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5.3.2 To license or to exempt? therefore, need to review regularly their licensing
practices and approaches with a focus on
The regulatory goals being pursued have a identifying and removing potential barriers.
direct bearing on the licensing approach that is
adopted. Previously, regulators employed rigid
service- and technology-specific licences that were 5.3.3 Competition for consumer benefit
often installed as an administrative catchment
for revenue. Regulators now are encouraged to New technical capabilities made possible by
adopt more flexible licensing regimes, in order to IP-based broadband networks have given rise to
accommodate technological and market changes. new entrants competing in traditional markets.
The convergence achieved within the digital They bring new business models and completely
ecosystem has eroded bright lines in the traditional different cost structures than traditional providers
licensing regimes, requiring a move away from employ. New technologies and upgraded
technology- and service-specific licences and networks also have enabled the introduction of
toward a unified authorization regime, or even to a wide variety of new services and applications.
simple notifications, to promote the ease of doing What are the impacts of these changes on the
business. The licence or notification is retained competitive environment?
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to maintain regulatory accountability without
being a barrier to new innovations. The emerging scenario introduces regulatory
complexity and the need to address several
Maintaining the traditional licensing regime, principles that are critical in promotion of
meanwhile, would require an MNO not only competition. These questions are particularly
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to obtain a licence to operate mobile services, valid in a market with dominant operators that
but also a value-added services licence for can skew the market and abuse their dominant
each and every m-service and app operating positions, to the detriment of their competitors
on its network. Having to obtain licences from and customer bases. As mobile markets continue
healthcare, education, financial and agricultural to become more competitive, regulators should
regulators, among others, would not only be be alert for the many ways in which dominant
highly cumbersome, it would severely restrict operators can engage in anticompetitive behavior
the diffusion of m-services and apps. Regulators, (e.g., predatory pricing, cross-subsidization, price

Figure 5.1: Regulatory Goals

Regulation Not End in Itself
Why Regulate?
- Avoid market failure
- Ensure consumer interests are protected
- Safeguards to create effective competition
- Prevent anti-competitive practices

End Goal
- Effective and robust competition
- Protect consumers
- Widespread access to networks and service

Withdraw or Amend Regulations
On a regular basis, conduct market reviews to withdraw
or amend regulations once effective competition in the
relevant market exists or the rules are no longer warranted

Source: Telecommunications Management Group, Inc.

130 Trends in Telecommunication Reform 2016