What is Banded forbearance?

Banded forbearance is an alternate approach to price regulation in partially liberalized telecom markets. Developed by LIRNEasia, the approach is useful especially for regulatory agencies with limited capacities, markets with limited competitors, and markets that are fast changing and dynamic.

This method is based on the concept of forbearance, wherein regulators refrain from regulating the market unless deemed necessary. Banded forbearance incorporates benchmarking and encourages symmetric regulation over the preferred asymmetric regulatory approaches.