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HIPSSA Project

HIPSSA Project. Support for Harmonization of the ICT Policies in Sub-Sahara Africa. A range of approaches to regulating cable landing stations. Isabelle Gross – Balancing Act. Introduction Two main approaches - sector regulation approach - common competition law approach

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HIPSSA Project

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  1. HIPSSA Project Support for Harmonization of the ICT Policies in Sub-Sahara Africa A range of approaches to regulating cable landing stations Isabelle Gross – Balancing Act

  2. Introduction Two main approaches -sector regulation approach - common competition law approach Authorisations and licences Step by step approach Individual approach versus general regulation … … but a set of recurrent principles Table of contents

  3. Introduction: “The end justifies the means” from Niccolo Machiavelli's book "The Prince“ - Various interpretations of Machiavelli’s sentence - Governments/regulator faced with similar dilemma when it came to regulating access to landing stations and international capacity

  4. 4 ► Two main approaches: • sector regulation approach • common competition law approach • and a third approach • specific authorisation and licensing agreements

  5. 5 Sector regulation approach : (1/2) ► usage by the regulator of its power in relation to access and interconnection • Singapore (2004) : • the National Regulatory Authority (IDA – Infocomm Development Authority) • IDA required the dominant Licensees (SingTel) to submit a proposed Reference Interconnection offer (RIO) in which the regulator inserted measures aimed facilitating access to international capacities, access to landing stations and access to backhaul. • Also the approach adopted by ICTA in Mauritius

  6. 6 Sector regulation approach: (2/2) ► usage by the regulator of its power in relation to access and interconnection • Mauritius (2006) : • Information and Communication Technologies Authority of Mauritius (ICTA) • ICTA has the power to approve the tariffs of telecommunications services and on this basis it decided to regulate the tariffs of international leased lines.

  7. 7 Common Competition law approach: ►Establishment of a competitive and fully liberalised telecommunications market • European Union (1990 to 2009): • set of directives on open access and regulation of the wholesale segment (e.g. Open Network Provision directives (ONP) of 1990; Telecoms Package in 2002, etc…) • “Any charge for access to network resources or services must comply with the principles set out above and with the competition rules of the Treaty … … Tariffs must be non-discriminatory and guarantee equality of treatment” (ONP directive 1990)

  8. 8 Authorisations and licences: ►USA: special licence regime for the establishment and operation of a cable landing station • Provision of international communications services: under the “International Section 214 Authorisation" or "International 214 Licence” • include restrictions in terms of foreign ownership of the aforementioned stations (national security) • licences can be subject, « in the interest of the public » to specific conditions

  9. 9 Step by step approach: • often starting with price regulation on international capacity (ICTA in Mauritius and TRAI in India) • followed by the introduction of measures and rules with a wider impact tackling in particular the issues of access • - TRAI with its access to essential installations in submarine cable landing stations of 2007 • - ICTA with the just released “Reference cross-connection Offer model at Submarine Cable Landing stations

  10. 10 Individual approach versus general regulation ► Individual approach: - Singapore’s regulator (SingTel) - Mauritius’ regulator (Mauritius Telecom) ► General regulations: - EU set of regulations and directives - TRAI with access to essential installations in submarine cable landing stations of 2007

  11. 11 … … but a set of recurring principles • open access • dominant operator/significant market power (SMP) • co-localisation • price control with prices reflecting costs+margin

  12. Thanks a lot for your attention Union Internationale des Télécommunications International Telecommunication Union

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