RE: [gtld-council] PDP05 - renewals

["Bruce Tonkin" <Bruce.Tonkin@xxxxxxxxxxxxxxxxxx>]

Hello Philip,

The concept of Renewal Expectancy was derived from this World bank
report on mobile licence renewal that was discussed at the time of
developing the draft recommendation.

From:
http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2005/09/23
/000016406_20050923113019/Rendered/PDF/wps3729.pdf

WORLD BANK
Abstract 

A major challenge facing regulators in developed and developing
countries alike is the need to strike the right balance between ensuring
certainty for market players and preserving flexibility of the
regulatory process to accommodate the rapidly changing market,
technological and policy conditions. 

As much as possible, policy makers and regulators should strive to
promote investors' confidence and give incentives for long-term
investment. 

They can do this by favoring the principle of 'renewal expectancy', but
also by promoting regulatory certainty and predictability through a
fair, transparent and participatory renewal process.

For example, by providing details for license renewal or reissue,
clearly establishing what is the discretion offered to the licensing
body, or ensuring sufficient lead-times and transitional arrangements in
the event of non-renewal 
or changes in licensing conditions. 

Public consultation procedures and guaranteeing the right to appeal
regulatory decisions maximizes the prospects for a successful renewal
process. 

As technological changes and convergence and technologically neutral 
approaches gain importance, regulators and policy makers need to be
ready to adapt and evolve licensing procedures and practices to the new
environment. 


Ensure regulatory certainty and ease investors' concerns 

* Codify a clear regime of license renewal in the telecommunication
legislation, including renewal procedures, reasons for refusal to renew
and appeals to regulatory decisions
 
* Provide further details in the license itself where the legislative
framework is not comprehensive 

* Adopt some varying degree of the principle of renewal expectancy 

* Strike the right balance between certainty in the renewal process and
regulatory flexibility, and engage in forward thinking and planning 

* Subject regulatory discretion to clear parameters of license renewal
with appropriate checks and balances 


Procedures for license renewal 

* Initiate renewal process well in advance of expiry 

* Perform periodic forward review of market and needs 

* Disclose and publish reasons for non renewal 

* Adopt public consultation process 

* Guarantee a right to appeal 


In the event of non-renewal 

* Provide a minimum notice period 

* Delay vacancy of spectrum to give enough time for operators to adapt
strategies 

* Ensure exit strategies for operators 

* Ensure continuity of service to consumers 


License renewal fees

* Beware that heavy license fee burdens reduce possibilities of making
further investment 

* Establish models for licensing and spectrum pricing, ensure openness,
transparency and the right to appeal from the methods applied 


Change in license conditions and obligations 

* Renewal process is a good occasion to review license conditions (e.g.
those related to the moving target of universal service.) 

* Ineffective mandatory service obligations can have anti-competitive
impacts if the burden is not kept at a manageable level for the license
holders 


Spectrum implications of license renewal 

* Strike a balance between protecting ongoing investment and optimal
exploitation of the spectrum resources 

* Leveling the playing field at license renewal between operators
entering the market under different regimes (e.g., auction vs. beauty
contest) to avoid windfall gains 

Migration to technology neutral licensing

* Continuity of the service for the consumers as a leading principle for
transition 

* Leveling the playing field at license renewal between operators
entering the market having followed different technology migrating paths
to avoid windfall gains