In connection with the liberalization of the telecoms area in the 1980s and 1990s, the primary emphasis in telecom policy and regulation in most economically developed nations has been on establishing competition and lowering prices. In developing nations, focus has, first and foremost, been on increasing take-up (penetration) on the basis of well-established technology solutions (PSTN) but also, and more importantly, by means of mobile communications. During the past few years, however, there has been an increasing awareness of the importance of promoting innovation in the sector[1]. This very much has to do with the emergence of new access technologies in the wireless area, for instance wireless LAN and MAN (e.g. Wi-Fi and WiMAX), as well as wire-based solutions such as cable modems, fibers and power lines. The increasing interest in promoting innovation is centered on the introduction of new access technology solutions. However, innovation in new applications, services and content is as important and plays a major role in user demand and the demand for new access facilities.
ENDNOTES
[1] A good example is a report prepared for the Swedish NRA, Post- och Telestyrelsen (PTS), by Erik Bohlin, Paola Garrone and Erik Andersson: ’Investment, Innovation and Telecommunication Regulation: What is the Role of the NRA?’, PTS, September 2004.