Table of Contents
1. INTRODUCTION 1
1.1 INTRODUCTION 1
1.2 THE EMERGENCE OF REGIONAL ORGANIZATIONS OF TELECOM REGULATORS 1
1.3 IMPLICATIONS FOR REGIONAL REGULATION 3
1.3.1 THE SHIFT IN THE SCOPE OF NATIONAL REGULATORY AUTHORITIES 3
1.3.2 THE NEW REGULATORY FUNCTION 4
1.3.3 THE NEW SYSTEM OF REGIONAL REGULATORY GOVERNANCE 4
1.4 RESEARCH OBJECTIVE 7
1.5 RESEARCH METHODOLOGY 8
1.6 THEORETICAL FRAMEWORK 8
1.7 POLICY CONTRIBUTIONS 9
1.8 GUIDING QUESTIONS 9
1.9 ORGANIZATION OF THESIS 11
2. TECHNICAL AND ECONOMIC FEATURES OF THE TELECOM SECTOR 13
2.1 INTRODUCTION 13
2.2 TELECOM AS A REGULATED MONOPOLY 13
2.3 THE DISMANTLING OF THE REGULATED MONOPOLY MODEL 15
2.4 TELECOM VALUE CHAIN 16
2.4.1 SUPPLY OF EQUIPMENT 18
2.4.2 PROVISION OF TELECOM INFRASTRUCTURE 19
2.4.3 DEVELOPMENT OF SERVICES 23
2.5 TELECOM REGULATORY OBJECTIVES 23
2.6 FORMS OF REGULATION 25
2.6.1 ACCESS REGULATION 25
2.6.2 PRICE REGULATION 26
2.6.3 INTERCONNECTION REGULATION 27
2.6.4 LOCAL LOOP UNBUNDLING 27
2.6.5 COSTING APPROACH AND METHODOLOGIES 28
2.7 SUMMARY AND CONCLUSIONS 29
3. A CONCEPTUAL FRAMEWORK FOR EXAMINING REGIONAL REGULATION 31
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3.1 INTRODUCTION 31
3.2 INSTITUTIONS AND (REGIONAL) REGULATION 31
3.3 A FRAMEWORK FOR REGIONAL REGULATION 33
3.3.1 LEVEL 1: INFORMAL INSTITUTIONS AND TECHNOLOGY 36
3.3.2 LEVEL 2: FORMAL INSTITUTIONS 40
3.3.3 LEVEL 3: INSTITUTIONAL ARRANGEMENTS 41
3.3.4 LEVEL 4: ACTORS 42
3.4 INTERACTIONS BETWEEN THE LEVELS 44
3.5 IMPLICATIONS OF KEY ECONOMIC CONCEPTS FOR REGIONAL REGULATION 46
3.5.1 STRUCTURE-CONDUCT-PERFORMANCE 46
3.5.2 CONTRIBUTIONS FROM MARKET THEORY 47
3.5.3 MARKET CONCENTRATION AND POWER 48
3.5.4 COMPETITION 49
3.5.5 REGULATORY CONTENT 50
3.6 CONCLUSIONS 51
4. RESEARCH METHODOLOGY 53
4.1 INTRODUCTION 53
4.2 RESEARCH QUESTIONS 53
4.3 RESEARCH DESIGN 54
4.3.1 METHODOLOGICAL CHOICES 55
4.3.2 RESEARCH STRATEGIES 55
4.3.3 CASE STUDIES 56
4.3.4 INTERVIEWS 62
4.3.5 SURVEYS 66
4.4 CONCLUSIONS 68
5. REGIONAL REGULATION AS A NEW FORM OF GOVERNANCE IN THE EUROPEAN
UNION 71
5.1 INTRODUCTION 71
5.1.1 BACKGROUND TO THE EUROPEAN UNION 71
5.1.2 PERFORMANCE INDICATORS OF THE EUROPEAN UNION’S TELECOM INDUSTRY 74
5.1.3 CASE OBJECTIVES 75
5.2 TECHNOLOGICAL AND SOCIO-ECONOMIC SYSTEMS IN THE EUROPEAN UNION 75
5.2.1 INFORMAL INSTITUTIONS IN THE EUROPEAN UNION 75
5.2.2 TECHNOLOGY IN THE EUROPEAN UNION 78
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5.2.3 FORMAL INSTITUTIONS IN THE EUROPEAN UNION 79
5.2.4 INSTITUTIONAL ARRANGEMENTS IN THE EUROPEAN UNION 96
5.2.5 ACTORS IN THE EUROPEAN UNION 100
5.3 ANALYSIS OF TECHNOLOGICAL SOCIO-ECONOMIC AFFECTS AND REGIONAL REGULATION 102
5.3.1 INFORMAL INSTITUTIONS IN THE EUROPEAN UNION 102
5.3.2 TECHNOLOGY IN THE EUROPEAN UNION 103
5.3.3 FORMAL INSTITUTIONS IN THE EUROPEAN UNION 105
5.3.4 INSTITUTIONAL ARRANGEMENTS IN THE EUROPEAN UNION 108
5.3.5 ACTORS IN THE EUROPEAN UNION 110
5.4 REGULATORY ISSUES RAISED IN THE EUROPEAN UNION 112
5.4.1 THE EUROPEAN UNION POLICY FRAMEWORK 112
5.4.2 REGULATORY INSTITUTIONAL STRUCTURE 113
5.4.3 THE ROLE OF THE INDEPENDENT REGULATORS GROUP AND THE EUROPEAN REGULATORS GROUP 113
5.4.4 THE ROLE OF NATIONAL REGULATORY AUTHORITIES 114
5.4.5 MARKET POWER 114
5.4.6 LOCAL LOOP UNBUNDLING REGULATION 115
5.4.7 LONG RUN AVERAGE INCREMENTAL COSTS REGULATION 116
5.5 CONCLUSIONS 116
6. REGIONAL REGULATION AS A NEW FORM OF GOVERNANCE IN THE
ORGANIZATION OF EASTERN CARIBBEAN STATES 119
6.1 INTRODUCTION 119
6.1.1 BACKGROUND TO THE ORGANIZATION OF EASTERN CARIBBEAN STATES 119
6.1.2 PERFORMANCE INDICATORS OF THE ORGANIZATION OF EASTERN CARIBBEAN STATES TELECOM
INDUSTRY 121
6.1.3 CASE OBJECTIVES 123
6.2 TECHNOLOGICAL AND SOCIO-ECONOMIC SYSTEMS IN THE ORGANIZATION OF EASTERN
CARIBBEAN STATES 123
6.2.1 INFORMAL INSTITUTIONS IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 123
6.2.2 TECHNOLOGY IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 124
6.2.3 FORMAL INSTITUTIONS IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 125
6.2.4 INSTITUTIONAL ARRANGEMENTS IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 135
6.2.5 ACTORS IN THE ORGANIZATION OF THE EASTERN CARIBBEAN STATES 138
6.3 ANALYSIS OF TECHNOLOGICAL SOCIO-ECONOMIC AFFECTS AND REGIONAL REGULATION 140
6.3.1 INFORMAL INSTITUTIONS IN THE ORGANIZATION OF THE EASTERN CARIBBEAN STATES 140
6.3.2 TECHNOLOGY IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 141
6.3.3 FORMAL INSTITUTIONS IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 143
6.3.4 INSTITUTIONAL ARRANGEMENTS IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 145
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6.3.5 ACTORS IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 146
6.4 REGULATORY ISSUES RAISED IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES 148
6.4.1 THE ORGANIZATION OF EASTERN CARIBBEAN STATES POLICY FRAMEWORK 148
6.4.2 REGULATORY INSTITUTIONAL STRUCTURE 149
6.4.3 THE ROLE OF THE EASTERN CARIBBEAN TELECOMMUNICATIONS AUTHORITY 149
6.4.4 THE ROLE OF NATIONAL TELECOMMUNICATIONS REGULATORY COMMISSIONS 149
6.4.5 MARKET POWER 150
6.4.6 LICENSING REGULATION 150
6.4.7 PRICE CAP REGULATION 150
6.5 CONCLUSIONS 151
7. REGIONAL REGULATION AS A NEW FORM OF GOVERNANCE IN THE SOUTHERN
AFRICAN DEVELOPMENT COMMUNITY 153
7.1 INTRODUCTION 153
7.1.1 BACKGROUND TO THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 153
7.1.2 PERFORMANCE INDICATORS OF THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY TELECOM
INDUSTRY 155
7.1.3 CASE OBJECTIVES 157
7.2 TECHNOLOGICAL AND SOCIO-ECONOMIC SYSTEMS IN THE SOUTHERN AFRICAN DEVELOPMENT
COMMUNITY 157
7.2.1 INFORMAL INSTITUTIONS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 157
7.2.2 TECHNOLOGY IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 159
7.2.3 FORMAL INSTITUTIONS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 159
7.2.4 INSTITUTIONAL ARRANGEMENTS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 170
7.2.5 ACTORS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 175
7.3 ANALYSIS OF TECHNOLOGICAL SOCIO-ECONOMIC AFFECTS AND REGIONAL REGULATION 176
7.3.1 INFORMAL INSTITUTIONS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 177
7.3.2 TECHNOLOGY IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 178
7.3.3 FORMAL INSTITUTIONS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 180
7.3.4 INSTITUTIONAL ARRANGEMENTS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 182
7.3.5 ACTORS IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 184
7.4 REGULATORY ISSUES RAISED IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 186
7.4.1 THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY POLICY FRAMEWORK 186
7.4.2 REGULATORY INSTITUTIONAL STRUCTURE 187
7.4.3 THE ROLE OF TELECOMMUNICATIONS REGULATORY ASSOCIATION OF SOUTHERN AFRICA 187
7.4.4 THE ROLE OF NATIONAL REGULATORY AUTHORITIES 187
7.4.5 MARKET POWER 187
7.4.6 INTERCONNECTION REGULATION 188
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7.4.7 PRICE REGULATION 188
7.5 CONCLUSIONS 188
8. REGIONAL REGULATION AND THE PERFORMANCES OF THE TELECOM SECTORS
IN THE EUROPEAN UNION, ORGANIZATION OF EASTERN CARIBBEAN STATES AND
THE SOUTH AFRICAN DEVELOPMENT COMMUNITY 191
8.1 INTRODUCTION 191
8.2 ASSESSMENT OF TECHNOLOGICAL SOCIO-ECONOMIC AFFECTS 191
8.2.1 TECHNOLOGICAL SOCIO-ECONOMIC EFFECTS IN THE EUROPEAN UNION 191
8.2.2 TECHNOLOGICAL SOCIO-ECONOMIC EFFECTS IN THE ORGANIZATION OF EASTERN CARIBBEAN STATES
194
8.2.3 TECHNOLOGICAL SOCIO-ECONOMIC SYSTEMS IN THE SOUTHERN AFRICAN DEVELOPMENT
COMMUNITY 198
8.3 COMPARING THE TREATMENT OF THE SUBSTANTIVE REGIONAL REGULATORY ISSUES 201
8.3.1 THE REGIONAL POLICY FRAMEWORK 201
8.3.2 REGULATORY INSTITUTIONAL STRUCTURE 202
8.3.3 THE ROLE OF REGIONAL ORGANIZATIONS OF TELECOM REGULATORS 204
8.3.4 THE ROLE OF NATIONAL REGULATORY AUTHORITIES AND NATIONAL TELECOMMUNICATION
REGULATORY COMMISSIONS 205
8.3.5 MARKET POWER 206
8.3.6 LICENSING REGULATION 207
8.3.7 PRICE REGULATION 208
8.4 COMPARING THE IMPACT OF THE REGULATORY TREATMENTS ON MARKET PERFORMANCE 208
8.4.1 THE REGIONAL POLICY FRAMEWORK 208
8.4.2 THE REGULATORY INSTITUTIONAL STRUCTURE 209
8.4.3 THE ROLE OF REGIONAL ORGANIZATIONS OF TELECOM REGULATORS 210
8.4.4 MARKET POWER 211
8.4.5 REGIONAL LICENSING 212
8.4.6 PRICE CAP REGULATION 212
8.5 CONCLUSIONS 213
9. CONCLUSIONS 215
9.1 INTRODUCTION 215
9.2 RESEARCH FINDINGS 215
9.2.1 TECHNOLOGICAL SOCIO-ECONOMIC SYSTEMS AND REGIONAL REGULATION 216
9.2.2 REGULATORY ISSUES AND SECTOR PERFORMANCE 219
9.3 POLICY ISSUES AND CHALLENGES 221
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9.3.1 CHALLENGES COMMON ACROSS ALL THREE REGIONS 221
9.3.2 CHALLENGES SPECIFIC TO THE THREE REGIONS 223
9.4 REFLECTIONS ON THE THEORETICAL FRAMEWORK 226
9.4.1 COMMENTS ON THE USE OF OUR 4-LAYERED MODEL 227
9.4.2 COMMENTS ON THE USABILITY OF THE 4-LAYERED MODEL 227
9.5 RECOMMENDATIONS 229
9.5.1 RECOMMENDATIONS REGARDING POLICY 229
9.5.2 RECOMMENDATIONS FOR FURTHER RESEARCH 234
List of Abbreviations
References
Appendix A
Appendix B
Appendix C
Appendix D
Samenvatting
Summary
About the author
