Changes may have a significant impact on historic pricing policies that served social or political objectives, such as flat-rate local service or average cost pricing. Thus, the government needs to address its long-term pricing objectives. It should seek to create transparent and open mechanisms to address pricing issues over time to provide the stability and security that investors seek. Prices for interconnection and access to the features of existing dominant networks are an important part of the overall rate structure. If the price of interconnection and network use is too high, new entry may be discouraged.
Policies addressing profit repatriation can be problematic.
A substantial barrier to profit repatriation will dissuade many investors. On the other hand, national governments may be concerned that unrestricted profit taking will limit both reinvestment and development. Some clear declaration of policy would be useful. Alternatively, a nonrestrictive policy that is coupled with an open market environment should encourage investment. Ideally, telecommunications companies should not be treated differently from other businesses.