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Trends and Challenges in the Telecom Sector: Insights from Ajit Pai at IX Taller Internacional

In his address at the IX Taller Internacional de Regulación in Cartagena, Colombia, FCC Commissioner Ajit Pai discussed the structure and functions of the FCC, emphasizing its role in shaping infrastructure and spectrum policies. He outlined the agency's approach to fostering a competitive telecommunications environment through light-touch regulation and strategic infrastructure investment incentives. Pai highlighted ongoing initiatives to increase mobile broadband spectrum and the importance of adapting to convergence in the telecom sector while addressing current challenges.

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Trends and Challenges in the Telecom Sector: Insights from Ajit Pai at IX Taller Internacional

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  1. FCC COMMISSIONER AJIT PAI AT IX TALLER INTERNACIONAL DE REGULACIÓN:“TENDENCIAS Y RETOS DEL SECTOR TIC” CARTAGENA de INDIAS, COLOMBIA SEPTEMBER 1, 2014

  2. Overview • The Structure and Functions of the FCC • How the FCC Has Exercised Its Powers: Infrastructure and Spectrum Policies • Current Issues at the FCC

  3. I. The FCC’s Structure and Functions • Independent agency • Five Commissioners – nominated by President, 5 year terms, only three from the President’s political party • Structure means more informed decisions, consensus

  4. I. The FCC’s Structure and Functions, continued • Scope of authority is broad • Congress intended to centralize authority • Especially important in era of convergence

  5. I. The FCC’s Structure and Functions, continued • Multiple Bureaus and Offices assist Commissioners • Bureaus: some focused on particular areas; some are general (like Enforcement Bureau) • Offices: provide support, like legal advice (Office of General Counsel, Office of Engineering and Technology)

  6. II. How the FCC Has Exercised Its Powers Infrastructure Spectrum

  7. Infrastructure • Wireless • Wireline • Cable • Satellite • Gigabit entry: Google and follow-on entrants

  8. Infrastructure How did this happen? • United States regulatory framework: instead of control, a focus on giving private sector incentives to invest • Remove barriers to infrastructure investment, rather than picking winners and losers

  9. Infrastructure Example 1: Internet • 20-year policy of “light-touch regulation” • 2002: applied to cable • 2005: applied to telephone • 2007: applied to wireless • Results: • 2001-2009, Americans with broadband jumped from 6% to 63% • Price of wireline broadband fell by 50%

  10. Infrastructure Example 2: Video • Early 2000s: entry was difficult • FCC eased barriers to entry: convergence now reality

  11. Infrastructure Example 3: Wireless • “No en mi patio trasero” • FCC streamlined regulatory requirements: “shot clock” • More to come: small cells, for instance

  12. Spectrum • Flexible use policy • Competitive auctions: simple, transparent, market-driven • Secondary market • Disaggregation and partition

  13. III. Current Issues at the FCC • Freeing up more spectrum for mobile broadband • National Broadband Plan goals: 300 MHz by 2015, 500 MHz by 2020 • H Block auction completed earlier this year • AWS-3 auction scheduled for later this year (65 MHz of spectrum in the 1695–1710 MHz, 1755–1780 MHz, and 2155–2180 MHz bands) • Broadcast television incentive auction in 2015 (600 MHz band) • 5 GHz unlicensed spectrum: gigabit WiFi • IP Transition

  14. Conclusion Ajit.pai@fcc.gov @AjitPaiFCC

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