A recent study of 30 developing countries in Africa and Latin America found that private participation in the sector has had a positive impact on network penetration. However, one of the most interesting findings of the study is that privatization without the presence of an independent and capable regulator has had a negative effect on the pace of network growth. A similar trend has been found with the opening of markets to competition. The accumulated experience has shown that even in the countries in which a strong, independent, and capable regulator has been set up, it has been difficult to bring to consumers the full benefits often associated with competitive markets. And here I would like to call your attention to the fact that I said separate and not independent.
Independence is certainly a fuzzy concept.
Independence with no transparency can also tempt regulators to abuse the power with which they have been invested. This is why the Reference Paper correctly emphasize in each of the principles outlined, transparency and non-discrimination as key elements to achieve a sound competitive environment for the provision of services. What the Reference Paper does not mention, but what is still very important in the context of most developing countries is the professional capabilities and resources of the regulatory agency. Distinguished Delegates, Ladies and Gentlemen, There is little doubt in the industry today that the existence of an independent, transparent, and capable regulator taking non-discriminatory decisions is essential to the growth of not only the telecommunication sector itself, but that of the national economy at large. The ITU's Telecom Development Bureau, most commonly known as the BDT, is providing technical assistance to countries that request it.