Thursday 23 February 2012

Contents of module

Introduction

Reasons for Developing This Module

The telecoms industry is changing extremely rapidly around the world. The changes are wide ranging. They encompass major advances in the technologies available, the introduction of competition where a monopoly used to be the norm, growth in the uses to which telecoms is put and a wide range of other issues.

Such change cannot occur satisfactorily on its own. It has to be managed. Consequently, many countries have established a Regulator to provide that management. This module is designed to assist those who would like to understand more about how a regulatory body may be set up and the method by which it can then carry out its regulatory function.

The Introduction of Competition

Central to a Regulator’s work is the introduction and encouragement of competition in the telecoms sector.

It is now widely recognised that competition is a major factor in a country’s economic development. When competition is allowed to grow in a well-functioning market, it has the effect of increasing efficiency, reducing prices, increasing innovation, widening supply and promoting better customer service. When these improvements occur across all industries in a country, the overall effect is to raise that country’s economic performance very significantly.

This has particular reference to telecommunications (or telecoms, for short). Whereas some level of competition is normal in most industries, telecoms was (and often still is) monopolised by one company. Therefore, in telecoms the introduction of competition requires a complete re-orientation of the industry, and that is not easy to do.

Furthermore, as a result of technological change, telecoms has become a key industry, not just in its own right but also in its role in supporting every other industry. Therefore, it is of major significance to a country that introducing competition into telecoms is accomplished in a satisfactory manner so that the country can maximise the potential benefits.

Competition does not develop just because it is the community’s wish that this should happen. There are many hurdles to overcome. The situation must be managed firmly but carefully if the process is to take place in a satisfactory manner. It is one of the Regulator’s main roles to provide this management.

What This Module Contains

As stated above, this module is concerned with the Regulator’s role in managing developments in the telecoms industry.

It should be made clear at the outset that there is no set formula to follow. Every environment is different, and sensitivity to the local context is essential.

This should not be taken to imply that what other countries are doing in this respect is irrelevant. Indeed, the opposite is true. Because there is no set formula, it is necessary to gain as much information as possible from the successes (and failures) in other countries if an intelligent and informed approach is to be adopted elsewhere.

Consequently, this module makes reference to a wide range of materials that illustrate practical examples of points being made in the materials. Some of the regulatory bodies referred to are contained in Appendix I.

National Regulatory Bodies

The regulatory bodies that have been established differ widely in their characteristics. Some are part of the government as a whole, some are part of a specific ministry while some are independent of the state’s normal administrative structure. In one or two cases, the government has taken the position that no regulator is needed at all.

Where a regulatory body has been established, its role is normally described as promoting:

  • the long-term interests of users of telecoms services; and
  • the efficiency and international competitiveness of the country’s telecoms industry.

How to Study the Module

This module is designed for self-study. It can be pursued at a pace that is suitable to the learner’s own personal circumstances. It is not subject to deadlines or any tutors’ demands.

At the end of each section there is a set of self-test questions. It is advisable to answer these questions before continuing to the next section to make sure that the concepts covered have been properly assimilated. A target score is shown with each set. For those with a lower score than the target, it is advised that the material be reviewed before continuing.