Authorization and Licensing
Licensing is a key aspect of telecommunications regulation. At a basic level, a licence permits a telecommunications provider to offer specified equipment, networks, and/or services, and often conditions that permission on certain requirements. Licensing, however, can control market entry and, therefore, can be used to shape the market by limiting, or not, the number of players or the types of services. Licensing can create legal certainty for new entrants where the telecommunications regulatory or general legal framework is not comprehensive or otherwise adequate. Here, conditions and rights integrated into licences can substitute for such frameworks. Similarly, eg where private property rights might be uncertain, the licence can serve as a contract between governments and investors, a departure from the traditional legal nature of a licence. As a binding contract, it could guarantee exclusivity, ensure due process as well as impose performance obligations, eg market penetration or network roll-out requirements. Investors might otherwise be reluctant to commit the capital required to roll out new technologies and/or networks to improve and update services. Without performance obligations, countries might be unwilling to involve private parties in running the state-owned incumbent. Licensing can also foster competitive markets by imposing obligations on incumbents to level