Telecommunications Licensing Regime: A New Method of State Control After Privatisation of Telecommunications.
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intellectual Propertv Protection for Video Games - A View
from the Eurooean Union
F. Wiltem Grosheide, Herwin Roerdink, Karianne
^t
:*::
,tarriase of Convenience : Bank -Customer Relationshio
;n the Aqe of the Internet : A South African Persoective
Browse
gy-lss-ue
.
.
kwana Annastacia Mthembu
Telecommunications Licensinq,Regime; A N-ew Melhod of
State Co nt ro I Afte-r P riva ti sa t-i On-gLTe ecg-m m u n ca tis n s
Atip Latipulhayat
Evaluatino the Reoulation of Access to Online Content in
Turkev in the Context of Freedom of Speeeh
Batu Kinikoglu
Communicational Aporoach to Coovriqht
Mpa
I
o
i
36
OlliVilanka
56
tsook Review: Telecommunication Laws in Europe
Sophie
+f
V*ou
Thomas
gv-au!b.Q.r
Bv Title
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Svlvia Kierkecaard, International Association of IT Lawyers, Denmark
JOU RNAL
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l-::ijub Popovic, Judge, European Court of Human Rights
:=::- riamza, Academy of European Law, Hungary
--*:ci PinvosinyuAt, Justice of the Court of Appeals, Thailand and former
rresiding judge of the Central Intell, Thailand
-:-: Pistorius-, University of South Africa, South Africa
l:-:s Alberto Rohrneln, Academic Director, LL.M. Program of Faculdade
l,:reito Milton Campos-FDMC, Brazil
*ol
+f
::S:*
Browse
de
:=:-ck Kierkeqaard, University of Copenhagen, Denmark
-=-s llenrik Edlund, Director of the Doctoral Studies Program, Aarhus University,
]enmark
!=-ette NeL, Professor, University of South Africa, South Africa
:= -iard Steqnnot, Professor, Ghent University, Belgium
r:: i. Weber, Director, European Law Institute, University of Zlrich, Switzerland
' .o EGE
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JICLT
lournal of International Commercial Lraw and Technolog.y
Vol. 9, No.l(20I4)
Telecommunications Licensing Regime: A New
Method of State Control After Privatisation of
Telecommunications
Atip Latipulhayat
Senior Lecturer in Telecommunications Larv and International Lau'
Facul ty of Lau,, Padj adj aran fJni versi t1,, B andung-Indonesi a
luil
pil,l
lLl'!! gn;lii l .cl;.n
Abstract: Telecommunications is one sector historically subject to state monopolies
in both der.'eloped and developing countries for manl reasons. The Indonesian legislation
stipulates that the telecommunications sector is of national strategic importance and must
therefore be controlled by the state. Not surprisin-el1, the Indonesian government has tended
to read the terrn "state control" as state or government orvnership. Since the late 1980s,
there has been a radical policy reversal ivherebl' governments hal'e progressively reduced
their orvnership and inr"olvement in this sector by increasing pril'ate sector participation.
One of the most important consequences of this is that privatization has led governments no
longer being able to pla1' traditional tripartite roles of owner. operator and regulator of
telecommunications. More specificalll, it raises a critical question: in t,hat r.,,ays might the
government maintain its control over the sector rvhen privatization reduces state otvnership
in SOEs? This paper :rr-ques that licensing is a le-eal tool to maintain state control after
prir,atization of telecommunications. It can be used as a tool to implement important
national priorities, bc it opening the markets for eqr.ripment. services, and networks to
immediate or gradual competition, or to preserve a monopoly for the time being so as to
permit investors to recoup their cxpenditllres or to continue a source of revenue for the
government.
1. Introduction
\ relecommunications license authorises an entity to provide telecommunications services or operate
.:,ccommunications facilities. Licenses do not have the same importance in all countries. In a ferv
:--untries r'vhere monopoly telecommunications operators have lor-rg been privately o*,ned, notably
,. ,,nada and the llS, there have traditionally not been telecommunications licenses. Instead, regulatory
.::rrs and conditions rvere imposed through decisions, orders or traltic-approval processes of a
:..\ernment regulatory authoritl .In some other countries, including Latin American countries, privately
:erated telecommunications carriers rvere traditionally granted concessions or a franchise.
This paper examines the concept of the license particularly its relevance u,ith state control after
::rvatisation. The paper begins by providing a brief discussion on the privatisation of telecommunications
,:rrJ more specifically'on the rnethods of state control af-ter privatisation. Subsequently, the paper reviervs
.1. concept of a license including its objectir.es and type of licensing regime. To obtain an empirical
-.lderstanding, the application of the licensing system in Malaysia and the fJK are sub.ject to special
:.-rutin\'. Finally, the paper examines the present Indonesian licensing regime and this is follor,ved by an
,:lalrsis of the relation betrveen a license and state control, and also suggestions are considered for the
..:ure Indonesian licenri ng regi me.
2.
Privatisation of Telecommunications
Privatisation and telecommunications industrl' have been interacting since the 1980s and state control in
sense of government involvement in the sector has been a central issue . Telecommunications is one
.ector historically subject to state monopolies in both developed and developing countries for many
:easons. The Indonesian legislation stipr.rlates that the telecommunications sector is of national strategic
,le
24
I /'
6 .f."al.rnt\1-1tt,.et
, i::{.4.\}- -1 , \?L* ,A1
(rt
'.rLj-Lliiii
, .'i.-i-.rrr,1,',.
t,, *,i\'
i rLliili.
":
yt?..t-!t-!.1 t)*-/-',t"\l
tlLtL;r(];;, , &\-{r"lillllclLlZl.L
- n. 4t\{\1 AAt\X'l
'l*q
ka
1 t\-} , *r".y--ytj
{' l. \
liltI
? II
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]OU RNAL
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intellectual Propertv Protection for Video Games - A View
from the Eurooean Union
F. Wiltem Grosheide, Herwin Roerdink, Karianne
^t
:*::
,tarriase of Convenience : Bank -Customer Relationshio
;n the Aqe of the Internet : A South African Persoective
Browse
gy-lss-ue
.
.
kwana Annastacia Mthembu
Telecommunications Licensinq,Regime; A N-ew Melhod of
State Co nt ro I Afte-r P riva ti sa t-i On-gLTe ecg-m m u n ca tis n s
Atip Latipulhayat
Evaluatino the Reoulation of Access to Online Content in
Turkev in the Context of Freedom of Speeeh
Batu Kinikoglu
Communicational Aporoach to Coovriqht
Mpa
I
o
i
36
OlliVilanka
56
tsook Review: Telecommunication Laws in Europe
Sophie
+f
V*ou
Thomas
gv-au!b.Q.r
Bv Title
IN FORMATIO N
o
.
.
For Readers
Es.r-&!hrc,
Eg.t
Librarians
Sta I la - Bou rd i I lon
65
This Journal is indexed by the following services:
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,,'4
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***r**
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*,;Lw*t?atwtr_m
\.
idex. php/J iclt/ issue/view/ 34
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t
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*{TXN{3NL'*lT,
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-
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ill
E
51,y r
"'
l26lt4
*L* * rz I *
r
ff * r *kntrrg
*8 tnnweli*{1
tl:r3".:r:..,
-
t):t,
?
talil.:.1
,:/.:i' /, e,, r.. :. 1,r/. r.,j
1:
trt.rt,2atq,
:, ?,2.. t a.tt
t
I
-CLT is a member of the Directory of Open-Access Journals
. ISSNr 19O1-8401.
.l
iclt/ issue /view/ 34
Page 2
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Ediror-in-Chief
:-:'
Svlvia Kierkecaard, International Association of IT Lawyers, Denmark
JOU RNAL
CONTENT
Search
Editorial Board
l-::ijub Popovic, Judge, European Court of Human Rights
:=::- riamza, Academy of European Law, Hungary
--*:ci PinvosinyuAt, Justice of the Court of Appeals, Thailand and former
rresiding judge of the Central Intell, Thailand
-:-: Pistorius-, University of South Africa, South Africa
l:-:s Alberto Rohrneln, Academic Director, LL.M. Program of Faculdade
l,:reito Milton Campos-FDMC, Brazil
*ol
+f
::S:*
Browse
de
:=:-ck Kierkeqaard, University of Copenhagen, Denmark
-=-s llenrik Edlund, Director of the Doctoral Studies Program, Aarhus University,
]enmark
!=-ette NeL, Professor, University of South Africa, South Africa
:= -iard Steqnnot, Professor, Ghent University, Belgium
r:: i. Weber, Director, European Law Institute, University of Zlrich, Switzerland
' .o EGE
By Author
. E4!&
INFORMATION
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For Readers
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.&r
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-ris Journal is indexed
by the following services:
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wruw
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,..;qilr.!"..
.;1.it*i:a;lt*t.
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,.:; |
,
'.
,l'.
,: i,,,1t',t..r)\ i'ttk:\.
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ir:ernational Association of IT Lawyers
lrail : ed [email protected]
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Page 1 of
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JICLT
lournal of International Commercial Lraw and Technolog.y
Vol. 9, No.l(20I4)
Telecommunications Licensing Regime: A New
Method of State Control After Privatisation of
Telecommunications
Atip Latipulhayat
Senior Lecturer in Telecommunications Larv and International Lau'
Facul ty of Lau,, Padj adj aran fJni versi t1,, B andung-Indonesi a
luil
pil,l
lLl'!! gn;lii l .cl;.n
Abstract: Telecommunications is one sector historically subject to state monopolies
in both der.'eloped and developing countries for manl reasons. The Indonesian legislation
stipulates that the telecommunications sector is of national strategic importance and must
therefore be controlled by the state. Not surprisin-el1, the Indonesian government has tended
to read the terrn "state control" as state or government orvnership. Since the late 1980s,
there has been a radical policy reversal ivherebl' governments hal'e progressively reduced
their orvnership and inr"olvement in this sector by increasing pril'ate sector participation.
One of the most important consequences of this is that privatization has led governments no
longer being able to pla1' traditional tripartite roles of owner. operator and regulator of
telecommunications. More specificalll, it raises a critical question: in t,hat r.,,ays might the
government maintain its control over the sector rvhen privatization reduces state otvnership
in SOEs? This paper :rr-ques that licensing is a le-eal tool to maintain state control after
prir,atization of telecommunications. It can be used as a tool to implement important
national priorities, bc it opening the markets for eqr.ripment. services, and networks to
immediate or gradual competition, or to preserve a monopoly for the time being so as to
permit investors to recoup their cxpenditllres or to continue a source of revenue for the
government.
1. Introduction
\ relecommunications license authorises an entity to provide telecommunications services or operate
.:,ccommunications facilities. Licenses do not have the same importance in all countries. In a ferv
:--untries r'vhere monopoly telecommunications operators have lor-rg been privately o*,ned, notably
,. ,,nada and the llS, there have traditionally not been telecommunications licenses. Instead, regulatory
.::rrs and conditions rvere imposed through decisions, orders or traltic-approval processes of a
:..\ernment regulatory authoritl .In some other countries, including Latin American countries, privately
:erated telecommunications carriers rvere traditionally granted concessions or a franchise.
This paper examines the concept of the license particularly its relevance u,ith state control after
::rvatisation. The paper begins by providing a brief discussion on the privatisation of telecommunications
,:rrJ more specifically'on the rnethods of state control af-ter privatisation. Subsequently, the paper reviervs
.1. concept of a license including its objectir.es and type of licensing regime. To obtain an empirical
-.lderstanding, the application of the licensing system in Malaysia and the fJK are sub.ject to special
:.-rutin\'. Finally, the paper examines the present Indonesian licensing regime and this is follor,ved by an
,:lalrsis of the relation betrveen a license and state control, and also suggestions are considered for the
..:ure Indonesian licenri ng regi me.
2.
Privatisation of Telecommunications
Privatisation and telecommunications industrl' have been interacting since the 1980s and state control in
sense of government involvement in the sector has been a central issue . Telecommunications is one
.ector historically subject to state monopolies in both developed and developing countries for many
:easons. The Indonesian legislation stipr.rlates that the telecommunications sector is of national strategic
,le
24