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EBRD and Telecommunications Regulatory Reform Paul Moffatt, Counsel, EBRD

European Bank for Reconstruction and Development. EBRD and Telecommunications Regulatory Reform Paul Moffatt, Counsel, EBRD. South Eastern Europe Conference on Policy and Cooperation in Telecommunications - Belgrade 28-29 October 2002. EBRD and Telecommunications Regulatory Reform.

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EBRD and Telecommunications Regulatory Reform Paul Moffatt, Counsel, EBRD

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  1. European Bank for Reconstruction and Development EBRD and Telecommunications Regulatory ReformPaul Moffatt, Counsel, EBRD South Eastern Europe Conference on Policy and Cooperation in Telecommunications - Belgrade 28-29 October 2002

  2. EBRD and Telecommunications Regulatory Reform • EBRD participation in the in the telecommunications sector; • EU & WTO telecommunications policy; • Core lessons from experience; • Key instruments for achieving sector reform; • Some developments in Serbia and regionally within south eastern Europe; • EBRD Serbia Telecommunications Regulatory TA.

  3. EBRD participation in telecommunications Three general forms of participation in the sector: • Participation in privatisation of state-owned incumbents; • Participation in private sector operations; • Participation through the EBRD Telecommunications Regulatory Reform Programme. Emphasis on the adoption of modern EU and WTO consistent regulatory framework and practices as a precursor to investment.

  4. EU and WTO telecommunications policy • The main objectives of modern telecommunications policy: • Market structures should ensure efficient allocation of resources, technical efficiency, innovative efficiency and fair competition; • Markets structure should ensure that services are available in the geographical markets in which they are demanded; • Universal Service should be achieved. • EU provides a comprehensive, detailed legislative and regulatory framework; • Key instruments for implementation are the EU telecommunication directives.

  5. Core lessons from experience • Throughout the globe it has become abundantly clear that the provision of advanced communications networks and services at low prices is a fundamental building block of any modern economy; • Inexpensive, advanced communications services are essential to the competitiveness of every modern economy; • Some complexity involved in achieving such a goal; • Instructive to look to the experiences of more developed telecommunications marketplaces to identify some of the key instruments for successful sector reform.

  6. Key instruments for achieving sector reform (I) • Coherent and modern telecommunications sector policy; • Primary purpose should be to set out in broad, clear, certain and easily identifiable form: • the key objectives; • A timetable for the achievement of those objectives; • the parties responsible for the development of the sector; and, • the means by which these objectives are to be achieved. • Guide marketplace to optimum (competitive) state.

  7. Key instruments for achieving sector reform (II) • Early liberalisation; • Clear privatisation strategy and timetable; • Clear and certain legislative framework; • Solid institutional foundation, incl. an independent regulator; • Modern coherent tariff control policy; • Realistic tariff rebalancing schedule; • Workable interconnection regime; • Modern universal service policy and mechanism.

  8. Some developments in Serbia and SEE Serbia • Preparation of new framework law; • Efforts to resolve commercial and contractual issues. Bosnia • Recent passage of new framework law (October 2002); • Implementation of new framework; • Proposals for privatisation. Albania • New 2000 EU based Telecommunications Law; • Liberalisation expected at end of 2002.

  9. EBRD Serbia Telecommunications Regulatory TA Objectives • Adoption of a modern telecommunications sector policy; • Establishment of an independent regulatory authority with the means to enforce the regulatory framework; • Adoption of a modern licensing policy and the drafting of the main licences; • Adoption of a modern interconnection and tariff policy; • Adoption of a modern universal service policy; • Improvement of general awareness on telecommunications law and policy.

  10. Further information moffattp@ebrd.comTel: +44 (0) 20 7338 6000www.ebrd.com/telecoms

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