A Conceptual Framework for Regulatory Practice in Mobile Telecommunications Systems

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A Conceptual Framework for Regulatory Practice in Mobile Telecommunications Systems

Ubacht, J.

DOI

10.4233/uuid:3d0c46e3-e2bf-4ba2-9db3-48b520b4628d

Publication date

2020

Document Version

Final published version

Citation (APA)

Ubacht, J. (2020). A Conceptual Framework for Regulatory Practice in Mobile Telecommunications

Systems. https://doi.org/10.4233/uuid:3d0c46e3-e2bf-4ba2-9db3-48b520b4628d

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Disser tatio n for t he pu rpo se of o btain ing t he degre e o f do cto r at D elft Un iversi ty o f Te chno logy by the au tho rity of t he Rec tor Mag nifi cus P rof.d r.ir. T.H .J.J . van der Hagen chair o f the B oard fo r D oct orate s to be defended pub licly on Frid ay 2 7 No vem ber 2 02 0 at 12 .30 o ’clo ck by Jo lien UBA CHT Ma ster of A rts in Com munica tion S cienc e, Unive rsi ty of Ams ter da m, t he N etherla nd s born in Oostzaa n, t he Neth erla nd s

A Conceptual Framework for Regulatory Practice in

Mobile Telecommunications Systems

Dissertation

for the purpose of obtaining the degree of doctor at Delft University of Technology

by the authority of the Rector Magnificus Prof.dr.ir. T.H.J.J. van der Hagen chair of the Board for Doctorates

to be defended publicly on Friday 27 November 2020 at 12.30 o’clock

by Jolien UBACHT

Master of Arts in Communication Science, University of Amsterdam, the Netherlands born in Oostzaan, the Netherlands

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This dissertation has been approved by the promotors. Composition of the doctoral committee:

Rector Magnificus Chairperson

Prof.dr.ir. M.F.W.H.A. Janssen Delft University of Technology, promotor

Prof.dr.ir. J.W.H.C. Crompvoets KU Leuven, copromotor

Independent members:

Prof.dr.ir. R.N.A. Bekkers Eindhoven University of Technology

Prof.dr.ir. E.H.W.J. Cuppen Leiden University

Prof.dr. M.P. Finger EPFL, Switzerland

Prof.dr.ir. P.M. Herder Delft University of Technology

Dr.ir. G.A. De Reuver Delft University of Technology

Keywords: regulation, mobile telecommunications market, regulatory authorities, tele-communication, conceptual framework, exploratory regulatory practice, complex socio-technical systems, Grounded Theory

Cover design by MGO-Studio, www.mgo-studio.nl

Cover photo by J. Ubacht

Printed by Haveka BV, Alblasserdam ISBN/EAN: 978-90-361-0633-7

An electronic copy of this dissertation is available at https://www.tudelft.nl/library

Copyright ©2020 by J. Ubacht. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the copyright owner.

This disserta tion has bee n ap pro ved by th e p rom oto rs. Com po sitio n o f th e d oct oral co mm ittee : Recto r M agn ificus Chair perso n Pro f.dr. ir. M .F.W.H .A. J anssen Delft Unive rsity o f T echn olo gy, pr om oto r Pro f.dr. ir. J .W.H.C. Cr om pvo ets KU Leuv en, c op rom oto r Ind ependent me mb ers: Pro f.dr. ir. R.N .A. Be kkers Eind ho ven Unive rsity of T echn olo gy Pro f.dr. ir. E .H.W.J . Cup pen Leid en Universi ty Pro f.dr. M .P. Fi nger EPFL , Switzerlan d Pro f.dr. ir. P .M. Herder Delft Unive rsity o f T echn olo gy Dr. ir. G.A . De Reuv er Delft Unive rsity o f T echn olo gy Keywo rds: regulat io n, mo bile tele com mu nicati on s mar ket, regu latory autho rities, tele -com mu nica tion , co nceptu al f ram ew ork , e xplo rato ry regulato ry practic e, c om plex socio -techn ical syste ms, Gro un ded T heo ry Cover desig n b y M GO-Stu dio , www .m go -stud io.n l Cover ph oto by J. Ub acht Prin ted by Hav eka BV, Alb lasserda m ISBN /EAN : 9 78 -90 -36 1-0 633 -7 An e lectro nic cop y o f th is dis sertati on is av ailab le at https://w ww.tu delft.n l/lib rary Cop yrig ht ©2 02 0 b y J . Ub acht. All righ ts rese rve d. No p art o f thi s p ub licati on m ay b e repro du ced, stored in a retriev al sy stem , o r tran sm itte d in an y f orm o r b y an y m eans, ele ctron ic, m echanical , ph oto cop yin g, re co rdin g, o r othe rwise, w itho ut the p rio r perm issio n o f th e c op yrig ht own er.

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Table of

Con

tents

Table of C on ten ts ... ... ... i List of Ab bre viati on s ... ... .... iii Table of Fig ures ... ... ... vi Glossar y ... ... ... v ii Prefac e ... ... ...xv ii Sum mar y ... ... ...xxi Sam envatt ing ... ... xx ix 1. Mo bile Tel eco mm un icatio ns Sy stem s ... ... 1 1.1. Intro du ctio n ... ... . 1 1.2. The m ob ile t elec om mu nica tion s m arket ... ... 2 1.3. Com plexiti es o f th e m ob ile telec om mu nica tion s sy ste m ... ... 4 1.4. Ten sion s in the mo bile tele com mu nica tion s m arke t ... 13 1.5. Regulat ory practice in t he mo bile telec om mu nica tion s syste m ... ... 17 1.6. Scientifi c rel evan ce ... ... 19 1.7. Societ al re lev ance ... ... 20 1.8. Structure of t his th esis... ... 20 2. Litera ture Backgro un d ... ... 25 2.1. Intro du ctio n ... ... 25 2.2. Chan ges in t he instituti on al sub syst em ... ... 26 2.3. Sector-specific regulat ory au thorities ... ... 31 2.4. Con text ual li terature revie w o n re gu lato ry p ractic e ... . 34 2.5. Resear ch ob ject ive ... ... 49 3. Resear ch Desig n ... ... 51 3.1. Intro du ctio n ... ... 51 3.2. Resear ch Ph ilo sop hy ... ... 51 3.3. Grou nd ed Th eo ry app roac h: general intro du ctio n ... ... 57 3.4. Resear ch Strategy ... ... 65 3.5. Resear ch flow diag ram ... ... 70 4. Dim ension: M arket Issues in Mo bile Telec om mu nica tio ns Sy ste ms ... ... 73 4.1. Intro du ctio n t o t he m arket issues ... ... 73 4.2. The n atio nal regulat ory co nte xts ... ... 75 4.3. Social ratio nale : m ob ile serv ices pro visi on and e nd users ... ... 94 4.4. Econ om ic ratio nale : m ob ile netw ork op erat ors mu tually ... ... 97 4.5. Econ om ic ratio nale : m ob ile netw ork op erat ors and ser vice pro vid ers ... .. 1 05 4.6. Econ om ic ratio nale : m ob ile netw ork op erat ors and retail ers ... ... 1 11 4.7. Creating the dim ension m arket issues ... ... 11 2 4.8. Dim ension: m arket issues in th e m ob ile t elec om mu nicatio ns syste m ... ... 1 14 5. Dim ension: R egulato ry Acti vities in Mo bile Tele com mu nicatio ns S yste ms... .... 1 17 5.1. Intro du ctio n t o t he regulat ory activities ... ... 11 7

E. Curriculum Vitae ... 289 5.2. Category : pro cedu ral act ivi ties ... ... 1 23 5.3. Catego ry: en fo rcem ent activities ... ... 1 27 5.4. Category : st rate gic a ctivitie s ... ... 13 8 5.5. Category : net workin g act ivi ties ... ... 1 43 5.6. Con clusio n o n the di mensi on regu lato ry act ivitie s in m ob ile telec om mu nica tion s syste ms . 1 47 6. Con ceptualiz atio n o f Regu latory Practic e ... ... 14 9 6.1. Intro du ctio n t o c on ceptualiz ation ... ... 14 9 6.2. Core catego ry: pro cess of matchin g and m ixing ... 15 0 6.3. Dim ension: ph ases ... ... 15 7 6.4. Dim ension: un certain ties ... ... 16 0 6.5. Dim ension: fin e-tun ing ... ... 1 65 6.6. Con clusio n o n co nceptua lizatio n o f regula tory practice ... ... 1 67 7. Con ceptual Co mp ariso n ... ... 17 3 7.1. Intro du ctio n t o t he c on ceptual co mp ariso n ... ... 17 3 7.2. The two fu nctio ns o f c on cep tual co mp ariso n ... ... 1 74 7.3. Selectio n f or c on ceptual lit erature co mp ariso n ... ... 1 75 7.4. Con ceptual c om pari so n ... ... 17 8 7.5. Synthesis of the co nceptua l literature revie w ... ... 1 96 7.6. Core catego ry re fined ... ... 19 9 7.7. Sub stantive con cept of exp lorat ory regu lato ry p ractic e ... ... 2 02 7.8. Con clusio n o n co nceptua l co mp ariso n... ... 20 5 8. Evalu atio n o f th e Co nceptu al Fram ew ork ... ... 20 7 8.1. Intro du ctio n t o e valu atio n o f th e c on ceptual fr amew ork ... ... 2 07 8.2. Con clusio n o n ev aluatio n o f th e co ncep tual fra mew ork ... ... 2 14 9. Con clusio n and Refl ectio n ... ... 21 7 9.1. Con ceptual fram ewo rk o f r egulato ry practi ce ... ... 2 17 9.2. Scientifi c co ntrib uti on ... ... 22 1 9.3. Societ al c on tribu tion ... ... 22 3 9.4. Reflectio n o n t he research pro cess ... ... 2 24 9.5. Future res earch to pics ... ... 23 0 Biblio grap hy ... ... 23 3 App endices ... ... ... 2 63 A. Con text ual li terature revie w ... ... 26 5 B. Over vie w o f em piri cal data sou rces ... ... 2 81 C. List of mark et is sues ... ... 28 3 D. Patt erns in du ratio n and inte nsity ... ... ... 2 86 E. Curri culu m Vita e ... ... 28 9

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List

of A

bbrevi

ation

s

1G Fi rst generati on m ob ile net work 2G Seco nd generati on mo bile n etw ork 3G Thir d generati on m ob ile ne two rk 4G Fo urth g eneratio n m ob ile net wo rk 5G Fi fth generati on m ob ile net work ACT Adviso ry C om mitt ee on Tel ecomm un icatio ns ANFR Agence Nati on ale des Fréq uences ART Au torité de R égulatio n des Téléc om mu nica tion s ARCEP Auto rité de Régu lation des Co mm un icatio ns Electro niq ues et d es P oste s ACM Auto riteit Con sum ent en M arket (th e N eth erland s Au thority fo r C on sumers and Marke ts BABT British A pp rovals B oard fo r T eleco mm un icatio ns BEREC Bo dy of Euro pean Regu lato rs for Electro nic Com mu nic ation s BT British Te lec om BTG Nederlan dse Vereni gin g v an Bed rijfst elec om mu nicati e Gr oo tgebru ikers BSC Broad castin g Stand ards C om mission BSI British Stan dard s Institutio n CA Con sumer Asso ciatio n CC Com pet itio n C om mis sion CCR Co mm issio n C on sulta tive d es Rad io com mu nicati on s CCRST Com mis sion Co nsul tativ e d es R éseaux et S ervic es d e co mm un icati on s él éctro niq ues CEN Co mit é Eur opé en de No rm alisatio n/Eur op ean Co mm itt ee fo r Stand ardiz ation CENEL EC Euro pean C om mitte e fo r Elect ro techn ical Stand ardiz atio n CDA Critical Disc ou rse An alysis CGT Classi c Gr ou nd ed Th eo ry CGGT Classi c Gla serian Gro un ded Theo ry CMA Co mm un icatio ns Man agers Associa tion COIN COmm on INfrastru cture CPE Cu stom er P rem ises Equip ment CPS Carr ier P re S electi on CST Con seil Sup éri eure de la T élé matiq ue CSTS Com plex So cio -Te chnical Syste m(s ) CTA Com ité d e la Télé matiq ue An on ym e DCM S Depar tm ent for Cul ture, M edia and Spo rt DGF T Direc tor General o f t he Office of Fai r Trad ing DiGI TIP Direc tion Gén éral e de l’In du strie, d es T echn olo gies de l’Info rm atio n e t des Po stes DGT P Direc tion Gén éral e des Po ste s et Tél éco mm un ication s DGT Direc to r General of T elec om mu nicatio ns, Head o f OFTEL DM SU Dig ital M ain Swit chin g Uni t

List of Abbreviations

1G First generation mobile network

2G Second generation mobile network

3G Third generation mobile network

4G Fourth generation mobile network

5G Fifth generation mobile network

ACT Advisory Committee on Telecommunications

ANFR Agence Nationale des Fréquences

ART Autorité de Régulation des Télécommunications

ARCEP Autorité de Régulation des Communications Electroniques et des Postes

ACM Autoriteit Consument en Market (the Netherlands Authority for Consumers and

Markets

BABT British Approvals Board for Telecommunications

BEREC Body of European Regulators for Electronic Communications

BT British Telecom

BTG Nederlandse Vereniging van Bedrijfstelecommunicatie Grootgebruikers

BSC Broadcasting Standards Commission

BSI British Standards Institution

CA Consumer Association

CC Competition Commission

CCR Commission Consultative des Radiocommunications

CCRST Commission Consultative des Réseaux et Services de communications éléctroniques

CEN Comité Européen de Normalisation/European Committee for Standardization

CENELEC European Committee for Electrotechnical Standardization

CDA Critical Discourse Analysis

CGT Classic Grounded Theory

CGGT Classic Glaserian Grounded Theory

CMA Communications Managers Association

COIN COmmon INfrastructure

CPE Customer Premises Equipment

CPS Carrier Pre Selection

CST Conseil Supérieure de la Télématique

CSTS Complex Socio-Technical System(s)

CTA Comité de la Télématique Anonyme

DCMS Department for Culture, Media and Sport

DGFT Director General of the Office of Fair Trading

DiGITIP Direction Générale de l’Industrie, des Technologies de l’Information et des Postes

DGTP Direction Générale des Postes et Télécommunications

DGT Director General of Telecommunications, Head of OFTEL

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DTI Department of Trade and Industry

EDGE Enhanced Data for GSM Evolution

EC European Commission

ERG European Regulators Group (for electronic communications networks and services)

ETSI European Telecommunications Standards Institute

EU European Union

FCC Federal Communications Commission (USA)

FCS Federation of Communication Services

FIST Forum voor Interconnectie en Speciale Toegang/Forum for Interconnection and

Special Access

FR France

FGT Formal Grounded Theory

GSM Groupe Spéciale Mobile/Global System for Mobile Telecommunications

GPRS General Packet Radio Service

HDTP Hoofddirectie Dienst Telecommunicatie en Post (Dutch General Directorate on

Telecommunication and Postal Services)

ICT4D Information and Communication Technology for Development

IEC International Electrotechnical Commission

IPF Interconnect Policy Forum

IRG Independent Regulators Group

ISO International Organization for Standardization

ITC Independent Television Commission

ITU International Telecommunication Union

LTE Long Term Evolution

MI Market Influence

MISP Mobile Independent Service Providers

MMC Monopolies and Mergers Commission

MNO Mobile Network Operator

MVNO Mobile Virtual Network Operator

MRTS Mobile Radio Telecommunications Services

MTT Mobile Termination Tariff(s)

NCA National Competition Authority

NMA Nederlandse Mededingings Autoriteit

NCC National Consumer Council

NCCPR National Consumer Call Preference Registry

NFG Network Futures Group

NGO Non-Governmental Organisation

NICC Network Interoperability Consultative Committee

NL the Netherlands

NMT Nordic Mobile Telephone

NR 5G New Radio

NRA National Regulatory Authority

NRF New Regulatory Framework

NTP Network Terminating Point

OCCN Operator Charge Change Notice

OFT Office of Fair Trading

OFTEL Office of Telecommunications

OFCOM Office of Communications

OLO Other Licensed Operators Group

ONP Open Network Provision

OPTA Onafhankelijke Post en Telecommunicatie Autoriteit n _stry lutio _du _In Evo r GSM _{rade and} fo _{of T} _ent _tmced Data _DeparEnhan _DTI EDGE

EC Eur op ean Co mm ission ERG Eur op ean Regu lators Gro up (fo r elec tron ic c om mu nic ation s netw orks and se rvic es) ETSI Eur op ean Te leco mm un icatio ns Stand ards Insti tute EU Eur op ean Unio n FCC Federal C om mu nicati on s Co mm issio n ( USA) FCS Fed eratio n o f Co mm un icatio n Ser vices FIST Fo rum v oo r In terc on nec tie en Sp eciale T oegan g/F oru m f or Inte rco nn ectio n an d Special Acce ss FR Fr ance FGT Fo rmal Gro un ded T heo ry GSM Gro up e Sp écial e M ob ile/ Glo bal Sys tem fo r M ob ile T elecom mu nicati on s GPRS General P acket Rad io S ervice HD TP Ho ofd dire ctie Dien st T eleco mm un icatie en P ost (D utch General Direc tora te on Telec om mu nica tion an d P ostal Ser vices ) ICT4D Info rmatio n and Co mm un ication Te chno logy fo r Dev elo pm ent IEC In tern ation al Elec trote chnical Co mm issio n IPF In terco nn ect Po licy Fo rum IRG In depend ent Regu lato rs Gr ou p ISO In tern ation al O rgan izatio n fo r Stand ardiz atio n ITC Ind ependent T elev isio n C om mission ITU In tern ation al Te lecom mu nicatio n Un ion LTE Lo ng T erm Evo luti on MI Marke t In fluence MIS P M ob ile In depend ent Serv ice Pro vid ers MMC M on op olies and M ergers C om missi on MN O M ob ile Net work Operat or MVN O M ob ile Virtu al Netw ork Operato r MRTS Mo bile Radio Tel eco mm un icatio ns S ervices MTT M ob ile T erm inati on Tari ff(s ) NCA N ation al Co mp etiti on Auth ority NM A Nederlan dse Med edin gin gs Au torit eit NCC Natio nal C on sumer Co un cil NCCP R Natio nal C on sumer Call P reference Registr y NFG N etw ork Fu tures Gro up NGO No n-Go vern mental Org anisatio n NICC N etw ork Int erop erability Co nsul tativ e C om mitt ee NL the Neth erland s NM T N ord ic Mo bile Tel epho ne NR 5G N ew Radio NRA N ation al Regu latory Au tho rity NRF N ew R egulato ry Fra mewo rk NTP Net wo rk Te rm inatin g P oin t OCCN Operato r Charg e Chan ge No tice OFT Office of Fai r Trad ing OFTEL Office of T eleco mm un icatio ns OFCOM Office of C om mu nica tion s OLO Oth er Licens ed Operato rs Gro up ONP Open Net work Pro visi on OPTA Onaf han kelij ke P ost en Te lecom mu nicatie Auto rite it

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OTEL O Office o f th e Telec om mu nicatio ns Om bu dsm an PAB X Priva te Au to matic Branch e Xch ange PAC Pu blic Acco un ts C om mitte e PD Prima ry D oc PTO Pu blic Telec om mu nicati on Operat or PTT Po st, Telegra ph y and Tel eph on y QDA Qualitat ive Data An alysis RA Rad ioco mm un icatio ns Ag en cy RAU Radio Auth ority RDR Rijksdi enst vo or het Radio verke er (D utch Radio co mm un ication s Agenc y) RoI Retu rn o n In vest ment RPI Ret ail P rice In dex SGT Sub stantive Grou nd ed The ory SIM Su bscrib er Id entity M od ule SMP Si gn ifican t M arket P owe r SMS Sh ort Messag e Ser vice s SMSC Sh ort Messag e Ser vice Cen tre SP Service P ro vid er SSUR Sou s-Syst ème Utili sateu r po ur le RNIS sTN Stichtin g T eleco mgebru iker s Nederlan d ( Du tch Telec om mu nica tion s Use r Co un cil) STS Socio -Te chnical Syst em(s) TAC Telec om mu nica tion s Ad vis ory Com mitt ee TACS Total Access Ce llu lar Sy stem TMA Telec om mu nica tion s M anag ers Ass ociati on TND Direc tie To ezicht Net werke n e n D ienste n TTE Telec om mu nica tion s T erm in al Equip ment UK Un ited Kingd om UMTS Unive rsal M ob ile Telec om mu nicati on s Syste m WEO We ll E stabl ished Op erato r

OTELO Office of the Telecommunications Ombudsman

PABX Private Automatic Branch eXchange

PAC Public Accounts Committee

PD Primary Doc

PTO Public Telecommunication Operator

PTT Post, Telegraphy and Telephony

QDA Qualitative Data Analysis

RA Radiocommunications Agency

RAU Radio Authority

RDR Rijksdienst voor het Radioverkeer (Dutch Radiocommunications Agency)

RoI Return on Investment

RPI Retail Price Index

SGT Substantive Grounded Theory

SIM Subscriber Identity Module

SMP Significant Market Power

SMS Short Message Services

SMSC Short Message Service Centre

SP Service Provider

SSUR Sous-Système Utilisateur pour le RNIS

sTN Stichting Telecomgebruikers Nederland (Dutch Telecommunications User Council)

STS Socio-Technical System(s)

TAC Telecommunications Advisory Committee

TACS Total Access Cellular System

TMA Telecommunications Managers Association

TND Directie Toezicht Netwerken en Diensten

TTE Telecommunications Terminal Equipment

UK United Kingdom

UMTS Universal Mobile Telecommunications System

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Table of Figures

Figure 1 Overview of (potentially conflicting) objectives and tensions in the mobile

telecommunications market ... 15

Figure 2 Structure of this thesis ... 23

Figure 3 Phases of governance in the telecommunications market in Europe ... 27

Figure 4 Year of publication of the 165 references on regulation of mobile telecommunications markets (1989-2019) ... 36

Figure 5 Year of publication of the 45 references on regulation of mobile telecommunications markets (2003-2019) ... 45

Figure 6 Progression of theory development in GT (copied from (Urquhart, Lehmann and Myers, 2010, p. 364)) ... 60

Figure 7 An overview of variants of the Grounded Theory approach, based on (Morse, 2009, p. 17) 62 Figure 8 Research flow diagram ... 71

Figure 9 Example of a regulatory dossier with high intensity, with a high number of different activities, and an extended timeframe: Mobile Number Portability in the United Kingdom (PD16) (Ubacht, 2016). ... 152

Figure 10 Example of a regulatory dossier with relatively low intensity, with few activities, but an extended timeframe: lifting the SIM lock on mobile phones in the Netherlands (PD3) (Ubacht, 2016). ... 153

Figure 11 Visualization of the core category Matching and Mixing ... 157

Figure 12 Dimension Phases and its categories ... 160

Figure 13 Dimension Uncertainties and its categories ... 165

Figure 14 Dimension Fine-tuning and its categories ... 167

Figure 15 The first version of the conceptual framework of regulatory practice in the mobile telecommunications system ... 170

Figure 16 Search strategy on conceptualization of ‘regulatory practice’ ... 177

Figure 17 Example of an enforcement pyramid from (Ayres and Braithwaite, 1992, p. 35) ... 189

Figure 18 Final conceptual framework of Exploratory Regulatory Practice ... 204

Table of

Fig

ure

s

Figu re 1 Over vie w of (pote ntiall y con flictin g) ob jecti ves and ten sio ns in the mo bile telec om mu nica tion s m arke t ... ... 15 Figu re 2 Structure of t his th esis ... ... 23 Figu re 3 P hases of go verna nce in t he t elec om mu nicati on s m arket in Eur op e ... .... 27 Figu re 4 Ye ar o f p ub licatio n o f the 16 5 ref erences on regu lation o f m ob ile telec om mu nica tion s mark ets (19 89 -20 19 ) ... ... 36 Figu re 5 Ye ar o f p ub licati on o f the 45 ref erences on regu latio n o f m ob ile telec om mu nicati on s mark ets (20 03 -20 19 ) ... ... 45 Figu re 6 P rogres sion o f th eory d evel op ment in GT (cop ied fro m (Urq uh art, L eh man n an d M yers , 20 10 , p. 36 4)) ... ... ... 60 Figu re 7 An o verv iew o f var iants of t he Grou nd ed The ory app roach , based on (M orse, 20 09 , p. 17 ) 62 Figu re 8 Rese arch flo w d iagram ... ... 71 Figu re 9 Exam ple of a re gu lato ry d ossier with h igh in ten sity, with a hig h n um ber of diff erent activiti es, an d an ex ten ded tim efram e: Mo bile Nu mb er P ortabi lity in the Unit ed Kin gd om (P D1 6) (Ubacht, 20 16 ). ... ... ... 1 52 Figu re 1 0 E xamp le of a re gu latory do ssier with relative ly lo w in ten sity, with few activities , b ut an exte nd ed ti mefra me: liftin g the SIM lo ck on m ob ile ph on es in th e N eth erland s (P D3 ) (Ub acht, 20 16 ). ... ... 15 3 Figu re 1 1 Visu alizatio n o f th e co re cate go ry M atch ing a nd Mixin g ... ... 1 57 Figu re 1 2 D im ensio n P ha ses and its cate go ries ... ... 16 0 Figu re 1 3 D im ensio n Un certain ties an d its cat egori es ... ... 16 5 Figu re 1 4 D im ensio n Fine -tu nin g an d its catego ries ... ... 16 7 Figu re 1 5 The first versio n o f the con ceptua l fra mew ork of regulat ory p ractice in the m ob ile telec om mu nica tion s sy ste m ... ... 17 0 Figu re 1 6 Search s trategy on co ncep tualiz ation o f ‘reg ulato ry practic e’ ... ... 1 77 Figu re 1 7 E xam ple of an en forc em ent pyra mid fro m ( Ayres and Brai thwaite , 1 99 2, p. 35 ) ... 18 9 Figu re 1 8 Fin al con ceptual frame work of Expl oratory Regu lator y P ra ctice ... ... 2 04

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Glossary

Glo ssary Tab le 1 Ge ne ration s of m ob ile ne two rks and th eir serv ice s in th e E U Gen erati on s of mob ile netw ork s Tran smis sio n/fr eq ue ncy ban d Stan dar d Servi ces Op erati on al from: 1st (1G) An alogu e , 450 MHz No Eu rop ean Stan dar d: N MT, C -NET or T ACS Vo ice on ly 1980 2nd (2G ) Digi tal, 900 MHz an d 1800 MHz GSM, GPR S, E DGE Vo ice & data tr ansmis sio n 1990 3rd ( 3G) Digi tal, 1885 -2200 MHz IMT-2000/UM TS Vo ice , In tern et ac ces s, vid eo call s 2000 4th ( 4G) Digi tal, 800 -900 MHz an d 1800-2600 MHz LTE (b ased in Inte rnet Pro toco l) Broad ban d mo bile servi ce s 2009 5th ( 5G) Digi tal, 700 -1400 MHz , 2100 MHz an d 3 .5 G Hz. 5G N ew Rad io (N R) Real t ime data e xch ange , Inte rnet o f Th in gs app lic atio ns 2019 Table 1 a nd the desc rip tio ns o f the n etwo rk g en era tio ns a re ba sed on (Bek kers & Sm its , 1995; D e R eu ver, 2009; Mars de n, 2010; T eh rani, V ahid , T rian tafyllo po ulo u, L ee & M oes sn er, 2016 ; Van de Kaa & G reeve n, 2017; Su ryaneg ara, Mi rfanan da, A svial & Hayati, 2018)

1G ne

tw

ork

First Generatio n ( 1G) mo bile net wo rk, op erating o n anal ogu e tran sm ission, fro m the 1 98 0s on wards. There was no Eur op ean stand ard; each cou ntr y c ho se th eir o wn st and ard, e.g. No rdic Mo bile Telep ho ne (NM T), C-N et, To tal Acce ss Cellu lar Syst em (T ACS). Onl y v oic e te leph on y was supp ort ed and the netw ork lack ed in tero perab ility which d id n ot allo w fo r (in terna tio nal) ro am ing. Frequ ency ban d: 4 50 M Hz.

2G ne

tw

ork

Secon d Genera tion (2 G) ce llu lar n etwo rk, first genera tion with dig ital tran smissi on , fro m the 19 90 s on wards. In EU Mem ber State s the Glo bal Syste m f or Mo bile Co mm un icatio ns (GS M) stand ard was chosen, which enab led (inte rnati on al an d n ation al) ro am ing. At the start main ly focus ed o n v oic e telep ho ny, later e vo lutio ns are General P acke t Rad io Servic e (GP RS) (in dicate d as 2.5G and ED GE (Enhan ced D ata fo r GS M Evo lutio n) ind icated as 2 .75G, allo wing fo r d ata transm issio n too . Frequ ency ban ds: arou nd 90 0 and 1 800 MH z.

Glossary

Glossary Table 1 Generations of mobile networks and their services in the EU Generations of

mobile networks

Transmission/frequency band

Standard Services Operational

from: 1st (1G) Analogue , 450 MHz No European Standard: NMT, C-NET or TACS Voice only 1980 2nd (2G) Digital, 900 MHz and 1800 MHz

GSM, GPRS, EDGE Voice & data transmission 1990

3rd (3G) Digital, 1885-2200 MHz IMT-2000/UMTS Voice, Internet access, video

calls 2000 4th (4G) Digital, 800-900 MHz and 1800-2600 MHz LTE (based in Internet Protocol)

Broadband mobile services 2009

5th (5G) Digital, 700-1400 MHz,

2100 MHz and 3.5 GHz.

5G New Radio (NR) Real time data exchange,

Internet of Things applications

2019

Table 1 and the descriptions of the network generations are based on (Bekkers & Smits, 1995; De Reuver, 2009; Marsden, 2010; Tehrani, Vahid, Triantafyllopoulou, Lee & Moessner, 2016; Van de Kaa & Greeven, 2017; Suryanegara, Mirfananda, Asvial & Hayati, 2018)

1G network

First Generation (1G) mobile network, operating on analogue transmission, from the 1980s onwards. There was no European standard; each country chose their own standard, e.g. Nordic Mobile Telephone (NMT), C-Net, Total Access Cellular System (TACS). Only voice telephony was supported and the network lacked interoperability which did not allow for (international) roaming. Frequency band: 450 MHz.

2G network

Second Generation (2G) cellular network, first generation with digital transmission, from the 1990s onwards. In EU Member States the Global System for Mobile Communications (GSM) standard was chosen, which enabled (international and national) roaming. At the start mainly focused on voice telephony, later evolutions are General Packet Radio Service (GPRS) (indicated as 2.5G and EDGE (Enhanced Data for GSM Evolution) indicated as 2.75G, allowing for data transmission too. Frequency bands: around 900 and 1800 MHz.

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3G network

Third Generation (3G) cellular network. Based on the IMT-2000 standard for higher bandwidth, suitable for e.g. internet access and video calls in addition to voice, from 2000 onwards. Evolutions are 3.5 and 3.75. In Europe also known as Universal Mobile Telecommunications System (UMTS). Frequency bands: 1885-2200 MHz.

4G network

Fourth Generation (4G) cellular network. Based on Internet Protocol: Long Term Evolution (LTE) standard, from 2009 onwards. Provides for full broadband mobile services. Frequency bands: 800-900 MHz and 1800-2600 MHz.

5G network

Fifth Generation (5G) cellular network. High bandwidth for real time data exchange and Internet of Things applications, from 2019 onwards. Frequency bands: 700-1400 MHz, 2100 MHz and 3.5 GHz.

Asymmetric regulation

Asymmetric regulation is basically “requirements imposed on incumbent producers [that] differ from those imposed on new entrants” (Sappington and Weisman, 1996, p. 10). In a more general sense asymmetric regulation is the regulator’s choice to impose requirements on specific market parties within a regulated market with the aim to annul (potential) negative consequences from an imbalance in market power.

Carrier (Pre) Selection (CPS)

Carrier (pre)selection refers to the possibility of callers to determine the operator for each separate call by means of dialing a prefix or by setting a preferred operator for all of their calls.

Competition engineering

Competition engineering refers to regulatory activities to stimulate market competition. It is in contrast with monitoring a market with effective competition which is usually under the jurisdiction of an NCA.

Dimension

In a GT approach, the properties linked to the empirical data are merged into conceptual (sub) categories in the selective coding phase. Subsequently, towards a higher level of coding these categories represent a dimension (Urquhart, 2001). A dimension thus represents a set of interrelated categories.

3G ne

tw

ork

Third Generatio n ( 3G) cellu lar n etwo rk. Based o n t he IMT-2 00 0 stand ard fo r h igh er b and width, suitabl e fo r e.g . in tern et a ccess and v ideo call s in ad ditio n t o v oic e, fr om 2 00 0 o nwards. E vo lutio ns are 3 .5 an d 3 .75. In Eur op e also kno wn as Unive rsal M ob ile Telecom mu nicati on s Syst em (UM TS). Frequ ency ban ds: 18 85 -22 00 M Hz.

4G ne

tw

ork

Fou rth Gen eratio n ( 4G) cellu lar n etwo rk. Based on In tern et P ro to co l: L on g T erm Ev olu tio n ( LTE ) standard , fro m 2 00 9 o nwa rds. Pro vid es fo r fu ll b road ban d m ob ile services. Fr eq uency b and s: 8 00 -90 0 M Hz and 18 00 -26 00 M Hz.

5G ne

tw

ork

Fifth Generation (5 G) cellu lar n etwo rk. Hig h b and width for real tim e d ata e xchan ge and In tern et o f Things app licatio ns, from 20 19 o nwards. Fr equen cy b and s: 7 00 -14 00 MH z, 2 10 0 M Hz and 3.5 GHz.

Asy

mme

tric

reg

ula

tio

n

Asymm etric regu lation is basical ly “ require ments im po sed on in cum bent pro du cers [th at] diff er from th ose im po sed o n n ew en trants ” (Sap pin gto n an d We ism an, 19 96 , p . 1 0). In a mo re g eneral sense as ym met ric regu latio n is the regu lato r’s cho ice to i mp ose requir ements o n specifi c m arket parties within a regulated mark et with the ai m to an nu l (po ten tial) n egative con sequences from an imb alan ce in mar ket po wer.

Carr

ier (P

re)

Se

lec

tio

n (C

PS)

Carrier (pre)se lecti on ref ers to the po ssibilit y o f call ers to d eterm ine the o per ato r fo r ea ch separa te call by means of dia lin g a prefix or by settin g a pref erred o per ator fo r all of their calls.

Cate

gory

In a GT ap pro ach, the p rop erties lin ked to th e em piri cal d ata are m erged in to c on ceptual (sub ) catego ries in the selectiv e co din g p hase. Once th e co nceptual cate go ries e merg e, they repr esen t a set o f dim ensio ns (Urqu har t, 2 00 1).

Com

pet

iti

on e

ngine

ering

Com pet itio n eng inee ring refe rs to regu lato ry acti viti es t o s timu late m arke t c om pet itio n. It is in con trast with m on itorin g a m arket wi th effec tive co mp etitio n which is usua lly un der the ju risdictio n of a n N CA.

Dimensio

n

In a GT ap pro ach, the p rop erties lin ked to th e em piri cal d ata are m erged in to c on ceptual (sub ) catego ries in the selec tive cod ing ph ase. Su bsequ ently, t ow ards a h igh er lev el o f c od ing these catego ries repr esent a d imensi on (Urq uh art, 2 001 ). A d imension thus rep resen ts a set of inte rrelated cat egori es.

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Doss

ier

A (regu lato ry) d ossier is a series o f d ocu men ts tha t p ertain to a specifi c m arke t issu e an d r epresent the sequ ence of regu lato ry act ivities to de vel op a reg ulato ry arran gem ent.

En

d user c

amp

aign

An e nd u ser ca mp aign in clu des all acti vitie s to rai se co nsum er aw areness o n cho ice an d p rices, such as th e p ub licati on o f info rm atio n leafl ets, websi tes to info rm end u sers, and info rmatio n package s.

En

d user s

urv

ey

An end u ser sur vey m eans that the N RA m akes an an alysis o f end u ser b ehavio r in u sing mo bile telep ho ny.

Enf

orc

em

en

t a

cti

vit

ies

En force ment activ ities re prese nt the in terv entio ns that an N RA tak es t o s olv e a m arket issue. Examp les are b eh avio ral d irectio ns such as a d esign atio n o f SM P, penal ties o r a licence ad aptat ion (Ubacht, 20 16 ).

Ex

ante

reg

ulat

ion

A fo rm o f m arket in terv en tion that is ap plied bef ore a m arke t is sue ari ses, e.g. ob ligatio ns fo r net wo rk o pera tors to provi de for wholesale access to SP s.

Ex

pos

t r

egu

lati

on

A fo rm o f regu latio n that is ap plied afte r a m arket iss ue occurs , e.g . when anti -co mp etiti ve behavi or takes pla ce, o r a m arket party or e nd user lo dges a c om plai nt with the regu lato ry auth ority.

Fine

-tu

ning

In d evel op ing a regu latory arr angem ent, an N RA can fo rmu late details such as to which sele ction o f mark et p arties the arran gem ent ap plies or for which specifi c p eriod o f ti me that the arran gem ent is app licab le.

Indir

ect

acc

ess

Ind irect acc ess it the te rm that refe rs to the techn olo gical o ptio n in an acc ess n etw ork fo r an end user to ch oo se an al tern ative op erato r fo r ro utin g th e call v ia an oth er n etw ork, by dial ing an acce ss cod e b efore each call. An in direct access pro vid er can co ntr ol the traffic of a call as so on a s it leav es the m ob ile netw ork and th us becom es m ore ind epend ent o f th e M NO. Witho ut ind irect acc ess, th e SP is dep endent on th e M NO for packag ing and tari ffin g o f th e to tal call (Of tel, 1 99 9c) .

Inter

con

nect

ion

In the Dir ective 97 /3 3/E C of the Eu rop ean P arli am ent a nd of the Cou nci l of 30 J un e 1 99 7 on inter con nectio n in Teleco mmun ica tions with rega rd to ensu rin g u niver sal se rvic e a nd in terop era bility throu gh app lica tion of t he prin cip les of Op en Netw ork Pro vision (ON P) interc on nect io n is defin ed as: “the ph ysic al an d lo gical li nkin g o f te leco mm un icatio ns net works used by the s ame or a d ifferen t org aniz ation in o rder to all ow the users of on e o rgan izatio n to co mm un icate wit h u sers o f the sam e or ano ther o rgan izatio n, or to a ccess servic es p rovid ed b y an other org aniz ation . Service s m ay b e

Dossier

A (regulatory) dossier is a series of documents that pertain to a specific market issue and represent the sequence of regulatory activities to develop a regulatory arrangement.

End user campaign

An end user campaign includes all activities to raise consumer awareness on choice and prices, such as the publication of information leaflets, websites to inform end users, and information packages.

End user survey

An end user survey means that the NRA makes an analysis of end user behavior in using mobile telephony.

Enforcement activities

Enforcement activities represent the interventions that an NRA takes to solve a market issue. Examples are behavioral directions such as a designation of SMP, penalties or a licence adaptation (Ubacht, 2016).

Ex ante regulation

A form of market intervention that is applied before a market issue arises, e.g. obligations for network operators to provide for wholesale access to SPs.

Ex post regulation

A form of regulation that is applied after a market issue occurs, e.g. when anti-competitive behavior takes place, or a market party or end user lodges a complaint with the regulatory authority.

Fine-tuning

In developing a regulatory arrangement, an NRA can formulate details such as to which selection of market parties the arrangement applies or for which specific period of time that the arrangement is applicable.

Indirect access

Indirect access it the term that refers to the technological option in an access network for an end user to choose an alternative operator for routing the call via another network, by dialing an access code before each call. An indirect access provider can control the traffic of a call as soon as it leaves the mobile network and thus becomes more independent of the MNO. Without indirect access, the SP is dependent on the MNO for packaging and tariffing of the total call (Oftel, 1999c).

Interconnection

In the Directive 97/33/EC of the European Parliament and of the Council of 30 June 1997 on interconnection in Telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP) interconnection is defined as: “the physical and logical linking of telecommunications networks used by the same or a different organization in order to allow the users of one organization to communicate with users of the same or another organization, or to access services provided by another organization. Services may be

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provided by the parties involved or other parties who have access to the network” (European Parliament and the Council of the European Union, 1997b).

Interoperability

Interoperability refers to the ability of services to operate over a diversity of infrastructural components owned by several operators. A definition of interoperability is as follows: “Interoperability means the technical features of a group of interconnected systems (‘systems’ includes equipment owned and operated by the customer which is attached to the public telecommunication network) which ensure end-to-end provision of a given service in a consistent and predictable way” (Oftel, 1997c, art. 1.6).

Market Influence (MI)

The term Market Influence is used to label a market player that is deemed to have significant market power (SMP) in a specific market segment. This term is used in the United Kingdom. MNOs that are deemed to have SMP or MI fall under a separate regime with detailed rules that aim at leveling its dominant market position in order to protect the position of the operators without SMP or MI and (independent) SPs.

Market issue

In this study a market issue is any reason for an NRA to perform activities in order to develop a regulatory arrangement.

Market power

Market power is defined by Intven, Oliver & Sepúlveda as “the power to unilaterally set and maintain prices or other key terms and conditions of sales; that is without reference to the market or to the actions of competitors” (Intven, Oliver & Sepúlveda, 2000a, p. 5.1).

Market review

A market review refers to an in-depth analysis into the structure, conduct and performance of a (relevant) market.

Market survey

A market survey means that the NRA sets up performance criteria and investigates how the market players perform on them (e.g. end user tariffs).

Mobile coverage

Mobile coverage refers to the geographical area in which an end user has access to a mobile network in order to establish a connection by means of mobile end user equipment.

Mobile number portability

Mobile number portability allows end users to switch from one MNO or SP to another, while retaining their mobile number.

pro vid ed b y the parti es in vo lved or other partie s who h ave access to the net wo rk” (Europ ean Parl iam ent and the C

ou ncil of the Eu ro pean Un io n, 1 99 7b ).

Inter

op

erab

ilit

y

Inte rop erabilit y refe rs to the abilit y of serv ices t o op erate over a dive rsity o f in frastructur al com po nen ts owned by several op erato rs. A defin ition of intero pera bility is as fo llo ws: “In tero perab ilit y m eans t he techn ical fe atures o f a gro up o f in terc on nect ed sy stem s ( ‘syste ms’ inclu des equip ment own ed an d op erated by the custom er which is attached to th e p ub lic telec om mu nica tion n etw ork) which ensu re end -to -en d p rovisi on o f a giv en se rvice in a co nsist ent and predictabl e way ” ( Oftel, 1 997 c, ar t. 1.6 ).

Mar

ket

Inf

lu

enc

e (M

I)

The te rm Mark et In fluence is used to label a m arket p layer t hat is d eem ed to have sign ifican t m arket po wer (SM P) in a specific mark et s egment. This te rm is used in th e Un ited Kin gd om . M NOs that ar e dee med to h ave SM P o r M I fal l u nd er a separate regim e wi th d etail ed ru les that aim at lev eling its do min ant mar ket po sitio n in o rder to p ro tect the po sitio n o f the o perat ors witho ut SM P o r M I an d (ind ependent) SP s.

Mar

ket

iss

ue

In thi s stud y a market iss ue is an y reaso n fo r an N RA to p erform ac tiviti es in o rder to d evel op a regulato ry arran gem ent.

Mar

ket

p

ow

er

Marke t p owe r is defin ed b y In tven, Oliver & Sep úlve da as “ the p owe r t o u nilate rally set an d main tain p rices o r o ther k ey t erms and co nd itio ns of sales; that is wi thou t refe rence to the mar ket or t o t he actio ns of com pet itors ” (In tven, Oliver & Sep úlve da, 20 00 a, p. 5.1 ).

Mar

ket

re

view

A m arket rev iew refe rs to an in -d epth an alysis in to the structure, co nd uct and p erfo rm ance of a (relevan t) m arket .

Mar

ket

su

rvey

A m arket surve y m eans that the N RA set s u p p erform ance crite ria an d in vest igate s h ow the m arke t playe rs perfo rm o n t hem (e.g . end user tariffs) .

Mobi

le c

ove

rag

e

Mo bile co verag e ref ers to the geo grap hical area in which an end u ser h as acce ss t o a mo bile net wo rk in o rder to establ ish a co nn ectio n by means of mo bile end use r eq uip ment.

Mobi

le numb

er

port

abilit

y

Mo bile nu mb er p ortab ilit y all ows end u sers to s witch from o ne MN O o r S P t o an oth er, whil e retainin g t heir mo bile nu mb er.

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Mobi

le T

ermina

tio

n Tar

iffs (MTT

s)

Mo bile o perat ors charg e o ther (m ob ile and fix ed) o perato rs fo r ter min ating receiv ing calls on their net wo rk. These are the M TTs.

Mobi

le T

ele

comm

un

icatio

ns Sy

ste

m

In this study we con sider the m ob ile telec om mu nicatio ns syste m as the con stellatio n of the institutio nal, mu lti-act or and te chnical sub syste ms that in in teractio n p rovid e fo r the fun ction ing of the d elivery o f m ob ile telec om mu nicati on s s ervic es t o societ y. The in tera ction s b etw een th e subsy stem s crea te u ncerta inties fo r th e fu ncti on ing of the syste m as a wh ole. As such , th e m ob ile telec om mu nica tion s sy ste m c an b e rega rded as a co mp lex soci o-t echnical syst em (see sec tion 1 .3).

Nati

ona

l Reg

ulat

ory

Aut

hori

ty (

NR

A)

In t his st ud y a n ation al regu latory auth ority is rega rded as a pu blic o rgan izatio n w ith t he legal task to perfo rm acti viti es to p rovi de for fair com petitio n an d to saf eguard p ub lic valu es in a net wo rk-b ased mark et in which the servic es are pro vid ed b y c om mercial acto rs, and fo r which p ub lic inte rests are legall y f orm ula ted .

New R

egu

latory F

rame

wor

k

Five years aft er the o fficial liberali zatio n d ate fo r the Eu rop ean telec om mu nicatio ns secto r in 19 97 , a New Regu lato ry Fram ewo rk [NRF] was im ple ment ed in the EU M em ber State s. T he NRF is b ased o n the p ercep tio n that co mp etitio n in the telec om mu nic ation s m arkets has increa sed and that secto r-specific regulati on can m ove into the direc tion o f regu latio n based on co ncep ts o f m arke t do min ance in g eneral co mp etitio n law. After the tran spositio n o f the NRF in to n ation al la w an d jurisd ictio n, thoro ugh ec on om ic m arket an alyses becam e th e b ase o f all regu latio n b y N RAs. This new ap pro ach is no t p art of ou r e mp irical data that is li mite d to the five y ear p eriod b efore the imp lem entatio n o f the NRF in 20 02 .

Net

wor

k-ba

sed

mark

et

A n etw ork -b ased mark et is a mark et in which the pro visi on o f ser vice s to th e ge neral pu blic is b ased on a te chnical in frastructure that requ ires h igh u pfro nt inve stm ents, wi th lo ng term s fo r ret urn o n invest men t (R oI) and stran ded asset s.

Net

wor

king ac

tiv

itie

s

The n etw orkin g acti vities are those activ ities that ei ther an other nati on al o r in tern ation al regu lato ry autho rity perf orm s within an N RA d ossier, o r the o ther wa y ar ou nd : th e ac tivitie s that an N RA perfo rm s fo r o ther re gu lato ry o rgan izati on s (Uba cht, 20 16 ).

OFTE

L F

orm

ula

The OFTE L Fo rm ula is a fo rm ula used fo r p rice cap re gu lation that is b ased on th e retail price ind ex (RPI). This R PI-X fo rmu la i s d efined as “[t] he syst em o f p rice co ntro l wher e a verag e an nu al p rice chan ges for the p rice-con tro lled service s are lim ite d t o the increa se in in flatio n ( as m easured by the Retail P rice In dex ) less a sp ecified nu mb er (X) ” (Of tel, 20 00 a, An nex F).

Mobile Termination Tariffs (MTTs)

Mobile operators charge other (mobile and fixed) operators for terminating receiving calls on their network. These are the MTTs.

Mobile Telecommunications System

In this study we consider the mobile telecommunications system as the constellation of the institutional, multi-actor and technical subsystems that in interaction provide for the functioning of the delivery of mobile telecommunications services to society. The interactions between the subsystems create uncertainties for the functioning of the system as a whole. As such, the mobile telecommunications system can be regarded as a complex socio-technical system (see section 1.3).

National Regulatory Authority (NRA)

In this study a national regulatory authority is regarded as a public organization with the legal task to perform activities to provide for fair competition and to safeguard public values in a network-based market in which the services are provided by commercial actors, and for which public interests are legally formulated.

New Regulatory Framework

Five years after the official liberalization date for the European telecommunications sector in 1997, a New Regulatory Framework [NRF] was implemented in the EU Member States. The NRF is based on the perception that competition in the telecommunications markets has increased and that sector-specific regulation can move into the direction of regulation based on concepts of market dominance in general competition law. After the transposition of the NRF into national law and jurisdiction, thorough economic market analyses became the base of all regulation by NRAs. This new approach is not part of our empirical data that is limited to the five year period before the implementation of the NRF in 2002.

Network-based market

A network-based market is a market in which the provision of services to the general public is based on a technical infrastructure that requires high upfront investments, with long terms for return on investment (RoI) and stranded assets.

Networking activities

The networking activities are those activities that either another national or international regulatory authority performs within an NRA dossier, or the other way around: the activities that an NRA performs for other regulatory organizations (Ubacht, 2016).

OFTEL Formula

The OFTEL Formula is a formula used for price cap regulation that is based on the retail price index (RPI). This RPI-X formula is defined as “[t]he system of price control where average annual price changes for the price-controlled services are limited to the increase in inflation (as measured by the Retail Price Index) less a specified number (X)” (Oftel, 2000a, Annex F).

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Policy making

In this study we reserve the term ‘policy making’ for the national level of governance, which is the realm of national Ministries that are responsible for developing the policy framework consisting of laws and regulations for the telecommunications market.

Personal number/personal numbering service

A personal number is “[A] number, allocated by a [Personal Numbering SP] to a person (or organization), which is not itself linked to a network. A Personal Number is independent of a terminating network operator, and it is that independence which enables end users to control the delivery of incoming calls so that they can be reached anywhere, irrespective of location” (Oftel, 2001d, glossary). For example, In the United Kingdom these PNS were recognizable by the 070 numbering range.

Premium Rate Service

Premium Rate Services are “special services commonly containing information or entertainment accessed by dialing a special telephone number. Customers pay for both the service and the call through their normal telephone bill” (Oftel, 2001d, point 3.7). For example, the 09-numbering range in the United Kingdom is reserved for Premium Rate services.

Privatization

Privatization entails a change in the owner structure of a firm from state into private hands. Moran and Prosser state that “Privatisation,…is not so much a retreat of the State, as a shift in the modes of intervention from ownership to regulation” (Moran and Prosser, 1994b, p. 7).

Procedural activities

The procedural activities are the activities of (mainly but not exclusively) the regulatory authority to support the process of dealing with a market issue (Ubacht, 2016).

Property

In a GT approach, a property is the lowest code that is linked to empirical data in the open coding phase. During the selective coding phase the properties are merged into conceptual (sub) categories. Once the conceptual categories emerge, they represent a set of dimensions (Urquhart, 2001).

Public reports/publication of reports

A public report or publication of reports is the means by which the NRA reports publicly on its decisions or e.g. on its survey on performance criteria on the basis of market surveys or on analyses of end user complaints.

Public value

The term ‘public values’ is used to indicate that there are specific interests that come into a danger zone when economic reasons reign in sectors that are regarded as serving public interests. A common set of public values can be discerned for the telecommunications networks as they offer essential services to users who rely on the network for social and economic reasons. Social reasons

are for example access to information and being able to reach emergency services. Economic

_making

_Policy

In thi s stud y w e rese rve th e te rm ‘p olicy m akin g’ fo r the nati on al le vel o f g over nan ce, which is the realm o f n ation al M inistri es that are respon sible for dev elo pin g the po licy fra mew ork con sistin g o f laws and re gu latio ns f or the tel eco mm un icatio ns mar ket.

Pers

onal

number/

pers

ona

l nu

mbering

ser

vic

e

A p erson al n um ber is “[A] n um ber, allo cated by a [Pe rso nal Nu mb ering SP ] t o a p erson (o r org aniz ation ), which is no t itself lin ked to a net wo rk. A Perso nal Nu mb er is in depend ent o f a term inatin g n etw ork op erato r, an d it is that ind epen dence which enab les end u sers to co ntro l the deliv ery of inco min g call s so tha t the y can b e rea ched an ywh ere, irr espectiv e o f lo catio n” (Ofte l, 20 01 d, glo ssary) . F or exa mp le, In the Unit ed Kin gd om thes e P NS were recog niz able by the 0 70 nu mb ering rang e.

Premi

um

Rat

e S

ervi

ce

Pre miu m Rat e Ser vice s ar e “ special serv ices co mm on ly c on tainin g in fo rmatio n o r entert ainm ent access ed b y d ialin g a special te leph on e n um ber. Custo mers p ay fo r b oth the s ervic e an d th e call throu gh their no rm al te leph on e b ill” (Oft el, 2 00 1d, po int 3.7 ). For exa mp le, the 09 -n um berin g ran ge in t he Unit ed Kingd om is re served fo r P rem ium Rate serv ices.

Privatiza

tio

n

Priva tizatio n entail s a chan ge in the o wner structur e o f a firm fro m s tate into p rivate h and s. M oran and P rosse r state th at “P rivatisatio n,… is not so m uch a retreat of t he State , as a shi ft in th e m od es o f inte rven tion fro m o wnersh ip t o r egulatio n” (M oran and Pro sser, 1 99 4b , p. 7).

Proc

ed

ural a

cti

vit

ies

The p roce du ral acti vitie s are the activ ities o f (m ainly bu t n ot exclu sively ) th e re gu latory auth ority to supp ort the pro cess of d ealin g w ith a mark et is sue (Ub acht, 20 16 ).

Prop

ert

y

In a GT ap pro ach, a p ro perty is the lowe st co de that is lin ked to e mp irical data in the op en co din g ph ase. D urin g t he selec tive c od ing ph ase th e p rop erties are m erged int o c on ceptu al (sub ) cate go ries. Once th e co nceptual cate go ries em erge, t hey rep rese nt a set of di mensions (Urq uh art, 2 00 1).

Pu

blic

rep

orts/

pu

blic

ation o

f re

ports

A p ub lic report or pu blicatio n o f r eports is th e m ean s b y which the NRA rep orts pu blicly o n its decisio ns or e.g. o n its survey o n p erform ance criteria o n the basis of mark et sur vey s o r o n an alyses of e nd u ser co mp lain ts.

Pub

lic val

ue

The te rm ‘p ub lic valu es’ is used to in dicate that ther e are specific inte rests that co me into a dan ger zo ne when e con om ic r easo ns reig n in s ecto rs that are regar ded as serv ing pu blic inte rests. A com mo n set o f p ub lic valu es ca n b e d iscerned fo r th e te leco mm un ication s n etwo rks as they o ffer essen tial serv ices to u sers who r ely o n the net wo rk f or so cial an d e con om ic reaso ns. Social reas on s are f or exa mp le a ccess t o in fo rmatio n an d b eing able to re ach e mergen cy ser vices. Ec on om ic

(19)

reason s ar e that the t eleco mm un icatio ns net wo rks p rovid e n ot on ly a ccess to in form atio n an d com mu nica tion but also perfo rm as an ess ential inf rastructur e fo r trad ing and finan cial t ransacti on s.

Regu

latio

n

The d efinitio n of ‘regu latio n’ is b y no m ean s str aigh tforward . P ro sser discu sses that various meani ngs are att ribu ted t o the con cept o f r egulati on (P ro sser, 19 97 , p . 4 -6 ). Meani ngs that are distin ctive regard ing the le vel at which the con cept is defin ed, b ut also d ependent on th e cul tural settin g in which t he act o f regu latio n is defined. The lev el o f d efinitio n can ran ge from an ab stract app roach to regu latio n as “th e act of con trollin g, directin g, o r go verni ng acc ord ing t o a rule, pri ncip le o r syst em” (P ro sser, 1 99 7, p . 4) to a ver y specific level as “ the leg al ru les an d other measur es which ex press such com man d and co ntro l arran gem ents, con trasted with o ther fo rm s o f law such as crim inal and co ntract law ” (P ro sser, 19 97 , p. 4). Pro sser n otes that th e cho ice of a d efiniti on also d epend s o n the cul tural set ting in which regulatio n is based or in which the pers on wh o d efin es the co ncept of regula tion is wo rking. For exam ple, in co un tries such as the Un ited Kin gd om , in which laws are n ot extensi vely u sed, the latt er defin ition do es n ot match with th e re gu lato r’s practic e. Pro sser offer s an alt ernati ve to the defin iti on o f reg ulatio n b y l oo king at the co mm on c on cepts of the v ario us defin itio ns and fo rm ulates the fo llo wing defin ition : “ pu blic inte rventio ns which affe ct the o perati on o f m arkets th rou gh co mm and an d c on tro l” (P ro sser, 19 97 , p . 4 ). In a com ment to thi s defin ition Pro sser ad ds th at com man d and co ntr ol sho uld not be con sidered t oo strictly, bu t can also be filled in b y m eans o f alterna tive arran gem ents such as self-regu lation . W hat we m iss in thi s defin ition is the level of th e in terv entio n, mo re specifi cally: the actor that acts by means of the inte rven tion . Theref ore , b ased o n P ro sser’s defin itio n an d d iscussi on , we wil l u se th e f ollo wing defin ition o f regulati on in th is thesis: Regula tion is pu blic in terve ntion b y sector -spec ific reg ula tory au thorities that aff ects the oper ation of mar kets . This d efinitio n m eans that we fo cus o n in terv entio ns by Natio nal Regu lato ry Au thoritie s (N RAs) fo r the te lec om mu nicati on s m arket an d n ot on leg islati ve inte rventi on b y M inistri es or on the acti vities of Com pet itio n Au thori ties who ap ply generic com petitio n law to the mar ket. Neither do we lo ok into private regu latio n by means of mu tual agr eem en ts such as p rivat e co ntrac ts.

Regu

lator

y a

cti

vit

y

A regu latory ac tivity is an actio n that an N RA u nd ertakes in o rder to s olve a m arket i ssue. In thi s thesis we sp ecify t hese as either a p rocedu ral, enfo rcem ent, n etwo rkin g o r stra tegi c activ ity (s ee th e defin ition s o f th ese activiti es in th is gl ossar y).

Regu

lator

y a

rran

geme

nt

The regu lato ry arr ange men t is the resul t o f the regu latory p rocess to d eal wi th a m arket issu e. It c an take a vari ety of f orm s, e .g. an enfo rce ment o r o n the con trary a fo rbearan ce o f in terv ention .

reasons are that the telecommunications networks provide not only access to information and communication but also perform as an essential infrastructure for trading and financial transactions.

Regulation

The definition of ‘regulation’ is by no means straightforward. Prosser discusses that various meanings are attributed to the concept of regulation (Prosser, 1997, p. 4-6). Meanings that are distinctive regarding the level at which the concept is defined, but also dependent on the cultural setting in which the act of regulation is defined.

The level of definition can range from an abstract approach to regulation as “the act of controlling, directing, or governing according to a rule, principle or system” (Prosser, 1997, p. 4) to a very specific level as “the legal rules and other measures which express such command and control arrangements, contrasted with other forms of law such as criminal and contract law” (Prosser, 1997, p. 4). Prosser notes that the choice of a definition also depends on the cultural setting in which regulation is based or in which the person who defines the concept of regulation is working. For example, in countries such as the United Kingdom, in which laws are not extensively used, the latter definition does not match with the regulator’s practice.

Prosser offers an alternative to the definition of regulation by looking at the common concepts of the various definitions and formulates the following definition: “public interventions which affect the operation of markets through command and control” (Prosser, 1997, p. 4). In a comment to this definition Prosser adds that command and control should not be considered too strictly, but can also be filled in by means of alternative arrangements such as self-regulation. What we miss in this definition is the level of the intervention, more specifically: the actor that acts by means of the intervention. Therefore, based on Prosser’s definition and discussion, we will use the following definition of regulation in this thesis:

Regulation is public intervention by sector-specific regulatory authorities that affects the operation of markets.

This definition means that we focus on interventions by National Regulatory Authorities (NRAs) for the telecommunications market and not on legislative intervention by Ministries or on the activities of Competition Authorities who apply generic competition law to the market. Neither do we look into private regulation by means of mutual agreements such as private contracts.

Regulatory activity

A regulatory activity is an action that an NRA undertakes in order to solve a market issue. In this thesis we specify these as either a procedural, enforcement, networking or strategic activity (see the definitions of these activities in this glossary).

Regulatory arrangement

The regulatory arrangement is the result of the regulatory process to deal with a market issue. It can take a variety of forms, e.g. an enforcement or on the contrary a forbearance of intervention.