IP: Telecommunication regulator - recipe for success

[Dave Farber <farber () central cis upenn edu>]

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