Telecommunications Regulation

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Telecommunications Regulation Tenth Anniversary Edition The Telecommunications Regulation Handbook is essential reading for anyone involved or concerned by the regulation of information and communications markets. In 2010 the Handbook was fully revised and updated to mark its tenth TELECOMMUNICATIONS anniversary, in response to the considerable change in technologies and markets over the past 10 years, including the mobile revolution and web 2.0. The Handbook reflects modern developments in the information and communications REGULATION technology sector and analyzes the regulatory challenges ahead. Designed to be pragmatic, the Handbook provides a Edition Anniversary Tenth clear analysis of the issues and identifies the best regulatory implementation strategies based on global experience. HANDBOOK TELECOMMUNICATIONS REGULATION HANDBOOK Edited by Colin Blackman and Lara Srivastava February 2011 – SKU 32489 Tenth Anniversary Edition TELECOMMUNICATIONS REGULATION HANDBOOK Edited by Colin Blackman and Lara Srivastava Telecommunications Regulation Handbook Tenth Anniversary Edition Edited by Colin Blackman and Lara Srivastava ©2011 The International Bank for Reconstruction and Development / The World Bank, InfoDev, and The International Telecommunication Union All rights reserved 1 2 3 4 14 13 12 11 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank, InfoDev, and The International Telecommunication Union. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent; InfoDev; or the Member States of the International Telecommunication Union. The World Bank, InfoDev, and The International Telecommunication Union do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank, InfoDev, or The International Telecommunication Union concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank, InfoDev, and The International Telecommunication Union encourage dissemination of their work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. Cover photos: ©Shutterstock ii Telecommunications Regulation Handbook CONTENTS ABOUT THE TELECOMMUNICATIONS REGULATION HANDBOOK ................................................................... V FOREWORD ....................................................................................................................................................... VII CHAPTER 1. THE BIG PICTURE: INTRODUCTION TO TELECOMMUNICATIONS REGULATION ..........................3 1.1. Introduction .......................................................................................................................................................................... 3 1.2. Technology in Context ....................................................................................................................................................... 4 1.3. Why Regulate? ..................................................................................................................................................................... 9 1.4. Regulatory Organizations ................................................................................................................................................. 14 1.5. International Frameworks ................................................................................................................................................. 21 1.6. Looking Ahead .................................................................................................................................................................. 23 CHAPTER 2. A LEVEL PLAYING FIELD: REGULATING FOR EFFECTIVE COMPETITION .....................................27 2.1. Introduction ........................................................................................................................................................................ 27 2.2. Competitive Markets ........................................................................................................................................................ 27 2.3. Sector Regulation and Competition Law ..................................................................................................................... 30 2.4. Competition Analysis ........................................................................................................................................................ 32 2.5. Control of Mergers and Acquisitions .............................................................................................................................. 48 2.6. Regulating Prices ............................................................................................................................................................... 50 CHAPTER 3. GROWING THE MARKET: LICENSING AND AUTHORIZING SERVICES ........................................63 3.1. Introduction ........................................................................................................................................................................ 63 3.2. The Trend Towards General Authorization .................................................................................................................... 63 3.3. Licensing Objectives and Types ...................................................................................................................................... 64 3.4. Competing for Licenses .................................................................................................................................................... 66 3.5. Authorization Principles and Procedures....................................................................................................................... 77 3.6. Special Authorization Situations ...................................................................................................................................... 81 3.7. Licensing for Convergence ............................................................................................................................................. 84 3.8. Global Standards Making and Compliance ................................................................................................................ 86 CHAPTER 4. GOING MOBILE: MANAGING THE SPECTRUM ...........................................................................93 4.1. Introduction ........................................................................................................................................................................ 93 4.2. Changing Demands for Spectrum ................................................................................................................................. 93 4.3. Planning and Technical Standards ................................................................................................................................ 99 4.4. Mechanisms for Assigning and Pricing Spectrum ...................................................................................................... 101 4.5. Monitoring Spectrum ...................................................................................................................................................... 107 4.6. Flexibility in Spectrum Management ............................................................................................................................ 111 Telecommunications Regulation Handbook iii CHAPTER 5. FROM CAPACITY TO CONNECTIVITY: NETWORK ACCESS AND INTERCONNECTION .......... 119 5.1. Introduction ...................................................................................................................................................................... 119 5.2. Access and Interconnection ........................................................................................................................................ 119 5.3. Forms of Interconnection ............................................................................................................................................... 122 5.4. Setting Interconnection Prices ...................................................................................................................................... 133 5.5. Cross-border Interconnection ....................................................................................................................................... 137 5.6. New Paradigms and New Challenges .......................................................................................................................
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