Governments have a number of available policy instruments that can either hinder or promote the deployment of Local Open Access Networks.  As noted earlier, restrictions placed on the availability of unlicensed spectrum can effectively curtail the development of wireless LOANs, which have the potential to play a significant role in broadband deployment in both developed and emerging economies. Regulatory measures to protect incumbent carriers by restricting the application of new technologies can result in significant barriers to the establishment of LOANs.

A number of countries have provisions in their telecommunications legislation that provide the incumbent carrier with a monopoly over local service provision, that restricts the entry of any other local service providers.  In an attempt to improve the provision of basic telephony services in rural Poland, the Government decided in 1989 to encourage the development of rural telephone cooperatives.  The approach required some funding, but more importantly, policy changes to the existing statutes that made local ownership possible and also removed the monopoly of the state owned incumbent carrier.

Based on the experiences of countries with national broadband strategies that feature LOANs as an integral part of that strategy, such as Japan, Sweden and the Netherlands, this type of policy environment effectively promotes their development.   However, even in the absence of this type of national policy framework, LOANs tend to develop in response to demand by local Governments for improved service levels, as evidenced by developments in the U.S. and other countries.  In the absence of legislative and regulatory initiatives that would restrict their development, it is likely that LOANs will continue to be an increasing worldwide trend based on demand for broadband services and the willingness of local Governments to address this need.