Traditionally, in many parts of the world, a licence was issued to authorize a person to provide telecommunications services or to operate telecommunications facilities. Such licences generally described key rights and obligations of licensees and often defined conditions relating to the provision of services. These licences also tended to be service-specific and technology-specific. A licensee was authorized to provide a particular type of service over a specific type of network. Alternatively, a licensee was authorized to operate specifically defined types of telecommunications facilities. A wide range of different licensing approaches has been adopted around the world.
Today the practice of issuing detailed individual licences to specific telecommunications, or ICT (to use the current terminology), service providers is gradually being replaced by general authorization regimes. However, the issuance of detailed individual licences remains common in developing economies. Moreover, issuing detailed individual authorizations remains the norm for authorizing the use of radio spectrum where the demand for the use of a particular frequency band exceeds availability.
In general authorization regimes in developed economies, few, if any, conditions are included in a licence document issued to a specific service provider. Instead, regulatory conditions are generally established in rules or regulations that apply equally to all service providers of the same class (e.g. cellular mobile providers) or across the whole ICT industry. While general authorization regimes are most prevalent in developed economies, these regimes have also been adopted in a number of developing and transitional economies. In developing or transitional economies, where the regulatory framework governing the ICT sector is still maturing, it is common for general authorizations to contain a fairly detailed set of terms and conditions. There are thus different variants of general authorization regimes.
With increased liberalization, some regulators are removing all authorization requirements for some ICT services. These service markets are then open to entry by any new service providers, without restriction. Open entry regimes are generally found only in countries with a highly developed, competitive ICT sector and a robust set of institutions that can safeguard consumer interests and protect against anti-competitive conduct.
There has also been a movement away from the issuance of service and technology-specific authorizations. In light of rapid technological development and service innovations, countries are increasingly moving towards the adoption of multi-service and neutral or “unified” authorization frameworks. These frameworks feature authorizations that are service and/or technology neutral, allowing licensees to offer a range of services under the umbrella of a single authorization, using any type of communications infrastructure and technology capable of delivering the desired services. There are a range of different approaches to multi-service and unified licensing around the world.
There are significant differences in the authorization practices in force in different countries. At one end of the spectrum are wide-open authorization regimes, where no form of governmental approval is required to start an ICT service business or to operate network facilities. At the other end are individual licensing regimes with lengthy authorization documents customized to the circumstances of a specific service provider. In between are many forms of general authorization or “class licences” that authorize and provide generally applicable regulatory conditions for classes of ICT service providers.
This module uses the term ‘authorization’ to refer to all forms of licensing, permission or approval required from telecommunication or ICT regulatory authorities to carry on business as an ICT service provider. In light of technological advances and the wide range of services now available, this module also uses the term “info-communications technology” or “ICT” rather than “telecommunications” in most cases.
This module discusses authorization issues faced by regulators and regulated service providers. The module focuses on recent trends in authorization. Many of the trends and practices described in this module illustrate reforms and innovations that improve the efficiency of the authorization process and enhance the economic and social benefits of authorizing the provision of new and existing ICT services.
Issues related to authorizing the use of radio spectrum are discussed in Module 5, Radio Spectrum Management. Matters related to the authorization of rural and universal access services will be dealt with in Module 4, Universal Access.