Policymaking and telecommunications regulation

1
Policy-making and telecommunications regulation

• Telecommunications Policy Review Panel
• Policy forum - 26 October 2005
• Warwick Davis
• Director / Economic Adviser Telecommunications
  Group, ACCC

2
Outline

• Structure of the Australian system
• Government objectives / tools
• Regulatory objectives / tools
• Appeal mechanisms

3
Structure of the Australian system

• Federal Government sets communications policy
• Largely, ACCC and ACMA implement the policy
• Government retains some discretionary
  implementation powers, but used sparingly

4
ACCC objectives

• As competition authorityTrade Practices Act
  (TPA)
• enhance the welfare of Australians through the
  promotion of competition and fair trading and
  provision for consumer protection (section 2)
• As regulatorPart XIC of the TPA, dealing with
  telecommunications access, has its own specific
  objective
• to promote the long-term interests of end-users
  (section 152AB)
• Promote competition, efficiency, any-to-any

5
Government objectives

• High quality communications services for all
  Australians, available on equitable basis
• Facilitate development of sustainable competition
  Long term interests of end users
• Efficient and internationally competitive
  telecommunications industry

6
ACCC tools

• Parts XIC and XIB
• Access regulation and application of
  telecommunications-specific competition law
• Regulation focus on wholesale / access issues
• Getting the settings right for efficient
  investment and competition
• An advocate for competition?

7
Government tools

• Funding
• Broadband
• Legislation / Regulation
• Trade Practices Act
• Rules of competition
• Telecommunications / Broadcasting / Radiocomms
  Acts
• Universal service obligations ( funding
  mechanism) and customer service guarantees
• Retail price controls
• Power to issue directives to ACCC / ACMA

8
Policy directives

• Minister retains powers to direct the ACCC
• Monitor and report
• For example, uptake of broadband services
• Implement the terms of a Ministerial pricing
  determination in relation to an access service
• Has not been used
• Unbundled local loop pricing?
• Will de-averaging undermine the Governments
  objectives?
• Ownership tensions?

9
Appeals

• Crucial part of regulatory design
• Everyone wants a quick decision, but not everyone
  is happy to accept the umpires verdict
• Trade offs
• Regulators should be accountable
• ACCC experience
• Access providers have many avenues to stymie the
  intent of telecommunications access regime and
  they are using them

10
Appeals

• Important to specify roles and powers of
  regulator clearly
• Judicial review appropriate to ensure regulator
  has followed principles set down in legislation
  (or policy direction)
• Multiple appeal avenues and merits reviews?