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Research Reports in 2021

Issue Date:2022/01/12

A study of the 5G network service types and the related telecommunications regulations and policies中文

This study analyzes the 5G applications and services development, 5G technology and business models, cross-telecom cooperation model, telecom service conditions and related legal issues concerning telecom operators in United States, United Kingdom, European Union, Germany, Spain, Australia, South Korea, Japan, Singapore, China and Taiwan. In addition, aiming at the topic of telecommunication supervision, this study analyzes the telecommunication policies and regulations related to the 5G network and services, including the consumer information disclosure regulations such as telecommunication service conditions, telecommunication network quality, and data management and conditions, the issues concerning mutual investment, equity assignment, merger and joint venture, and the issues of network neutrality and market definition concerning differentiated services under B2X or B2B2X models. The selected countries in this research include USA, EU, UK, Germany, South Korea and Singapore.

 

The main findings are summarized as below.

 

1.The development of 5G commercial service and application types

Most selected countries in this research mainly use the mid-frequency band to develop the 5G applications. In terms of 5G commercial application types, 5G is widely used in sports events, retail, tourism, transportation, education, smart manufacturing, smart medical, games, live broadcasting, exhibitions and other fields in selected research countries.

2.The development and application of 5G technology

5G is mainly used non-standalone (NSA) architecture currently, and many innovative applications can only be realized under the standalone (SA) architecture. Currently, the operators mainly use network slicing, MEC, and NFV technologies to achieve similar performance as that of SA network architecture.

3.5G business model of cross-industry cooperation

Telecommunication operators are focused on working with companies in other industries to develop various types of vertical applications. Therefore, the business model is dominated by B2X or B2B2X. It can be seen from the B2B2X business model that the value chain of integrated service may involve the cooperation of multiple companies. As a result, in the process of service delivery, the telecommunication operators may not play the leader role, but may be the role of network developer or service facilitator instead. The B2B2X model shows the trend of integration across the ecosystem. The final X may be an enterprise, or it may extend to consumers or end users.

4.Cross- industry cooperation and tripartite rights and obligations

The characteristic of the new 5G business model is that the telecommunication operators and different service providers jointly launch application/services, mainly through the B2B2X business model. In terms of the tripartite rights and obligations under B2B2X model, the rights and obligations between the telecom operator (B) and the cooperated enterprise (B) can be clarified by contract, and those between the user (X) and the enterprise (service provider) should be handled by the service provider.

5.Consumer information disclosures by telecommunication operators

In terms of information disclosure, it is different for consumer and corporate customers, depending on the business model of the telecommunication companies. For consumers, there are regulations for the disclosure of information by telecommunications companies about telecommunications services.

Therefore, as for consumers, the regulation applied for the disclosure of information by the telecommunication companies to consumers is the same; no matter it is 5G or 4G service. The operators should disclose the consumer information such as plans (including tariffs, data management, and/or network speed, etc.). For corporate customers, regardless of whether it is a B2X or B2B2X model, the relevant information disclosure and network quality can be arranged through a contract signed by both parties.

6.Related legal issues

Telecommunication companies which provide telecommunication services or related applications in various countries all abide by relevant laws and regulations. In Taiwan, regulations such as "Telecom Management Act", "Personal Data Protection Act", "Consumer Protection Act" and "Fair Trade Act" clearly stipulate consumer rights protection and fair competition requirements, and the protection is quite sufficient for the consumers.

7.Requirement of information disclosures to consumers by national authorities

The authorities of various countries have regulations on disclosure of consumer information, such as telecommunications service conditions, telecommunications network quality, data management and conditions.

The regulations requiring information disclosures to consumers in major countries mainly focus on appropriate information disclosure. In terms of the quality of telecommunication services, most countries encourage or require the operators to disclose related information, or provide service quality information periodically.  Singapore's Infocomm Media Development Authority (IMDA) has evaluated whether it is necessary to introduce a QoS/QoE framework for 5G services to protect the rights of consumers and key services, but the industries has different opinions on this issue. In terms of data management requirement, most of the selected countries in this research require that the operator should inform the consumers before the usage of data is near the limit to prevent bill shock to consumers.

8.Related issues of mutual investment, equity transfer, merger and joint venture in the telecommunications industry

In terms of the cooperation between different operators, most cases identified in this study were merger cases, or joint venture companies that two operators jointly bid for spectrum or developed, deployed and operated 5G mobile network. When evaluating whether or not to approve related cases, the competent authorities of various countries still mainly evaluated from the perspective of market competition and the impact of consumer interests as a result of the merger or set up of joint venture. The evaluation was conducted case by case, depending on the specific context of each country.

9.Network neutrality

The EU Open Internet Regulation (2015 / 2120 specification) does not allow network service providers to prevent, restrict and discriminate network traffic. However, due to different technical requirements for the quality in different services, appropriate traffic management is allowed. In Korea, according to the guidelines for network neutrality and network traffic management recently revised by Ministry of Science and ICT (MSIT), the applicability of network neutrality to quality assurance services based on network slicing and other technologies in the future will depend on the service attributes applicable to the technology. Singapore's policy on network neutrality basically allows the provision of niche service or differentiated network services.

10.Market definition and fair competition issues under B2X and B2B2B2X

The 5G vertical applications in the forms of B2X or B2B2X are still in the exploratory stage. The analysis showed that the market definition in selected countries remains on the traditional telecommunications market. The principles and analysis approach of market definition and market analysis currently remain the same.

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