Radio  spectrum  will  be  licensed  separately  from  operator  licensing.  However,  it  is   expected  that  TAK  will  develop  procedures  which  allows  operator  and  spectrum  licensing   to  be  dealt  with  in  a  co-­‐ordinated  manner,  in  order  to  enhance  market  access.     8.2 Competition  issues   The  Government  recognizes  that,  in  the  current  environment  of  limited  or  no   competition,  market  regulation  is  needed  to  deliver  appropriate  outcomes  in  the  interests   of  service  providers  and  consumers.  However,  it  is  critical  that  the  regulatory  processes   are  appropriate  for  Kiribati  and  do  not  impose  an  unnecessary  burden  on  participants.   The  Government  is  determined  that  the  costs  of  regulation  should  not  drain  the  benefits   of  competition.     Kiribati  faces  a  number  of  very  significant  challenges  attracting  and  supporting  effective   and  sustainable  competition  in  key  markets,  including  mobile  services.  The  Government  is   committed  to  policies  which  will  support  new  entrants,  whilst  preserving  investment   incentives  for  incumbent  operators.  In  this  regard:   • • • 8.3 the  licensing  regime  will  be  flexible,  open  and  give  new  operators  the  freedom  to   offer  services  which  are  adapted  to  local  conditions;   the  regulatory  burden  imposed  on  market  participants  will  be  minimized,   enhancing    the  benefits  of  innovation  and  competition;  and   the  Government  will  encourage  (and  in  some  cases  require)  infrastructure   sharing,  described  in  section  8.5,  in  order  to  reduce  barriers  to  entry.   Tariff  policy   The  Government  believes  that  a  competitive  industry  structure,  where  market  forces   exert  control  on  the  behavior  of  telecommunications  operators,  is  the  most  appropriate   mechanism  for  delivering  appropriate  and  sustainable  tariffs  and  rates  to  consumers.   However,  until  a  competitive  industry  develops,  the  Government  acknowledges  that  tariff   and  rate  regulation  may  be  required  to  speed  up  a  transition  to  a  low-­‐prices-­‐high-­‐usage   sector.     In  these  circumstances,  the  Government  believes  that  it  could  be  appropriate  for  the  TAK   to  introduce  tariff  and  rate  regulation  requirements  for  dominant  operators.  The  focus  of   this  regulatory  intervention  will  be  on  ensuring  that  (i)  service  prices  are  cost-­‐oriented,  (ii)   consumers’  and  competitors’  interests  are  protected  and  (iii)  the  industry  develops  in  an   efficient  manner.       7