portance of telecommunications on the modern PTTs and deregulation has resulted in increasing competi- economy of a country, governments have traditionally played a tion. The prime aim of deregulation is to provide the user with prominent role in this area. Usually the PTT has been a monopoly greater choice, and reduce prices, so stimulating the economy of the national operator, wholly owned by the government. However, one country. by one, governments have loosened the reins on these PTTs, the Apart from added value service providers, there now also exist process used in most cases being illustrated in Figure 11.2. other PTOs who own their own communications infrastructure. In The first step has usually been to liberalise the services market and order to ensure that these new PTOs thrive, governments have often open it to competition. The PTT has still been state owned and it placed restrictions on the established operators, such as price caps provided the infrastructure to carry these services. Usually a regu- and limiting the services which they can offer. It is primarily new latory body, part of the government, is set up to ensure that the new services which provide PTOs with their competitive edge, genera- service providers get equable treatment from the monopolistic car- ting new traffic and increasing revenue. rier, and that they operate in a responsible manner. Many countries have appointed telecommunications 'watchdogs' The next step usually involves the privatisation of the PTT, the to regulate the operations of their PTOs, SO separating out the government often maintaining some of the shares in the company. regulatory and operational activities. They carry out many function- Coincidental with this move a second telephone operator is given a s, such as licensing new operators and services, applying regulatory licence, in order to provide competition in the infrastructure area. pressure on them to improve the grade of service, setting guidelines The regulatory body is once again used to ensure that the ne