InternationalTelecommunicationUnion

HIPSSA ProjectHIPSSA Project

Support for Harmonization of the ICT Policies Support for Harmonization of the ICT Policies in Sub-Sahara Africa in Sub-Sahara Africa

A range of approaches to regulating cable landing

stations

Isabelle Gross – Balancing Act

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Table of contentsTable of contents

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

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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

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► Two main approaches:

sector regulation approach

common competition law approach

and a third approach

specific authorisation and licensing agreements

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Sector regulation approach : (1/2)

► usage by the regulator of its power in relation to access and interconnectionSingapore (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

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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.

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Common Competition law approach:

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)

► Establishment of a competitive and fully liberalised telecommunications market

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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

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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

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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

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… … but a set of recurring principles

open access

dominant operator/significant market power (SMP)

co-localisation

price control with prices reflecting costs+margin

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Thanks a lot for your Thanks a lot for your attentionattention

Union Internationale des Télécommunications International Telecommunication Union