ITU/NTC Participants in the Global Symposium for Regulators 2008

Best practice guidelines

The 2008 Global Symposium for Regulators agreed a set of best practice guidelines aimed at promoting affordable broadband access through open access strategies and innovative ways to share infrastructure.

Regulatory frameworks and incentives for competition

The guidelines say that an appropriate regulatory framework is needed to foster broadband access, including to the Internet, and to enable competition based on infrastructure and on services. But the risks and benefits of particular sharing options “need to be carefully balanced in the light of specific national circumstances when designing the most appropriate regulatory strategy”. Such strategies should uphold competition principles and investment incentives. It is important to hold public consultations with all stakeholders on the various strategies and regulations that deal with infrastructure sharing.

The guidelines recognize the benefits of sharing infrastructure. “Where capital and operating expenditures are likely to be reduced by the joint deployment, management and maintenance of certain facilities (for example, by tower sharing), such sharing can bring about long-term efficiencies, which may in turn enable more investment in innovative products and services and ultimately benefit consumers.”

International gateways

Regulatory policy should promote open access to international capacity and international gateways. “The establishment of Internet exchange points could also encourage shared and more affordable access to national and international broadband capacity for Internet service providers willing to enter the market,” the guidelines say.

Strategies to promote infrastructure sharing

Successful infrastructure sharing can be helped by the introduction of regulatory policies that include:

• Reasonable terms and conditions: Infrastructure sharing must take into account the need to protect the value of existing investment in infrastructure and services. However, this should not act as an artificial barrier to sharing.
• Pricing: The prices charged for sharing facilities should help players make reasonable and commercial decisions about whether to build their own facilities or lease existing ones. At the same time, pricing should provide incentives for investment in infrastructure, without acting as a barrier to new market entrants.
• Efficient use of resources: Non-replicable resources (such as towers, ducts and rights of way) can be shared for installations that serve a similar purpose. In the radio-frequency spectrum, shared-use bands could be promoted, as long as interference is controlled. Spectrum sharing can be implemented on the basis of geography, time or frequency separation.
• Interconnection frameworks: Infrastructure sharing can only take place on a neutral, transparent, fair and non-discriminatory basis. Interconnection frameworks ensure that all licensed operators have the right to interconnect; they also encourage the sharing of essential facilities and guarantee that network security and quality of service do not deteriorate. Regulators could consider licensing market players that only provide passive network elements and do not compete for end-users.
• Coordinating construction: When local authorities establish centralized and simplified administrative proceedings in this field, it facilitates the coordination of trenching and ducting works by telecommunication service providers and those of other utilities.
• Improving transparency: Market players need to know what infrastructure is available for sharing, under clearly established and transparent terms and conditions. Regulators could require publication of the details of existing and planned installations that are available for sharing.
• Enforcing rules and resolving disputes: Regulators should introduce enforcement tools to ensure adoption of, and compliance with, regulations on sharing infrastructure. Also, simple and speedy dispute resolution mechanisms must be in place, so as to encourage negotiated outcomes while maintaining the certainty of an adjudicated decision where necessary.
• Universal access: In support of universal access goals, regulators can offer incentives for service providers to share infrastructure, as part of efforts to deploy to rural and underserved areas. However, such incentives must not lead to “re-monopolization” of the market.
• Sharing with other industries: Sharing should be encouraged with other industrial sectors, such as electricity, gas, and water. In addition, joint construction of infrastructure may be encouraged, to distribute the cost, reduce inconvenience for local residents and cut the number of unsightly masts and towers.
• Sharing of regulatory practice: An appropriate level of international and regional harmonization is required in order to ensure that best practice in regulatory policy becomes widespread, and regional organizations have an important role to play in this regard. This is even more important when a regulatory issue has a significant cross-border effect.