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  1. 1. Tenth Anniversary Edition Tenth Anniversary Edition TELECOMMUNICATIONS The Telecommunications Regulation Handbook is essential reading for anyone involved or concerned by the regulation of information and communications markets. In 2010 the Handbook was fully revised and updated to mark its tenth REGULATION anniversary, in response to the considerable change in technologies and markets over the past 10 years, including the mobile revolution and web 2.0. The Handbook reflectsmodern developments in the information and communications HANDBOOK technology sector and analyzes the regulatory challenges ahead. Designed to be pragmatic, the Handbook provides aclear analysis of the issues and identifies the best regulatory implementation strategies based on global experience. TELECOMMUNICATIONS REGULATION HANDBOOK Edited by Colin Blackman and Lara Srivastava February 2011 – SKU 32489
  2. 2. Tenth Anniversary EditionTELECOMMUNICATIONSREGULATIONHANDBOOK Edited by Colin Blackman and Lara Srivastava
  3. 3. Telecommunications Regulation Handbook Tenth Anniversary Edition Edited by Colin Blackman and Lara Srivastava
  4. 4. ©2011 The International Bank for Reconstruction and Development / The World Bank, InfoDev, and The InternationalTelecommunication UnionAll rights reserved1 2 3 4 14 13 12 11This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank,InfoDev, and The International Telecommunication Union. The findings, interpretations, and conclusions expressed inthis volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments theyrepresent; InfoDev; or the Member States of the International Telecommunication Union. The World Bank, InfoDev, and The International Telecommunication Union do not guarantee the accuracy ofthe data included in this work. The boundaries, colors, denominations, and other information shown on any map in thiswork do not imply any judgement on the part of The World Bank, InfoDev, or The International TelecommunicationUnion concerning the legal status of any territory or the endorsement or acceptance of such boundaries.Rights and PermissionsThe material in this publication is copyrighted. Copying and/or transmitting portions or all of this work withoutpermission may be a violation of applicable law. The International Bank for Reconstruction and Development / TheWorld Bank, InfoDev, and The International Telecommunication Union encourage dissemination of their work and willnormally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information tothe Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax:978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of thePublisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail:pubrights@worldbank.org.Cover photos: ©Shutterstockii Telecommunications Regulation Handbook
  5. 5. CONTENTSABOUT THE TELECOMMUNICATIONS REGULATION HANDBOOK ................................................................... VFOREWORD ....................................................................................................................................................... VIICHAPTER 1. THE BIG PICTURE: INTRODUCTION TO TELECOMMUNICATIONS REGULATION ..........................31.1. Introduction .......................................................................................................................................................................... 31.2. Technology in Context ....................................................................................................................................................... 41.3. Why Regulate? ..................................................................................................................................................................... 91.4. Regulatory Organizations ................................................................................................................................................. 141.5. International Frameworks ................................................................................................................................................. 211.6. Looking Ahead .................................................................................................................................................................. 23CHAPTER 2. A LEVEL PLAYING FIELD: REGULATING FOR EFFECTIVE COMPETITION .....................................272.1. Introduction ........................................................................................................................................................................ 272.2. Competitive Markets ........................................................................................................................................................ 272.3. Sector Regulation and Competition Law ..................................................................................................................... 302.4. Competition Analysis ........................................................................................................................................................ 322.5. Control of Mergers and Acquisitions .............................................................................................................................. 482.6. Regulating Prices ............................................................................................................................................................... 50CHAPTER 3. GROWING THE MARKET: LICENSING AND AUTHORIZING SERVICES ........................................633.1. Introduction ........................................................................................................................................................................ 633.2. The Trend Towards General Authorization .................................................................................................................... 633.3. Licensing Objectives and Types ...................................................................................................................................... 643.4. Competing for Licenses.................................................................................................................................................... 663.5. Authorization Principles and Procedures....................................................................................................................... 773.6. Special Authorization Situations ...................................................................................................................................... 813.7. Licensing for Convergence ............................................................................................................................................. 843.8. Global Standards Making and Compliance ................................................................................................................ 86CHAPTER 4. GOING MOBILE: MANAGING THE SPECTRUM ...........................................................................934.1. Introduction ........................................................................................................................................................................ 934.2. Changing Demands for Spectrum ................................................................................................................................. 934.3. Planning and Technical Standards ................................................................................................................................ 994.4. Mechanisms for Assigning and Pricing Spectrum ......................................................................................................1014.5. Monitoring Spectrum ......................................................................................................................................................1074.6. Flexibility in Spectrum Management ............................................................................................................................111Telecommunications Regulation Handbook iii
  6. 6. CHAPTER 5. FROM CAPACITY TO CONNECTIVITY: NETWORK ACCESS AND INTERCONNECTION .......... 1195.1. Introduction ...................................................................................................................................................................... 1195.2. Access and Interconnection ........................................................................................................................................ 1195.3. Forms of Interconnection ............................................................................................................................................... 1225.4. Setting Interconnection Prices ...................................................................................................................................... 1335.5. Cross-border Interconnection....................................................................................................................................... 1375.6. New Paradigms and New Challenges ........................................................................................................................ 1385.7. Dispute Resolution ........................................................................................................................................................... 147CHAPTER 6. FROM AVAILABILITY TO USE: UNIVERSAL ACCESS AND SERVICE .......................................... 1536.1. Introduction ...................................................................................................................................................................... 1536.2. Trends and Approaches ................................................................................................................................................ 1536.3. Policy Rationale ............................................................................................................................................................... 1556.4. Types of Universal Service Regimes.............................................................................................................................. 1606.5. Reforming Universal Access .......................................................................................................................................... 1696.6. Strategies for Developing Economies ......................................................................................................................... 1706.7. Digital Literacy and e-Inclusion .................................................................................................................................... 175CHAPTER 7. A DIGITAL FUTURE: REGULATORY CHALLENGES IN A BRAVE NEW WORLD ........................... 1817.1. Introduction ...................................................................................................................................................................... 1817.2. Convergence, Ubiquity, and Web 2.0 ........................................................................................................................ 1817.3. Regulating Digital Content............................................................................................................................................ 1897.4. Balancing Intellectual Property Rights......................................................................................................................... 1957.5. Neutrality of Access ........................................................................................................................................................ 2027.6. Protecting Privacy ........................................................................................................................................................... 2057.7. Cybersecurity Concerns ................................................................................................................................................ 2107.8. Green ICT .......................................................................................................................................................................... 2177.9. Regulation in a Global Era ............................................................................................................................................ 220GLOSSARY ...................................................................................................................................................... 224APPENDIX A. WORLD TRADE ORGANIZATION REFERENCE PAPER ON BASIC TELECOMMUNICATIONS . 229ENDNOTES ....................................................................................................................................................... 232REFERENCES .................................................................................................................................................... 234iv Telecommunications Regulation Handbook
  7. 7. ABOUT THE TELECOMMUNICATIONS REGULATION HANDBOOKThis tenth anniversary edition of the Telecommunications Regulation Handbook, edited by Colin Blackman and LaraSrivastava, is a revised and updated version of the first edition, which was edited by Hank Intven (McCarthyTétrault) and originally published in November 2000.Dr. Colin Blackman is a consultant and editor specializing in foresight and communications policy. He isDirector of Camford Associates (www.camfordassociates.com) and Editor of info: the journal of policy, regulationand strategy for telecommunications, information and media (www.emeraldinsight.com/info.htm).Dr. Lara Srivastava is Professor of Media and Communications at Webster University and consultant intechnology foresight, policy analysis and usability design (www.larasrivastava.com). She is Policy Consultant withinfoDev at the World Bank and formerly Senior Policy Analyst at the International Telecommunication Union(ITU).The new edition of the Handbook draws extensively, but not exclusively, on the seven modules of the ICTRegulation Toolkit, available at www.ictregulationtoolkit.org. The Toolkit is a live resource, which is updatedregularly. A snapshot of the Toolkit, as of 11 October 2010, is available as a DVD-ROM appended to this report,including translations into the six working languages of the UN (Arabic, Chinese, English, French, Russian andSpanish) where available.The editors would like to acknowledge the original authors of the ICT Regulation Toolkit modules: Module 1. Regulating the Telecommunications/ICT Sector: Overview, by Telecommunications Management Group (Janet Hernández and Kari Ballot-Lena) Module 2. Competition and Price Regulation, by NERA Economic Consulting (Calvin S. Monson, Aniruddha Banerjee, Arturo Briceño, Agustín Ros and Timothy Tardiff); Castalia Strategic Advisors (David Ehrhardt, Stephen Gale, Anna McKinley and Prabhat Sethi); Kalba International (Robert Frieden and Kas Kalba); and Roland Belfin and Heinz Otruba Module 3. Authorization of Telecommunication/ICT Services, by McCarthy Tétrault (Hank Intven, Theresa E. Miedema, Brodie Swartz and Jennifer Martin) Module 4. Universal Access and Service, by Intelecon Research and Consultancy (Andrew Dymond, Sonja Oestmann, Kyle Whiting and Christopher Smithers) with Claire and Robert Milne (Antelope Consulting) Module 5. Radio Spectrum Management, by McLean Foster & Co (Adrian Foster, Martin Cave and Robert W. Jones) Module 6. Legal and Institutional Framework, by Telecommunications Management Group (Mindel De La Torre, Janet Hernández, Michele Wu, Sofie Maddens, Amy Zirkle, Jeffrey Bernstein, Daniel Leza, Victor Mulas, Virginia Schiffino , Mariana Vega, Christopher Dean, Nadia Friloux) Module 7. New Technologies and Impacts on Regulation, by Telecom Research Group, Center for Information and Communication Technologies, Technical University of Denmark (Knud Skouby, Anders Henten, Morten Falch, Reza Tadayoni and William Melody) and by Janet Hernandez and Jorge Moyano (Telecommunications Management Group).In addition, a new chapter was commissioned for this Tenth Anniversary edition: Chapter 7. A Digital Future: Regulatory Challenges in a Brave New World), by David N. Townsend (David N. Townsend & Associates)The editors gratefully acknowledge the contributions of all of these authors. In particular the pivotal role of HankIntven (McCarthy Tétrault) is acknowledged in instigating, writing and editing the original Handbook and also indeveloping the Toolkit.Telecommunications Regulation Handbook v
  8. 8. Thanks are also due to many people who have supported the development of the Toolkit and the publication ofthe Handbook since 2004, including: Ana Carrasco, Valerie DCosta, Maria Farrell, Tim Kelly, Anna Palladino andMather Pfeiffenberger (infoDev); Boutheina Guermazi, Juan Navas-Sabater and Peter Smith (World Bank);Doreen Bogdan-Martin, Youlia Lozanova, Mario Maniewicz, Susan Schorr and Nancy Sundberg (ITU); DavidGrimshaw (DFID); Theresa Mediema (consultant); and David Rogerson (Incyte Consulting).The costs of editing and printing of this new edition have been largely met through a generous grant to infoDevsConnect program from the U.K. Department for International Development (DFID). The original edition, as wellas the ICT Regulation Toolkit, benefitted from a number of donors including the European Union, Finland,Germany, the Republic of Korea, Sweden, Switzerland and the U.K., as well a direct contributions from infoDev,the World Bank and ITU.vi Telecommunications Regulation Handbook
  9. 9. FOREWORDCommunications are an essential means for reaching the ―Bottom of the Pyramid‖ and enabling individuals toreduce poverty and improve the quality of their lives. We currently live in a world in which more Africans haveaccess to a mobile phone than to any other utility or infrastructure service. This widespread technologicaldissemination creates new opportunities across all segments of society, but also presents new challenges requiringadaptable strategies. Today‘s communications landscape is vastly different from the environment in which wedeveloped the first Telecommunications Regulation Handbook ten years ago.Competitive and open communications markets have created opportunities in countries that previously laggedbehind. Competitively priced and technologically varied service offerings have allowed businesses to compete andthrive globally. However, there are still serious market gaps (such as providing widespread high speed broadbandservices at affordable prices and connectivity to remote areas), that, when coupled with evolving and convergingtechnologies, pose challenges to policymakers and regulators.Technology is changing telecommunications markets by merging, converging and re-organizing them from theinside-out. The future of telecommunications is being written by SMS and Internet Protocol, as well as bytraditional packet-switching, and implemented in applications that tie platforms together, creating services wecould not have predicted but on which we have come to depend. Communications technologies alone, however,will not drive the innovation that the developing world needs.The World Bank Group supports the Telecommunications Regulation Handbook because this essential guide can assistpolicymakers in evaluating policy options and deciding on appropriate regulations. Their efforts can supportthriving economies by allowing individuals to exercise their own ingenuity to lift themselves and their countriesout of poverty. As a result of the rapid rate of technological development, business innovation and changes insocial attitudes continue to push communications in unpredictable, innovative directions. Well-trained, informedand independent individuals in ministries, regulatory agencies, companies and universities play a critical role inshaping the future of the communications landscape, thereby creating more opportunities for open collaboration,innovation and economic growth.The World Bank is pleased to make available the Telecommunications Regulation Handbook, both as a resource and as acollaborative platform. These tools benefit the individuals entrusted with creating both a level playing field forand an environment in which communications can reach its potential as a powerful enabling tool for supportinginnovation and achieving inclusive sustainable development.Mohsen A. KhalilGlobal Head, Climate Business GroupThe World Bank Group(formerly Director, Global Information & Communication Technologies)Telecommunications Regulation Handbook vii
  10. 10. ITU is proud to present, in conjunction with infoDev and the World Bank, this tenth anniversary edition of theTelecommunications Regulation Handbook charting the transformation of regulatory frameworks in the digitaleconomy.Today, regulators in the telecommunication industry stand at a crossroads in an era of transition. Since the firstedition of the Handbook was published in 2000, the industry has transformed beyond recognition. Over the pastdecade, privatization has continued apace, mobile telephony has succeeded in connecting half the world‘spopulation, Internet Protocol (IP)-based networks are in full ascendancy, while the Internet now touches uponnearly every facet of our lives – professional and private. Any one of these trends is revolutionary – together, theyare nothing short of cataclysmic. Regulators face an understandably daunting challenge in trying to keep up withsuch a rapid pace of technological change. In many cases, regulators are seeking to cope with the challenges ofconvergence and the new online world with old-world tools.It was in order to equip regulators to deal with these and similar challenges that the first TelecommunicationsRegulation Handbook was published. Following its success, infoDev and ITU produced a comprehensive online setof resources for cutting-edge, best-practice regulation, which is essential to the growth of information andcommunication technology (ICT) services, applications and devices – the ICT Regulation Toolkit. The Toolkit isregularly updated and augmented to serve as a compass for regulators facing the ever more complex challengesinvolved in industry transformation and regulatory reform.Now, more than ever, regulators need guidance and a solid basis on which to build sound foundations for thefuture digital economy. They can no longer afford to focus narrowly on classically defined mandates and marketdefinitions. Rather, regulators must understand the evolving converged environment to deal with new andunprecedented issues transcending the original scope of their regulatory practice. A trans-sector focus tailoringregulation to help multiply the effects of ICTs across all sectors of the economy can prove helpful – whilstensuring that large segments of society are not excluded from the benefits of access to ICTs. Last but not least,regulators need to seek and apply durable policies and principles that can be continually brought to bear in achanging market. Both the Telecommunications Regulation Handbook and the ICT Regulation Toolkit will continue toassist regulators in marshalling the regulatory expertise they need to navigate the rough seas of technologicalevolution.This new edition of the Telecommunications Regulation Handbook captures the new market and regulatory strategies tooptimize investment in broadband networks and ICT services. As the following chapters show, many of theevolutionary and revolutionary changes in regulation that made possible the mobile miracle of connecting 5billion users worldwide with access to ICTs, as well as over a billion fixed and mobile broadband subscribers, arestill valid today. But for markets to truly flourish, regulators also need new, inspired regulatory approaches that areas innovative as the technologies they regulate.This new and revised edition of the Handbook focuses on examining these new expectations and identifying theregulatory approaches taken throughout the world to stimulate ICT growth in a converged environment andincrease access to broadband services. I hope that the Handbook will prove invaluable to all its many differenttypes of readers, but especially to ICT regulators and policy-makers in both developed and developing countriesalike.Brahima SanouDirector, Telecommunication Development BureauInternational Telecommunication Union (ITU)viii Telecommunications Regulation Handbook
  11. 11. CHAPTER 1. THE BIG PICTURE: INTRODUCTION TO TELECOMMUNICATIONS REGULATIONCHAPTER 1. THE BIG PICTURE: INTRODUCTION TO TELECOMMUNICATIONS REGULATION ..........................31.1. Introduction .......................................................................................................................................................................... 31.2. Technology in Context ....................................................................................................................................................... 41.2.1. Brave New Words, Brave New Economy .............................................................................................................................................41.2.2. ICT as Social and Economic Enabler ....................................................................................................................................................51.2.3. Innovative Technologies and Services .................................................................................................................................................81.3. Why Regulate? ..................................................................................................................................................................... 91.3.1. Evolution of Regulatory Reforms ...........................................................................................................................................................91.3.2. Benchmarking Competition ................................................................................................................................................................121.4. Regulatory Organizations ................................................................................................................................................. 141.4.1. Elements for an Effective Regulator ...................................................................................................................................................141.4.2. Structural Independence .....................................................................................................................................................................151.4.3. Financial Independence ......................................................................................................................................................................161.4.4. Functionality ...........................................................................................................................................................................................161.4.5. Organizational and Institutional Approaches to Regulation ..........................................................................................................171.5. International Frameworks ................................................................................................................................................. 211.5.1. Multilateral Commitments ....................................................................................................................................................................211.5.2. Regional Initiatives and Frameworks ..................................................................................................................................................221.6. Looking Ahead .................................................................................................................................................................. 23Telecommunications Regulation Handbook 1
  12. 12. 2 Telecommunications Regulation Handbook
  13. 13. CHAPTER 1. THE BIG PICTURE: INTRODUCTION TO TELECOMMUNICATIONS REGULATION1.1. Introduction The past decade has also witnessed two major setbacks. Following a period of growth in theThe telecommunications sector has undergone telecommunications industry in the late 1990s, theconsiderable change since the publication of the ―dot com bubble‖ burst at the beginning of the 21stTelecommunications Regulation Handbook a decade ago. century, resulting in a steep drop in stock marketThe long term evolution of new technologies and value for major operators. The crash in theservices has continued, focusing attention on the telecommunications market affected numerousgrowing importance of telecommunications for companies, but did not appear to deter thenational economies and the growth of international development of new technologies and thetrade in telecommunications services. In turn this continuing evolution of the information andhas fuelled the transition in recent decades from communications technology (ICT) sector. The endmonopoly structures to competitive ones. of the decade has been overshadowed by the globalApart from these general trends, the global economic crisis. It remains to be seen how thetelecommunications landscape in 2010 has been sector will withstand the latest economic shock,particularly shaped by the rapid take-up of the particularly as the mobile wireless market nearsInternet and mobile wireless communications across saturation in most industrialized countries. Wirelessthe world. At the turn of the millennium, these is, of course, a continuing success story in thetechnologies predominantly served the wealthy elite. developing world and there remains potential forNow mobile phones are in the hands of the majority growth, particularly in those countries that have yetof people on the planet. And the Internet has truly to fully embrace competitive markets.become mainstream with Web 2.0 applications such In such a rapidly evolving field, it is necessary toas Facebook making it relevant for so many people ensure that regulation adapts to new developments.in their daily lives. Countries around the world have been reviewingTelecommunications Regulation Handbook 3
  14. 14. The Big Picturetheir existing frameworks, enacting legislation and phone, cyber crime, file sharing. Some vocabulary iscreating new regulatory authorities to implement entirely new: the words blog, podcast and googlingtheir legal and regulatory framework. have become commonplace. The range of technology acronyms in everyday use continues toThis anniversary edition of the Handbook must take expand – P2P, SMS, MP3 – and adds to the senseaccount of these developments over the past decade. that what we are witnessing is the dawn of a newMost of the fundamental principles remain constant, information age, in which ICTs become part andof course, and the Handbook reiterates the basic and parcel of daily life. As a result, we now live in whatunderlying principles of telecommunications has been termed the ―information society‖. Theregulation. ongoing World Summit on the Information SocietyNevertheless, there are also emerging issues arising (WSIS) process is global recognition of the impactfrom particular new technologies that raise new of ICTs on society, and the need to ensure that aregulatory issues, e.g., Voice over Internet Protocol global digital divide does not persist.(VoIP), Internet Protocol Television (IPTV), social ICTs, such as the Internet and the mobile phone,networking, etc. This new edition brings the have become vital for almost all economic and socialHandbook up to date with regard to such matters. In activity. The new digital economy runs on the fueladdition, the wider take up and convergence of ICTs of ICTs, from e-commerce to professionalalso raises new regulatory issues that traditionally networking.would be seen as separate from telecommunicationsregulation. However, in the digital age, questions A key characteristic of ICTs is that they aresuch as protection of minors, privacy and intellectual regulated by national administrative agencies that areproperty are increasingly becoming part of the keen on ensuring that principles such as fairagenda for policy makers and regulators too. competition and universal access are upheld in theReflecting these changes this edition of the public interest. Government regulation of ICTsHandbook goes beyond the usual definition of extends into many disparate areas, ranging fromtelecommunications regulation to address those pricing regulation, mergers and market entry toissues arising from the transition to a more content, copyright, and privacy.ubiquitous and participatory digital age. Given the speed of technological innovation, it isThis introductory chapter provides an overview of not surprising that the substance of ICT regulationthe main communications regulation issues – the big has had to evolve rapidly. The liberalization of ICTpicture. It begins by highlighting the important role markets has stimulated cumulative interactingof information and communications technology as innovations in products, services and technologiesboth social and economic enabler and the rapidly with a general convergence or blurring ofevolving and converging nature of communications distinctions between platforms, products andtechnologies. A key question – why regulate? – is services. These developments necessitate some formthen explored and the principles of regulation of regulatory response to keep them in check.expounded. Regulatory organizations and elements The evolutionary nature of regulation is evident, forfor an effective regulator are described as well as instance, in the moving target of European Unioninternational regulatory frameworks. Finally, the (EU) regulation. There have been successivechapter looks ahead to the issues that are likely to be ―packages‖ updating the regulatory framework, mostof increasing importance over the next decade. recently in 2009. A growing number of countries1.2. Technology in Context have adopted this framework as member of the European Union. The EU regulatory approach is1.2.1. Brave New Words, Brave New also reaching outside of Europe and influencing the frameworks that other countries are adopting. The Economy 2009 reform followed several years of consultationDigital technologies are changing the ways in which and the new framework continues the shift to lessthe majority of people live, work, play and interact sector-specific and more ex post regulation in thewith each other. We can see this reflected in the European Union. Significantly, the EU regulatorylanguage we use. Our vocabulary is evolving as package has been forcefully linked to broader policyexisting words assume new meanings – app, burn, objectives concerning inclusiveness, innovation, jobtext – or appear in new combinations, such as smart creation, growth, energy and environmental issues in4 Telecommunications Regulation Handbook
  15. 15. The Big Pictureinformation society. The EU is not alone in this. increase in revenue. In Kenya, ICT slashed theCountries around the world and at all stages of number of days it took to register a vehicle from 30economic development are implementing similar to 1.ICT strategies. ICTs also enable the participation of A new program focused on bringing ICTs to theindividuals, governments and organizations in the developing world was introduced by the World Bankglobal economy. in 2008. This program, called New Economy Skills for Africa Program-Information and1.2.2. ICT as Social and Economic Enabler Communication Technologies (NESAP-ICT),These initiatives reflect the growing acceptance that supports the growth of Information TechnologyICTs offer major transformational opportunities. (IT) and IT-Enabled Services (ITES) industry inThey can contribute to enhanced productivity, Sub-Sahara African countries. The NESAP-ICTcompetitiveness, growth, wealth creation, and program noted that ICTs transform the economypoverty reduction. They have the potential to and peoples‘ lives and provided various examples,catapult us from an information society to the next including:level – that of a knowledge-based society and New jobs: In India, the expansion of the IT-ITESeconomy. ICTs provide the means by which industry over the last 15 years has added more thanknowledge is developed, stored, aggregated, 10 million direct and indirect jobs. In South Africa,manipulated and diffused. the industry has employed 100,000 workers directlyThese opportunities are well known and are not just and indirectly by 2009. In the Philippines, aa developed country phenomenon. ICTs, projected 900,000 people will be employed directlyparticularly access to broadband internet, are vital or indirectly by IT-ITES by 2010.for developing nations as well. The ITU‘s Build on Economic growth: In 2009, the Indian IT-ITESBroadband project is dedicated to promoting industry contributed an estimated US$70 billion toequitable, affordable broadband access to the the GDP or six percent share of total GDP. In theInternet for all people, regardless of where they live Philippines, the industry‘s contribution in 2010 isor their financial circumstances. In a speech in expected to reach US$13 billion, or about eight2009, ITU Secretary-General Dr Hamadoun I. percent of GDP.Touré stated: [I]n the 21st century, affordable broadband access to Increased productivity: The rapid spread of e- the Internet is becoming as vital to social and applications and digital tools to such diverse areas as economic development as networks like transport, manufacturing, transportation, logistics, finance, water and power. Broadband access – and the next banking, governance, health, education and even in generation broadband network infrastructure which traditional sectors like agriculture is transforming the underpins it – is a key enabler for economic and economies of developing countries. IT investments social growth… Broadband changes everything. It raise worker productivity three to five times that of enables not just great new enabling applications, such non-IT capital. U.S. studies have shown that the IT- as VoIP and IPTV, but also the delivery of essential ITES industry was responsible for two-thirds of services – from e-health to e-education to e- total factor productivity growth between 1995 and commerce to e-government. And broadband is 2002 and for nearly all of the growth in labor helping us make great progress towards meeting the productivity in that period.1 Millennium Development Goals – and improving the quality of life for countless people around the world. Clearly, ICTs can have an important impact on everyday lives and on general economic activity, butThe importance of ICT was also recognized by the opportunities only materialize fully to the extentWorld Bank President Robert B. Zoellick in a that the regulatory framework, as implemented,speech to the African Union Summit in 2010: supports and fosters both investment in and ICT is a key enabler of productivity and creator of widespread diffusion of ICTs. Absent these jobs. It can help farmers, small businesses, and those conditions, the full promise of ICTs is unrealized. excluded from traditional banking services. It can ICTs offer the prospects of rapid advancements, but extend and speed up government services. In Ghana, if appropriate conditions are not in place, the the introduction of IT systems and Business Re- outcome can be a rapid slide down the digital divide. engineering resulted in a drop in average customs And although the digital divide is narrowing, clearance time from 2-3 weeks to 1-2 days and a 50%Telecommunications Regulation Handbook 5
  16. 16. The Big Pictureparticularly due to the rise of Internet-enabled Figure 1.1 gives a snapshot of global ICT growthmobile phones and applications, a new broadband over the past decade, showing particularly thedivide is growing that governments need to address. extraordinary success of mobile services.Figure 1.1 Global ICT Developments, 2000-2010 100 90 Mobile cellular telephone subscriptions Internet users 80 Fixed telephone lines 76.2 70 Mobile broadband subscriptions Per 100 inhabitants 60 Fixed broadband subscriptions 50 40 30.1 30 20 17.3 13.6 10 8.0 0 2000 01 02 03 04 05 06 07 08 09 2010* *EstimatesSource: ITU World Telecommunication/ICT Indicators database.Mobile cellular has been the most rapidly adopted an estimated 4.6 billon at the end of 2009,technology in history. In 2002, the total number of translating into a growth in mobile penetration frommobile subscribers in the world surpassed that of 8 percent to 68 percent (See Figure 1.2). Today it isfixed customers. Mobile phone subscriptions the most popular and widespread personalworldwide grew from nearly 500 million in 1999 to technology on the planet.Figure 1.2 Global Mobile Cellular Subscriptions, Total and per 100 Inhabitants 2000-2010 6000 100 90 Subscriptions (million) 5000 Subscriptions (Million) Per 100 inhabitants 80 Per 100 inhabitants 70 4000 60 3000 50 40 2000 30 20 1000 10 0 0 2000 01 02 03 04 05 06 07 08 09 2010* *EstimatesSource: ITU World Telecommunication/ICT Indicators database.6 Telecommunications Regulation Handbook
  17. 17. The Big PictureThe growth in internet users has also been postal and courier services can deliver largeremarkable, with more than a quarter of the world‘s quantities of data (e.g., a truckload of CDs), they failpopulation now using the internet. the speed test. To transfer the digital information contained in an average two-hour movieBut mobile broadband subscriptions overtook fixed downloaded from Apple‘s iTunes takes about threebroadband subscribers in 2008, highlighting the days using a 56Kbps dial-up modem; two hourshuge potential for the mobile internet. using a 1.5 Mbps connection; two minutes using aThe Asia-Pacific region is the largest mobile market 100 Mbps connection; and 15 seconds using a 1000in the world, and by 2013, Asia is expected to have Mbps (1 Gbps).almost three billion mobile subscribers. In 2009, In the broadband world, large volumes of data canChina alone had 747 million mobile subscribers, be moved almost instantaneously to widelywhich far exceeded the combined number of mobile dispersed locations at low cost. Through thesubscribers in Japan and the United States at 115 application of ICTs, many services once consideredmillion and 298 million subscribers, respectively. non-tradable are now tradable, such as back-officeSub-Saharan Africa had a mobile penetration rate of functions including the management of employee42 subscribers per 100 people in 2009, translating benefits or dental records. ―Out-sourcing‖ and/orinto over 295 million mobile customers.2 ―business process off-shoring‖ (BPO) have seenMobile phone handsets are now turning into smart- massive increases, amounting to a total addressablephones equipped with digital cameras, Internet- market estimated at US$ 300 billion, of which aboutenabled video, pre-installed social networking US$ 100 billion was off-shored in 2010. In the BPOapplications such as Facebook and music juke box market, India is a tremendous success story. It haspayment terminals. Billboard magazine publishes a list become the dominant player in the BPO market.of top 20 ring tones, a market that generates billions India‘s BPO exports grew by 35 percent a yearof dollars in revenue. These new functionalities are between 2005 and 2008, and employment in thetransformational. For example, as digital cameras, sector increased from 42,000 jobs in 2002 to anmobile devices provide benefits such as instant news estimated 700,000 people in 2008.3 The globalgathering or create harmful effects like facilitating economic downturn of 2009 saw a slowdown in theindustrial espionage. Their internet-enabled video, market but prospects for future growth remain.access to social networks and music capability brings Other countries like the Philippines, Brazil, Romaniathem into the realm of media, copyright and internet and Ireland have also been particularly successful ingovernance. As a component of the banking system, attracting investment and creating employment fromthe mobile network can provide services where the BPO-related activities. These successes have comefinancial network is weak, but there is also the risk about due to a commitment from the government toof banking fraud and identity theft. These widely foster and support these activities by implementingused electronic consumer devices now straddle necessary policies and developing the supportingseveral regulatory jurisdictions, raise new legal issues, regulatory framework. In the case of India,and present new challenges to existing regulatory government policies and reforms, includingframeworks. From a government standpoint, the telecommunications reforms implemented in 1999,challenge becomes how to sustain investment and established the foundations for these new activities.promote widespread diffusion of technologies, while The use of ICTs in e-government services is alsoprotecting the legitimate interests of all players, transforming citizens‘ interactions with the publicparticularly consumers. sector by improving efficiency, effectiveness andICTs have significantly affected business operations accountability of governments. In India, forwhere a large number of new, non-OECD countries example, a comparison of manual and e-governmenthave successfully entered the market. This is services found that computerized servicesparticularly the case for software and IT-enabled substantially increased cost-savings and access toservices. Market entry is partly explained by the services. The survey showed that e-services lowered―death of distance‖ or the dramatic fall in the costs travel costs, made delivery of services moreof international connectivity. The latest predictable, decreased waiting times, reducedmanifestation is the proliferation of broadband corruption and generally improved overall quality ofaccess networks. Broadband can carry huge service.4quantities of data, at very high speeds. AlthoughTelecommunications Regulation Handbook 7
  18. 18. The Big PictureAlthough ubiquitous and open networks produce Incumbents are also facing disruptive elements ingreat gains for society as a whole, they also increase cases where, frustrated by existing suppliers, localour vulnerability. Maximizing the connectivity and governments and municipalities are constructingopenness of networks requires regulators to create their own networks, sometimes using the ―opennew laws in several areas, including privacy and data access‖ model and the ―bottom up‖ development ofprotection; protection of children online; and applications. For example in Ottawa, Canada, localprevention of cyber crimes such as identity theft. residents are able to purchase their fiber connectionsRegulators must also ensure that law enforcement directly from the municipal government, which hastechniques evolve with technology in order to built and continues to subsidize fiber network. Suchcontinue protecting society against those who would ―open access‖ models are also gaining currency intake advantage of these vulnerabilities. This requires international networks.5adequate provisions for emergency services and The process of managed transition is becominglawful interception (i.e. ―wiretapping‖). more difficult in the current ICT environment for at least two reasons. First, the rate of change in1.2.3. Innovative Technologies and technology is increasing. Second, the organizations Services introducing the new technologies are not necessarilyAll ICT organizations have legacy assets, some more members of the traditional telecommunicationsthan others. The evolving regulatory frameworks community, but innovators that may not play by thehave facilitated or even encouraged the introduction same rules. Established organizations as well as newof new technologies and services. Ideally, ICT entrants are arming themselves with differentorganizations would like to manage the transition to business models like ―triple or quad play,‖ ―alwaysnew technologies in a way that allows them to on,‖ ―flat charges,‖ ―all you can eat,‖ or even ―free.‖optimize their returns on legacy assets. The reason is These business models differ from the morethat new technologies disrupt (or make obsolete) traditional models where a limited range of servicespre-existing business plans and thereby the value of or a single service are offered at prices based onlegacy assets. In economic terms, this is an example distance and time. In some instances, the provisionof a ―Wave of Creative Destruction‖ in which of voice services is ancillary to the main line ofdisruptive technologies can bring wider choices and business of the new entrant. For example, the voicelower prices for the consumer. version of Yahoo! Instant Message service is not theInnovative technologies and NGNs may offer core business of the company.substantial opportunities for incumbents with Voice over Internet Protocol (VoIP) is an examplelimited legacy assets, as is the case in many of an innovative and disruptive technology (seedeveloping economies. But for those with Chapters 5.6. VoIP demonstrates that the basicsignificant legacy assets, innovative technologies and premise of traditional voice telephony – the networkservices may be very disruptive if incumbents do not and voice services must be owned and operated byremain competitive and continue to innovate. Chief the same firm – is no longer relevant. VoIP isexecutive officers in many developed economies disrupting the pre-existing business plans ofmay be forced to choose between competing with traditional telephone service providers and is beingtheir own businesses and having another company introduced by firms outside the traditionaldoing it. The threat of innovation may also cause community. For instance, Google launched itssome strong incumbents to adopt delaying tactics. Google Voice service in March 2009. Rather thanThe extent to which they can adopt such tactics own or operate any part of the underlying network,depends largely on the effectiveness of Google simply offers an application that gives usersimplementing pro-competitive regulatory one phone number for all of their phones, providesframeworks. However, innovative technologies and free long distance within the United States and hasNGNs can benefit incumbent service providers low international calling rates. As a result of this andthrough the lower cost of using more efficient other examples, traditional operators are responding.technology. They also allow providers to competein new service areas in order to offset declines in Another innovative and disrupting technology istradition lines of business. Internet Protocol television (IPTV). By providing video services, such as live television channels and video-on-demand, as well as interactive services,8 Telecommunications Regulation Handbook
  19. 19. The Big Pictureover an IP platform, IPTV allows traditional distributed at rapidly falling costs on convergedtelephone service providers to compete with platforms, presents new disruptive challenges toterrestrial over-the-air broadcasters, cable television both existing players or ―majors‖ (content producersoperators and satellite television providers. and distributors) and regulators.ICTs have transformed many other activities, The rapid increase in content choices for consumersnotably the media and the creative industries (see and the speed of delivery through broadbandChapter 7.2). Traditional broadcast media offer connections are also transforming social and culturallimited ―mass fare‖ to mass audiences, due to the landscapes. For example, broadband helps toeconomics of the sector and radio spectrum reduce carbon emissions through environmentally-restrictions. Cable and satellite platforms have friendly business practices such as remoteexpanded choice for television and radio by offering management of equipment, telecommuting and liveservices such as video-on-demand. However, new video-conferencing and can result in a reduction oftechnologies expand choice even further and are carbon emissions five times greater than theable to cater to targeted audiences. The combination emissions that the ICT industry produces (seeof broadband (wired or wireless), the digitalization Chapter 7.8). The growth of innovativeof media content, and the falling costs of producing technologies, NGNs and convergence promises todigital content herald an age of abundance. The become a disruptive force for the way individualsfalling costs of producing media has placed digital interact with one another in society.content production, including documentaries,entertainment, news, music, blogs, in the hands of 1.3. Why Regulate?many and has created a bottom-up trend. 1.3.1. Evolution of Regulatory ReformsThe introduction of broadband and the switch todigital from analogue broadcasting will increase The need for regulation varies depending on thedelivery capacity enormously in comparison to conditions of the marketplace. While the design oftraditional broadcasting. New content producers the regulatory framework may differ, certain criticalhave a means of distributing their creations instantly elements should be included in an effectiveand globally (see Chapter 7.3). Content can be regulatory framework, such as the functional aspectscustomized to the personal tastes of an individual of the regulatory authority; decision-makingrather than be defined for a mass audience. Many processes; accountability; consumer protection,observers are focusing on the ―long tail‖ of digital dispute resolution and enforcement powers.content in which a large number of unique services, Consideration and proper implementation of thesecontent or applications are sold in relatively small features are key elements for creating an enablingquantities. Although there are still services and items environment for development of the sector and forthat large numbers of people will wish to purchase, increased consumer welfare.many small providers and developers can become In the 1990s, many countries introduced the firstsuccessful by selling their products to niche markets. wave of reform by privatizing their nationalWith broadband, this ―long tail‖ of niche media operators. Until that time, telecommunicationscontent has found a highly receptive audience, for services were largely provided under monopolyexample, through the popularity of the video-sharing conditions and thus limited regulation existedsite ―YouTube.‖ Apple‘s iPhone App Store provides because the government was acting as both operatoranother example of how small developers are and regulator. In the very initial stages offinding great success by targeting the ―long tail.‖ liberalization, some countries have created aAfter a developer completes a relatively simple regulator when introducing a private monopoly.process for developing and getting approval for a These regulators oversee the sector and ensure thatnew application, iPhone subscribers are able to the private operator knows and can comply with thesearch through and download these specialized ―rules of the game.‖ In the second wave ofapplications at fees set by the developer. By the end liberalization, which sometimes occursof 2009, there were more than 125,000 developers in simultaneously with privatization, governmentsApple‘s iPhone Developer Program and subscribers typically authorize the entry of new service providershad downloaded over two billion of their and new services (e.g., mobile services and value-applications.6 This continued abundance of choices added services) into the market. Generally, thisin existing and new digital content, produced andTelecommunications Regulation Handbook 9
  20. 20. The Big Pictureinvolves the modification of the licensing framework regulations to allow these operators to participate inin order to allow the entry of the new players, as well the marketplace.as the introduction of complementary rules andFigure 1.3 Need for Regulation Limited Regulation because government Public Monopoly is the sole monopoly operator and the regulator itself Increase in regulation because the private operator needs to know its rights and obligations and Private Monopoly the government needs a regulatory framework Transition to facilitate oversight over the monopoly operator Greater need for regulation as regulator must implement tools to foster and sustain a new Partial Competition competitive market (e.g. rules regarding potential anti-competitive practices, licensing frameworks, setting tariffs, universal service) Decrease in regulation as competitive market largely Full Competition regulates itself, representing a shift to ex-post regulationSource: ICT Regulation Toolkit.The third wave of liberalization occurs when the the former monopoly to effective competition. Asincumbent operator‘s exclusivity period ends and noted in Figure 1.4, regulation is not an end in itself,full competition can be introduced. With the but rather a vehicle to attain, and subsequentlyintroduction of full competition, the role of the sustain, widespread access, effective competition andregulator actually increases (see Figure 1.3), consumer protection.particularly during the early stages of transition fromFigure 1.4 Goals of Regulation Why Regulate? (regulation not being an end in itself) To ensure that To increase To avoid consumer access to To increase market failure To foster interests are To protect technology and To avoid access to effective protected consumer services market failure technology and competition interests servicesSource: ICT Regulation Toolkit.To transition to an effective, competitive to oversee the introduction of competition; (ii)environment, regulatory reform must include preparing the incumbent operator to facemeasures aimed at: (i) creating functional regulators competition (e.g., deadlines for market exclusivities);10 Telecommunications Regulation Handbook
  21. 21. The Big Picture(iii) allocating and managing scarce resources in a organizational structures are best suited fornon-discriminatory way; (iv) expanding and regulating a converged marketplace with multipleenhancing access to telecommunications and ICT services offered by the same platform.networks and services; and (v) promoting and Likewise, regulators are realizing that their existingprotecting consumer interests, including universal regulatory frameworks may impede the ability ofaccess and privacy. operators to make triple or quadruple play offeringsOnce a fully competitive environment is attained, it to consumers or use low-cost Voice over Internetis generally agreed that a more limited need for Protocol (VoIP). Similarly, numerous governmentsregulation exists. In certain areas such as universal are currently holding consultations regarding digitalaccess and service, however, market forces often fall television in order to assess what standard should beshort of creating the conditions necessary to satisfy used for such services. In addition, regulatorspublic interest objectives and thus regulatory should ensure that consumers are made aware ofintervention is required. Similarly, regulatory potential limitations associated with newagencies must ensure that spectrum is properly technologies (e.g., emergency services may not bemanaged and allocated. available through such services, and services offered may be of lower quality).Moreover, despite the benefits of new technologies,regulators also must be attentive and responsive to The implementation of an effective regulatorythe regulatory issues that arise from the framework has resulted in greater economic growth,implementation of these new technologies and their increased investment, lower prices, better quality ofrelated services. For example, regulators are service, higher penetration, and more rapidcurrently grappling with issues such as spam and technological innovation in the sector. In fact,consumer concerns regarding privacy, which were investors consider the regulatory environment to benot issues of concern to regulators 10 years ago. In a critical factor in their analysis of whether or not toaddition, governments are reviewing their regulatory invest in a country.structures to determine whether their currentFigure 1.5 The Impact of Indias Regulatory Reforms on Mobile Penetration and Price 16 Lowering of ADC from 50 NTP 99 Fixed 30% to 10% of sector Mobile revenue 45 14 Cellular 43 WLL(M) 40 Effective charge (in Rs. per min.) 12 Mobile Subscriber base CPP introduced 37.73 Telecom Tariff 35 Mobile subscribers (millions)) Order 10 33.60 30 3rd & 4th cellular WLL operator introduced 8 25 20 6 13 15 4 10 6.50 2 3.58 1.88 5 1.20 0.88 0 0 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04Source: Telecom Regulatory Authority of India.As shown in Figure 1.5, the Telecom Regulatory regulatory efforts have brought economic growth toAuthority of India (TRAI) has made a the sector and produced a marked increase in mobilecomprehensive reform of the regulatory framework subscribers and a fall in mobile tariffs. In 1999,to promote technological neutrality and take when its New Telecommunications Policy wasadvantage of inter-modal competition. These adopted, India had about 1.2 million mobileTelecommunications Regulation Handbook 11
  22. 22. The Big Picturesubscribers, and effective charges were 14.51 allow entry of multiple operators and greaterRs./minute. Pro-competitive and liberalization- competition.oriented policies, such as issuing additional mobilelicenses in 2001 and 2002, and awarding Wireless 1.3.2. Benchmarking CompetitionLocal Loop (WLL) licenses in 2002, had a positive As discussed above, liberalization and fosteringeffect both on penetration and prices. As of competition are the best means to ensure efficientDecember 2009, mobile subscribers had increased to and high quality services at low costs, and thus, are525 million and prices had dropped to 0.64 key regulatory objectives. This once radical messageRs./minute.7 has become mainstream around the world. ThisSimilarly, lower prices for international telephone section benchmarks the level of competition in keycalls, for example, are also highly correlated with the sectors, worldwide and by region. The analysislevel of competition. Regulators must often compares the level of competition in:intervene to remedy shortcomings in competition  Local serviceand ensure that competition is working effectively.In certain cases, this includes imposing some form  Domestic long distanceof regulation, such as rules related to:  International long distanceinterconnection charges requiring incumbent  Mobileoperators to charge competitive operators wholesale  Internet servicescost-oriented rates; liberalizing the internationalgateway; and eliminating restrictions on resale to  Leased linesFigure 1.6 Growth in Competition in Selected Services between 2000 and 2009 Growth in competition, world 100% 90% 2000 2009 80% 70% 60% 50% 40% 30% 20% 10% 0% Basic Wireles s Internet Cable Leas ed Mobile Intl VSAT s ervices local loop s ervices lines cellular gatewaysSource: ITU World Telecommunication/ICT Indicators database.Worldwide Comparison by Sector services is extremely common – 90 percent of countries have either partial or full competition inThe trend towards liberalization is evident in the the mobile sector and 93 percent in the internetdata (see Figure 1.6). According to ITU data, as at services sector (see Figures 1.7 and 1.8). Leasedthe end of 2009, over 65 percent of countries lines show a similar pattern to the local, domesticworldwide have either full or partial competition in long distance and international sectors discussedbasic services (local, long distance and international below. In most regions, the majority of countriesservices). Competition in mobile and internet have introduced some degree of competition.12 Telecommunications Regulation Handbook
  23. 23. The Big PictureFigure 1.7. Internet Subscribers and Growth in Competition between 2000 and 2009 Growth in competition & number of Internet subscribers, 2000-09 600 100% Millions 90% 500 80% 70% 400 of countries 60% 300 50% 40% 200 30% 20% 100 10% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 Nb Internet subs. Nb fixed broadband subs. Competition in InternetSource: ITU World Telecommunication/ICT Indicators database.Figure 1.8 Growth in Competition in Local, International and Mobile, 1995-2009 200 150 No of countries 100 Local International 50 Mobile 0 1995 1997 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Source: ITU World Telecommunication/ICT Indicators database.Local Service Domestic Long DistanceMonopoly provision of local service is still prevalent, The picture for domestic long distance is veryparticularly in Africa and the Arab States, where 44 similar to the local service sector. Approximately 40and 57 percent of countries respectively have a percent of African countries and 52 percent of Arabmonopoly local service provider. The data show States have a monopoly in the provision of domesticsignificant competition in Europe and the long distance services. Approximately 60 per cent ofCommonwealth of Independent States (CIS), where countries in Asia-Pacific, 83 percent of countries in82 percent of countries report full or partial Europe, 55 per cent in the CIS and 66 per cent ofcompetition in local service. This reflects the countries in the Americas, report full or partialsignificant impact of the European Union‘s competition in this sector.competition policy and telecommunicationsrequirements.Telecommunications Regulation Handbook 13
  24. 24. The Big PictureFigure 1.9 Competition in Selected Wireless Services by Region, 2009 Competition in selected wireless services, by region, 2009 IMT 2000 (3G) Cellular mobile 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Africa Arab States Asia-Pacific CIS Europe AmericasSource: ITU World Telecommunication/ICT Indicators database.International Long Distance Internet services sector. Over 78 percent of ArabCompetition is more widespread in most regions in States have introduced competition.the international long distance sector than in localand domestic long distance. In Africa and the Asia 1.4. Regulatory OrganizationsPacific region respectively, 55 and 58 percent ofcountries have introduced full or partial competition 1.4.1. Elements for an Effective Regulatorfor international calls. In the Americas, 71 percent The aim of a regulator is to ensure that the sector isof countries, in Europe 88 per cent and in the CIS working properly and that consumer and other64 per cent, have full or partial competition in this stakeholder interests are protected in a fair andsector. The Arab States show a higher level of balanced manner. An effective regulator is themonopoly in this sector compared to other regions vehicle to ensure credible market entry, as well as(57 percent of Arab States report a monopoly). compliance with and enforcement of existing regulations. To achieve this, governments mustMobile create and maintain an environment conducive toAll regions show a high degree of liberalization in good governance and regulatory success.the mobile sector (see also Figure 1.8). 93 per centof countries worldwide have introduced full or Independence is a critical attribute for a regulator topartial competition, with Europe, CIS and Africa be effective. Effectiveness, however, has additionalleading the way (See Figure 1.9). Competition is dimensions (see Figure 1.10). In a broad sense, anaccompanied by sector growth, as illustrated by the effective regulator is structurally and financiallycase of Jamaica (see Box 1.1). independent, but the real effectiveness of the regulator will depend on how it achieves successfulInternet Services functionality, ideally in an independent andUnsurprisingly, the Internet services sector is by far autonomous manner. In addition, an effectivethe most competitive of the sectors surveyed. Over regulator should demonstrate other characteristics,90 percent of countries in Africa, the Americas and including accountability, transparency andthe Asia Pacific region, and all of Europe and the predictability.CIS have either full or partial competition in the14 Telecommunications Regulation Handbook

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