Trends in Telecommunication Reform 2010-11 • As markets become more competitive, ICT regula-tors money transfer services in line with convergence, espe-cially will need to shift to a more targeted approach with regard to charges to non-registered users. to the sector, withdrawing ex ante regulation where it is no longer warranted and transitioning towards ex post rules. Development of strong com-petencies Banking regulators (e.g., central banks, finance ministries or banking regulatory authorities) also need to adapt traditional banking regulation to enable play-ers in the economic and legal techniques and methodologies for competitive analysis will be a critical input for regulators going forward. This will be particularly pressing in countries that have traditionally lacked competition laws and authori-ties involved in m-Banking (i.e., banks, mobile providers, and retailers) to develop new services, while at the same time protecting the stability of the financial sys-tem as a whole, the integrity of transactions, and the safety of customers’ deposits146 (see Box 3.12). While there is some international experience suggesting the viability of various m-Banking models, it is still too early for financial regulators to prescribe specific regulatory models.147 For example, financial regulators in Afghanis-tan, or that have had a very limited scope of action. Accordingly, ICT regulators should engage in capaci-ty building initiatives to develop the necessary in-stitutional know-how and make efforts to increase cooperation with competition authorities where possible. the Philippines, West Africa and the European Un-ion, have adopted regulations that enable a leading role • Continued convergence within the ICT sector will for nonbanks, striking a balance between service avail-ability present regulators with new challenges associated with vertical and horizontal integration of on-line services and applications. New players are progres-sively and the need to mitigate the risks presented by the involvement of a service provider that is not subject to full prudential regulation.148 On the other hand, a number of countries, such as Kenya and Cambodia, have not issued e-money regulations but have never-theless developing novel equipment, devices, servic-es, applications and business models that have the potential of altering the ICT competitive landscape. However, when facing the challenges posed by nascent services and applications, regulators should exercise caution to avoid stifling innovation and investment. A light-hand approach is often-times permitted such nonbank models on an ad hoc basis through “no objection” letters, conditional ap-provals or other means.149 3.6 Conclusions the right regulatory response under these circumstances and may contribute to creating an appropriate enabling environment for innovative services and applications to develop. The ICT sector is highly dynamic and rapidly chang-ing. Therefore, making predictions about what is to come in the next decade is very difficult. The deploy-ment • Continued expansion of ICTs into our everyday ac-tivities and take-up of ICTs, however, is happening at a will require ICT regulators to increase their faster pace than ever before, particularly with regard to the use of mobile services and applications in develop-ing cooperation with different regulators and policy-makers from different sectors, including law en-forcement, countries. This creates further challenges for regula-tory authorities. Nevertheless, market and regulatory education, banking, health and the environment. Increased coordination of policies and initiatives in these areas, and likely many oth-ers, trends over the last few years demonstrate increased competition in ICT markets and evidence a continued and deepening path of convergence both within ICT sector as well as with other sectors of the economy. As such, the following conclusions can be drawn: will be critical in the coming decade to harness the potential benefits and efficiencies that ICTs can bring to consumers and the society at large. Chapter 3 113