It is important to note that regulatory approaches can be carried out by a variety of different governing entities. At the national level, this could be a legislative body, an executive agency or ministry, or an independent regulatory authority. At the regional or international levels, this could be a multinational body or a coordinating agency like the ITU. The remainder of this chapter interchangeably refers to these various entities as “governments,” “policy-makers” or “regulators.” In all cases, the terms are simply referring to any regulatory body that exercises some form of legitimate governmental authority. The following subsections explore the various regulation-based approaches. 4.5.2.1 Mandating standards The role of the regulator in the standards process can range from more unilateral to more collaborative. Regulators may mandate a standard that determines how, and under what terms, entities can interoperate. On the other end of the spectrum, the regulator might set a timetable for industry players and require them to establish and implement a common standard. Between the two extremes, all manner of hybrid approaches are possible.The impact of the European Union’s Data Protection Directive on the development of cloud computing standards demonstrates the interplay between regulation and interoperable standards. The Directive places strict limits on how personal data can be collected, stored, and processed. However, because the Directive and the national laws that implement it do not specifically address cloud computing, it has left open the question of how cloud-computing companies should fulfill their obligations. This situation has prompted standards-setting as entities look for ways to interoperate with each while complying with the law. Recently, the International Organization for Standardization and the International Electrotechnical Commission, two non-governmental standards-setting organizations, released a joint cloud computing standard that contributes to the already existing “jungle of standards.”44 The effectiveness of this type of approach to interoperability is usually very high. A government-mandated standard can even establish an interoperable system in cases where industry players are unwilling to do so, whatever their motives might be. However, a government-mandated approach may be limited in efficiency and flexibility. Administering, monitoring, and eventually enforcing a standard can be costly. Further, a traditional, government-mandated approach often leaves very little flexibility. Not only are governments sometimes ill-equipped to choose the most suitable standard, but they also sometimes fail to respond to market developments or changes in technology.4.5.2.2 Disclosure of interoperability information (compulsory licensing)Another regulatory approach to interoperability involves a government mandating the disclosure of information needed to build interoperable systems, components, and applications. Such a regime may differ with regard to the group of people entitled to ask for such information, the possible consideration for the disclosing party, compensation, or the sanctions for non-disclosure. In some cases, however, the regulator can simply require industry participants to make interoperability information available, and leave it to the participants to resolve details like compensation. That is what occurred with mobile banking in Ghana, where the mobile carriers offered financial services in partnership with banks. In order to ensure interoperability across different banks and mobile carriers, the Bank of Ghana (the regulator) prohibited exclusive partnerships. In other words, the regulator required that mobile operators allow interoperability with multiple banks. The result was that every mobile operator offering banking services had at least three partner banks.45 The merits of this approach depend on its implementation – that is, the design of the relevant disclosure rules. There often can be a direct relationship between the amount (and type) of information to be disclosed, the number of parties granted access to the information, and the level of interoperability that may be achieved. The degree of flexibility also depends on the design, but disclosure rules can be implemented in a way that takes account of real-world conditions (e.g., making the obligation to disclose dependent on market, product and service maturity). Finally, disclosure of interoperability information is very unlikely to create any kind of technological lock-in. Trends in Telecommunication Reform 2016 113 Chapter 4