Editor’s Note: This Practice Note draws on the “Trends in Telecommunications Reform: Effective Regulation,” 2002, pp. 67-68. International Telecommunications Union
Ireland, Jordan, and Botswana approach cross-subsidies as follows:
- Ireland’s Condition 14 of the General Telecommunications License (published by the Office of the Director of Telecommunications of Ireland) permits the Office to investigate allegations of cross-subsidy by a licensee and require the cessation of any such behavior. Licensees are required to keep accounting records in order to facilitate the Office.
- Jordan’s Telecommunications Corp. states that “the Licensee will not, alone or together, engage in, or continue, or knowingly acquiesce in any anti-competitive practices and, in particular, the Licensee shall not engage in anti-competitive cross-subsidization.”
- Botswana’s Telecommunications Act of 1996 orders that “telecommunication services shall be provided on a competitive and non-discriminatory basis.” Specifically the Act prohibits “collusion between operators,” “the forming of cartels,” and the abuse of a dominant position (including cross-subsidy as a barrier to entry or exit).