Changes are coming to the telecoms ecosystem, and they will have far-reaching implications on consumer rights and how we do business in the digital age. With increasing concerns about data privacy and the rise of data-driven services, regulations pertaining to the collection, storage, and use of personal information will be under scrutiny. The trick will be for the sector to balance boosting business and increasing accountability while navigating regulatory divergence. Here are the industry’s biggest issues for 2024.
Identity and the Internet
The lack of identity was once seen as a key feature to promote equality and freedom of expression on the Net. However, today the regulatory frameworks are challenged by high levels of identity fraud, protection of minors, business impersonation and counterfeiting. The identity discussion is vast and much of it will be at the centre of debates in 2024. Customer identity is still crucial for the Internet. The Internet is an ‘identity-less’ structure, but the anonymity on the Internet is now challenging the protection of minors. Age verification is becoming more concerning given the success of online social media and messaging platforms.
However, Telecom regulators are also busy with another form of identity: network and sender identity. This leads to issues that include phishing (on email, SMS and voice calls) as well as spam and unwanted calls. The US Federal Communications Commission (FCC) has announced its attempt to roll out an anti-robocall solution for voice calls (known as STIR/SHAKEN), and it announced a new solution for SMS during 2023. Other regulators will follow soon.
Net neutrality and security
Net neutrality principles will return to be a point of contention after a few quiet years. The discussions about ensuring equal and fair access to the Internet are back on the main stage, especially as, in the USA, regulation has made a significant return. This will also re-open the international debate. Regulators will explore measures to maintain an open and level playing field for all digital services and content providers.
As cyber threats continue to evolve, regulations will focus on enhancing the resilience and security of telecom networks and services. Cybersecurity standards and incident response protocols will be central to these discussions.
Emerging technologies, such as Artificial Intelligence (AI) and blockchain, will also demand regulatory attention. Discussions will centre on standards and security.
Post-globalisation
In the last 30 years, the Internet, Telecom and Media markets have been shaped by globalisation. Market-oriented regulations were dominant. But in the 2020s, regulation tendencies have turned a corner. The pandemic showed the importance of control of physical borders, and political discord between the USA, EU, China and Russia has changed views, with the Internet, Telecom and Media sectors now being seen as important security aspects that require increased supervision, defence and regulation.
It was China’s Great Firewall that led the pack. The most significant change was in 2021 when the Chinese government released sweeping transformations in data privacy, video games access, and alleged abuse of monopolistic power in a single month. These activities were described by the Chinese government as managing the dominance of large national Internet companies, and an attempt to rebalance the importance of customers/citizens on the Internet. The result was a tightening of the big Firewall but also an attempt to rule on true global concerns (e.g., minors accessing content).
Liberal democracies and western companies saw the importance of more regulation and are now implementing similar frameworks. In 2022, the European Union launched the Digital Markets Act (DMA) and Digital Services Act (DSA). These landmark digital rules, adopted on 5 July 2022 by the EU Parliament, are designed to address the imbalance – in a way reminiscent of the Chinese regulations. The purpose of the DMA is to ensure a level playing field for all digital companies, regardless of their size. This includes ranking services and products offered by a ‘gatekeeper’ higher than similar services or products offered by third parties, and not giving users the possibility of uninstalling any preinstalled software or app. Interoperability between messaging platforms should improve; users of small or big platforms will be able to exchange messages, send files or make video calls across messaging apps. The DSA is supposed to protect consumers from harmful and illicit content.
A more interventionist approach and more local variations will become common in the next few years. China and the EU have started a debate and will be busy in 2024 with the full implementation of their plans.
Consolidation
There are fundamental changes in the markets that are being mirrored in a different attitude from the regulators. Competitive pressures are creating more difficulties for Telecom and Media players to increase their average revenues, which in turn is depressing their profit margins. However, new and advanced networks are still requiring big cyclical investments. Today, national governments are more interested in the network investments and are considering ways to support national champions and market consolidation.
The number of mobile operators is reducing from four to three in most countries; and a similar transition can be seen in broadband networks. New technologies have required new approaches and perspectives from policymakers. An example is the ongoing deployment of 5G wireless networks; regulators continue to look for ways to facilitate such deployment. In several jurisdictions policymakers are moving forward with subsidy programmes and other efforts to spur the deployment of advanced networks more deeply into unserved and underserved areas.
Bridging the digital divide and ensuring that all segments of society have access to affordable and reliable telecommunications services has to be a top priority if we are to shape a future where the mobile ecosystem remains a driving force of connectivity and innovation.
