|
|
|
 |
|
Licensing for Growth
 A country's licensing regime can critically impact the development of the mobile industry as well as the communications industry more generally. Getting the licensing regime right and ensuring that it remains appropriate as technologies and markets develop should therefore be an important concern of governments. The GSM Association has commissioned the Competition Economists Group and Case Associates to examine key licensing issues that are particularly relevant to developing countries. The report analyses the nature of the issues, reviews international experience and presents a programme of practical reforms that licensing authorities should consider to support the ongoing development of their communications industries.
Traditionally, an operator's license contained the full set of rules specific to the activities of the operator including rights to undertake particular activities, and potentially including rights to the use of particular spectrum, as well as the range of price and non-price obligations the operator was required to meet. Given the current pace of technological developments, extensive licensing requirements risk inhibiting operators in making the best use of their networks to supply services and risk delaying investment required to introduce new services. Detailed licenses that are specific to one operator or type of service or network also risk distorting competition if operators supplying competing services face different license conditions.
A growing number of countries are instead introducing more flexibility in general operating licenses (while retaining specific licenses for the use of spectrum). Some countries have introduced unified or converged licenses in which a single license type applies to a wide range of services and network technologies. Class licenses have also been introduced providing the right for anyone to start supplying services of a particular type or class. Some countries have gone further and have abolished operating licenses in favour of general authorisations in which different types of networks can be developed and services supplied without specific approval being required by a licensing authority.
While greater flexibility in operating licensing is desirable, there are important transitional issues that need to be addressed. Achieving regulatory objectives such as controlling market power through alternative targeted measures require these measures to be in place before provisions in operating licenses are removed. Further, where operators have invested on the basis of the current licensing arrangements, any changes to these arrangements should take into account investors' legitimate expectations. In practice, this may mean liberalisation earlier in some areas than others or the payment of compensation where changes are made in conflict with expectations.
Licenses for the right to use particular spectrum bands, on the other hand, do require detailed provisions to manage scarcity of the resource and interference. Indeed, in many developing countries, there is too little information on the current usage and current rights to use spectrum thereby creating a greater risk of interference impacting service quality and inhibiting investment in services using spectrum. Improved spectrum management could help address current spectrum shortages improving service provision and reducing costs. Establishing a long term spectrum plan, including a schedule for releasing additional spectrum, that recognises the benefits of ITU and regional coordination and standardisation would support investment planning and reduce business risks.
Please complete the form to download the 'Licensing For Growth' Report
| |
|
