NEW FRAMEWORK & NEW TASKS

1. NEW FRAMEWORK & NEW TASKS NEW REGULATORY INSTRUMENTS FOR REGULATION OF ELECTRONIC COMMUNICATION NETWORKS AND SERVICES (incl.Internet, CaTV and broadcasting, not content !) • optimization of whole regulatory package • simple authorization • market analysis in 18 markets (7 markets since 2007) • technological neutrality • new harmonization mechanism for NRAs - ERG 9

2. INTERNATIONAL DIMENSION • Baltic NRAs co-operation since 2004 on Head’s & expert levels • Active participation in IRG (Independent Regulators Group) since 2003 when CEEC representatives were invited • Active participation in ERG (European Regulators Group – 2002 Framework) and BEREC (Body of European Regulators fir Electronic Communication – 2009 Framework) • SIDA, PHARE, TWINNING, TAIEX trainingprojects (participating as beneficiaries as well as and trainers) • other 10

3. SOME STATISTICS • During 10 years ECPD: • submitted 65 tariff decisions for telecoms and post • submitted 213 decisions on radio-frequency usage rights • organised 13 beauty contests and 3 tenders on frequencies • submitted decisions on granting of usage rights for 4 347 500 geographic numbers, 4 081 000 mobile numbers , 683 967 other non-geographic numbers, 426 short codes, 312 identification codes; totally 1 789 752 numbers and codes were annulled • reviewed ~ 1200 customer complaints • made QoS test calls: 656 621 in fixed network, 345 486 in mobile networks, 473 958 between networks, sent 12 675 test SMSs, tested 3 499 payphones, made 10 400 test calls to 114 and 1188 numbers & ECPD ladies produced 13 potentially new regulatory units 11

4. itestFACILITY FOR UNDERTAKINGS & USERS SPRK TEST Internet Server User’s PC Latvian GIX 12

5. NUMBER OF MARKET PARTICIPANTS 450 General Authorizations 400 Authorizations 350 Individual licences Number of undertakings 300 250 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ` 13

6. REGULATED IC TARIFFS 14

7. SECTOR REVENUES (MILJ. LVL) 15

8. VOICE TELEPHONY REVENUES (MILJ. LVL) 16

9. INTERNET SERVICE’S REVENUES (MILJ. LVL) 17

10. BROADBAND ACCESS MARKET 1400 80 1151 69 1197 70 1200 55,1 55,1 60 1000 829 53,7 44,4 51,4 45,6 50 40,2 40,3 667 800 40,7 40,7 38,3 632 36,9 40 585 600 29,6 30 395 27,3 27,9 18,7 346 319 19,22 400 265 28,3 29 29,1 20 188 151 227 105 200 10 89 56 244 232 240 211 241 232 223 228 213 184 77 93 158 133 49 131 0 0 01/2007 07/2007 01/2006 07/2006 10/2006 10/2007 01/2008 07/2008 01/2009 10/2005 07/2009 01/2005 07/2005 01/2010 07/2010 01/2011 ISP’s Connections (1000) LTCshare (%) BB density 18

11. BB ACCESS TECHNOLOGIES 80% 7% 70% 6% 60% 5% 50% 4% 40% 3% 30% 2% 20% 1% 10% 0% 0% 01/05 07/05 10/05 01/06 07/06 10/06 01/07 07/07 10/07 01/08 07/08 01/09 07/09 01/10 07/10 01/11 xDSL Ethernet MobileInternet FWA Cable Other Fiber 19

12. 100% 90% 80% Other 70% Fiber 60% Cable 50% FWA 40% Mobile 30% Ethernet 20% xDSL 10% 0% 01/2005 07/2005 10/2005 01/2006 07/2006 10/2006 01/2007 07/2007 10/2007 01/2008 07/2008 01/2009 07/2009 01/2010 07/2010 01/2011 BB BY TECHNOLOGIES 20

13. PORTED NUMBERS (since 1st December 2005) 21

14. CURRENT REGULATORY HIGHLIGHTS & WHAT NEXT ? NRA’s WORK TWO STREAMS POLICY Revised FW IC tariffs BEREC NGN & NGA Digital Agenda Data roaming Spectrum Policy Net neutrality Network Security Customer rights (numb.fraud, portability, disabled, etc.) Roaming Universal Service -------------- -------------- 22

15. WHAT NEXT ? Generic Approach Everything in the cloud ? NGN Any compatible device 23

16. Thank you much for attention !andris.virtmanis@sprk.gov.lv