Regulation is not just only about controlling prices and service standards where competition is absent; it is also about encouraging innovation and investment from regulated companies whilst allowing emergent competition to flourish. Regulators are increasingly facing difficult questions about promoting new investment, whether that be in rollout of telecom infrastructure, transmission capacity to support renewable electricity generation, leak-free water mains or high-speed Internet broadband access for all. Existing & Old regulatory approaches are proving inadequate to these new challenges. Although customers need protection against the exercise of market power, incentives for competitors to invest in infrastructure should not be undermined. Equally, regulated firms need incentives to improve their own services, which depends upon anticipating sufficient return, particularly in cases where the investment is risky and the extent of subsequent take-up was uncertain.
Mappiah has extensive experience in supporting companies in dealing with regulatory authorities. We have assisted private companies (such as Telenor, 3 Denmark, TDC, Telefonica, Teliasonera and Vodafone) and industry groups (such as the TM Forum, ETSI, 3GPP, ITU) with responding to regulatory consultations and on appealing decisions. Our staff have provided expert reports in disputes before the Nordic Competition Appeals Tribunal, the European Commission and national courts. We have also worked for regulatory authorities such as the Danish IT Agency, Norwegian National Communications Authority (NKOM), the Norwegian Office of the Power Regulator, the Danish Commerce Commission, Ghana Petroleum & Energy Regulator and the European Commission, helping them in designing regulatory controls and assessing the impact of measures on competition and market development.
Mappiah’s regulatory services include:
- analysing the economic impact of regulatory proposals, including quantitative modelling;
- undertaking cost-benefit analyses and regulatory impact assessments;
- assessing investment incentives;
- advising on the setting of regulatory price controls and access pricing;
- conducting efficiency reviews of incumbent operators and modelling the impact of regulatory price controls;
- responding to regulatory consultations and assisting with appeals of decisions;
- understanding and developing positions on regulatory issues;
- understanding the implications of current economic thinking on regulatory issues.
Mappiah is well placed to support clients in a range of regulated sectors including, amongst others, telecommunications, energy, transport, post, and water. Mappiah subject matter experts have an in-depth knowledge of latest market and regulatory trends, and are at the forefront of the application of economic principles to new problems faced by both vendors, operators and regulators. Mappiah’s expertise in the allocation of scarce public resources is directly applicable to some of the most difficult problems facing regulated sectors, such as the allocation of telecom spectrum licences and electricity transmission licences.
Get in touch for further information or discussion about your project or pending consulting engagement.