Module 2 Slide 1 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 MODULE: 2 A The Independent Regulator

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N REGULATORY PRACTICES WORKSHOP - 2006

MODULE: 2 A

The Independent Regulator

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Topic 1 – Independent RegulatorAn 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

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Features of effective market placeThe 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

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Features independent regulators1. The regulator must be functionally and legally sepa

rate from all market participants.

With explicit legal authority

With a legal framework

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Features independent regulatorsA 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

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Features independent regulators

Discussion point:

Compare and contrast these critical features of independence of a regulator with those of an economy you are familiar with

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Common model for the separation of power

Public Telecommunications Operators (Private or commercially operated)

Network Operations/Service Provision

Separate Regulatory Authority or Government Ministry

Regulation and Rules

Government Ministry or Executive Branch

Policy Development

Responsible OrganizationFunction

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Features independent regulators2. The financial interests of the regulator should be in

dependent 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


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Features independent regulators3. The regulatory body must demonstrate credibility b

y 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


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Features independent regulators4. 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


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Features independent regulatorsEffective Regulators often take the LEAD

L - Listen

E - Evaluate

A - Analyze

D - Decide

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Discussion point:

Compare and contrast the role of the Independent Regulator by listing

two supporting factors and

two inhibiting factors


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Topic 2 – PrinciplesPrinciples 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

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PrinciplesPrinciples 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


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MODULE: 2 B

Public Communication & Inquiry

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Topic 3 – Public Processes

Where possible use Public Processes to ensure

TRANSPARANCY

Help to make better decisions


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Public ProcessesPublic Communication Processes Brochures

Reports

Regular newsletters

Media releases and articles

Fact sheets

Speeches & presentations

Information resources

Websites


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Public Processes

Public communication processes

Direct requests for inputs

Electronic lodgment of inputs

Inputs from public seminars, fora, meetings and workshops


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Public ProcessSUMMARY 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


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Topic 4 – Procedural ModelsSteps Model One - Government InitiativeSTEPS ACTIONS

1 Government directs regulator to initiate or review laws or regulations

2 Regulator researches and prepares a draft paper

3 Regulator publicises public enquiry

4 Interested parties attend hearings

5 Regulator revises the paper and may consult government

Steps 3,4 and 5 can be repeated a number of times before a final position is reached that the government is prepared to accept

Where the regulator has no authority over the decision

6 (a) Regulator finalises the recommendations

7 (a) Government enacts the appropriate legislation, law, acts or regulations

Where the regulator does already have the legal authority to act

6 (b) Regulations or rules are enacted

7 (b) The regulator publicises the outcomes and prepares to monitor


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Procedural ModelsSteps for a Government Authority

STEPS ACTIONS














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Procedural ModelsStep Model Two – Regulator initiativeSTEPS ACTIONS














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Procedural ModelsSteps for a Regulator Authority

6 Regulations or rules are enacted

7 The regulator publicises the outcomes and prepares to monitor


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Procedural Models

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?


Documents

Module 2 Slide 1 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 MODULE: 2 A The Independent Regulator