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Over the last decade,
the telecommunication sector worldwide witnessed a first wave of reforms
resulting in the establishment of a regulator in the vast majority of
countries, introduction of competition in some or all service segments
and at least partial privatization of the incumbent operators (among
other measures). The result has been unprecedented take-up of mobile
voice services in developing countries. However, despite these
impressive gains, much of the world’s population still remains without
access even to voice services, and very few citizens in developing
countries have access to multimedia broadband services including
Internet. Regulators
around the world are considering infrastructure sharing as a tool to
promote infrastructure deployment, in particular IP backbones and
broadband access networks. Today,
a second wave of
regulatory reforms is necessary.
We, the regulators
participating in the 2008 Global Symposium for Regulators, have
identified and proposed best practice guidelines for innovative
infrastructure sharing and open access strategies to promote affordable
broadband access.
A. Promoting an
enabling environment
1. Appropriate
Regulatory framework
We recognize the need for an appropriate regulatory framework
fostering broadband access including Internet, to enable the development
of infrastructure-based competition, in addition to service-based
competition, and the emergence of new innovative players at the national
level.
Certain sharing options can
deliver specific benefits while others could pose risks, in particular
by reducing competition, and these need to be carefully balanced in the
light of specific national circumstances when designing the most
appropriate regulatory strategy.
In doing so,
regulators recognize the importance of holding public consultations with
all stakeholders on the various strategies and regulations that deal
with infrastructure sharing.
2. Competition
and investment incentives
We recognize the
potential benefits of infrastructure sharing, whether mandatory or
optional, in situations where competition and investment incentives are
not undermined, bearing in mind the need to safeguard competition and
investment incentives.
We recognize that offering of shared facilities must not be biased
towards any specific service provider or types of services.
Where capital and
operating expenditures are likely to be reduced by the joint deployment,
management and maintenance of certain facilities (for example,
by
tower sharing),
such sharing can
bring about long-term efficiencies, which may in turn enable more
investment in innovative products and services and ultimately benefit
consumers.
We recognize the
importance of ensuring that regulatory policy does not restrict
competing market players installing their own independent facilities,
and that it promotes open access to international capacity and
international gateways (for example, collocation and connection services
at submarine cable landing stations).
We believe that the
establishment of Internet Exchange Points could also encourage shared
and more affordable access to national and international broadband
capacity for Internet service providers willing to enter the market.
B. Innovative
regulatory strategies and policies to promote infrastructure sharing
We also recognize
that successful infrastructure sharing may be facilitated by the
introduction of regulatory obligations and
regulatory policies that include:
1. Reasonable terms
and conditions
It is important that implementation of sharing takes into
account the necessity to protect the value of existing investment in
infrastructures and services. However, this should not act as an
artificial barrier to sharing.
2. Pricing
Pricing for shared facilities should provide the right
economic signals to market players, assisting them in making reasonable
and commercial “build-or-buy” decisions (i.e., is it more commercially
reasonable to self provision facilities or to lease existing ones). At
the same time pricing should provide for the right incentives for
investments in infrastructure (in a form of reasonable return on
investment), but should not be used as an artificial barrier to entry
for new market players. Commercially negotiated pricing should prevail,
except where market power exists.
3. Efficient use of
resources
Non-replicable resources such as towers, ducts and rights of
way can be shared for installations that serve a similar purpose, which
allows for optimal use and can be offered on a first-come first-served
basis subject to commercial agreements under fair pricing conditions.
4. Scarce
resources
Shared-use bands
could be promoted as long as interference is controlled. Spectrum
sharing can be implemented on the basis of geography, time or frequency
separation.
5. Licensing
Regulators could
consider licensing or authorizing market players that only provide
passive network elements, but which do not compete for end-users,
such as
mobile tower companies and fibre backhaul providers.
6. Conditions for
sharing and interconnection
Regulators recognize
that infrastructure sharing can only take place on a neutral,
transparent, fair and non discriminatory basis and that interconnection
frameworks can ensure that all licensed operators are granted the right
to interconnect as well as encourage the sharing of essential facilities
and guarantee that network security and quality of service are not
deteriorated.
7. Establishing
an infrastructure sharing one-stop-shop
Establishing a
one-stop-shop would facilitate the coordination of trenching and ducting
works between telecommunications service providers as well as between
telecommunications service providers and those of other utilities.
Regulators recognize
the key role local authorities could play in fostering the deployment of
broadband access and development of competition and the importance of
close cooperation to simplify administrative proceedings and ensure
timely response to requests for infrastructure sharing.
8. Improving
transparency and information sharing
Regulators recognize
the need for transparent processes to facilitate infrastructure sharing,
and market players need to
know what is available
for sharing under clearly established terms and conditions, in order to
avoid unfair actions. Regulators could require publication on websites
of the details of existing as well as future infrastructure
installations available for sharing by other service providers,
such as the availability of space in existing ducts, planned deployment
or upgrading works and interconnection.
9. Dispute
resolution mechanism
We believe that
regulators should introduce necessary enforcement tools to ensure
compliance and successful adoption of infrastructure sharing
regulations. As
an infrastructure sharing relationship between service providers
involves elements of both cooperation and competition, the regulators
recognize the need to first explore alternative dispute resolution
mechanisms which are speedy and simplified to encourage negotiated
outcomes while maintaining the certainty of an adjudicated decision
where necessary.
10. Universal
access
To encourage
infrastructure sharing in support of its universal access goals,
regulators can consider the introduction of incentives for service
providers that share infrastructure as part of their efforts to deploy
to rural and underserved areas. Such incentives may, for example, take
the form of regulatory exemptions (ensuring that such exemptions do not
lead to re-monopolization of the market and do not unreasonably restrict
consumer choice) or financial subsidies taking into account the need to
minimize distortions to competition.
11. Sharing with
other market players and industries
Regulators also
recognize that sharing should be encouraged not only within the
boundaries of the Telecommunications/ICT and Broadcasting industry, but
together with other infrastructure industries (such as electricity, gas,
water, sewage, etc.) as well. In the context of technological
development, joint infrastructure building (with other market players
and with other industries) may be encouraged, providing
for timed, organized opportunities for access to ducts and conduits (for
example, for the joint laying of fiber) to distribute the cost of civil
works among service providers and reduce the inconvenience for traffic
in towns and cities. This would also provide for a
positive environmental
(including aesthetic) impact, in particular by reducing the number of
mobile masts and towers.
12. Sharing of
regulatory practices
Regulators recognize
the need for an appropriate level of international and regional
harmonization to ensure that best practice regulatory policies on
sharing are widely spread, and regional organizations have an important
role to play in this regard. This is even more important in areas where
a specific regulatory issue has a significant cross-border effect and
thereby cannot be tackled by a national regulator.
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Best Practice Guidelines from
previous years |
