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Geographically segmented regulation for telecommunications: lessons from experience

Geographically segmented regulation for telecommunications: lessons from experience Purpose – The aim of this paper is to make policy makers and regulators more fully aware of the practical problems and costs involved in implementing geographically segmented regulation. This awareness will be valuable in deciding whether to adopt the approach and, if so, in designing its implementation, i.e. how the scheme's problems will be addressed and costs minimized. Design/methodology/approach – Increasingly, incumbent operators and some regulators have argued that regulatory forbearance should be adopted in geographic areas (usually the more densely populated cities) where facility‐based competition is developing. Certainly geographically segmented regulation accords with widespread agreement that regulation should be the minimum necessary. Indeed, a number of countries have implemented the scheme, including Australia, Austria, Canada, Finland, Portugal, Spain, the UK and USA. This paper examines the experience these countries have had in applying geographically segmented regulation. Findings – The lessons from experience in applying geographically segmented regulation suggest that the processes used to determine specific relevant markets are, at present, contentious and problematic in principle, and complex and subjective in practice. The problems/costs relating to the implementation of geographic regulation could erode the stability, certainty and predictability so important in a regulatory regime. Moreover, outcomes are uncertain, especially when looking ahead into an NGN environment. Originality/value – This is the first paper that examines the actual experience of countries that have implemented geographically segmented regulation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Info Emerald Publishing

Geographically segmented regulation for telecommunications: lessons from experience

Info , Volume 13 (2): 16 – Mar 15, 2011

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References (1)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1463-6697
DOI
10.1108/14636691111121601
Publisher site
See Article on Publisher Site

Abstract

Purpose – The aim of this paper is to make policy makers and regulators more fully aware of the practical problems and costs involved in implementing geographically segmented regulation. This awareness will be valuable in deciding whether to adopt the approach and, if so, in designing its implementation, i.e. how the scheme's problems will be addressed and costs minimized. Design/methodology/approach – Increasingly, incumbent operators and some regulators have argued that regulatory forbearance should be adopted in geographic areas (usually the more densely populated cities) where facility‐based competition is developing. Certainly geographically segmented regulation accords with widespread agreement that regulation should be the minimum necessary. Indeed, a number of countries have implemented the scheme, including Australia, Austria, Canada, Finland, Portugal, Spain, the UK and USA. This paper examines the experience these countries have had in applying geographically segmented regulation. Findings – The lessons from experience in applying geographically segmented regulation suggest that the processes used to determine specific relevant markets are, at present, contentious and problematic in principle, and complex and subjective in practice. The problems/costs relating to the implementation of geographic regulation could erode the stability, certainty and predictability so important in a regulatory regime. Moreover, outcomes are uncertain, especially when looking ahead into an NGN environment. Originality/value – This is the first paper that examines the actual experience of countries that have implemented geographically segmented regulation.

Journal

InfoEmerald Publishing

Published: Mar 15, 2011

Keywords: Geographic regions; Telecommunication

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