nce the shape of the regulatory environment. Other countries organize their policy and regulatory activities differently from the United States. For example, in the United Kingdom, the Office of Telecommu- nications (OFTEL) mainly regulated what in the United States would be known as "common carrier" matters, whereas the Radiocommunications Agency (RA) dealt with radio and spectrum matters. However, in 2003, OFTEL and RA were com- bined into a new Office of Communications (OFCOM; www.ofcom.org.uk). In Hong Kong, telecommunications regulation was previously dealt with by the post office, but now the Office of the Telecommunications Authority (OFTA; www.ofta. gov.hk) is the regulatory body. As you can see, not only do regulatory environ- ments change, but so do the regulatory players. The Main Regulatory Issues Let's look briefly at what regulators do. Again, this varies somewhat from country to country and over time. In the early years of liberalization, much time would typ- ically be spent in licensing new entrants and putting in place regulations designed Chapter 1 Telecommunications Technology Fundamentals to keep a former monopoly telco from abusing its position by, for example, stifling its new competitors or by charging inappropriately high prices to its customers. Here the regulator is acting as a proxy for market forces. As effective competition takes root, the role of the regulator changes somewhat. Much of the work then typ- ically involves ensuring that all licensed operators or service providers meet their license obligations and taking steps to encourage the development of the market such that consumers benefit. The focus of most regulatory bodies is, or should be, primarily on looking after the interests of the various end users of telecommunications. However, most regu- lators would recognize that this can be achieved only if there is a healthy and vibrant industry to deliver the products and services. So while there are often natu- ral tensions between a regulator and the companies being regulated,