informed decisions about their information and privacy? Can they ensure that their privacy is respected and protected by those designing and building mobile applications? There are valid concerns about whether consumers are able to make informed choices in an increasingly complex marketplace. M-services and apps are increasingly vulnerable to security concerns. Networks worldwide are falling victim to hacking by cyber criminals. Cases of fraud, misuse of data and use of mobile phones to commit crimes are all on the increase, undermining trust and confidence in the digital ecosystem. These concerns raise weighty issues and call for a thoughtful consideration of policy and regulatory action going forward. While there is a need to protect personal freedoms, it is important to do it in a way that does not hamper innovation. It is important to uphold trust and confidence in the digital ecosystem and take active steps to mitigate the emerging concerns. Regulators need to consider whether their policy and regulatory frameworks are fit for purpose, in order to achieve a delicate balance for m-services and apps to thrive within the digital economy.5.3 Policy and regulatory perspectives This section of the chapter seeks to highlight policy and regulatory perspectives to be considered in promoting growth of m-services and apps, while at the same time ensuring that innovation is not stifled and that consumer benefits are maximized. In doing so, this section will identify critical regulatory principles that should be addressed and will offer perspectives for leveraging the anticipated benefits against the risks. The perspectives shared in this section will contribute to a series of critical questions that policy-makers and regulators can use as a guide in considering proposals to foster m-services and apps.5.3.1 Goals of regulation Most information and communications technology (ICT) regulatory frameworks were designed to guide structural changes as the sector transitioned from monopoly to competition. Regulations then were maintained to promote effective competition and foster the long-term development of the ICT market.19 In recent years, the sector has undergone structural changes in response to convergence and innovation, and it needs to be flexible enough to accommodate further change and review. As Figure 5.1 illustrates, regulation is not intended to serve as an end in itself.While the conventional regulatory framework is necessary to resolve disputes, address competition concerns, protect consumers, and attain national goals such as universal access and economic development, it can also become a bottleneck to innovation and investment if it fails to respond to the issues of the day. The need to adopt regulatory mechanisms within a cross-sectoral framework is a critical interdependency for m-services and applications. However, this was not anticipated within the conventional, “silo” style of enacting regulations. There must be a paradigm shift to permit a new way of doing things.The first step is to identify the objective of regulation before articulating a framework to achieve that objective. The regulatory approach to be used is equally important once the object of regulation has been identified. In the early stages of competitive markets, the approach was to prescribe rules, rights and obligations. However, the general evolution has been toward a “light-touch” approach to encourage and foster m-services and applications by giving room to embrace ideas that were not anticipated earlier. The evolution of the M-Pesa mobile money transfer service is a classic case in illustrating how a paradigm shift was needed to overcome traditional regulatory arrangements in order to enable the entry of an innovative m-service (See Box 5.3). Cross-sectoral forbearance was applied to deal with an innovation that was not anticipated and hence not accommodated by either the telecommunication or financial regulations that it straddled. The solution was a light-touch regulatory approach, a gradual introduction of payment-system regulation for better financial oversight, all combined with requirements for interoperability between the Safaricom network with the other networks, to foster competition.Trends in Telecommunication Reform 2016 129 Chapter 5