full benefits that broadband offers the 'networked economy': maximising innovation should be a key aim
* Current and proposed regulatory frameworks for USA and Europe may not maximise the potential wider benefits of broadband
CAMBRIDGE, UK, March 25, 2003 - The economies of Europe and the USA may miss out on the full benefits of broadband unless an appropriate regulatory vision is created for the future of the telecommunications industry, according to a new report Regulating the Telecoms Market: competition and innovation in the broadband economy from Analysys, the global advisers on
telecommunications, IT and media http:www.analysys.com
"The advent of broadband technologies has enabled the beginnings of a fully 'networked economy', where people and IT systems can communicate ubiquitously, rapidly and cheaply through always-on fast communication networks," said Ross Pow, one of the authors of the report.
"We have already seen some big changes to the way that companies do business, to where people work and to how governments interact with their citizens, and broadband offers the basis for a huge amount of innovation across the whole economy, much of which cannot be predicted at the moment."
However, the report highlights that the structure of the broadband market means that realising this innovation and its associated benefits will not be straightforward. The deployment and delivery of broadband involves a number of different layers (ducts, cables, network transmission, services, and
content and applications), each of which has quite different economics.
"While competition will be the primary means by which economic benefits will be secured, with lots of players offering innovative services and applications," added Pow, "it may be necessary to consider a market structure that has fewer players at the duct and cable layers in order to
realise the required level of investment in rapid, widespread and commercially-viable broadband rollout."
This, according to Analysys, requires regulators and policymakers to consider continuing with an industry-specific regulatory model, rather than moving to a purely competition-based approach as is currently being pursued. Acceptance that it is appropriate for the regulation of broadband telecoms
to take into account the potential scale of benefits that it can bring to the wider economy will also be required.
The report recommends that a primary goal for regulators and policymakers, in developing a vision of the telecoms market, should be to maximise the level of innovation in networks, services and applications and, while competition at the higher layers is essential in achieving this, the heavy
investment in the underlying physical infrastructure may require alternative approaches to ensuring the ubiquitous availability of broadband access.
Written by Tim Hills and David Cleevely with Ross Pow, the report explains what new regulation in Europe and the USA means for the evolution of the telecoms industry, both now and in the future. It reviews the key regulatory measures covering broadband and argues that, in the longer term, the demands of a networked economy characterised by ubiquitous broadband connectivity
will require a clear vision for the communications sector, in order to maximise innovation, especially at the service and application layers of the value chain.
The report is available to purchase online at http://research.analysys.com/store
Prices start from EUR2400. For more information, telephone Analysys on +44 (0)1223 460600 or email
About Analysys http://www.analysys.com
Analysys, the global advisers on telecommunications, IT and media, works at the forefront of the communications revolution, delivering advice and insight to established and new entrant players. From offices in Cambridge, London, Glasgow, Madrid, Milan, Paris, San Francisco and Washington DC,
Analysys staff provide strategy and systems consultancy, information services and start-up support to the companies that are creating the networked economy. Analysys Research reports and market intelligence services provide authoritative coverage of this convergent industry, based on an unrivalled ability to fuse real-world experience, rigorous research and forward-looking analysis.
Recent reports include:
* Public WLAN Access in Western Europe and the USA: market analysis and forecasts (March 2003)
* Regulating the Telecoms Market: competition and innovation in the broadband economy (February 2003)
* Fixed Network Operators in Western Europe: is there an underlying growth market? (February 2003)
* Business Data Services: growth opportunities and forecasts 2002-2007 (January 2003)
* Competition in Corporate Networking: the challenge from systems integrators and strategies for operators (January 2003)
* The Future for Fixed-Mobile Substitution: options for fixed and mobile
operators (December 2002)
* Competing in the European Directory Services Market: opportunities in a
liberalising market (December 2002)
* Mobile Content and Entertainment: forecasting the market for games and
other wireless content (November 2002)
* Strategies for Mobile Device Evolution: meeting and creating market demand
* Western European Mobile Forecasts and Analysis 2002-2007 (September 2002)
* Cable TV Market Scenarios to 2007: prospects for cable TV operators in
Germany, the Netherlands and the UK (September 2002)
* IP Voice Services: the return on investment for European service providers
* The Future for Telecoms Incumbents: the impact of competition, regulation
and customer demand (July 2002)
* Charging and Revenue Sharing for Mobile Content and Entertainment (July 2002)
* Enabling Prepaid Mobile Content and Data Services: strategies for
operators and vendors (June 2002)
* IP Voice Services: European corporate market forecasts 2002-2007 (May 2002)
* Scenarios for the European Telecoms Market 2002-2007: forecasts and
analysis (May 2002)
* Benchmarks and Key Performance Indicators: lessons from the European
telecoms market (April 2002)
* The Reality of GPRS in Europe: subscribers and revenue (April 2002)
* Session Initiation Protocol: SIP-related European revenue forecasts
2002-2007 (February 2002)
* Public Wireless LAN Access: US Market Forecasts 2002-2007 (January 2002)
Media contacts (for author photography, executive summaries and interviews)
Tel: +44 (0)1223 460600
Martin Brooke Associates
Tel: +44 (0)1223 264050
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