Transitioning from Administrative to Market-Based Spectrum Management in Sri Lanka: A Critical Analysis

Abstract

Purpose: In Sri Lanka, the Radio Frequency Spectrum (RF spectrum) has traditionally been overseen managed and regulated by the government regulatory body(s), mainly accommodating the administrative RF spectrum management regime. This approach entails allocating and assigning RF spectrum to licensed operators solely through administrative means, with the regulatory authority having sole control and rights over it. However, in line with global trends, in recent years, many countries have begun to transition towards market-based approaches to RF spectrum management from legacy administrative regime, aiming to improve efficiency, promote innovation, and foster competition in the telecommunications sector. Currently, the regulatory landscape in Sri Lanka is also exploring the transition towards a market-oriented spectrum management regime. In this context, this legal research article critically analyses the viability and appropriateness of the transition from administrative RF spectrum management to market-based RF spectrum management in Sri Lanka in a regulatory context, highlighting various dimensions to be considered while migrating.

Design/methodology/approach: In this research paper, the authors have considered the regulatory aspects of the transition from an administrative to a marked-based approach for the RF spectrum in Sri Lanka. Hence, the authors shall be carrying out a legal research using the doctrinal research methodology, which is commonly used in legal research. This research article considers John A. Posner’s law and economic theory and John Lock’s property rights theory as the theoretical foundation. Further, this research paper uses qualitative research methodology. By using the said methodological approach, the authors analyse the current administrative RF spectrum management regime in Sri Lanka comparing it with global trends towards market-based approach and thereby evaluate the primary objectives behind the transition, the current RF spectrum framework, and the anticipated challenges that they would encounter with the transition.

Findings: The analysis revels that RF spectrum management in Sri Lanka under the administrative system is restrictive and hinders innovation and competition, compared to a more liberalized market-based approach. A market-based approach, characterized by auctions, in primary markets and spectrum sharing, trading, and leasing in secondary markets identified as a potential solution to these limitations. However, the study also highlights several challenges, including the need for regulatory reform, capacity building, and the development of a robust legal framework to support the transition.

Originality: This paper contributes to the existing body of knowledge by providing a detailed analysis of the potential shift in RF spectrum management practices within Sri Lanka, in the regulatory context, a subject area that has not been extensively explored in the local context. It offers a comparative perspective with international practices and provides actionable recommendations tailored to Sri Lankan conditions.

Implications: The findings suggest that transitioning to a market-based RF spectrum management regime could significantly improve the efficiency and dynamism of Sri Lanka's telecommunications sector. However, careful planning and implementation are crucial to address potential challenges and ensure that the transition supports long-term goals of innovation and competition. The recommendations aim to guide policymakers in developing a framework that balances market efficiency with regulatory oversight.