Gender Perspectives in Introduction to Regulation Gender Module #1 ITU Workshops on Sustainability in Telecommunication Through Gender & Social Equality

Presentation #1: The Old Regulatory Model

Outline Definition of Regulation Definition of Regulation Other Key Concepts Other Key Concepts Monopolies, Natural Monopolies, Economies of Scale, Sunk Costs, Cross Subsidies, Universal Service Monopolies, Natural Monopolies, Economies of Scale, Sunk Costs, Cross Subsidies, Universal Service Justifications for Regulation Justifications for Regulation Former Institutional Arrangements Former Institutional Arrangements What does the old regulatory model look like? What does the old regulatory model look like? Implications for Gender/Diversity Practice Implications for Gender/Diversity Practice

Definition of Regulation Regulation (General): Intervention by government in the operations of actors in the marketplace Regulation (General): Intervention by government in the operations of actors in the marketplace Actors in the telecommunications marketplace include network operators as well as value-added network service providers Actors in the telecommunications marketplace include network operators as well as value-added network service providers Regulation (Telecom): The implementation and enforcement of telecommunications rules and regulations by a National Regulatory Authority (NRA) Regulation (Telecom): The implementation and enforcement of telecommunications rules and regulations by a National Regulatory Authority (NRA)

Key Concepts Monopoly: The exclusive possession or control of the trade in a commodity/service, conferred as a privilege by the state; a commodity/service subject to a monopoly. Monopoly: The exclusive possession or control of the trade in a commodity/service, conferred as a privilege by the state; a commodity/service subject to a monopoly. Natural Monopoly: When there are economies of scale to be reaped from having a single, universally interconnected system, whether it be a telephone, electricity, water or postal service Natural Monopoly: When there are economies of scale to be reaped from having a single, universally interconnected system, whether it be a telephone, electricity, water or postal service

Key Concepts 2 Economies of Scale: Apply when the nature of an industry/service is such that it is cheaper for one provider to supply the whole market than for multiple providers to supply parts of the market Economies of Scale: Apply when the nature of an industry/service is such that it is cheaper for one provider to supply the whole market than for multiple providers to supply parts of the market Sunk Costs: The inability of more than one provider to achieve a return on their investment over a reasonable period due to huge capital outlays and long-term amortization Sunk Costs: The inability of more than one provider to achieve a return on their investment over a reasonable period due to huge capital outlays and long-term amortization

Key Concepts 3 Cross Subsidies: Designed to support the ideal of universal service. Long distance companies pay a settlement or subsidy to local companies to connect to the local loop Cross Subsidies: Designed to support the ideal of universal service. Long distance companies pay a settlement or subsidy to local companies to connect to the local loop Universal Service: The provision of basic telecoms services to customers without regard to their location or ability to pay Universal Service: The provision of basic telecoms services to customers without regard to their location or ability to pay

Justifications for Regulation Government intervention/regulation is justified politically and empirically by the argument that, given the nature of the sector, if actors in the telecoms marketplace are left to their devices, they will not serve the interests of society Government intervention/regulation is justified politically and empirically by the argument that, given the nature of the sector, if actors in the telecoms marketplace are left to their devices, they will not serve the interests of society It is believed to be the role of government to make sure all citizens have access to critical services and/or utilities at a reasonable price It is believed to be the role of government to make sure all citizens have access to critical services and/or utilities at a reasonable price

What does the old regulatory model look like?

Old Regulatory Model Responsible Body Ministry of Posts & Telecommunications Function Policy-making Function Regulation Function Network Operation Globalisation Convergence Liberalisation Competition Privatisation Deregulation Change Vectors + Telecommunications Sector under Monopoly Model * * Driving force behind structuration of sector is Monopoly Theory. + Vectors in the external environment that have impacted this model.

Implications of old regulatory model for gender equality & diversity practice…

Questions What are the pros and cons of the old regulatory model? What are the pros and cons of the old regulatory model? What are the ways in which it might have helped/hindered inclusion, equality, access, democratisation, openness? What are the ways in which it might have helped/hindered inclusion, equality, access, democratisation, openness? For whom and at what levels? For whom and at what levels? What do you see as the vectors forcing change in this old model? What do you see as the vectors forcing change in this old model?