Ensuring Regulatory Independence for a Fair Telecommunications Market

1. The Independent Regulator MODULE: 2 A

2. An effective competitive telecommunications market depends on an independent body capable of: establishing and enforcing transparent and impartial regulatory rules and decisions, and Promoting fair and reasonable competition Topic 1 – Independent Regulator Module 2 – Page 8

3. The market place is likely to work better if: Roles of government policy makers & the regulator are clear & in harmony The regulator is independent with adequate financial & human resources Benefits of effective interconnection & pre-competition cooperation is recognized How regulator deals with incumbent operator Fair & reasonable interconnection occurs The regulator promotes an environment of willingness for parties to effectively negotiate Features of effective market place Module 2 – Page 8

4. 1. The regulator must be functionally and legally separate from all market participants. With explicit legal authority With a legal framework Features independent regulators Module 2 – Page 9

5. A legal framework which provides for: A telecommunications regulatory body General powers and duties to regulate Authority to issue directives, rules and regulations Authority to obtain full and complete information Authority to adjudicate disputes Authority to enforce telecommunications laws and regulations Features independent regulators Module 2 – Page 9

6. Discussion point: Compare and contrast these critical features of independence of a regulator with those of an economy you are familiar with Features independent regulators Module 2 – Page 9

7. Function Responsible Organization Policy Development Government Ministry or Executive Branch Regulation and Rules Separate Regulatory Authority or Government Ministry Network Operations/Service Provision Public Telecommunications Operators (Private or commercially operated) Features independent regulators Common model for the separation of power Module 2 – Page 10

8. 2. The financial interests of the regulator should be independent from all market participants. The regulator should: Address obvious and subtle conflicts when interests overlap Ensure government financial interests do not influence decisions Employees of the regulator should: Not hold stock/interest in suppliers Not participate officially in suppliers Not serve on a board of directors of suppliers Features independent regulators Module 2 – Page 10

9. 3. The regulatory body must demonstrate credibility by having the structure, funding, and human resources adequate to enable it to implement its regulatory mandate. An organizational structure that is flexible and adaptable Staff who are highly skilled and multi-disciplinary Adequate funding from reliable and predictable sources Features independent regulators Module 2 – Page 11

10. 4. Policies should be adopted to govern the conduct of employees to ensure independence and impartiality. Regulatory agencies should adopt policies that address: Employees with prior industry experience Gifts from industry members Post-government employment restrictions Competitive salaries for regulatory officials Features independent regulators Module 2 – Page 11

11. Effective Regulators often take the LEAD L - Listen E - Evaluate A - Analyze D - Decide Features independent regulators Module 2 – Pages 11-12

12. Discussion point: Compare and contrast the role of the Independent Regulator by listing two supporting factors and two inhibiting factors Features independent regulators Module 2 – Page 12

13. Principles of Proper Decision Making Decisions must be within legal authority of regulator The regulator must consider all relevant matters and disregard irrelevant ones Decisions must be made in good faith and for proper purposes Factual underpinnings of decisions must be based on evidence Topic 2 – Principles

14. Principles of Proper Decision Making Decisions must be reasonable & publicized Those affected by a decision must be accorded procedural fairness (including the right to respond to prejudicial agreements and evidence that may be taken into account). Government policy must be properly applied Independent regulators must not act on the direction of other persons Principles Module 2 – Page 16

15. Public Communication & Inquiry MODULE: 2 B

16. Where possible use Public Processes to ensure TRANSPARANCY Help to make better decisions Topic 3 – Public Processes Module 2 – Page 17

17. Public Communication Processes Brochures Reports Regular newsletters Media releases and articles Fact sheets Speeches & presentations Information resources Websites Public Processes Module 2 – Page 19

18. Public communication processes Direct requests for inputs Electronic lodgment of inputs Inputs from public seminars, fora, meetings and workshops Public Processes Module 2 – Pages 20-21

19. SUMMARY OF TRANSPARANT PRACTICES Publishing all laws, regulations, rules and guidelines Providing interested parties with advanced notice Publishing and archiving Providing an avenue to appeal decisions Promote concept of equal access to information Public Process Module 2 – Page 21

20. Steps Model One - Government Initiative Topic 4 – Procedural Models Module 2 – Pages 22-23

21. Steps for a Government Authority Procedural Models Module 2 – Page 23

22. Step Model Two – Regulator initiative Procedural Models Module 2 – Pages 24-26

23. Steps for a Regulator Authority Procedural Models Module 2 – Page 26

24. Discussion point: Compare and contrast the Step Models with procedures that you are familiar with. How do these differ from what you know? How would you refine these Step Models in your country? Procedural Models Module 2 – Page 26