Regulation of Communications Markets

Universal Service Policy and Strategy

Public Phone Box, ©iStockphoto.com/Mabel Forsyth

It is an economic reality that telecommunications services are more costly to provide in some areas than others and consequently service providers will naturally choose to focus on more profitable services and coverage. This can mean that, without suitable regulatory safeguards, the needs of less prosperous users or those in difficult-to-serve locations might be neglected or even ignored altogether.

The principle of Universal Service (or Access) is the political and regulatory response to ensure a minimum level of guaranteed service consistent with preventing social exclusion, promoting regional development, and ensuring the means of basic communication for all citizens. Its fundamental requirement is that defined affordable telecommunications services should be available at all times to all citizens, regardless of social or economic grouping, geographic location or disability. Conversely, it must avoid undue distortion of natural market competition and aim towards making the provision of such service economically and functionally self-sustaining.

In this regard, a typical universal service policy may need to address the following considerations:

What are the overriding social and economic objectives behind the provision of universal service? What social and geographical groups are most in need of assistance, and why?
What is the extent and nature of available direct financial support (e.g. government subsidies, regional development funds)? How else should universal service provision be funded?
Who should carry responsibility for universal service provision – the incumbent operator or others (e.g. new fixed or mobile operators), or should this be shared? How should such providers be designated?
How can the fulfilment of universal service objectives be reconciled with suitable competitive safeguards?
What provisions need to be made to address the increasing popularity of Internet telephony and the development of Next Generation Networks (NGNs)?
Who should administer universal service provision from a regulatory perspective?
How does all of this correspond with existing sector policies and strategies?

InterConnect Communications’ regulatory and technical experts have extensive experience in addressing these concerns and translating them into practical policy solutions. We can assist national regulators and governments to determine strategies for universal service based on local requirements and international best practice, review existing legislative instruments for continued fitness of purpose, and advise on and – if required draft- new laws and regulations. Our experience is global and includes:

Reviewing the existing policy and regulatory framework for the provision of universal services in a Central European country and making recommendations for improving this in line with the provisions of the EC acquis communautaire;
Assisting the responsible Ministry in a South Asian country to define a policy and framework to ensure coverage of affordable basic telecommunications services in un-served and underserved areas, with particular relevance to rural communities;
Preparing a universal service policy for a Middle Eastern regulator to provide service to underserved communities in a way that would support the pro-competitive approach already mandated by sector legislation.

28 Feb 2008InterConnect News

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More Information?

For more information about InterConnect's universal service experience, please contact Hugh Collins by phone on +44 (0) 1291 638400.