3.6.3 Convergence and regulation
- Focus in the discussions on the implications of technology and market convergence on the regulatory provisions has been partly different in different parts of the world. In the economically developed nations, primarily the US, emphasis has been on the competition enhancing aspects of technology convergence. Furthermore, the growth of new services and new business areas is considered to be important. In developing countries, emphasis is mostly on new access possibilities with new technologies.
- In relation to technology divergence vertically, the proposal to separate infrastructure and services has been put forward in developed as well as developing countries, and there is no discussion that it would contribute to solving the issue of the transfer of market dominance in the infrastructure area to the service area. The less clear questions, however, are who the infrastructure provider(s) will be and what the incentive structure for extending the infrastructure will be. The recommendation is for developing countries to take advantage of the new access and competition potentials created by new technologies and to limit horizontal integration of companies to the extent that it hinders competition. Furthermore, vertical integration should in general not be constrained when not presenting a serious problem to competition.
- If analyses document that a sufficient degree of competition has been attained in a market segment, specific regulations can be abandoned and general competition rules will apply in this segment. The issue is not necessarily sector specific regulation or general competition regulation at the general level. There will be a combination of general competition rules and sector specific regulations according to the different situations in the different market segments.
- The concept of technology neutrality means that different technologies offering essentially similar services should be regulated in similar manners. However, exactly identical regulations may result in the advantage of one technology over another in the market. Technology neutral regulation can, consequently, include slightly differing regulations for different technology solutions in the same market segments. The technology neutrality concept has implications on most regulatory issues in telecom, including universal service/access, frequency management and competition.
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