Do we need a regulatory holiday?
Richard Nash, secretary general of EuroISPA, noted that many incumbent operators in Europe have expressed the desire for a ‘regulatory holiday’ to provide them with incentive to invest in the industry.
Many of these incumbents were calling for a relaxing of regulation for a short time in order to drive the market forward.
Nash provided evidence that contracted the idea that a regulatory holiday would stimulate investment. Their research found a correlation between the quality of regulation and increased investment in Europe, despite the fact that all countries are essentially governed by the same regulatory framework.
But the key ingredient seems to be good quality regulation. If the regulation creates certainty and helps to better organize the market as opposed to control the marketplace the results look good.
Other examples overseas, for example in Liberia, exists where regulation was lifted completely and the market flourished.
It seems that there is not sure fire answer to the question of whether regulation is good or bad but everyone agrees that uncertainty is fatal.
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