and expansion (at least where it is possible at all) are made more feasible and sustainable when the cost-base is reduced.
To the extent the Government participates in the ICT sector, especially
by developing its own ICT infrastructure (in particular the Government
Broadband Network (GBN)), it will follow the same approach as outlined
above. In this regard, the Government is prepared to consider procurement of
wholesale services provided by licensed service providers, as well as shared
use of telecommunications facilities when further expanding, upgrading and
strengthening its network.
The Government will also offer its facilities, infrastructure as well as
associated services for the use, on a wholesale basis, by the private sector subject
to demand and technical feasibility. It will also continue and enter into new
reciprocal mutually beneficial arrangements aimed to strengthen the national
infrastructure, such as exchanging redundant links to enhance resiliency of
telecommunications networks. The Government will engage into and implement
such arrangements in a fair and non-discriminatory manner.
Whenever Government’s activities have a potential to interfere with the
operation of the private sector, especially in case of its one-way wholesale
activities, the Government will exercise due care not to undermine sustainable,
fair and effective competition in the market. The Government will ensure that it:
(a) conducts such activities in a formal, transparent, fair, non-discriminatory and
competitively neutral manner; (b) adheres to the principle of cost-orientation
with a reference not merely to its own costs, but to the costs attainable by efficient
private-sector players; (c) sets its tariffs in a transparent manner; and (d) publishes
criteria and procedures for obtaining access to such infrastructure, facilities and
services. Outsourcing such activities to a third-party entity may also be considered
as an additional safeguard. The Government considers that such safeguards will
generally be sufficient to ensure that private-sector operations are not unduly
Although it may appear that embracing regionalisation
may have a negative effect on local jobs and businesses,
the Government does not believe that an artificial protection of local ICT sector players is an appropriate response.”
undermined. In any case, the Government will avoid implementing safeguards
that would unduly favour or protect specific market players.
The cautious approach, including cost-based price setting, may not be
applicable in cases where Government activities would not compete with private
sector players—neither presently (e.g., no one provides a similar service), nor
potentially (e.g., absent Government’s investments private players would not
invest into similar infrastructure). In such cases, the Government may decide to
subsidise the development of the market, for example by subsidising wholesale
services. The Government will seek, however, to ensure that such subsidy is
explicit and transparent. Furthermore, such interventions would have to be
reviewed from time-to-time as private sector investments and competition may
be made more feasible, including by: (a) new technologies; and (b) success of
Government’s interventions. Therefore the Government will seek to conduct such
Approaches and Principles
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