Communication companies worldwide are heavily regulated, but big changes are underway. In 2003, the European Union reduced the regulatory burden in some areas but increased regulatory uncertainty in others, including mobile services. In Asia Pacific markets, new technologies and rapid adoption of broadband are necessitating technology-neutral regulation. US telecom reformers want to review everything from intercarrier compensation and UNE rules to VoIP and broadband regulation. So what’s at stake?
The new EU framework brings with it the burden of ex-ante regulation and requires an EU-wide competitive analysis, complete with regulatory remedies for 18 markets, mobile call termination price caps, and new directives for roaming charges. Asia Pacific telcos struggle with interconnection pricing strategies and disputes, pricing restrictions, SLAs and the complexities of evolving performance metrics and regulatory frameworks. US players want a thorough understanding of the rules of the road before investing in innovative VoIP strategies and other IP-based services, or venturing into new markets like fiber to the curb, home or node.