Regulation of interconnection agreements : a comparative analysis with particular emphasis on the European Union telecommunications law and policy

Abstract

The purpose of this thesis is to conduct a comparative analysis of various national/regional approaches to regulating interconnection agreements with a view of discerning pro-competitive principles and characteristics underpinning advanced regulatory regimes in countries/regions with fully liberalised and overall well-performing telecommunications sector and ascertaining regulatory trends; and · applying the results of the comparative analysis to evaluating regulatory frameworks for interconnection in countries which are still in a transitional period to full liberalisation in order to ensure pro-competitive design of regulatory regimes. After laying the conceptual foundation of the issues involved in regulating interconnection, delineating their scope and establishing evaluation criteria to serve as a basis for the comparative analysis, the author examines, in a systematic way, key selected elements of national regimes for interconnection regulation employed in Australia, Finland, New Zealand, the United Kingdom, the United States, as well as the European Union interconnection regulatory framework as an example of a pro-active and successful regional harmonising arrangement. The regulatory regimes are then compared and analysed on the basis of the evaluation criteria chosen. Notwithstanding the differences in regulatory approaches, ex-ante regulation, obligation to interconnect, principles of asymmetric regulation, non-discrimination, transparency of interconnection arrangements, cost orientation of interconnection charges, alternative dispute resolution are found to be the major common features of successful pro-competitive regulatory regimes. Moreover, the comparative analysis showed that, on the advanced stages of transition to effective competition, regulatory approaches demonstrate a strong trend of convergence. The results of the comparative analysis are then applied to the assessment of regulation of interconnection agreements in Malta. While finding that the Maltese system, by and large, is based on sound pro-competitive principles in line with those ascertained in the comparative analysis, certain measures to improve the regime are suggested. In view of Malta's proposed entry into the European Union, the conformity of the Maltese regulation to the EU framework for interconnection is also evaluated and the areas requiring alignment are pinpointed. Finally, a recent controversial issue of open access to cable networks is examined in order to emphasise a dynamic nature of interconnection and its expanding scope of application in constantly and rapidly changing telecommunications landscape.