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

2. Module 2 Slide 2 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 1 – Independent Regulator An 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 Module 2 – Page 8

3. Module 2 Slide 3 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features of effective market place The 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 Module 2 – Page 8

4. Module 2 Slide 4 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators 1. The regulator must be functionally and legally separate from all market participants. With explicit legal authority With a legal framework Module 2 – Page 9

5. Module 2 Slide 5 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators A 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 Module 2 – Page 9

6. Module 2 Slide 6 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 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 Module 2 – Page 9

7. Module 2 Slide 7 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators 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 Module 2 – Page 10

8. Module 2 Slide 8 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators 2. The financial interests of the regulator should be independent 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 Module 2 – Page 10

9. Module 2 Slide 9 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators 3. The regulatory body must demonstrate credibility by 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 Module 2 – Page 11

10. Module 2 Slide 10 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators 4. 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 Module 2 – Page 11

11. Module 2 Slide 11 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators Effective Regulators often take the LEAD L-Listen E-Evaluate A- Analyze D-Decide Module 2 – Pages 11-12

12. Module 2 Slide 12 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Features independent regulators Discussion point: Compare and contrast the role of the Independent Regulator by listing two supporting factors and two inhibiting factors Module 2 – Page 12

13. Module 2 Slide 13 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 2 – Principles Principles 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

14. Module 2 Slide 14 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Principles Principles 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 Module 2 – Page 16

15. Module 2 Slide 15 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 MODULE: 2 B Public Communication & Inquiry

16. Module 2 Slide 16 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 3 – Public Processes Where possible use Public Processes to ensure TRANSPARANCY Help to make better decisions Module 2 – Page 17

17. Module 2 Slide 17 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Public Processes Public Communication Processes Brochures Reports Regular newsletters Media releases and articles Fact sheets Speeches & presentations Information resources Websites Module 2 – Page 19

18. Module 2 Slide 18 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Public Processes Public communication processes Direct requests for inputs Electronic lodgment of inputs Inputs from public seminars, fora, meetings and workshops Module 2 – Pages 20-21

19. Module 2 Slide 19 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Public Process SUMMARY 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 Module 2 – Page 21

20. Module 2 Slide 20 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 4 – Procedural Models Steps Model One - Government Initiative Module 2 – Pages 22-23

21. Module 2 Slide 21 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Procedural Models Steps for a Government Authority Module 2 – Page 23

22. Module 2 Slide 22 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Procedural Models Step Model Two – Regulator initiative Module 2 – Pages 24-26

23. Module 2 Slide 23 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Procedural Models Steps for a Regulator Authority Module 2 – Page 26

24. Module 2 Slide 24 NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 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? Module 2 – Page 26