Should Regulators Be Closing the Skies or the Digital Divide?

Should Regulators Be Closing the Skies or the Digital Divide?

Since satellites provide global connectivity, their frequencies are coordinated internationally by the International Telecommunication Union (ITU) to avoid interference, as detailed in the Radio Regulations and the Master International Frequency Register (MIFR). This register contains all the relevant information on the operation, coverage, and use of frequencies by satellites and can be accessed by National Regulatory Authorities. The main objective is that there is no harmful interference between satellite communications globally.

After the 1990s, commercial operations of satellite networks were mostly led by the private sector to provide connectivity to specific industries. Lately, it has gained a lot more momentum as a service available to individual end-users, offering coverage across the globe and, notably, in areas previously not served by other technologies.

The Open Skies Policy

During the early 2000s, many nations adopted the ‘open skies policy’, which refers to the elimination of requirements or authorisations imposed on satellite providers to irradiate their signal in the nation’s territory. It should be noted that this policy only allows the provider to ‘land’ its signal and does not grant further authorisations, which means that to use the spectrum frequencies and provide services in each jurisdiction, specific national authorisations are required.

The open skies policy, therefore, reduces market entry barriers, lowers costs, and increases competition, ultimately facilitating service provision for citizens, companies, and industries while increasing the affordability of internet access, with all its associated benefits.

Landing Rights

On the contrary, some nations follow a different approach and require satellite operators to obtain authorisation to irradiate its signal over their territory, informally known as ‘landing rights’. This permission is merely for the signal’s irradiation. Further permits are required for the use of spectrum and service provision, which are obtained by the company operating the network and selling services in the domestic market.

Surprisingly, during the last two years, many nations have reversed the open skies approach and started to enact landing rights requirements, adding regulatory complexity and effectively increasing market entry and operational costs. This is ultimately passed down to the end-users, making services less affordable and going against the global public policy goal of closing the digital divide. The impact of these increased regulatory costs extends beyond direct satellite services to other sectors that rely on satellite connectivity, such as mobile terrestrial communications coverage, backbone connectivity, navigation applications, and many other services. Furthermore, public policy is designed to increase control over services within the territory, with relevant data available through the ITU’s MIFR and domestic service provider reports.

Ensuring that connectivity remains affordable, widespread, and accessible for all – ultimately bridging the digital divide – requires revisiting regulatory costs and adopting innovative approaches to public policy issues. Historically, overregulation has exacerbated these challenges, ultimately affecting end-users.

Access Partnership is internationally recognised as the leading consultancy on regulatory solutions to wireless and satellite communication technologies. Our dedicated Regulatory Strategy and Market Access team creates effective, consistent regulatory strategies by providing advice and tailoring solutions to match client needs.  For more information, contact Juliana Ramirez at [email protected].

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