protectionist measures or special treatment of any specific companies would be counterproductive to achieving such objective and, in a longer term, would actually weaken the local sector by lowering standards and breeding complacency. Supportive measures would generally include (but may not necessarily be limited to): 1 Having due regard to an ability of the local industry to serve expanding local demand, including the demand created or expanded by policy interventions, in a sustainable manner. In this context, the Government will aim to avoid inducing sudden increases in demand for ICT products and services, especially when it is likely for such increases to be followed by abrupt contractions of such demand. The Government favours a gradual and sustainable ramp-up of the private sector capacity. Where appropriate, the Government will aim to time policy interventions in a counter-cyclical manner; 2 Encouraging foreign suppliers and investors to collaborate with the local private sector, as well as to contribute to upgrading of the local business environment; 3 Encouraging and, where appropriate, facilitating upgrading of the local ICT-related private sector, including by supporting establishment and subsequent development of a local ICT industry association (or a respective group within the Vanuatu Chamber of Commerce and Industry) as well as stronger collaboration between the industry, the academia, other entities contributing to capacity development and other stakeholders. Notwithstanding the above, the Government will not shy away from taking a more proactive role in developing the ICT sector (including, where necessary, by deploying or investing into telecommunications networks and/or redistributing It is important that such guidance and influence are subject to limits that ensure that the regulator is not subjected to day-to-day political decision making, but only to appropriately developed and promulgated transparent policies.” UAP-type levies) to meet the ultimate objective of this Policy, if the private sector will not prove capable to play the role envisaged in this Policy with a sufficient certainty. Where necessary, the Government will take appropriate actions to ensure that the national socio-economic development is not constrained by inadequate inputs from the private sector. However, even in such circumstances the Government will aim to limit its interventions to addressing the needs not met by the private sector only, and, where possible, will have an exit strategy allowing the market to take over, when its ability to do so is demonstrated. Sustainable Best Practice ICT Sector Governance The Government recognises that effective ICT sector development in general, and effective private sector participation in the socio-economic development in Approaches and Principles 37

Select target paragraph3