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2004 Trends in Telecommunication Reform 2004 - 2005

Licensing in an Era of Convergence

image of Trends in Telecommunication Reform 2004 - 2005

The sixth edition of Trends in Telecommunication Reform examines the various licensing options in the ICT sector to provide regulators with tools they can use to promote effective competition in a converging environment. The report provides an overview of licensing practices around the world and the rationale for licensing; identifies new trends such as unified licences; provides options; raises transition issues to be considered in moving from one regime to another; evaluates traditional licensing models; addresses scarce resources such as spectrum; and identifies best practices. The report is structured into eight chapters.

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Licence fee practices: historical perspectives and new trends

Over the last decade, approaches to setting licence fees have varied widely around the world. The primary differences stem from what type of licence is awarded and whether the licence involves the exclusive use of a scarce resource. In the case of mobile service licences, which involve the use of spectrum, regulators have generally taken the view that licence fees should reflect the economic value of the spectrum being distributed. With other licences – and in particular, fixed-line licences – there has been an increasing trend away from charging large, up-front licence fees and towards levying recurring annual fees, set at a level that enables regulators to recover their administrative costs.

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