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IP: Telecommunication regulator - recipe for success
From: Dave Farber <farber () central cis upenn edu>
Date: Thu, 28 Dec 1995 04:41:14 -0500
From: ajp () glocom ac jp (Adam Peake) I spent some time in November traveling around Europe talking to experts on telecommunication regulations. One of the most interesting meetings I had was with a regulatory specialist working for British Telecom's Brussels office. The following are his comments on the qualities and powers a national telecommunications regulatory body (OFTEL, FCC, AUSTEL, etc.) should enjoy for any new regulatory regime to be successful. (Mistakes are mine, kudos to BT Brussels office.) Best wishes to all for the New Year. Adam ---- For new regulatory regime to be successful, any new regulatory must have the following qualities/abilities: Regulator must be truly independent from all national telecoms operators and from government supervision of its holdings in the state operator. Should be given a clear framework of rules by which to operate, not wide discretionary powers. Should have a mandate to promote competition through encouraging new entrants. Must ensure continued universal service provision. Be given sufficient skilled staff and resources so that they can do the job required. Be given sufficient and flexible powers to be able to enforce regulation, settle disputes The regulator should ensure that Price, terms and conditions of interconnection between the dominant operator and competing network and service operators should be according to rules which ensure they are transparent, objective and provably cost oriented. Accounting separation of the main parts of the incumbents business is achieved. Regulator must have the power to ensure that services competitors buy from the incumbent are unbundled and supplied on the same basis as it supplies itself. There is no misuse of customer information. Universal service fund established to which competitors contribute to help against the losses incurred by the incumbent. Contributions must be transparent, cost based. There is a transparent appeals process to scrutinize decisions made by regulator. Privatisation plans must not be allowed to interfere. Regulation should be maintained until competition at all levels is well established and sustainable. I should be acknowledged that this will take a number of years. END
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