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Digital Regulation Handbook ITUPublications International Telecommunication Union Development Sector Digital Regulation Handbook Co-published with: Digital Regulation Handbook © International Telecommunication Union and The World Bank, 2020 Some rights reserved. This work is available under the Creative Commons Attribution-NonCommercial- ShareAlike 3.0 IGO licence (CC BY-NC-SA 3.0 IGO; https:// creativecommons .org/ licenses/ by -nc -sa/ 3 .0/ igo).). Under the terms of this licence, you may copy, redistribute and adapt the work for non-commercial purposes, provided the work is appropriately cited, as indicated below. In any use of this work, there should be no suggestion that ITU or the World Bank endorses any specific organization, products or services. The unauthorized use of the ITU or the World Bank names or logos is not permitted. If you adapt the work, then you must license your work under the same or equivalent Creative Commons licence. If you create a translation of this work, you should add the following disclaimer along with the suggested citation: “This translation was not created by the International Telecommunication Union (ITU) or the World Bank. Neither ITU nor the World Bank are responsible for the content or accuracy of this translation. The original English edition shall be the binding and authentic edition”. Any mediation relating to disputes arising under the licence shall be conducted in accordance with the mediation rules of the World Intellectual Property Organization (http:// www .wipo .int/ amc/ en/ mediation/ rules). Suggested citation. Digital Regulation Handbook: Geneva: International Telecommunication Union and the World Bank, 2020. Licence: CC BY-NC-SA 3.0 IGO. Third-party materials. If you wish to reuse material from this work that is attributed to a third party, such as tables, figures or images, it is your responsibility to determine whether permission is needed for that reuse and to obtain permission from the copyright holder. The risk of claims resulting from infringement of any third-party-owned component in the work rests solely with the user. General disclaimers. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of ITU or the World Bank concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Dotted and dashed lines on maps represent approximate border lines for which there may not yet be full agreement. The ideas and opinions expressed in this publication are those of the authors; they do not necessarily reflect those of ITU and the World Bank. The mention of specific companies, products or services does not imply that they are endorsed or recommended by ITU or the World Bank in preference to others of a similar nature that are not mentioned. Errors and omissions excepted, the names of proprietary products are distinguished by initial capital letters. All reasonable precautions have been taken by ITU or the World Bank to verify the information contained in this publication. However, the published material is being distributed without warranty of any kind, either expressed or implied. The responsibility for the interpretation and use of the material lies with the reader. In no event shall ITU or the World Bank be liable for damages arising from its use. ISBN: 978-92-61-31651-8 (Paper version) 978-92-61-31661-7 (Electronic version) 978-92-61-31671-6 (EPUB version) 978-92-61-31681-5 (Mobi version) Foreword Today’s digital technologies are transforming almost every sector of the economy by presenting new business models, introducing innovative products and services – and, ultimately, changing the way countries around the world harness socioeconomic development. Digital technologies, and the benefits that they bring, can connect citizens to services and opportunities, and help them build a better future. However, for markets to function effectively, they must be accompanied by an enabling policy and regulatory environment. The digital economy – comprising digital infrastructure, platforms, services, businesses and skills – has become an essential means of reducing poverty and improving the quality of the lives of the poor and vulnerable. Digital technologies and communication infrastructure are unlocking innovative solutions to complex challenges across a broad range of sectors including energy, health, education, transport, disaster risk management, and agriculture. The Internet and digital technologies have a profound impact on the way governments operate and interact with their citizens, creating increased transparency and more efficient service delivery, and in turn requiring greater cooperation across sectors and a collaborative approach to regulation. The ongoing wave of innovation has the potential to remove many of the barriers that stand between people and opportunity, especially for populations in poorer communities. While digital technologies continue to transform markets through convergence and reorganization of various sectors of the economy, serious market gaps and questions still remain that must be addressed, such as protecting citizens’ rights and individuals’ data online, and finding ways to provide ubiquitous high-speed broadband connectivity services at affordable prices, including to remote areas. The Digital Regulation Handbook, now in its third edition, serves as an essential guide to assist regulatory authorities and policy-makers in deciding on appropriate digital regulations, and evaluating the effectiveness of those regulations. The objective of this new edition of the Handbook is to provide online resources and analysis to assist ICT regulatory authorities worldwide to build capacity regarding topical regulatory issues and best practices related to the digital economy. The World Bank and the International Telecommunication Union are pleased to make available the Digital Regulation Handbook and a new online Digital Regulation Platform to update and revise the ICT Regulation Toolkit. These resources can be used as references and collaborative platforms to create both an environment in which the transformative power of digital technologies can reach its full potential, and as a powerful enabling tool for supporting innovation and achieving inclusive sustainable development. Boutheina Guermazi Doreen Bogdan-Martin Director, Digital Development, World Bank Director, Telecommunication Development Bureau, International Telecommunication Union iii Table of Contents Foreword .......................................................................................................................................... iii List of tables and figures ................................................................................................................ xi Introduction .................................................................................................................................... xiii Acknowledgements / About the authors .................................................................................. xvi Chapter 1. Regulatory governance and independence ...........................................1 1.1 Introduction ...................................................................................................................1 1.2 Policy and implementation ........................................................................................2 Evolution of regulation ................................................................................................2 Assessing the need to modernize and streamline ..................................................4 1.3 Role and institutional design of regulator ...............................................................5 Institutional structure of regulator .............................................................................5 Traditional areas of responsibilities ..........................................................................6 Shifting mandate/roles of regulators and policy-makers in the digital era .........6 Decision-making and rule-making in a multistakeholder environment ............10 1.4 Regulatory collaboration .........................................................................................13 Formalized and informal collaboration occurring across governments ............14 1.5 Building frameworks for digital regulation ............................................................17 Licensing frameworks for networks, services, and applications .........................17 Innovative approaches to sector regulation ..........................................................19 1.6 Key findings ................................................................................................................22 Development of national digital strategies and roadmaps .................................22 Institutional structure and role of regulator ............................................................22 Building frameworks for digital regulation .............................................................23 References ..............................................................................................................................24 Chapter 2. Competition and economics ...................................................................29 2.1 Introduction: Regulatory transformation in the digital economy ........................29 2.2 Regulation in the digital era .....................................................................................31
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