Trinidad and Tobago Case: Interconnection
... Transparence and Non Discriminatory • deposit with the Authority a copy of the agreement within twenty-eight days of its making • publication of the prices and technical and other terms and conditions pertaining to its offer in a manner prescribed by the Authority • offer other concessionaires the same terms and conditions on a non-discriminatory basis • quality of service and rates must be no less favourable than that provided to subsidiaries, affiliates or any other party to which the concessionaire provides interconnection. • access to telephone numbers, operator services, directory assistance and directory listing at a cost efficient rate 3. Pricing • Pricing must be cost-oriented and determined by a methodology agreed with the Authority. 4. Technical The Act requires the concessionaire to provide for • direct interconnection with the pubic telecommunications network or public telecommunications service of another concessionaire • indirect interconnection through the public telecommunications networks or public telecommunications services of other concessionaires • the transmission and routing of the services of other concessionaires, at any technically feasible point • to the extent technically feasible, number portability when required to do so and in accordance with the requirements prescribed by the Authority • dialing parity to other concessionaires of public telecommunication networks and public telecommunication services as prescribed by the Authority • Access to facilities such as buildings, ducts, towers and right of ways The regulatory framework sets out quite effectively the requirements for interconnection and the promotion of competition. However the real test will come in the implementation of these provisions and the management of relationships. It is going to be incumbent on the Authority to build and establish a culture of fairness, openness and credibility in the exercise of the regulatory powers to achieve the objectives established by the Act. Careful attention will have to be applied in the design of the regulatory procedures and processes in the discharge of its mandate. This more will be ultimate determining factor in the effective facilitation of interconnection between incumbents and new entrants. The Authority has recently drafted Interconnection Regulations which it bundled with its “Request for Proposals” and has invited comments from the prospective bidders. In my opinion the Authority should have taken the time to finalise the Interconnection Regulations before inviting bids for the following reasons: • A pubic consultation would have given much needed visibility to the newly established Authority while soliciting the views from many more stakeholders • A final position would have communicated greater certainty to prospective bidders • Successful bidders may experience delays if the incumbent takes issue with the draft regulations as a strategic ploy. Comparative Analysis In evaluating the Trinidad and Tobago position on interconnection I will focus on two dimensions: Method of setting interconnection charges and Processes for decision-making using a comparative study done by ITU in 1995 as shown in Tables 1 and 2. Table 1: Alternative Methods of Setting Interconnection Charges: International Experience. Country Method of Setting Interconnection Charges Does not cover method of determining charges for physical interconnection links Based on End-User Prices Based on Historic Cost Based on Forwarding Looking Cost Based on ECPR/Baumol-willig Australia X Canada X Chile X Hong Kong X Japan X (old system) X (new system) Sweden X New Zealand X X UK X US X +price cap Source: ITU Regulatory Colloquium No.4 Trinidad and Tobago X Table 2: Institutions and Processes for Decision-Making about Interconnection: International Experience Alternatives Alternatives used by Country Australia Japan Trinidad & Tobago Germany New Zealand UK US 1. Specifying general regulatory rules X X X 2. Deciding the terms of interconnection in specific cases from the outset X (for fixed service) 3. Relying on commercial negotiations between entrant and incumbent; regulator decides terms if they cannot agree. X X X X (formerly) X (for cellular) 4. Relying on commercial negotiation between the entrant and incumbent,but subject to approval of agreement by regulator X X X X 5. Resolution of disputes between parties, or review of regulator’s decisions, by authorities other than regulator, e.g. courts, arbitrator X X X Source: ITU Regulatory Colloquium No.4 On the basis of this comparison Trinidad and Tobago deserves a rating of eight (8) but this is subject to the effectiveness of their implementation procedures and processes as previously cautioned. ...