Page 58 - Trends in Telecommunication Reform 2016

Box 1.20: Regulatory factors relevant for investors
• Design of the legal framework: Whether the telecommunication law establishes
a regulator and defines its role, scope of responsibility, accountability and market
objectives.

• Licensing regime: The extent to which licence obligations are transparent or come with
additional burdens such as administration, reporting and fees.

• Interconnection regime: Whether there is a well-designed and implemented
interconnection regime that protects investors from below-cost interconnection
payments from operators or unreasonable rate mandates from regulators.

• Regulatory fees and taxation: Whether there are excessive fees and taxes, which can
increase operating costs and discourage innovation and further investment.

• Universal service funds (USF): Whether operators are obliged to contribute to USFs and
have the ability to access them to fund investment in cases of market failure.

• Competition policy: The regulators’ effectiveness in protecting new operators against
the abuse of market power from existing dominant operators, and in promoting fair
competition through non-discriminatory, wholesale, open access to dominant operator
infrastructure.

• Tariff regulation: The ability of the regulator to implement tariff regulation in developing
regions or in the provision of services where there is ineffective competition.

• Spectrum management: Whether scarce spectrum is over-priced and overburdened
with coverage obligations, thereby decreasing the operators’ available capital to invest in
infrastructure.

40 Trends in Telecommunication Reform 2016