• Telecoms

    Dominique Leroy: Let telecoms operators speak with one voice in Europe

    The way the telecoms industry is represented in Europe is still too weak and fragmented, says Proximus CEO Dominique Leroy in a conversation with The Digital Post on the sidelines of the iMinds annual conference. Her main suggestion for the revision of th [read more]
    byThe Digital Post | 27/May/20166 min read
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    The way the telecoms industry is represented in Europe is still too weak and fragmented, says Proximus CEO Dominique Leroy in a conversation with The Digital Post on the sidelines of the iMinds annual conference. Her main suggestion for the revision of the telecom framework: more regulatory focus on services than technology.

    The Digital Post: Let’s start from Internet of Things. Proximus is the first operator in Belgium, and one of the first in Europe, that launched a network for Internet of Things. What is it about?

    Dominique Leroy: Historically, telecoms were always about connecting people. More and more in the future, they will also play a key role in connecting things. Against this background, what we did is not so much building a simple network, but setting up a whole end-to-end ecosystem to enable the Internet of Things. We are providing enterprises, consumers as well as developers an end-to-end system equipped with sensors and based on LoRa networks, a long-range and low-power type of networks that connects sensors without SIM cards.

    The purpose is to get small packets of data from the sensors through the LoRa networks and store them in our data centers on a platform called MyThings, where we already provide data analytics. The idea is then to open the platform to developers so that they can develop new applications. There are certain domains where we would like to go all the way up to creating applications, mainly in the mobility field, where we think that we can really bring an added value through Internet of Things.

    So as you see, the Internet of Things opens up a whole new ecosystem. It is more than a utility provided by telcos. We want to offer solutions, partnerships, we are opening up to other players and therefore we are creating innovation. We are also one of the first companies in the sector moving in this direction.

    TDP: Privacy and security are two big challenges for the IoT. What is your view?iMinds_0

    DL: That’s probably where telco operators have a real added value considering their knowhow: We already provide end-to-end security over our infrastructures, from your phone to the applications you use, all the way to our datacentres. This expertise is very important for tomorrow’s connectivity in cars, home automation and health. LoRa networks come already with a triple encryption key. They secure the sensor identification, the payload and the network. In general, when it comes to using certification, identification and authorization technologies I believe that is where we provide a lot of added value.

    TDP: How do you see telecoms operators capitalizing on the Internet of Things in, say, five years from now?

    DL:  Data consumption today is driven mainly by millions of people connecting with each other. Data consumption will increase dramatically in the coming years as billions of connected devices go on-line. This new reality will create huge volumes of data traffic.  IoT will thus become an important piece of the telcos ecosystems, leading to more investment in infrastructures, stimulating more innovation, value, and opportunities for new revenue streams and profit.

    TDP: The European commission is working on new proposals to implement greater coordination at European level of radio-spectrum policies. Unfortunately, in the past similar legislative moves were met with strong scepticism from member states. Why this time should be different?

    DL: I don’t think member states want to give to Europe their powers on spectrum policy. But they very much understand that if they want to develop a coherent European digital market, there needs to be some coordination. The repurposing of 700 MHz for Wireless Broadband Services should be done within a certain timeframe all over Europe, otherwise it wouldn’t work. If tomorrow we need much higher frequency bandwidth, for instance to be able to develop 5G and self-driving cars, some sort of European coordination is essential to get there.

    Moreover, a more consistent policy all over Europe should be applied to the length of licenses. These actions are all feasible, and I think member states will in a way or another agree that’s the right path. However, what they won’t allow is that the EU decide on the prices for the spectrum. In any case, I think that we have an opportunity to have more coordination in terms of timing of the auctions and duration of spectrum licenses.

    TDP: What should be the main priorities of the forthcoming proposal on the revision of the EU telecoms framework?


    DL: We definitely need less regulation to be able to catch up with more competitive markets. In the last 20 years, Europe has been very effective in overseeing the liberalization of the industry securing a high level of competition. However, today if you look at the big players in the industry, either they come from America, or more and more from Asia. Regulation is certainly one of the root causes of not having strong European digital players.

    So, let’s make sure that we deregulate as much as possible, and let competition drive investments and spur innovation. Levelling the playing field is also another important aspect. It is not acceptable anymore that telcos are subjected to obligations on, say, privacy, data usage, or interoperability that are not applying to players operating the same services. The problem today is that regulation is focusing too much on technology and not on services, which produce lot of inconsistencies between cable, telecom, OTT operators providing the same services. So my recipe could be summarized in three elements: less regulation, more level playing field, more regulatory focus on services than technology.

    TDP: A word on the increasingly tough stance of Margrethe Vestager on Mergers & Acquisitions?

    DL: I think we as an industry need to articulate better what we want, what are the risks of preventing telcos from growing in scale, and what is acceptable and what not. We are not very well-structured and every too often we shy away from speaking with one voice. That also explains why it is easier for regulators to take their own direction: we do not make enough efforts to be listened. We can blame regulators or politicians but I think we should also look at ourselves and see how we can be more united to defend our industry. The way we are represented in Europe is still too weak and fragmented.



    Picture credits: Matt Brajlih
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  • Digital Single Market

    Juhan Lepassaar: DSM Strategy, fears of over-regulation are unjustified

    The Digital Post spoke to Juhan Lepassaar, Head of Cabinet to Vice-President Ansip, about the latest progress of the Digital Single Market strategy.   The Digital Post: How is the implementation of the Digital Single Market (DSM) strategy progre [read more]
    byThe Digital Post | 11/May/20167 min read
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    The Digital Post spoke to Juhan Lepassaar, Head of Cabinet to Vice-President Ansip, about the latest progress of the Digital Single Market strategy.


    The Digital Post: How is the implementation of the Digital Single Market (DSM) strategy progressing?

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    Juhan Lepassaar: So far, we have adopted two key proposals on the harmonisation of digital contracts rules and on portability of digital content. In addition, in February the Commission presented legislation intended for greater coordination in the use of the 700 MHz band for mobile services. Last month, we also published a package on Industry 4.0 and e-government, containing a number of non-legislative actions that will help create the right environment to boost the digitalisation of the European industry.

    During the month of May, we are going to unveil our e-commerce package, which will include actions to tackle unjustified geo-blocking and other forms of online discrimination practices. We will also present a proposal for the review of the audiovisual media services directive and a communication on the role of online platforms. Before the summer break, we plan to move forward with the public-private partnership on cyber security.

    Then, the next big things are the review of the European telecoms framework in September or early October and the next steps of the modernisation of EU copyright rules. Finally, in autumn we will act on the free flow of data, we will table proposals on VAT for digital products and on corporate enforcement rules.

    TDP: According to a number of observers some proposals would actually mean more regulation on tech industry at the expense of their capability to innovate and invest. Are these fears justified?

    JL: We believe that these fears are unjustified. We do not want to undermine the way the digital economy operates. Our proposals are balanced: they allow enough flexibility without adding more regulatory burdens. Take the example of digital platforms. The commission has concluded that it wouldn’t be judicious to have a horizontal regulation on platforms because they are way too diversified. Hence, we are opting for a problem-driven approach.

    That is, once a problem is identified and clearly defined, we might act through regulation or opting for self-regulation initiatives. We’ve already applied this approach on the issue of hate speech on digital platforms. That doesn’t mean that existing rules on certain areas like platform content, transparency or the issue of the so-called value gap will not be further clarified within the DSM initiatives.

    We aim to simplify the environment for tech industry in Europe. This is what we do by harmonising rules in different areas. For example, one clear set of rules for consumer protection in the EU, rather than a patchwork of 28 different national regimes, makes it easier for businesses to grow across borders. In the end, this is actually about less rules and better regulation.

    TDP:What are the key elements or the strategy to fix the EU-US digital divide?

    JL: First, reducing the regulatory fragmentation. That is the key issue that differentiates the European market from the US. Second: access to finance for our tech industry. We have set out an agenda, which will reduce fragmentation and bring down the barriers for businesses opening to them a market of 500 millions customers.

    TDP:Businesses in the United Kingdom and other countries are concerned about the cross-border tax system. How the Commission intends to modernise the VAT for digital products?

    JL: There is a difference if a business has to deal with 28 taxation authorities or only one. What we want to ensure is that, especially small and medium size businesses when they do business across the borders will only deal with their own tax authority and the rest is taken care of by tax authorities between member states. The commission in its digital single market strategy has already highlighted the fact that in the area of e-commerce we need a taxation threshold to protect the smallest businesses. We will act upon this with our proposals that are forthcoming in December.

    TDP: The upcoming revision of EU telecoms framework will revolve around the usual dilemma, more deregulation versus more competition. How do you strike that balance?


    JL: That’s a good question. Telecoms operators are right when they say they face regulatory burdens that new players do not. It is our job to determine whether we can reduce the regulatory burden to all and whether there are still any areas where we need to make sure that all the players that provide same services also abide by the same rules. I think the answer is a bit of both approaches.

    TDP: What are the plans of the commission with respect to industry 4.0?

    JL: The plan that the Commission published last month includes issues like standardisation and interoperability as well as measures to boost Cloud Computing and Big Data technologies in Europe. The proposal is also designed to help digital public services to inter-connect with each other across borders so that businesses, if they want to do business across the borders, can do it easily without having to submit the same information to different public authorities.

    The plan also links up to the forthcoming initiatives on the free flow of data. It is also very important that the revision of the telecoms framework touch upon the issue of spectrum, which is a commodity increasingly needed by the industry for the internet of things or self-driving cars for example. All in all, Industry 4.0 relates to all DSM initiatives.


    This is the first of a series of interviews held during the conference 
    "Digital Single Market: Bridging the Gap" organized by 
    the British Chamber of Commerce in Belgium.
    The event featured keynote speeches from Commissioner Oettinger and Robert Madelin (EPSC). 
    Other speakers included senior EU officials, parliamentarians, 
    trade bodies and business leaders who discussed the future challenges for 
    business in the areas of fintech, e-health and industry 4.0.



    Picture credits: Metropolitan Transportation Authority
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  • Telecoms

    EU and the 700 MHz: Open up that band now

    If we do not open up this band in Europe as soon as possible we will not be able to get the benefits from 5G. Europe lagged and lag behind regarding 4G but took the lead of 3G. Now we need to take back the lead. One of the most usual and most misused [read more]
    byGunnar Hökmark | 20/Apr/20165 min read
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    If we do not open up this band in Europe as soon as possible we will not be able to get the benefits from 5G. Europe lagged and lag behind regarding 4G but took the lead of 3G. Now we need to take back the lead.

    One of the most usual and most misused phrasings is that we are living in changing times. Times are always changing. New technologies, new products, new services, new threats and new achievements. The really big change would be if the change stopped.
    Sometimes changing times is used in a way to create fascination towards the development, making us believe that now we need to do something that is so extraordinary that we need to think at least twice instead of acting now, or instead of letting the society as such adopt to the change.
    But for our decision taking it is better to say that the change has already taken place. Now it is only a matter of if we want to catch up with it. This is very much the reality of the digital economy and the digital agenda. The changes has already taken place and now it is up to us if we are to adopt to them in a way that they will serve us, give us a competitive lead and global leaders. The reality is here, we don’t need to think about the changes as magic or mysterious future developments.
    Regarding telecom and digitalisation, it is already here. We do not only have a digital sector and a digital economy. Our societies and economies are based on the digital technologies and services that have emerged for decades.
    3G was modernisation of telecom. 4G was creating digital services out of telecom. 5G is the full modernisation, industrialisation and transformation of economies and societies in the world. And it is not futuristic. It is happening now in the timeline that is relevant for us.
    In 2017 Verizon tells us they will be the first in the world. It might be more of 4,5 G but still. South Korea plans to roll it out as early as 2017 as well, with full availability 2020.
    In China they will have 500 million users of 4G by the end of this year and their plans for 5G is following the pattern of the others. In Stockholm and in Tallinn we will se early launches aiming for full scale 2020. It is not more fare away than it is happening now and it will transform economies.
    We lagged and lag behind regarding 4G but took the lead of 3G. That’s why we got the global champions in the telecom sector and the Americans in the next phase in the digital sector. Now we need to take back the lead.
    This is what the discussion on the 700MHz band is about. If we do not open up this band in Europe as soon as possible we will not be able to get the benefits from 5G regarding automotive industry, road and traffic management, manufacturing industries, energy and power sector, agriculture or health care. We need the coverage and the reach of the 700 MHz band if we are to be successful with 5G in these and other areas. That’s the decision we need to take. If we want to take the lead. That should be an easy decision.


    Picture credit: phys.org
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