This section provides further information on a subject introduced earlier in this module, namely selection criteria used in the selection process for applicants for individual licences.
Selection criteria are used to determine which qualified applicant will be awarded the licence during a licensing process. A wide range of criteria can be used in the selection process. The choice of criteria is related to the objectives of the licensing process.
For example, if an important objective is to license a competent operator to provide adequate services to the public on a long-term basis, then criteria that measure technical competence, operational abilities, and financial viability will be important. Alternatively, if the prime objective is to raise money for a government treasury, price may be the best selection criterion. However, in such a case, applicants should normally be pre-qualified to ensure some minimum level of capability to implement the service.
Selection criteria may be quantitative or qualitative. A comparative evaluation procedure may involve one or the other or both types of criteria. Which type of criteria should be used in a licensing process depends on the objectives of the licensing process and the advantages and disadvantages of each type of criteria in the particular licence and ICT market circumstances.
Regulators may attribute different weight to different selection criteria. In such a case, information should be provided about the weighting of selection criteria, in order to promote transparency in the licensing process.
The Selection Process
For a discussion on the specific considerations relevant to eligibility and selection criteria in universal access and services (UAS) bidding processes, see Module 4, "Universal Access and Service", section 7.1.3, "Design of Bidding Process".