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Review of Legislative Framework for Electronic Communications A Mobile Perspective. Rob Borthwick 4 February 2000. M-Commerce - Europe as Leader. Governmental recognition of M-Commerce leadership Two options to reach e-objectives: “Omniscient” regulatory intervention - PowerPoint PPT Presentation
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Review of Legislative Frameworkfor Electronic Communications
A Mobile Perspective
Rob Borthwick
4 February 2000
M-Commerce - Europe as Leader
• Governmental recognition of M-Commerce leadership
• Two options to reach e-objectives:– “Omniscient” regulatory intervention– Flexible market forces delivery
• Success of market forces in the mobile arena
M-Commerce – Leadership at Threat
• 99 Review directionally correct
• Implementation is contradicting policy
• Withdrawal statements not matched by action
• 99 Review / current regulatory trends are ONP-based
The failure of regulation to meet real market needs• Competition -v- Regulation
– Competition delivers consumer benefits through a process
– Regulation based on a market situation snapshot
• Regulation inherently utilitarian but mobile product is personal
• Utilitarian regulatory implementation fails to deliver Revolutions
The failure of Regulation to meet real market needs (2)
• Examples include:– MNP – hugely expensive ‘one size fits all’ – CPS instead of commercially negotiated
wholesale products
The solution
• Radical change for the electronic revolution
• Regulatory withdrawal is the correct approach:– Dynamic mobile markets– Market based solutions to regulatory concerns constantly
emerging
• Minimise intervention– statutory duty to forbear– “forbear unless” as opposed to FCC “do not forbear when”
The solution (2)
• Separate current conflicting roles of SSR– SSR monitoring role– SSR deal with historical institutional
incumbencies– SSR administrator of politically defined
social objectives
• Building in monitoring, cost/benefit and sunset conditions
A regulatory framework for the mobile future
Simultaneously:
1. Promote competition
2. Promote consumer interests
3. Deliver political objectives
Current regulation
Exogenous factorsEndogenous
factors
Political objectives
Historicalincumbencies
Marketprocess
Market grasp filter Potential issues
Timing and/oreconomic viability
Monopolistic control of essential facilities
Abuse of dominance
RegulatoryTreatment
ADMINISTERwith ex-ante definition
INTERVENEwith ex-ante tools
FORBEAR
or intervene ex -post with competition rules
Examples of areas requiring specific regulation
Cost/benefits
Cost/benefit
Fixed PTT interconnectionSpectrum allocationNumbering management
Abusive pricingAnti-competitive behaviour
Monitoring processLimit of SSR role
USOData protection, privacyHealth & safety …
Simultaneously:
1. Promote competition
2. Promote consumer interests
3. Deliver political objectives
Current regulation
Exogenous factorsEndogenous
factors
Political objectives
Historicalincumbencies
Marketprocess
Market grasp filter Potential issues
Timing and/oreconomic viability
Monopolistic control of essential facilities
Abuse of dominance
RegulatoryTreatment
ADMINISTERwith ex-ante definition
INTERVENEwith ex-ante tools
FORBEAR
or intervene ex -post with competition rules
Examples of areas requiring specific regulation
Cost/benefits
Cost/benefit
Fixed PTT interconnectionSpectrum allocationNumbering management
Abusive pricingAnti-competitive behaviour
Monitoring processLimit of SSR role
USOData protection, privacyHealth & safety …
A regulatory framework for the mobile future (2)
Simultaneously:
1. Promote competition
2. Promote consumer interests
3. Deliver political objectives
Exogenous factors
Political
objectives
Historical
incumbencies
Timing and/or
economic viability
Monopolistic control of
essential facilities
ADMINISTER
with ex -ante definition
INTERVENE
with ex -ante tools
Cost/benefits
Fixed PTT interconnection
Spectrum allocation
Numbering management
Monitoring processLimit of SSR role
USO
Data protection, privacy
Health & safety …
Simultaneously:
1. Promote competition
2. Promote consumer interests
3. Deliver political objectives
Current regulation
Exogenous factors
Political
objectives
Historical
incumbencies
Market grasp filter
Potential issues
Timing and/or
economic viability
Monopolistic control of
essential facilities
Regulatory Examples of areas requiring specific regulation
Treatment
ADMINISTER
with ex -ante definition
INTERVENE
with ex -ante tools
Cost/benefits
Cost/benefit
Fixed PTT interconnection
Spectrum allocation
Numbering management
Monitoring processLimit of SSR role
USO
Data protection, privacy
Health & safety …
A regulatory framework for the mobile future (3)
Simultaneously:
1. Promote competition
2. Promote consumer interests
3. Deliver political objectives
Current regulation
Endogenousfactors
Marketprocess
Abuse of dominance
FORBEAR
or intervene ex -post with competition rules
Abusive pricingAnti-competitive behaviour
Monitoring processLimit of SSR role
Simultaneously:
1. Promote competition
2. Promote consumer interests
3. Deliver political objectives
Current regulation
Endogenousfactors
Marketprocess
Abuse of dominance
FORBEAR
or intervene ex -post with competition rules
Abusive pricingAnti-competitive behaviour
Monitoring processLimit of SSR role
•Forbearance leads to general authorisations
•Exception: institutional (often technical) incumbencies
– spectrum – numbering
Implications for 99 Review - Licensing
Implications for 99 Review – Access and Interconnection
• Important to consider concept of prospective competitiveness or transient market failure
• Evidence of commercially negotiated wholesale product
• Forbearance principles– enable competitive forces to flow
•Sector specific oversight while technical issues exist
•Spectrum is finite rather than “scarce”
•Transient– new technologies– wholesale (either through secondary trading or unbranded
airtime products)– re-farming
•“Scarcity” - not lever to regulate mobile
Implications for 99 Review – Spectrum
•Legitimate role of policy maker to set scope of USO
•Not at expense of delivering innovation, choice and quality
•Enduring role for market neutral sector specific administration of consumer issues
Implications for 99 Review – USO