1.3 Authorization Objectives and Policies

The development and implementation of authorization policies is one of the most important steps in reforming the ICT sector. Authorization policies determine the structure and level of competition in ICT markets and, ultimately, the efficiency of the supply of ICT services to the public.

Historically, many countries developed authorization policies on an ad hoc basis. Frequently, policies were only developed when specific decisions were made to authorize additional service providers. However, as the global regulatory experience evolved, an increasing number of countries adopted explicit authorization policies. Many countries developed policies based on the experience of regulatory reform and telecom market liberalization in other countries. In developing and transitional markets, authorization policies often provide for (1) immediate opening of peripheral telecom markets to competition, and (2) phased opening of voice telephony and related ‘core’ markets.

Clearly stated telecom policies remove uncertainty and regulatory risk for service providers and their investors. However, regulation is an art, not a mathematical science, and it is neither possible nor desirable to attempt to prescribe detailed policies for all situations that may arise. ICT markets and technologies are too dynamic to permit that. An ideal ICT policy should establish the main objectives and approaches of government policy and deal with major issues of national concern to service providers and investors. However, the more detailed provisions are better left to subsidiary legislation or regulatory rules which can be amended to meet evolving market conditions.