Outsourcing in the telecoms sector has raised one specific interesting regulatory issue. Licenses governing spectrum allocation in the mobile space usually stipulate that mobile operators must retain 'functional control' of their network. The telecoms sector is highly regulated; network operators cannot evade this regulatory responsibility - it cannot be shifted to service providers. Indeed this issue raises interesting questions for the dominant outsourcing providers - no doubt some caution may need to be exercised in the future to ensure they are not perceived to have de facto control of any network.
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