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ITU 150

Publications and Studies on ICT Economic and Financial issues






                                                                                      -  Regulatory and Market Environment Website
                                                                                      - ITU International Mobile Roaming (IMR) Resources Portal
This study aims to provide an analysis on the stage of the Andean countries (Bolivia, Colombia, Ecuador, Peru and Venezuela) on three important aspects of the development of broadband, such as technology, regulation and market.  It intends to serve as a guide to help the members of the Andean Sub region in the definition of public policies and strategies that promote benefits of the broadband market and ICT in general.  This study was prepared by BDT in strong coordination with ASETA.  It is available only in Spanish.  Edition September, 2014.
This practical guide explains how to develop a benchmark of telecommunications prices, why a regulator might want to do so, and how the benchmark should be interpreted and applied.  The steps involved are explained with reference to hypothetical benchmarking exercises together with actual price benchmarks developed by communications sector regulators. Edition August, 2014.
This report offers practical advice on investigating international mobile roaming services and provides the context and information needed to do two things: first, to choose the approach to roaming; and second, to run the day-to-day investigation that will follow.  Edition August, 2014.
This paper examines some of the approaches taken in order to try and synthesize those best practices and suggest steps that can be taken to improve the economic efficiency of IMR markets, as well as indicate potential deficiencies in policies.  The paper builds on the earlier work of the International Telecommunication Union (ITU), in particular the 2008 and 2012 Global Symposium for Regulators discussion papers, recommendations from ITU-T and the International Telecommunication Regulations and analysis by the Organization for Co-operation and Development (OECD) on this issue in addition to regional initiatives, such as those by the European Union, the African Union and the Arab Regulators Network.  Edition 2013. 

ITU Study on Taxing telecommunications/ICT services: an overview  [Français] [Español]

General and special taxes on telecommunication/ICT services are not the only direct or indirect interaction between the finance ministry and telecommunications/ICT operators. In addition, customs taxes on telecommunication equipment or devices have an impact. This paper contains a general, introductory discussion of the effects of imposing special taxes on telecommunications/ICT equipment and services in addition to the general run of taxes, such as VAT, which apply to most or all goods and services. Edition 2013.
This report takes as its starting point a number of salient facts about the converged broadband world. Driven by the availability of novel and innovative services, demand for bandwidth is growing substantially.
Services rather than the underlying technology drive the customers’ choice of broadband connection. The economies of scope brought about by convergence are reflected in bundling of services. A range of
different access technologies co-exists with mobile broadband services gaining in importance not just in countries where fixed infrastructure is poor, but also in developed economies with almost universal fixed
line coverage.  The paper then discusses the implications of these developments for market definition. It gives a brief summary of the key principles used by regulatory and competition authorities for establishing the boundaries of the relevant market and then looks at the extent to which different broadband
technologies can be said to compete with each other in light of these principles.
 GSR discussion paper 2013.

Strategies for the deployment of NGN in a broadband environment – Regulatory and economic aspects 
Cover NGN Strategies.PNGThis report identifies the key issues in NGN and NGA migration as well as the benefits from the change. This indicates that moving to a broadband based economy has wider benefits – far beyond the telecoms industry. The movement to NGN in emerging economies has to face other problems, not seen in the developed economies that have generally been the ones to implement broadband. It provides a number of proposals that can assist with the development of strategies for NGN deployment. Although any such deployment has some risks, these can be countered with the question of: what are the risks to the economy and national competitiveness if there is no NGN investment and peer countries do make the transition. Edition 2013. 

Interconnection Charging Model in a national Broadband network environment 
In the early 2000s, as the so‐called “Dotcom Bubble” burst, incumbent telecommunications operators sought to take advantage through the development of Next Generation Networks (NGNs). These are packet‐switched networks based on the Internet Protocol (IP) which maintain the best features of legacy circuit‐switched voice networks in terms of guaranteed quality of service, while improving efficiency, lowering costs and facilitating the introduction of new services. NGNs were the established telecoms players’ response to the rising tide of the Internet, designed to protect their market position and their profitability for as long as possible. GSR Paper edited July 2013.

Universal Service Fund Study and digital inclusion for all  [Français] [Español
The underlying concept of Universal Service is to ensure that telecommunications services are accessible to the widest number of people (and communities) at affordable prices.
However, increasingly over the last two decades, telecommunications administrations and national regulatory authorities (NRAs) have been turning to the concept of a specific universal service funding mechanism designed as an incentive to encourage operators to assist these administrations in achieving their universal service goals. This funding mechanism is referred to as a Universal Service Fund (‘USF’). 
July 2013.

International Internet Connectivity in sub-Saharan Africa [Français]
This report analyses the various actors in the provision of Internet connection and the role played by each one, as well as the bottlenecks that can lead to inefficiencies and associated costs in the sub-Saharan Africa.  It also sets out concrete recommendations to enable conditions for healthy and dynamic competition in the market as well as for the reduction of the cost of Internet connectivity at the international level.  It also proposes measures to encourage use of the Internet, and to promote development of local content especially in developing countries. Edition 2013.

International Internet Connectivity in Latin America and the Caribbean [Español]
This report focuses on the key Internet interconnection issues at national and international levels, as well as the stakeholder and their characteristics in the Latin America and the Caribbean (LAC) region.  It also describes the role of Internet Exchange Points (IXPs) and Network Access Points (NAPs) and their importance in the development of broadband, as well as the significant role of the backbones.  Edition 2013. 



Regulating broadband prices
This publication is part of the ITU Broadband Series. The affordability and accessibility of broadband services are largely determined by the prices that are charged for those services. The regulation of prices could thus be a very tempting prospect for policymakers and regulators who want to increase the adoption and use of broadband services at the earliest time. However, price intervention in broadband markets could be a risky proposition and potentially damaging to the long-term development of those markets. Edition 2012.

Exploring the value and the economic valuation of spectrum
This publication is part of the ITU Broadband Series.  In purely financial terms, one can establish the value of a discrete block of spectrum by putting it up for sale and seeing how much anyone is willing to pay to use it. This is the broad principle behind auctions and, by extension, secondary markets – including spectrum trading, leasing and even resale by downstream service providers. But the building blocks of spectrum value are as much political and socioeconomic as they are purely financial. A government’s approach to spectrum regulation, its market structure and its investment regulations can influence the perceived value of a spectrum licence. Add to that the demographics, physical geography and political history of the country and you begin to get a picture of valuation that is highly situational and variable.  Edition 2012.


The impact of broadband on the economy
This publication is part of the ITU Broadband Series. The diffusion of broadband, defined as the technology that enables high-speed transfer of data, is inextricably linked to the emergence of the Internet.  With the amounts of capital being invested in the technology, it is natural that policy makers and researchers in the social sciences have begun to analyze the economic and social impact of broadband. In fact, social scientists and policy makers had been researching the economic contribution of information and communication technologies for quite a while. Edition 2012. 

Blurring boundaries: Global and regional IP interconnection
This paper examines the challenges faced by policy makers seeking to achieve those goals in the new environment, without interfering with the creativity, efficiency, and openness that has allowed Internet to deliver benefits to more than two billion users.  Particular emphasis is placed on the process of extending those benefits in greater measure to emerging economies through the development of the Internet ecosystem in-country and in-region.  GSR2012 Discussion Paper.

International roaming services: a review of best practice policies
This paper provides a review of policy and regulatory initiatives taken to reduce the costs to users of international mobile roaming services (IMRS).  It builds on the ITU's earlier work, in particular the 2008 Global Symposium for Regulators discussion paper, recommendations from ITU-T and analysis by the Organisation for Co-operation and Development (OECD) on this issue in addition to regional  initiatives, such as by the European Union, the African Union and the Arab Regulators Network.  The aim of the paper is to suggest best practice solutions to ensure that in the long term sustainable competition will reduce IMRS prices. GSR2012 Discussion Paper.

Developing successful public-private partnerships to foster investment in universal broadband networks
The aim of the report is to promote the sharing of best practices adopted by PPP broadband projects, whether they have been used to provide broadband access nationally, regionally, or in rural areas. The purpose of the document is not to focus on the approach followed by any single PPP broadband project,
or to promote any one project, but to provide an overall view of the best practices implemented among all the projects. These best practices have been identified as beneficial for future PPP broadband projects, and which, if followed, should deliver successful outcomes. GSR2012 Discussion Paper.


Guidelines for the Application of Statistical Models to Telecommunication Market Regulation
These guidelines discuss the application of statistical tools in specific situations related to telecommunication market regulation.  The science of statistics is today an effective means of accurately describing the values of economic, political and social data.  thus, an expert in the use of statistical tools is able to interpret results fro the benefit of the company, the government and society and thereby facilitate decision-making, and to infer the future behavior of events similar to those analyzed. Edition 2011.

  Mobile Termination Rates:  To Regulate or not To Regulate
Over past few years mobile termination charges — the charges that mobile operators levy on each other and on fixed network operators for terminating calls on their networks — have become a concern in many countries throughout the world.  The main aim of this paper is to analyze the development of MTR regulation in the different regions of the world and to evaluate the necessity and the scope of such regulation.  Edition 2010.

Developments of Next Generation Networks (NGN): Country Case Studies
The move to Next Generation Networks (NGN) has been discussed in the ICT community for some time. Not only discussed. Developments in the market reflect the move, where a number of market players around the world are already operating NGN core networks, increasing numbers of market players are deploying NGN access, and others have made significant commitments to roll out fibre access networks (FTTx) or have migration plans for moving to all-IP networks.  The aim of this document is to present the current situation of NGN development in different regions of the world and to examine what effect the transition towards NGNs is having on regulation. Edition 2010.

  International Mobile Roaming Regulation – An incentive for cooperation
This paper addresses a variety of issues raised by international mobile roaming charges: how do they differ from charges for non-roaming international mobile calls (i.e. when a mobile subscriber calls an international number from its home country); what is the structure of their costs; is there a need for regulatory intervention and, if so, how could they be regulated; and finally, is cooperation and coordination on international mobile roaming regulation beneficial?  Edition 2008.

  Regulatory Accounting Guide
This guide focuses on the implementation of cost accounting models and the development of regulatory policies, based on best practices, to help National Regulatory Authorities (NRAs) implement a regulatory accounting model. It also provides a methodology to identify markets, Significant Market Power (SMP) operators and the different typologies of anticompetitive behavior. Edition 2009.

  Trends in Economics and Finance: The Use of Economic Modeling in Telecommunications
In the telecommunication industry, economic modeling techniques such as regression analysis, simulations and linear programming are powerful tools that can aid decision making for governments, regulatory authorities and telecommunication operators.   The aim of this report on Trends in Economics and finance is to describe the various economic modeling techniques and how they can be used to solve practical problems facing the telecommunication industry. Edition 2006.

  Efficient Operator:  Methodologies, modeling and application for tariff regulation
Regulation is not the ideal way to encourage market competition. It is always preferable to encourage market competition. However, there are “market failures” when the market is not perfectly efficient in allocating resources, leading to suboptimal distribution among the population.   Therefore, the aim of any market regulation should be to replicate what happens in a market under conditions of perfect competition.  This study sets forth and analyses the methodologies for fixing tariffs used in the modeling of an efficient operator, focusing on the advantages and disadvantages and looking at the results of a number of recent applications in Chile, Venezuela and Colombia. Edition 2008.

Investing in telecommunications and ICTs in Developing Markets: Shifting the Paradigm
The purpose of this report is to contribute to the discussion on how to enhance the proliferation of telecommunications and ICTs, particularly in developing countries, in a way that promotes the achievement of the Millennium Development Goals. The major focus of this report is to provide insight into how to stimulate direct investment in telecommunications and ICTs in developing countries. Edition 2004.
  Broadband Telecommunications in Latin America
Technologies and broadband services today acquire a key role in regional development, modernization of all economic activities and social and evolution towards the information society and digital economy. This report was compiled and analyze the status of programs, actions, recommendations and solutions for access technologies and broadband services. This is available only in Spanish. Edition 2008.
 Regional diagnosis of telecommunication policies, strategies and regulations, and the development of Information and Communication Technology (ICT) in Latin America
Application of ICTs in the areas of education, health and disasters in rural areas, between other, in isolated regions and in marginalized urban areas are of major importance. This study presents a complete diagnosis of the telecommunications policies and regulations, and strategies for the development of  Information and Communication Technology in Latin America.  Available only in Spanish. Edition 2007.
  Study on the application of cost models in Latin American and Caribbean countries
This study is a complete assessment of the situation in each Latin American and Caribbean countries with regards with the application of cost modeling for the calculation of cost of the different telecommunications/ICT services.  It also describes the importance of modeling and the different costing methodologies applied by the LAC administrations. Edition 2007.


  Reports on Market Liberalization for CEE countries and Baltic States
This report is on the theoretical and practical aspects of significant market power in telecommunications. Telecommunications markets throughout the world economy are characterized by a high level of economic and technological dynamics. The latter can be partly attributed to digitization, which has led to a convergence of previously existing markets, such as cable TV, fixed-line telecommunications and broadcasting. Modern digital technologies have created larger markets in which data, voice, video and audio are transmitted in the form of compressed digital signals. Edition 2005.

  Study on IP-based networks: Pricing of telecommunication services
This study is concerned with pricing and different categories of quality of service over IP networks, with a view to the provision of real-time IP services. In providing information about this topic the report also analyses several academic studies (supplied by the ITU) in terms of their contribution to the topic, and explains the business case for international bypass offered by IP networks.  Edition 2002.
  Results from the regional assessment of the telecommunication market in Latin America and the Caribbean
This study had been implemented in the framework of the Agenda for Connectivity in the Americas.  This document undertakes the issue of the ICT's development in countries of LA&C, with reference to their level of economic activities such as capital flows, unemployment, income distribution and poverty, and on the economic side, their investments in the telecommunications sector and infrastructure of communications, on the other hand.  The work also analyzes recent progress on ICTs’ regional development, the situation in rural areas and the infrastructure for the main telecom services in the region. The relationship between ICTs and education, economy and technology are also part of the analysis. Edition 2004.

Economic Study for Financing Telecommunication Development
The ITU is committed to assist its Member States, especially Less Developed Countries (LDC), in creating an atmosphere for investment; and to facilitating the marriage between potential investors and recipients. In particular, the ITU/BDT is tasked with analyzing and fostering these relationships, and this paper is intended to serve both Member States and investors in creating the means for telecommunication development. Edition 2003.

Macroeconomic study on financing telecommunication development
BDT is participating in efforts aimed at narrowing the digital divide. To that end, one of the specific solutions being considered is to have key projects financed by the private sector which has greater resources at its disposal than do the governments of developing countries.  Edition 2002.