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Regulatory features that characterise mobile communication

Regulatory feature 1) Separation between fixed and mobile operators

When mobile licences were given to operate the current 2G systems, the basic policy of regulators around the world was to create a competitive market by not allowing incumbents to directly operate a mobile network. If incumbents were to enter the market it had to be through their independent subsidiaries. Thus, Cellnet was partially owned by BT but it was not a majority shareholder initially. AirTouch and NTT DoCoMo were subsidiaries of Pacific Telesis and NTT respectively. AirTouch later became independent and was subsequently taken over by Vodafone. This provided a more level playing field from the outset and in some countries new entrants have a larger market share, as in the UK, where Vodafone is the largest operator.

Regulatory feature 2) Ban on incumbents lifted in some countries

Some countries, such as the UK, recognising that their local access networks have become competitive enough due to the high penetration of mobile operators, have lifted their bans on incumbents entering the market. Incumbents are considering taking full advantage of this through so-called 'fixed-mobile convergence'. This may take a number of forms, e.g. single billing and volume discounts covering fixed and mobile usage, integrated network management and services across mobile and fixed networks.

Regulatory feature 3) Potential items for regulation

In developed countries, the trend is towards minimum regulation. However, items which could conceivably be regulated include:

• Licensing, due to radio spectrum allocation
• Technology choices in EU countries
• Interconnection, for the benefit of users
• Price and pricing methods (calling party pays, fixed-to-mobile, roaming, etc.)
• Universal service/access, as mobile becomes more dominant than fixed
• Mobile number portability

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