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Telecommunications Regulation in the Caribbean Community Challenges for the telecommunications regulation in Suriname Presented by: Robert Hahn Nassau, Bahamas July 15 2008
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2 Topics Introduction Theoretical Framework Research Model Key findings Conclusions Recommendations
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3 Introduction Problem –Existing Regulatory Frameworks do not pay enough attention to the specific characteristics of developing countries and their influence on the regulatory process Research Objective –Provide recommendations for an effective Regulatory environment in Suriname Analysis of regulatory frameworks in 13 CARICOM countries
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4 Characteristics Regulatory factors Under developed accounting & Auditing systems Wide spread corruption Weakness of the rule of law High cost of public funds Limitations of the government Licensing Interconnection Price regulation Competition Policy Universality Access
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5 Research Model
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6 Characteristics Regulatory factors Under developed accounting & Auditing systems Wide spread corruption Weakness of the rule of law High cost of public funds Limitations of the government Licensing Interconnection Price regulation Competition Policy Universality Access Key Findings
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7 Conclusions All the developing countries’ characteristics have to some extent an influence on the regulatory factors “Absence of well developed accounting and auditing systems” has the highest influence Small scaled economies: lack of regulatory expertise
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8 Recommendations Combine powers and to jointly seek for solutions –Harmonization of regulatory policies
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Telecommunications Regulation in the Caribbean Community End of Presentation Thanks for your attention
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10 Scope of this research CARICOM –Developing countries –Liberalized Telecommuni- cations market CountryIncome group 1Antigua & BarbudaUMI 2BahamasHI 3BarbadosUMI 4BelizeUMI 5DominicaUMI 6GrenadaUMI 7GuyanaLMI 8HaitiLI 9JamaicaLMI 10Montserrat 11St Kitts & NevisUMI 12St LuciaUMI 13St Vincent and the GrenadinesUMI 14SurinameLMI 15Trinidad & TobagoUMI CountryIncome group 1Antigua & BarbudaUMI 2BahamasHI 3BarbadosUMI 4BelizeUMI 5DominicaUMI 6GrenadaUMI 7GuyanaLMI 8HaitiLI 9JamaicaLMI 10Montserrat 11St Kitts & NevisUMI 12St LuciaUMI 13St Vincent and the GrenadinesUMI 14SurinameLMI 15Trinidad & TobagoUMI
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11 Major Research Questions 1.According to the literature, what application of regulatory factors leads to the best performance in the regulation of telecommunication markets? 2.According to regulatory experts, what application of regulatory factors leads to the best performance in the regulation of telecommunication markets in developing countries? 3.What is the influence of the developing countries’ characteristics on the performance of the regulatory factors in the 13 selected CARICOM countries? 4.According to the results of the analyses of the different RFW’s, what are the recommendations for the application of regulatory factors that lead to the best performance in the regulation of telecommunication market in Suriname?
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12 Minor Research Questions 1.1)What are the regulatory factors? 1.2)What are the different applications of the regulatory factors? 2.1)What are the main problems in the introduction of regulatory factors in the CARICOM countries? 2.2)What factors need to change in order to serve the needs of the CARICOM countries? 3.1)What is the performance of the regulatory factors in the 13 CARICOM countries? 3.2)To what extent are experienced problems with regulation related to (or caused by) the developing countries’ characteristics? 4.1)What are the most important similarities between the different country analyses? 4.2)What are the most important differences between the different country analyses? 4.3)What recommendations can be derived based on these comparisons in terms of the application of regulatory factors that leads to the best performance in the regulation of the telecommunication market in Suriname?
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13 Research Proposition The characteristics of developing countries described by Laffont (2005) have a negative impact on the effectiveness of the applied RFW’s in developing countries.
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14 Research Methodology and Design Research Approach: Theory Building Research Strategy: Qualitative Research Design: Comparative Design Data Collection Method: Semi-structured interviews & questionnaires (Regulators vs Control Group) Data analysis method:Telecommunications Regulatory Environment (TRE) assesment
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15 Theoretical Framework Applied Effectiveness of the Regulatory Environment Dependent Variable Licensing Interconnection Price Regulation Competition Policy Universality Access Regulatory Framework Independent Variables High level of corruption Absence of well developed accounting & Auditing systems Weakness of rule of law High cost of public funds Limitations of the Government Characteristics of developing countries Moderating Variables
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16 Conclusions (RQ1) Regulatory factorMost effective application LicensingTransparent, technology and service neutral InterconnectionStrong and clear guidelines. Regulatory intervention when needed. Price RegulationPrice Cap Regulation Competition PolicyClear Policy without inconsistencies or duplications with telecommunications act Universality AccessUniversality fund
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17 Conclusions (RQ3) TRE Regulators3.52.53.53.3 Control Group2.62.1 2.8 LicensingInterconnectionPrice Regulation CompetitionPolicyUniversalityAccess
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