Regulation and Competition in Mobile Telephony in Latin America

Abstract

This paper addresses three areas of regulatory policy involving mobile telephony in Latin America. These questions are examined in relation to case studies on Colombia, Bolivia, and the Dominican Republic, followed by policy recommendations. First, in the area of access regulation, government regulation and the adoption of private-sector agreements on the basis of a model contract are preferable to voluntary negotiations. Second, local fixed-line service providers should ideally be excluded from mobile telephony. When this is not possible, they should only participate in geographic areas where they do not dominate local fixed-line service, and they should be required to maintain strict managerial, accounting, and legal separation of mobile and fixed-line activities. Third, unlimited entry into mobile phone markets is preferable to concessions through exclusive licenses or auctions.