World radiocommunication conference 12 : implications for the spectrum eco-system

Spectrum allocation is once more a key issue facing the global telecommunications industry. Largely overlooked in current debates, however, is the World Radiocommunication Conference (WRC). Decisions taken by WRC shape the future roadmap of the telecommunications industry, not least because it has the ability to shape the global spectrum allocation framework. In the debates of WRC-12 it is possible to identify three main issues: enhancement of the international spectrum regulatory framework, regulatory measures required to introduce Cognitive Radio Systems (CRS) technologies; and, additional spectrum allocation to mobile service. WRC-12 eventually decided not to change the current international radio regulations with regard to the first two issues and agreed to the third issue. The main implications of WRC-12 on the spectrum ecosystem are that most of actors are not in support of the concept of spectrum flexibility associated with trading and that the concept of spectrum open access is not under consideration. This is explained by the observation that spectrum trading and spectrum commons weaken state control over spectrum and challenge the main principles and norms of the international spectrum management regime. In addition, the mobile allocation issue has shown the lack of conformity with the main rules of the regime: regional spectrum allocation in the International Telecommunication Union (ITU) three regions, and the resistance to the slow decision making procedures. In conclusion, while the rules and decision-making procedures of the international spectrum management regime were challenged in the WRC-12, the main principles and norms are still accepted by the majority of countries

From AT&T to Brand X Declining Checks and Balances in an Increasingly Complex Marketplace

When President Clinton signed the Telecommunications Act of 1996, he used the same pen that President Eisenhower used to sign legislation for the Interstate Highway system into law. It was a fitting analogy. In the same way that the interstate road system was expected to open up interstate commerce, the Internet system was expected to open up electronic commerce. In signing the 1996 legislation into law, President Clinton and Congress were updating the regulatory and legislative framework to adapt it to the new realities and opportunities provided by the Internet. The legislation noted that broadband access to the Internet was critical to the continued economic vitality of the United States. In contrast to the success of the Interstate Highway system, however, broadband adoption in the United States has lagged behind that of other developed nations. Against this backdrop, in National Cable & Telecommunications Ass’n v. Brand X Internet Services, the Supreme Court held that, under the Telecommunications Act, cable modem providers are not required to provide access to other Internet Service Providers (ISPs), despite the fact that local telephone providers had been required to provide access to third party Digital Subscriber Line (DSL) providers. As a result, the goal of increased broadband adoption now falls squarely on the unfettered administrative choices made by the FCC. […] This note examines the administrative law implications of the Brand X decision. First, this note reviews the history and legal context framing the decision. Then, this note examines the decision itself from a textual, historical, and policy perspective. It is concluded that, while agencies offer welcome expertise for resolving complex questions, deference to agency expertise should not trump Congressional guidance to the contrary.

Regionalizing telecommunications reform in West Africa

In recent years, there has been an increasing recognition that significant welfare gains could be realized through deep forms of regional integration which entail harmonization of legal, regulatory and institutional frameworks. Reforms that reduce cross-border transaction costs and improve the performance of “backbone” infrastructure services are arguably even more important for the creation of an open, unified regional economic space than trade policy reforms narrowly defined. This paper assesses the potential gains from regionalized telecommunications policy in West Africa. To this end, the paper: (i) discusses how regional cooperation can overcome national limits in technical expertise, enhance the capacity of nations credibly to commit to stable regulatory policy, and ultimately facilitate infrastructure investment in the region; (ii) identifies trade-distorting regulations that inhibit opportunities for regional trade and economic development, and so are good candidates for regional trade negotiations to reduce indirect trade barriers; and (iii) describes substantive elements of a harmonized regional regulatory policy that can deliver immediate performance benefits.E-Business,Environmental Economics&Policies,ICT Policy and Strategies,Transport Economics Policy&Planning,Emerging Markets

Rational Regulatory Policy for the Digital Economy: Theory and EU Policy Options

Telecommunications is a key element of the ICT sector which has been shaped by strong innovation dynamics since the 1990s. Market dynamics in selected OECD telecommunications markets are analyzed. We present new ideas about efficient regulation, emphasizing the need to adopt a broader international perspective. Analytical innovations also include the discussion of an adequately-modified Hitch-Sweezy oligopoly model. Moreover, we suggest differentiated two-part tariffs as an ideal welfare-maximizing approach in both wholesale and end-product markets. From a theoretical point-of-view, the need to avoid regulatory uncertainty is also emphasized. Theoretical progress is contrasted with regulations in the EU and the US. The EU offers a broad range of different regulatory approaches where the link between framework regulation and national regulation is rather complex. The internationalization of telecommunications requires a broader cooperation among regulators in the OECD.Digital Economy, Regulatory Policy, European Union

Open-Access Issues in the Chilean Telecommunications and Electricity Sectors

Este trabajo analiza la crisis eléctrica de 1998-1999. Su principal conclusión es que el diagnóstico habitual que sostiene que ocurrió porque las empresas no invirtieron y el regulador no tenía atribuciones, es equivocado. A pesar de la peor sequía del siglo y de la falla de la central Nehuenco, los cortes de energía y el déficit agregado de 450 GWh se podrían haber evitado si el agua embalsada se hubiese manejado recientemente, o bien los reguladores hubiesen usado sus atribuciones para hacer funcionar el sistema de precios, o si el ejecutivo no hubiese temido afectar su imagen decretando racionamiento apenas las condiciones lo exigieran. Argumentamos que la variabilidad hidrológica a la que está sujeta Chile central hace inevitable las reducciones de consumo en años muy secos. Las crisis ocurren porque el sistema de precios es inflexible e inadecuado para acomodarlas sin cortes de energía; ante una escasez tanto usuarios como empresas enfrentan precios muy por debajo del costo de oportunidad de la energía. Esto, además, introduce un problema de moral hazard que incentiva el uso ineficiente del agua embalsada y hace más probable que ocurra una escasez. Es equivocado pensar que las crisis se evitarían dándole más atribuciones discrecionales al regulador. Varios episodios muestran que no usó las atribuciones que tenía. Al ejecutivo le incomoda zanjar conflictos entre privados porque sus intervenciones tienen consecuencias patrimoniales que lo dejan vulnerable a las críticas de quienes se sienten perjudicados. Por ello se debe liberar al regulador de la obligación de zanjar conflictos entre privados. Esto requiere liberalizar la regulación.

Challenges and opportunities of the China – Gulf Cooperation Council Free Trade Agreement

The free trade agreement between China and the Gulf Cooperation Council (“the GCC”) currently under negotiation is due to become China’s first comprehensive trade and investment agreement with a supranational customs union. The article explores the challenges and opportunities of the proposed China-GCC Free Trade Agreement. It proposes tailor-made recommendations according to the specific interests of both parties