Regulations in the convergent digital world are failing to keep pace with reform.

“Telecommunications regulation today is little different from how it regulated the technologies and markets of the last century,” said John Giusti, Chief Regulatory Officer at the GSMA. “There is no place for analog regulation in today’s dynamic digital age, where consumers face increasingly competitive choices in converging markets. In many cases, technological and market changes either eliminate the need for certain regulations, or at least create a need to change the form or use of those regulations. Therefore, the GSMA urges policymakers to re-examine existing market structures, reform outdated regulations, and ensure a level playing field that protects consumers and fosters innovation.”

The collective growth of mobile broadband, smartphones, and internet technology has given rise to new mobile voice messaging services. These new services compete with traditional telecommunications services, including those offered by mobile operators, and are no longer bound by the same regulations governing the collection and use of consumer data.

“Such discriminatory regulations distort competition, stifle innovation, and harm consumer welfare,” said Justi CRO. “Today’s dynamic and competitive markets demand non-discriminatory and technology-agnostic policies.” He continued, “Reforms are needed to ensure that consumers continue to benefit from innovation and investment, while being protected regardless of the type of technology or company providing the service.”

Key Principles of a Modern Regulatory Framework

The GSMA report recommends that policymakers keep three key principles in mind when modernizing their regulatory frameworks to accommodate the complexities of today's converged digital ecosystems.

· Regulatory objectives can be adequately met when the focus is on the services delivered to consumers, rather than the type of company or technology providing the service.

· A measurable, performance-based approach should take precedence over authoritarian regulation, while fostering market dynamism and promoting consumer welfare.

· We need to apply permanent standards across the ecosystem, while reexamining traditional regulations and discarding those that are no longer practical.

“The GSMA is committed to actively engaging in constructive, informed and evidence-based dialogue with policymakers to proactively reform outdated regulatory frameworks,” said Justi, CRO. “By applying persistent and flexible standards across the entire digital ecosystem, affecting all market participants, policymakers can create a level and sustainable competitive environment that drives economic growth while serving the best interests of consumers.”