A recent survey of nineteen European countries shows that in countries where regulators have strong tools, pro-competition rules are enforced effectively, telecom investments are the highest, and tariffs the lowest. It's a very interesting learning for telecom stakeholders in India where the objectives and challenges are similar to that of European countries.

This survey, commissioned by the European Competitive Telecommunications Association, compares the telecom regulatory environment and the application of the current legislative framework in these countries. The survey result shows that the telecom markets have done well in the UK, the Netherlands, and Scandinavian countries where regulators have been effective. On the other hand, the markets have not done well in countries such as Poland, the Czech Republic, and Greece where regulators have not proved to be strong and forceful.

The 2007 survey shows that strong and effective regulators have been able to tackle competitive challenges and benefits for consumers have been quite visible. A much discussed and debated area has been access to the incumbents' local loop to open broadband markets to competition. Strong regulators have achieved that. Their broadband prices are typically the lowest, broadband speeds the fastest, and penetration high.

While it is easy to ask for more teeth for regulators, the survey also concludes that regulators are not moving quickly enough to understand and address new issues that are raised as the sector evolves and networks are gradually upgraded with newer technologies. Such delays create serious risks that each time technologies and networks are updated, there will be periodic set-backs or even reversal of the competitive process.

While all the mudslinging, and accusations and counter accusations go on in the Indian telecom industry, the past experience indicates that regulators need to be more strong and effective. It is time for the government to ensure that all regulators are fully equipped to tackle the challenges that incumbents and emerging monopolies can create for consumers and the sector as a whole.

If this is not done on a priority basis, there will be a real danger that all the efforts made over the last few years to open the markets will be undone in no time.

The overall message from the survey is that only with strong, effective, and active regulators consumers will not end up paying more for lower quality services. While a regional level regulator is just a dream in this region, a proposal of the concept of SAARC Regulators Group should definitely be considered. This can help SAARC wide consumers to enjoy the same level of choice and competition as their neighbors.

ibrahima@cybermedia.co.in