Analyzes Wireless Regulatory Frameworks and Challenges Around the World - reports

date: January 25, 2002

Frequency planning and future spectrum allocation processes are the subjects of much debate since 2000, when huge sums were paid for 3G licenses in Europe. This changed environment particularly confronts regulators in Latin America and Asia, where investment attraction remains paramount.

Releasing encumbered spectrum and reallocating spectrum for 3G presents a core challenge, notably in Asia-Pacific, the United States, and eastern Europe. Having largely allocated 3G licenses, European regulators now face major readjustments to operator models for financing and deploying networks; hence, the growing acceptance of infrastructure sharing. These are among the issues analysed in a Yankee Group Report - Regulating Wireless Communications Around the World: A Kaleidoscope of Issues and Approaches.

Dianne Northfield, Yankee Group Global Regulatory Strategies senior analyst, comments, "Network sharing and the developing mobile virtual network operator models present particular challenges for regulators in terms of their impact on competition. Similarly, concessions that would allow the secondary trading of spectrum, license resale, and operator ability to secure additional licenses imply changes to existing spectrum caps, geographic market share, and service provision restrictions. With limited new investment prospects, governments are forced to review competition policies--traditionally a key means of promoting infrastructure investment."

Many nations are also reexamining wireless licensing models, with an urgent need to recognize fixed-to-wireless convergence and to reassess the outcome of maintaining line-of-business restrictions. This issue is particularly pressing in Latin America, compounded by fixed operator obligations to fulfill universal service mandates prior to increasing mobile subscribers or entering wireless markets.

Industry calls for more detailed regulatory guidelines and willingness to enforce interconnection obligations have been strong in Latin America and Asia, and enforcement issues plague the European landscape.

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