1. Module 7 Slide 1 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 MODULE: 3 Compliance Promotion & Monitoring

2. Module 7 Slide 2 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 1 – Case Study The Scenario Open competition was permitted in the Australian telecommunications market in mid-1997 New competitors have entered the sector along with new technologies and means of service delivery This has contributed to more choice and reduced prices for telecommunications services Module 3 – Pages 8-9

3. Module 7 Slide 3 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Case Study The Scenario Telstra still provide the majority of CAN services to the economy Telstra are subject to specific and exclusive monitoring Tariffs for declared carrier services in particular The ACCC has monitoring powers related to competition in the telecommunications industry Module 3 – Pages 8-9

4. Module 7 Slide 4 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Case Study Discussion points: How does this scenario compare with circumstances in your country? How is competition regulated and monitored? Module 3 – Page 9

5. Module 7 Slide 5 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 2 – Principles Compliance Monitoring : Is a process of collecting information to satisfy regulation and compliance obligations. May also be used to set and analyse performance against performance indicators. As a regulatory tool promotes self-regulation. Should not impose undue cost burdens Promotes the long-term interests of suppliers of services Module 3 – Page 10

6. Module 7 Slide 6 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Compliance Principles 1) PURPOSE 2) USE 3) REPORTING 4) FREQUENCY 5) FIT-FOR-PURPOSE 6) COMPETITIVE NEUTRALITY 7) RISK 8) COST EFFECTIVENESS 9) STANDARDISATION 10) SCOPE & SCALE Module 3 – Pages 11-15

7. Module 7 Slide 7 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Compliance Principles No. 10 Scope and scale of industry monitoring Competition practices Assistance to law enforcement agencies Rule effectiveness Consumer satisfaction National interest matters Number portability Priority services Universal Service Module 3 – Page 15

8. Module 7 Slide 8 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Compliance Principles Discussion points: Which of these principles are widely used in your country? Which do you believe could be better applied by the regulator? Module 3 – Page 15

9. Module 7 Slide 9 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 3 – Process Model Prioritising Module 3 – Pages 16-17

10. Module 7 Slide 10 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Process Model Prioritising Cluster 1 – Network Performance and Minimum Safeguards Cluster 2 – Customer Service Experience Cluster 3 – Public Interest Cluster 4 – Service Availability Module 3 – Page 17

11. Module 7 Slide 11 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Process Model Prioritising - Examples Module 3 – Page 18

12. Module 7 Slide 12 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Process Model Discussion point: Identify two matters for each cluster in an economy you know Cluster 1 - Cluster 2 - Cluster 3 - Cluster 4 - Module 3 – Page 18

13. Module 7 Slide 13 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Process Model - Methods Data Collection Verifiable data Industry-sourced data Network performance information from network operators Avoiding duplication of data sourcing Module 3 – Pages 19-20

14. Module 7 Slide 14 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Process Model - Methods Data Collection - Examples Module 3 – Page 19

15. Module 7 Slide 15 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Process Model - Methods Discussion point: Select one or two examples that could be used in the telecommunications environment you know. Are there other methods used? What are these? Module 3 – Page 20

16. Module 7 Slide 16 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Process Model - Methods Typical RKR or Performance Indicators Specific Title Description of indicator Entities required to record and report Frequency of recording and reporting Measurement methods Geographic requirements Reporting formats Public reporting format

17. Module 7 Slide 17 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 4 – Case Study Outcomes Tariff filing Record keeping rules (RKR) Regulatory accounting framework Publication

18. Module 7 Slide 18 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 5 – Application In small groups: TASK 1. - review the information on Principles, Priorities, Methods & select a set that suits your country TASK 2. - compare the outcomes of task 1. with actual practice TASK 3. - report back to whole group TASK 4. - consolidate your ideas on a monitoring program