KEY ISSUES FOR DIGITAL TRANSFORMATION IN THE G20

As convergence continues to alter communication markets, regulators are finding they need to better
understand how services are evolving to meet their responsibilities in the area of security and privacy. In 2016,
for example, research by the Canadian regulator revealed privacy concerns for consumers stemming from the
transition from traditional communications to digitised services delivered over mobile networks. In the United
States, the communications regulator is examining whether the privacy rules that apply to telecommunication
providers should also apply to cable network operators. In Europe, operators are required to report incidents
related to network security and resilience, and in some countries the reports must be submitted to the
communications regulator. In general, countries may wish to consider whether the currently assigned roles
and responsibilities of national regulatory authorities equip those authorities to deal properly with converged
markets and networks.
In addition to bundling, convergence has led to the emergence of new OTT voice, text and video service
providers. Online video distributors, such as YouTube or Netflix, and Internet on-demand television offer
content distribution over broadband networks, beyond traditional cable and broadcasting services. These
offers benefit viewers in different ways: increased choice of devices to receive content; availability of different
pricing models; broader choice of time and location to consume content; and increased interaction with that
content. In telecommunication markets, the changes have been equally profound, with voice (VoIP) and text
services such as WhatsApp, Skype or KakaoTalk offered over broadband networks. Similarly, both video and
voice services may be bundled on social media digital services platforms such as Facebook. Twitter, once solely
a short message service, now streams live sporting events around the world.
OTT offerings both supplement and compete with services traditionally provided by telecommunication, cable
and broadcasting companies, and they are deemed valuable by consumers. They have, however, raised the
issue of the applicability of traditional communication regulations to these new service providers. These
regulations were designed to promote efficient communication markets as well as other public policy goals
such as the protection of children, access for the disabled, emergency services and universal service
obligations in telephony markets. Today's greater convergence and integration across multiple services,
applications, platforms and devices suggest that the time is right for reassessing existing communication and
digital services regulations and examining whether the regulatory tools are still adequate and relevant to
achieve their objectives.
In particular, there may be a need for a review of symmetric regulation that is, regulation applied to all
providers of the same type of communication service. This may include examination of rules governing
sectoral consumer protection, emergency calls, interconnection, number portability, privacy, security and
media content. In some cases, rules may need to be reconsidered, as they may no longer be necessary given
changed market conditions; there may be more efficient ways of delivering the intended public policy
objectives given the legitimate needs of consumers and citizens.
Such reviews could also assess whether to extend existing rules to new parties, while being mindful of the
inherent trade-offs between protecting consumers and citizens on the one hand, and the potential for damage
to competition and innovation on the other. In this respect, market analyses play a crucial role in ensuring a
better understanding of competition and innovation dynamics before any regulatory intervention. Therefore,
whether extended powers to gather information are needed would be an important consideration. Finally,
public interest goals that remain valid would still need to be fulfilled.
How regulation relates to OTT services is one of the questions to be addressed in the current review of the
European Union framework for electronic communications, with the authorities examining a September 2016
proposal for a light regulatory approach which allows all actors, from traditional telecommunication operators
to online players, to provide interpersonal communication services with the same level of protection for the