Common use of Regulatory Flexibility Clause in Contracts

Regulatory Flexibility. 1. The Parties recognize the importance of relying on competitive market forces to provide a wide choice in the supply of telecommunications services. (a) In this respect, the Parties recognize that a Party may: (i) engage in direct regulation either in anticipation of an issue that the Party expects may arise, or to resolve an issue that has already arisen in the market; (ii) rely on the role of market forces, particularly with respect to market segments that are, or are likely to be competitive, or those with low barriers to entry. (b) Where a Party has engaged in direct regulation, that Party may forbear, to the extent provided for in its law, from applying a regulation to a service that the Party classifies as a public telecommunications service, if its telecommunications regulatory body determines that: (i) enforcement of the regulation is not necessary to prevent unreasonable or discriminatory practices; (ii) enforcement of the regulation is not necessary for the protection of consumers; and (iii) forbearance is consistent with the public interest, including promoting and enhancing competition between suppliers of public telecommunications services. 2. Each Party shall ensure that any supplier of telecommunications services may petition its telecommunications regulatory body to forbear from applying any specific regulation with respect to that supplier or any telecommunications services offered by that supplier. 3. Each Party shall require its telecommunications regulatory body to adopt a decision granting or denying the petition in whole or in part. 4. For greater certainty, each Party shall subject its regulatory body's decision to forbear judicial review in accordance with Article X.18 (Resolution of Disputes).]