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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Topics

• Introduction

• Theoretical Framework

• Research Model

• Key findings

• Conclusions

• Recommendations

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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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5

Research Model

Effective application of regulatory factors In CARICOM

Effective application of regulatory factors

RFW Guyana

RFW Barbados

RFW T&T

RFW Jamaica

Telecom regulation

Regulation in developing countries

RFW ….

RFW Belize

Regulation in general

Expert opinions

Analysis Result

Analysis Result

Analysis Result

Analysis Result

Analysis Result

Analysis Result

Telecommunications Expert opinions

Recommendations for effective application of RFW for Telecommunications in Suriname

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Key Findings

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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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Recommendations

• Combine powers and to jointly seek for solutions– Harmonization of regulatory policies

Telecommunications Regulation in the Caribbean Community

End of Presentation

Thanks for your attention

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Scope of this research

• CARICOM– Developing

countries– Liberalized

Telecommuni-

cations

market

  Country Income group

1 Antigua & Barbuda UMI

2 Bahamas HI

3 Barbados UMI

4 Belize UMI

5 Dominica UMI

6 Grenada UMI

7 Guyana LMI

8 Haiti LI

9 Jamaica LMI

10 Montserrat  

11 St Kitts & Nevis UMI

12 St Lucia UMI

13 St Vincent and the Grenadines UMI

14 Suriname LMI

15 Trinidad & Tobago UMI

  Country Income group

1 Antigua & Barbuda UMI

2 Bahamas HI

3 Barbados UMI

4 Belize UMI

5 Dominica UMI

6 Grenada UMI

7 Guyana LMI

8 Haiti LI

9 Jamaica LMI

10 Montserrat  

11 St Kitts & Nevis UMI

12 St Lucia UMI

13 St Vincent and the Grenadines UMI

14 Suriname LMI

15 Trinidad & Tobago UMI

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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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Minor Research Questions1.1) 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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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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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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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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Conclusions (RQ1)Regulatory factor Most effective application

Licensing Transparent, technology and service neutral

Interconnection Strong and clear guidelines. Regulatory intervention when needed.

Price Regulation Price Cap Regulation

Competition Policy Clear Policy without inconsistencies or duplications with telecommunications act

Universality Access Universality fund

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Conclusions (RQ3)

  TRE

 

Regulators 3.5 2.5 3.5 3.3 3.3

Control Group 2.6 2.1 2.1 2.1 2.8

Lic

ensi

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R

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Com

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Pol

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Un

iver

sali

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