Page 57 - Trends in Telecommunication Reform 2016

equal, open-access basis. Regulators play a prioritized in those areas where market failure
key role in ensuring that wholesale networks has occurred. Chapter 1
owned by dominant operators – particularly
when funded by public funds – are available Regulators have also played a key role in attracting
on a non-discriminatory basis to help reduce new market entrants, leading to innovative
the costs and barriers for new market entrants approaches to broadband investment. Regulators
wishing to invest in broadband infrastructure. can:
Open access can be mandated by the regulator
through a licensing process or by ensuring • Allow operators to decommission and
that government fibre deployments are liquidate their copper networks, which can
designed on an open-access basis to promote provide an attractive cash source to invest in
infrastructure competition. broadband networks. However, this will only
be possible in countries without mandates
• Rural interventions have largely led to for wholesale services such as local loop
deployment of wireless solutions due to the unbundling (LLU) and bitstream services,
challenging economics of rural and hard- which may have to be preserved for open-
to-reach areas. Regulators have played an access availability to other providers.
important role in encouraging operators to
explore alternative ways of reducing costs for • Ensure that market conditions are conducive
such wireless networks. The interventions to attracting investment from new entrants.
vary in their nature, from building shared, For example, it is important for new entrants
passive infrastructure to encouraging active to be clear about the existing infrastructure
infrastructure sharing and spectrum pooling. (e.g. ducts, telephone poles) they can use
Regulators will need to set up processes to and the rules that guide that usage. Other
monitor the market to ensure that operators important aspects include having quick access
are being treated fairly. They will also need to to construction and permission licences.
set out guidelines for sharing infrastructure
and pooling spectrum if these are being • Consider authorizing pilot projects to
considered. attract market interest, in order to promote
investment in new technologies. Regulators’
• Network-sharing deals (particularly for mobile reluctance to facilitate technical trials,
operators) have been subject to much less particularly with wireless technologies, may
regulatory and competition oversight than in- dampen investment.
market consolidation deals. A wave of network
outsourcing deals has convinced regulators • Play a role in encouraging community
that operation of networks and delivery of broadband networks. In February 2015, the
services are two distinct things. Meanwhile, U.S. Federal Communications Commission
end users benefit from improved coverage, allowed two community broadband providers
particularly in rural areas. in the states of Tennessee and North Carolina
to expand the geographical range of their
• Regulators may play a role in directing services. The law in these two states had
investment or offering licences to encourage previously prevented such expansion from
broadband investment in those areas taking place.
needing it most. Regulators can also ensure
that licensed operators meet performance Some of the regulatory factors investors consider
standards, that interconnection agreements particularly important are detailed extensively in
are upheld, and that prices are competitive. the 2009 edition of Trends in Telecommunications
In these cases, regulators need to set up Reform. These aspects are still valid
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processes to gather market information considerations that regulators and governments
and monitor the market on a regular basis. should take into account when developing or
Other, less direct roles include facilitating considering regulatory policy.
information-sharing by providing up-to-date
broadband coverage and mapping data,
allowing infrastructure investment to be

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