2 Why Competition Matters and How to Foster It in the Dynamic ICT Sector 2.1 Introduction Over the last three decades, laws and regulations designed to introduce and promote competition have been a crucial catalyst in the booming global information and communications technology (ICT) sector. At the early stages of competition, government authorities are generally faced with issues related to licensing, interconnection, and access. As competition increases and markets mature, government authorities must monitor these issues, but may also face concerns related to consolidation and horizontal and vertical integration, as well as consumer issues regarding lock-in, transparency, and quality of service. Today’s emerging broadband-centric environment is presenting lawmakers and ICT regulators with a new set of challenges. They must address traditional competition issues, but often with new twists resulting from new players, greater consolidation, and integration among telecommunication service providers, content providers, and manufacturers. The rise of Internet protocol (IP) based networks and the separation of services from the underlying physical infrastructure has unleashed a variety of innovative applications, services and new business models that challenge old revenue streams and legacy regulatory regimes. In this new environment, regulators must find ways to adapt their rules to ensure fair competition, drive investment and innovation and protect consumers.These issues are only likely to increase over time, as more services and economic and social activity move online. This trend is illustrated in the growth of Internet users (see Figure 2.1) and data traffic over the last decade. Between 2002 and 2012, global Internet traffic increased 120 times, now amounting to 12’000 gigabytes (GB) of information being transmitted per second.1 By 2017, estimates are that global Internet traffic will reach 35’000 GB per second, nearly a 350-fold increase from 2002, and a three-fold increase over 2012. Today, 40 per cent of the global population is using the Internet, and a fifth of Internet traffic is cross-border.2 Notably, the most significant growth is in emerging markets such as Africa and Arab States – where between the years 2005 and 2014 growth was 934 per cent and 480 per cent, respectively. Figure 2.1: Individuals Using the Internet This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).This figure shows the number of internet users by region totaling in 2005 above 1 billion, 2 billion 2019 and almost 3 2014 (estimates).Source: ITU World Telecommunication/ICT Indicators database.This chapter examines the increasing complexity of devising an effective, yet flexible, framework to promote effective competition and consumer choice in the rapidly changing ICT sector. Section 2.2 addresses the impact of competition and the benefits that can ensue in a competitive ICT environment. Section 2.3 addresses the emerging competitive landscape; Section 2.4 identifies the key existing and emerging competition issues and how regulators are seeking to address them. Section 2.5 presents the overall conclusions of this chapter.2.2 Why Competition Matters Competition is a key element in realizing the benefits that advanced networks and services Authors: Janet Hernandez and Kari Ballot-Lena, Telecommunications Management Group, Inc. (TMG)Trends in Telecommunicaiton Reform 2015 23