In a fully competitive environment, there is a more limited need for regulation. However, regulatory authorities still have a critical role to play, particularly given the dynamic role of the sector and the unsettled issues that new technologies may introduce into the regulatory environment. Moreover, in certain areas, regulators need to maintain a prominent role because market forces often fall short of creating the conditions necessary to satisfy public interest objectives such as universal access and service.
Universal service/access policies are generally directed at achieving objectives such as the promotion of economic productivity and growth; the promotion of political and social cohesion through the integration of isolated communities into mainstream society; the improvement of delivery of government services; and the elimination of economic and social disparities between the “information rich” and the “information poor.”[1] In certain areas of a country, however, significant upfront investments, high operating costs, and uncertain demand make the satisfaction of these objectives unjustifiable on commercial grounds. Thus, government initiatives directed at providing telecommunications access and services to generally remote, unserved areas may need to be adopted. In such cases, regulators should narrowly define and identify the areas and services that will benefit from government subsidies or incentive programs so as to avoid closing the door to private investments in areas where market forces alone do not provide an incentive to offer services in such areas.[2]
Similarly, despite the increased reliance on market forces in the telecommunication sector regulatory agencies must ensure that spectrum use is properly managed and allocated. This role cannot be left solely to market forces, since the introduction of new technologies may be limited by interference, inefficient spectrum use, or lack of access to spectrum ( e.g. , introduction of digital television, discussed more fully in Chapter 4).
Despite the benefits of new technologies, regulators also must be attentive and responsive to the regulatory issues that arise from the implementation of these new technologies and their related services. For example, in today's environment, regulators are grappling with how to address issues such as spam and consumer concerns regarding privacy, which were not issues of concern to regulators ten years ago. In addition, while new technologies often offer consumers greater choices at lower prices, regulators have a responsibility to ensure that consumers are aware of the potential limitations that may exist with these lower-price offerings ( e.g. , emergency services may not available through such services; services offered may be of a lower quality of service). Moreover, as these new services gain prominence regulators also will need to consider whether they should be subject to obligations imposed on other providers ( e.g., universal service).
ENDNOTES
[1] International Telecommunication Union, Trends in Telecommunication Reform: Promoting Universal Access to ICTs , 2003, at 30.
[2] Boutheina Guermazi and David Satola, Creating the “Right” Enabling Environment for ICT , Chapter 2 in e-Development: From Excitement to Efficiency, The World Bank (2005), at 13.