1lsqos PSD Occasional Paper No. 24 February 1996 Cross-Country Survey of Telecommunications Regulatory Structures Maria Stafilidou n The World Bank Private Sector Development Department PRIVATE SECTOR DEVELOPMENT DEPARTMENT OCCASIONAL PAPERS No. I Rhee, Katterbach, Belot, Bowring, Jun and Lee, Inducing Foreign Industrial Catalysts into Sub-Saharan Africa No. 2 Mody and Wang, Explaining Industrial Growth in Coastal China: Economic Reform ... and What Else? 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The Case of Egypt No. 9 Tan and Batra, Enterprise Training in Developing Countries: Overview of Incidence, Determinants, and Productivity Outcomes No. 10 Sundaram, Teik and Tan, Vision, Policy and Governance in Malaysia No. 11 Tzannatos, Labor Policies and Regulatory Regimes No. 12 Kessides and Willig, Competition and Regulation in the Railroad Industry No. 13 Nagaoka, Antidumping Policy and Competition No. 14 Atiyas, Bankruptcy Policy No. 15 Brandao and Feder, Regulatory Policies and Reform: The Case of Land Markets No. 16 Jebuni, Governance and Structural Adjustment in Ghana No. 17 Atiyas, Uneven Governance and Fiscal Failure: The Adjustment Experience in Turkey No. 18 Van Arkadie, Economic Strategy and Structural Adjustment in Tanzania No. 19 Tan and Batra, Technical Efficiency of SMEs: Comparative Evidencefrom Developing Economies No. 20 Oi, Cadre Networks, Information Diffusion, and Market Production in Coastal China No. 21 Pasha, Governance and Fiscal Reform: A Study of Pakistan No. 22 Frischtak, State Capture and Fiscal Adjustment in Brazil Private Sector Development Department Occasional Paper No. 24 Cross-Country Survey of Telecommunications Regulatory Structures Maria Stafilidou February 1996 This paper has been cleared for inclusion in the occasional paper series by the Private Participation in In:asucture Group. The views expressed are those of the author(s) and should not be attributed to The World Bankl The World Bank Private Sector Development Department Contents 1. Introduction ............................................................1 2. Tables: * Principal Regulatory Agencies for Telecommunications .2 * Composition of the Regulatory Entity .4 * Type of the regulatory entity (Autonomous, Semi-Autonomous or Dependent) .7 * Powers and Functions of the Regulatory Entity .10 * Relationship Between Regulatory Authority and Other Entities .21 * Main Objectives and Goals of the Regulatory Agency .30 * Decision and Rule-Making Procedure .39 * Process of Regulatory Decision-Making: Rules of Operation of the Regulatory Entities .44 * Procedures for Granting Licenses .49 * Communications Services included in Telecommunications Regulator's Jurisdiction .53 - Interconnection: Is the regulatory agency involved with interconnection issues and how? .55 * Distinction between Services .62 * Ownership of the Facilities .67 * Oversiight of the Regulatory Entity .71 * Appea[ling to a Regulator's Decision .72 * Inforrming the Public of the Issues to be Addressed so as to Promote Transparency .73 * Fundinig of the Regulatory Entity .80 Introduction Any refon7n of the telecommunications sector must begin with a vision of the industry structure that is desired and the regulatory framework that is required to ensure achievement of established objectives. Recent international experience in both industrialized and developing countries reveals quite clearly that an effectively structured regulatory regime is an indispensable precondition for increased private sector participation and good sectoral performance. Where there is no legislative or regulatory framework in place for the telecommunications sector, significant new irnvestment will not flow. Indecision in creating such a framework will delay vital investment flows, and result in investors demanding high risk premia. This report tabulates results from a cross-country survey of telecommunications regulatory structures carried out in late 1994. The survey characterizes the regulatory schemes that are currently in place in several major industrialized and developing countries. It identifies and analyzes country-specific choices with respect to: (i) the institutional and legal structure of the telecommunications regulatory entity (the position of the regulatory entity within the government, its scope of responsibilities, the locus of legal functions within the internal structure of the regulatory entity, and its rules of operation); and (ii) definitions of telecommunications and information services. The survey is intended to assist Bank and government policy makers by presenting a concise synthesis of the international experience in a manner which permits easy and immediate review of cross-country regulatory policies. We are grateful to all agencies and individuals who have helped us in this effort. For further questions, please contact loannis Kessides, (202) 473-9345. 1 Principal Regulatory Agencies for Telecommunications Country Agencies *United Kingdom Office of Telecommunications (OFTEL) USA Federal Communications Commission (FCC) for interstate and foreign communica'tions. State Public Utility Commissions (PUC) for intrastate communications. Venezuela Consejo Nacional de Telecommunicaciones, or, National Telecommunications Commission (CONATEL) Denmark The Minister of Communications and Tourism and the National Telecom Agency. The Minister has delegated most of his executive powers to the National Telecom Agency. oFrance Direction Generale des Postes et Telecommunications (it has succeeded the Direction de la Reglementation Generale.) oSpain Direcckin General de Telecommunicaciones. (DGT) Mexico Secretariat of Communications and Transportation. *Canada Canadian Radio-Television and Telecommunications Commission (CRTC) Switzerland Federal Department for Transports, Energy and Communications. Within the Department the OFCOM is the main regulatory body. Some regulatory issues, however are still left with the state-owned Swiss PTT. Chile Subsecretaria de Telecommunicaciones (SUBTEL) Japan The Telecommunications Bureau, within the Ministry of Posts and Telecommunications. *Germany The Federal Ministry of Post and Telecommunications (Bundesministeriumftir Post und Telekommunikation). Australia Australian Telecom-munications Authority (AUSTEL). Sri Lanika Sri Lainka Tcilecom Authority (SLirA') 2 Principal Regulatory Agencies for Telecommunications Country Agencies Argentina Comisi6n Nacional de Telecommunicaciones (CNT). Pcru. /-O-ga-ismo S dA7 i- Privada en - e1 nicarioe ( ITPTPT , or iinpervkina Ag anAv for Privnte Invetment in Telecommunications Colombia There are three regulatory agencies; The Telecommunications Regulation Commission, the Ministry of Communications and Superintendency of Public Services. New Zealand There is no distinct regulatory agency formed prior to or after the privatization. Courts are called to resolve problems enforcing the Commerce Act, which regulates the industry. A number of regulatory functions are exercised by the Commerce Commission. The Minister of Commerce oversees the sector and is responsible for radio spectrum regulation. Malaysia Japatan Telecom Malaysia (JTM) 3 Composition of the Regulatory Entity Country Composition United OFTEL is headed by the Director General of Telecommunications. The Director is appointed and may be removed by the Secretary of State Kingdom (on the ground of incapacity or misbehavior). The staff of OFTEL is appointed by the Director subject to the approval of the Treasury as to numbers and terms and conditions of service. All staff other than the Director General are civil servants loaned from other government departments. USA FCC is composed of five commissioners appointed by the President, with the advice of the Senate, one of whom the President designates as chairman. Commissioners are appointed for terms of five years which are staggered so that one term expires each year. No more than three of the five commissioners may be members of the same political party. The Commission has the authority to appoint such officers, engineers, accountants, attorneys, inspectors, examiners and other employees as are necessary in the exercise of its functions. Venezutila CONATEL's directoT is appointed by the MinisteT of Transport and Communications in consultation with the President of Venezuela. A group of managers (basic network planning, services, competition, legal affairs, broadcasting and logistics) are appointed by the Director. They may be freely removed by the Minister or the Director. Denmark 'T'he employees of the Ministry of Communications and Tourism and the National Telecom Agency are civil servants. France The head of the DGPT is appointed by the Minister of Posts and Telecommunications. All the employees are civil servants, who are appointed by contest, except those experts who are appointed for a certain period of time by contract. Spain All the employees of Direccion General de Telecommunicaciones are civil servants. Mexico The Secretaria de Communicaciones y Transportes is headed by an official appointed and removed directly by the President of Mexico. The term of the appointment varies according to the needs of the sector. Likewise, the Undersecretary of Communications and Technological Development and the Director of Telecommunications of Mexico are appointed directly by the President of Mexico. 4 Composition of the Regulatory Entity Country Composition Chile The Subsecretario de Telecommunicaciones, who is the highest authority of SUBTEL, is appointed directly by the President of the Republic. SUBTEL has three divisions for carrying out the activities relating with the companies and agencies of the sector and six departments which constitute the management support staff. All these divisions are dependent on the Subsecretario. Switzerland All the employees are civil servants, who are appointed by the office directors for an unlimited period of time. They have various expertise, most of them are engineers and lawyers. Japan The officers who constitute the three bureaus which oversee the regulation of communications in the Ministry are government employees. The employees of the three councils which assist the Ministry in overseeing the telecommunications sector are appointed as follows: 1. Telecommunications Council -- they are appointed by the Minister for a period of two years. 2. Radio Regulatory Council -- they are appointed by the Minister contingent upon the Diet's approval for a period of three years. 3. Telecommunications Technology Council -- they are appointed by the Minister for a period of two years. Germany All employees of the Federal Ministry of Posts and Telecommunications are civil servants. Australia AUSTEL consists of a chairperson and 2 other members. The chairperson is appointed as a full-time member by the Governor-General. AUSTEL may engage such persons as it thinks fit as consultants to advise AUSTEL in respect of the exercise of its powers and the performance of its functions. The minister appoints such associate members as he thinks fit, for a period not exceeding five years. A member is eligible for reappointment. The appointing authority may terminate the appointment of a member for misbehavior or mental incapacity. The minister under special conditions may support a member or another person to act as the chairperson or as a member (during a vacancy in the office of chairperson). _ 5 . Composition of the Regulatory Entity Country Composition Sri Lanka The Director General is appointed by the Minister of Posts and Telecommunications. Peru OSIPTEL is composed of the Board of Directors, the President and the General Manager. The Board of Directors are represented by 6 members designated for a renewable period of three years. The Chairman of the Board is elected by the President of Peru. There is one representative of the Ministry of 'fransport and Communications, one representative of the Ministry of Economy and Finance, one representative of the customers of public telecommunications services, one representative of the company and one representative of the final services companies. The members may be removed on physical or mental impediment grounds or on dismissal in accordance with the provisions of Telecommunications Law. Argentina Comision Nacional de Telecommunicaciones is directed by six members one of which is the president, one vice-president and the rest are Board members. They are all designated by the National Executive Power (Poder Ejecetivo Nacional) for a period of five years. They may be renominated for one additional term. The president and vice-president remain in their posts for equal terms and may be renominated for one additional period only. The members of the Board may be removed by the National Executive Power, for non-compliance with their functions, after an accusation is made by the General Syndicated Public Industries. Members of the Board must meet the required criteria for public officials. All must be experienced specialists in the telecommunications field. Malaysia The Minister appoints the Director General of Telecommunications (DG). No person is appointed in the office of DG unless he/she is a telecommunications engineer. 6 Type of the Regulatory Entity Country Autonomous Semi-autonomous Dependent Unit United OFTEL is an autonomous body and is Kingdom responsible for the monitoring and enforcement of licenses. It is a non-ministerial government department, under a Director General who is independent of ministerial control. The DG has extensive powers under the Act, particularly when enforcing or modifying license conditions. The DG can also make determinations. USA FCC is an autonomous body The FCC's independence is ensured through its broad statutory mandate to regulate in the public interest and through a system of governmental checks and balances. Its public interest mandate provides it with broad flexibility to develop communications policy and regulations that forward the objectives of the Communications Act of 1934. Although the FCC is considered to be an "independent" regulatory agency, it remains subject to congressional oversight and is dependent on the Congress for its operating funds. Venezuela CONATEL is a semi-autonomous entity, reporting to the Minister of Transport and Communications. 7 Type of the Regulatory Entity Country Autonomous Semi-autonomous Dependent Unit Denmark The Minstry of Communications and Tourism is the regulatory authority. It is assisted by the National Telecom Agency. Within the Ministry, the General Directorate of Posts and Telegraphs is in charge of the overall departmnental functions regarding the telecommunications sector. The National Telecom Agency assists the General Directorate, in providing consultations and briefings to the Minister and in preparing legislation in the telecommunications field. France DGPT is a dependent body-- it is a governmental department within the Ministry for Posts and Telecommunications. Nevertheless, it has some independent authority on administrative matters, type approval of equipment, and licensing. Spain Direccion General as a department within the Ministry of Public Works, Transportation and the Environment, is a dependent unit Mexico Autonomous body, although it takes into account the opinions of (among others) the private sector, research and academic institutions. Canada CRTC is an autonomous agency Type of the Regulatory Entity Country Autonomous Semi-autonomous Dependent Unit Switzerland It is a dependent unit. Chile SIJBTEL is a semi-autonomous entity. Although it is separate, not within a Ministry, it still has no full independence from the government. It is neither financially nor administratively independent. Japan The Telecommunications Bureau, as a division of the Ministry. Germany The Federal Ministry is a part of the federal government and therefore is not an agency under its jurisdiction. Australia AUSTEL is a semi-autonomous agency. Its functions include reviewing and reporting to the Minister on all matters relating to the operation of licensing of carriers, access by carriers to networks and services of other carriers, and the supply of basic carriage services by carriers. Sri Lanka It is a semi-autonomous body. Argentina CNT is a semi-autonomous agency. Although certain regulatory powers were designated to CNT, it is still dependent upon the Executive Power and is institutionally and funtional linked to the Ministry of Economy and Works and Public Services. Peru OSIPEL is an autonomous agency _ 9 Powers and Functions of the Regulatory Entity Setting technical and Radio Frequency Licensing of operational Price Dispute Customer Type approval of spectrum Counitry allocation carriers standards regulation resolution complaints equiptnent regulation Othe . _______________ .rs United OFTEL has The licenses are The setting of OFTEL The DO is The DG investigates The Secretary of State Kingdom no role in the granted by the Secretary standards is the exercises price responsible for customer complaints. is responsible through the frequency of State with the responsibility of regulation only the dispute He has the duty under British Approvals Board allocation consultation of the the Secretary of by setting price resolution the Telecommunications for the type approval of whici is carried Director General, who State with the caps on B'"s between the Act of 1984 to consider terminal equipment with out by the secures the compliance consent of the regulated operators. any representations by the consent of the Radio with their conditions. DG. activities. It the customers although Director General. Comrnunica- does not regulate he normally allows the OFTEL is responsible for tions Agency (a DG also has the the prices of other PTO concemed first to general type approval and department of power to modify their operators. (e.g. consider the matter and the British Approvals Trade and conditions unless thie althoughi Mercury to resolve the dispute Board has the Industry). Secretary of State Communications directly with its responsibility for dealing doesn't agree to such Limited licence customer. with and granting modifications. follows the same individual type approvals. structure as BT's. Mercury's tariffs are not subject to price caps and it is not required to seek prior approval of its prices), 10 Powers and Functions of the Regulatory Entity Setting I teclinical l Radio F.I eqIuency 1,1Ci.ensAgg o1 Lari I lux andu I'rice Aegulaiionl DispU kuIuie Csioil Type specti u.. Country allocationi operational r esolu- complaiiits approval of regulation Others standards tion equipment U.S.A. FCC The FCC assigns the FCC monitors and Yes. Yes. The FCC is It The distributes thc licenses for broadcast, regulates the tariffs and Commission responsible regulates Commission fi-equencies satellite, commoni cost allocation for may institute for the supervises not among the carrier and private radio regulated entities. an equipmcnt allocation only rates and several states services. It authorizes Common carriers file investigation authorization of spectrum services, but and communities common carrier tariff schedules with the pursuant to a under Part 68 for non also charges, services in interstate FCC. The rates and complaint filed of the FCC's federal practices, and foreign commerce. regulations in those from the rules. uses. classifieations, schedules are subject to public. and regulations review and regulation of in connection interstate tariffs of with interstate "dominant" earriers and foreign (AT&T, BOLs, GTE) communication with "price cap" by wire or regulation. radio. 11 Powers and Functions of the Regulatory Entity Setting technical and Radio Frequenc Licensing of opera-tional Price Dispute Customer Type spectrum Countr y allocation carriers standards regulation resolution complaints approval of regulation Others Y .... equipment Venezue Yes. Yes. Ycs. Yes. Yes. Yes. Yes. Yes. Yes. la Dcnmar The National National National The National Tcccom k Tlcccom Telecom Tclecom Agency Agency is in charge of Agency is Agency deals with administrative and responsible for approves the complaints cases. regulatory functions. It the issuing of tariffs, and also assists the General licenscs. oversees the Directorate in providing compliance consultation and with briefing to the Minister established and preparing legislation tariff in the Telecom- principles. munications field. Franice DGPT is It grants It sets Yes. DGPT is often It participates in in charge ol authorizations standards. called as an European and both for the provision arbitration international groups, mnanagement of !va!uc added authority, , watrheh- iechnoiov to of radio services. France Telecom prepare the standards. frequencies and service an(I their providers or other It has the control of monitoring tele- public service quality. and communications licensing for operators. It ensures the radio com- compliance with munications competition rules and networks negotiates international and services. agreements and European Union texts. 12 Powers and Functions of the Regulatory Entity Setting technical and Radio Fre- opera-tional Type spectrum quency Licensing of standards Price Dispute Customer approval of regula-tion CGuuilr aiiocation carriers regulationi resolution complaints equipment Others Spain Direccion It also It attends to Telefonica is It issues It ensures that the is provides with the setting of responsible for its certificates of provided responsible conces-sions, standards. customer complaints compliance telecommunications for the authori-zations relating to thc with the services meet certain management and quality of service. It required quality standards. and the administrative has the obligation to specifications. administra- licenses Ior report them monthly It also approves tion of the apparatus, sta- to the regulatory the methods in spectrum of tions, systems, authority. which frequencics and civil teic- verification and their communication tests to be assignment. services. carried out. Mexico The It also It is The It monitors the quality of Secretariat establishes the responsible for Secretariat is services provided. grants and technical and the responsible revokes the operational homologation for the It is responsible for the concessions standards of management inspection and surveillance according to telecoinmunica- of the radio- of installations of the intcrnational tions electric telecommunications norms. equipment. spectrum. operators. Canada CRTC It doesn't It helps the It approves It receives and It monitors the quality of doesn't grant licenses. Minister to the tariffs dcals with customer servicc provided. attend thc establish charged by complaints. frequency standards. the carriers The Commission has the allocation for the power to exempt any class provided of Canadian carriers from services. the applicalion of the Telecommunications Act. 13 Powers and Functions of the Regulatory Entity Setting technical and Radio Fre- opera-tional Type spectrtim quency Licensing of standards Price Dispute Customer approval of regula-tion CoUntry allocation carriers regulation resolution complaints equipnent Others Switzcrla Yes. Yes. Yes. It deals It sets the It regulates It monitors the quality of nd with rules for type the radio service provided and sets complaints in approval of the spectrum. quality standards (minimal cases where customer standards). the Swiss premises equip- PTT is cross- ment and its subsidizing attachment to competitive the PSTN. services by means of monopoly funds. Chile SUBTEL It sets tile SUBTEL, SUBTEL It It proposes the telecom- granits technical along with the with other adminiisters munications policy, takes concessions for standards and Ministry of institutions and controls part in national and regional the operation of controls their Economy, controls the the radio- planning of the telecom- telecomnmuni- performance. regulates the manufacture of electric inunications development cations ser- establishment telecom- spectrum. and watches over the vices. It can of tariffs. municationis performance of the aiso cancei a equipineut telecommunMication- s laws concession or and regulations. permnit for non compliance 14 Powers and Functions of the Regulatory Entity Setting teccnical and Radio Fre- opera-tional Type spectrum quency Licensing of standards Price Dispute Customer approvalof regula-tion Country allocation carriers regulation resolution compiaints equipmeni _ _L_ __ __ _ Japan The It grants It sets the It doesn't It grants It monitors the quality of Telecom- autho-rizations, technical have any role licenses for service and ensures that the munications permissions to standards in in price the operation provision of services is of Bureau is Type I carriers an (applic- regulation. of radio- adequate quality. responsible for the operation able) Tariffs are spectrum and for the of service, ordinance and established controls also frequency rcvokes them, ensures that by the the radio allocation. decides for the the carriers operators but stations that change of the conform with before they don't receive category of them. are put into a license. service, effect, an suspcnsion or It grants authorization discontinuance technical must be of their standards granted by business. compliance the Minister. General type 1I approval and carriers notify may authorize the Bureau another entity, about their called "a operation. designated approval agency" for this purpose (for the radio equipment approval is the MKK-Radio- Equipment Inspection and Certification Institute). 15 Powers and Functions of the Regulatory Entity Setting technical and Radio Fre- opera-tional Type spectrum quency Licensing of standards Price Dispute Customer approval of regula-tion Country allocation carriers regulation resolution complaints equipment Others Australia AUSTEL It ensures The It arbitrates AUSTEL deals Managing the numbering grants class the safety and Minister disputes with customer of telecommunications licenscs quality of the determines between complaints. It also services. telecommuni- price control carriers. refers consumer cations arrangements. complaints to the It has thc power to give services and But if a Ombudsman or the written directions to a for that carrier Trade Practices carrier in connection with purpose it proposes to Commission in performing any of determines alter a appropriate cases. AUSTEL's functions, technical reserved (protection of consumers, standards service AUSTEL receives numbering, promotion of about network charge that is and investigates competition). It also matters, subject to consumer com- reports to the Minister of connection of price control plaints including Transport and Communi- customer arrangements, complaints about cations on competitive cquipment to the carrier charges of the safeguards and carrier per- the tele- must inform telecommunications formance. communica- AUSTEL of services. tions net- the alteration; works, and the carrier performanice shall not of cabling make the work. proposed alteration unless AUSTEL approves it by written notice. 16 Powers and Functions of the Regulatory Entity Sctting technical and Radio Fre- opera-tional Type spectrum quency Licensing of standards Price Dispute Customer approval of regula-tion Countrv allocation carriers rula:ion resolution compiaints equipment Others Sri DG advises SLTA SLTA The customers of It is The SLTA It monitors the quality of Lanka the Minister in specifies controls the a responsible for manages and services provided by the the granting of technical tariffs and telecommunications the type controls the operators and ensures that licenses and standards and interconec- service may make approval of use of radio these services confortn to detcrmined if a procedures for tion charges complaints to the customer spectrum and standards relating to quality violation of the the provision and more DG. DG is premises it issues of service specified by the terms and of telecom- specifically, it responsible for equipment licenses for Telecommunication Act. conditions of a munications determines customer protection. the use of license have services. with the radio DG represents the occured. SLTA Minister of frequency. Govern-ment in is responsible Posts and DG monitors international conferences or for the Telecommuni and enforces international and foreign enforcement of ca-tions and the relevant bodies concerned with license the Minister laws and telecommunications and conditions. of Finance licence ensures that the operation of the level of conditions. telecommunications ser- tariffs and the vices serves the overall method of economic and social their objectives of the country. adjustment. 17 Powers and Functions of the Regulatory Entity Setting technical and Radio Fre- opera-tional Type spectrum (itiency Licensing of standards Price Dispute Customer approval of regula-tion Country allocation carriers regulation resolution complaints equipment Others Argentih Ycs The CNT It is It deals with it is Yes It monitors the quality of a authorizes the responsible customer responsible for service. installation of for price complaints. the standardi- telecoinmunica- regulation. zation of It prevents anti- tions facilities telecommuni- competitive behavior. and systems. It cations also advises the equipment It investigates and Executive verifies the compliance of Power on the operators with the whether a new conditions of their licenses. service should be provided It aplies, interprets and exclusively or in enforces the tele- competition. communications law. It imposes .anctions on those who do not comply with the laws in force. It facilitates the entry into the market of new providers. 18 Powers and Functions of the Regulatory Entity Setting R technical and Radio Fre- opera-tional Type spectrum quency Licensing of standards Price Dispute Customer approval of regula-tion Country allocation carriers regin reso*!io coTyppairet e n Others Peru OSIPTEL It deals It deals with It monitors the quality of is responsible with dispute customer services provided and sets for price resolution. complaints. quality standards. regulation, and it To extend telephone establishes service, a fund called the tariff FITEL (Investment Fund regime for for Telecommunca-tions) different tele- has been created, which communica- derives from the tions public contribution of the bearing services. companies and public tele- OSIPTEL is communications operators implementing and represents l% of the a tariff total annual gross income rebalancing invoiced and received. program to eliininate OSIPTEL is responsible cross- for administering FITEL, subsidies which is used exclusively among for the financing of services. telecom-munications public services in rural areas. 19 Powers and Functions of the Regulatory Entity Fre- Type Radio quency Setting technical approval spectrutm alloca- and operational Dispute Customer of equip- regula- Country tion ILicensing of carriers standards Price regulation resolution complaints ment tion Others Malaysia The Minister grants Yes. The Minister makes and revokes licenses, Establishment of regulation for the rates subject to the approval of standards and their at which, and other the Land Authority (i.e. enforcement. conditions and State Minister or Ruler restrictions subject to or Governor of a State) which, messages shall The regulatory be transmitted and authority may grant a apparatus equipment licence only if it is not and plant may be proposed to carry any wired. linie on, along, through, under or across any state land or in such manner as to cause interference with any private rights. The Minister may delegate his power of issuing licenses to the DG for the establishment ol' any icIcc, u iuIIuLicatiofls station or the installation or working of any radiocornmunications __ __ ____ _____ _ __ __ _____ ____ __ __ ____ ____ apparatuis. __ __ ___20 20 Relationship Between Regulatory Authority and Other Entities Country PTO's Telecommunications Anti-Trust Entities Financial/Economic Courts Other Agencies Ministry and Trade Ministries United Kingdom OFTEL supervises 1. The DG has the duty to A change wdi! b It is the DirectoC s duty to Advisory com-mittees the compliance of provide information, referred to the give information, advice and have been established PTO's and other advice, and assistance to the Monopolies and assistance with respect to tlhe by the teleconmiunications Secretary of State. Mergers Commission if exercise of his functions to Telecommunications operators with the a licensee objects to the the Director Gencral of Fair Act 1984. These terIs an(l conditions 2. The Secretary of State proposed modification, Trading when it is requested committees provide of their licenses gives general directions to or if the DG seeks for the enforcemnent of advice to the Director the Director in determining outside advice. The competition legislation General either at his the order of priority in Commission is directed request or on their which matters are to be to determine whether initiative across the brought under review in the the situation threatens to full range of his performance of his duties. harm the public interest activities. and whether a license modification might rectify or alleviate this harm. The decisions of the Monopolies and Mergers Commission are binding on the Director General and the licensee. 21 Relationship Between Regulatory Authority and Other Entities Country PTO's Telecom- Anti- FinanciallEconomic Courts Other Agencies niunica- Trust and Trade Ministries tions Enti- Ministry ties U.S.A. FCC regulates the The National 1i. TIhle Federal Courts I. States have exclusive conitrol of common carriers in the Telecommunications and may review FCC's intrastate telephone services; for this provision of the InformnationAdministration actions. The FCC can be reason thiey adopt laws regarding intrastate telecommunications (NTIA). The Commerce overruled by the Court communications services. The control is services. It has the Department develops only when it has engage(d exercised by state utility commissions authiority to require firmi international in "arbitrary and which are regulatory agencies established them annual reports and telecommunications policy, capricious" decision by state legislatures. State Courts have olher informnation (such as serves as the President's making or violated IJS jurisdiction to review decisions taken by the account of capital principal advisor on laws or its own rules of them. issued, the dividends paid, telecommunications policies procedure. etc.) and conducts technology 2. The defense department and the research and development in 2. The Courts also hear Secretary of Defense may affect policy the area. It has the antitrust cases and make decisions in relation to national security or responsibility to ensure that decisions in or approve defense. the views of the Executive settiemcnt of eases. Branch on telecommunication 3. When international issues are involved matters are effectively the State Department, which has its own presented to the FCC and to communications policy making unit, also Congress becomes involved. 22 Relationship Between Regulatory Authority and Other Entities Country rO's Telecommunications Anti-Trust Entities Financial/Economic Courts Other Agencies Ministry and Trade Ministries Vcnezucla CONATEL It reports to the Minister of In case of doubt, It is financially dependent on supervises the Transport and CONATEL applies to the Ministry of Finance public Communications the Anti-trust tIlecoimmunicationis Commission. operators Denmark The Minister Within the Ministry of A Tele- supervises the Communications and comnunications public Tourism, the General Board has been tcccommunicationis Directorate of Posts and created. To a certain operators Telegraphs is in charge of extent, the Telecom- the overall departmcntal munication Board is functions regarding the dealing with postal and telecoinmuni- complaints about cations sector. decisions made by the National Telecom National Telecom Agency Agency. is in charge of administrative and regulatory functions according to legislation in the telecommunications field. It also assists the General Directorate in providing consultation and briefing to the Minister and preparing legislation in the telecommunications field 23 Relationship Between lRegulatory Authority and ()ther Entities Country I'Tl(O's Teleco nmmunications Anti-Truist Finanrcial/Econoxilic and CourtS Other Agencies Ministry Entities 1'rade Ministiries France DGPT supervises France It subjects to the Ministry of TIhe Comrnissidn Telecom. Posts and Telecommu- Superiere du Service nications. Public des Portes et Telecommunications selects information in respect to the development of the telecommunications sector and guides DGPT in decision making. Legislative. DGPT participation in designing of new bills. Spain 'rhe Direccion Gcncial The Direccion General is a monitors and controls the department within the quality and extension of Ministry of Public Works, the services offered by the Transportation and PTO, according to the Environment. "National Tele- communications Plan" (PANT) issued by the DGT. 24 Relationship Between Regulatory Authority and Other Entities |Country [PTO's Telecommunicati | Anti-Trust FinanciaUEconomic Courts Other Agencies ons Ministry Entities and Trade Ministries Canada In some cases, the The Governor in Council Minister consults the issues directions of general Commission with application on broad policy respect to a proposed matters in accordance with order. national objectives. Switzerland There is a closc There is an impact on cooperation between the OFCOM's work as the OFCOM and the far as it is relevant for Swiss PIT. telecommunications. Japan It supervises the It is a division in the 1. Several advisory committees public telecom- Telecommunications assist the regulatory authority munications Ministry. in carrying out its activities. operators. 2. The Telecommunications Council gives advise to the Minister when a company applies to be listed as a Type I carrier, or when a Type I company changes telecommunications services categories, or for authorization of tariffs charged by Type I company. It is composed of members appointed by the Minister. 25 Relationship Between Regulatory Authority and Other Entities Country PTO's Telecommunications Anti-Trust Entities FinancialtEconomic Courts Other Agencies Ministry and Trade Ministries Gcrmany The Fcderal The Fcderal Milistry of The Fcderal Ministry of the Ministcr of Posts Posts and Telecommu- Economy and the Federal and 'relecommuni- nication is the Federal Ministry of Finance are cations is agency with superior responsible for some responsible for the authority. regulatory issues. management of the Deutslhe Bundesport. 26 Relationship Between Regulatory Authority and Other Entities [Country PTO's Telecommunications Anti-Trust | Financial/Economic Courts Other Agencies Ministrv Entities a An Tits: Itre Australia It superviscs the AUSTEL must perform its In performing its PTOs. functions in a manner functions and exercising consistent with the general its powers, AUSTEL, policies of the Commonwealth where appropriate and Government as expressed by practicable, consults with: the Minister of State for government commercial, Transport and industrial, consumer and Communications and any standard bodies and directions given by the organizations (e.g, Minister in relation to the carriers) and other performance of its functions relevant bodies and and the exercise of its powers. organizations. AUSTEL reviews and reports to the Minister on all significant matters relating to thc operation or licensing of carricrs. AUSTEL also must rcview and report to the Minister on competitive safeguards within the telccom- munications industry and carrier performance. 27 Relationship Between Regulatory Authority and Other Entities Country I'TO's 'lelecommunications Anti-Trust Entities FinanciallEconomic and Courts Other Agencies Ministry Trade Ministries Sri Lanka SLTA oversees Sri SLTA is under the SL'_A specifies with tthe Minister Lanka Teclecom- Ministry of Posts and of Finanice and the Minister of munications (PlO) Telecommunications. It Posts and Telecommunications thc and ensures that has to comilply with the tariffs or methods for determinilig the operators general directives issued such tariffs. comply with any by the Minister regarding general or special the performance of the SLTA has to take the necessary direcLiolis issued duties and exercise of its regulatory measures and comply by the Minister. powers. It has to furnish with the general or special information that the directions given by the Minister requests Government of Sri Lanka. Argentinia CNT is institutionally and CNI Iis dependenits upon the functionally linked to the Ministry Executive Power of Economy and Works and Public Services (Ministerio (IC Economia y Obras y Servicios Publicos) through the Subjsecretaria de Communiicaciones (SOPYC). Althoughi tile CNT has specific powers, the SOPYC reserves the right to grant and determine the expiry of the licenses, the tariffs and rates. 28 Relationship Between Regulatory Authority and Other Entities Country PTO's Telecommunications Anti-Trust Financial/Economic and Courts Other Agencies Ministry Entities Trade Ministries Malaysia JTM supervises the JTM is the 1. The Minister of Finance has the ine commercial accounis of PTOs telecommunications authority to determine the maximum JTM are audited by the Auditor department of the amount to be paid out of the General Ministry of Energy, Posts Telecommunications Fund for and Telecommunications telecommunications network expansion. 2. The Director General each year submits through the Ministry to the Treasury the estimated income and expense statement of the operations of JTM 29 Main Objectives and Goals of the Regulatory Agency Country Universal Service Supervision Stimulate innovation Verifying the absence of Achieving technical other of the discrniinatory policies preconditions for dominant effective operations PTO United OFITEL seeks It supervises It promotes the It ensures that: Yes. By promoting OFTEL ensures the Kingdom universal service the PTOs research into and the the interests of users maintenance and promotion provision by development and use of 1. the PTOs don't show any in respect to the of effective competition ensuring that new techniques by undue preference to, or quality and variety of between entities engaged in throughout the persons engaged in exercise any undue telecommunications commercial activities United Kingdom commercial activities. discrimination against, services provided and connected with telecommunications particular persons in the apparatus supplied. telecommunications in the services are provide provision of their services. United Kingdom and the that satisfy all promotion of the interests of reasonable demands 2. the terms and conditions consumers. including emergency of interconnection services, directory agreements are fair and assistance services, applied without undue etc. discrimination, and that the dominant PTO (BT) doesn't favor its own business so as to place other operators at a significant competitive disadvantage. 30________________________________ _____ 30 Main Objectives and Goals of the Regulatory Agency Country Universal Service Supervision of Stimulate Verifying the absence of Achieving technical other the dominant innovation discriminatory policies preconditions for effective _PIO operations USA FCC ensures the provision FCC Yes. FCC decides whether Yes. It ensures of universal service by regulates the thle Co.rnl.tonl ccu.ac; acts Major e nf thp PCC 1) the expansion and update requiring the operators to common 1. By unlawfully when it are to assure the of the telecommunications offer, so far as possible, to carriers in the encouraging the makes any unjust or availability of high network provided by the basic all the people of the USA a provision of introduction of unreasonable quality, innovative telecommunications operators, rapid, efficient, nation-wide their services new discrimination in communications services, national and international long wire and radio service with to the public. technologies and charges, practices, and to enable the distance services operators adequate facilities at services to the classifications,, telecommunications (the increase of telephone lines reasonable charges. It is a public and the facilities, or services for infrastructure to provide penetration, update of the duty of every common development of or in connection with these services. The FCC networks' digitization) 2) the carrier interstate or foreign a competitive, like communication has undertaken several provision of effective and communications by wire or innovative, and service, directly or analyses to measure the adaptive regulation for radio to furnish such well-functioning indirectly, by any Bell Operating Companies communications, while communications service communica- means or device, or to quality of service. eliminating regulations that are upon reasonable request. tions system. make or give any undue Measurements include: unnecessary or inimical to the The provision of high or unreasonable percent of installation public interest quality and reasonably 2. By preference or advantage commitments met; 3) the promotion of vital priced telecommunications promoting to any particular person, average repair interval; interests of the American service to rural America has efficiency and class of persons, or trouble reports per people in international long been a major goal of innovation in locality, or to subject thousand access lines; etc. communications and both federal and state policy the allocation, any particular person, These measurements are competitiveness makers. licencing and or class of persons, or published. 4. the provision of excellent The FCC and state use of the locality to any undue or The State Public Utility service to the public by the regulators developed elecro-magnetic unreasonable prejudice Commissions also play a most efficient, uncomplicated, "lifeline programs" and spectrum. or disadvantage. substantial role in timely and courteous manner targeted subsidies for high overseeing the quality of possible. cost areas and low income service provided by the subscribers to promote telephone operating universal services. companies. 31 Main Objectives and Goals of the Regulatory Agency Country Universal Service Supervision of Stimulate Verifying the Achieving technical other the dominant innovation absence of preconditions for PTO discrirninatory effective operations policies . USA The US universal service (contin- programs rely primarily on ued) reallocations of costs within the telephone industry. In July 1991, the FCC adopted rules requiring all common carriers by July 26, 1993 to provide telecommunications relay access to the US telephone system for more than 26 million Americans with a hearing and speach impediment (relay services refer to telephone transmission services that permit individuals with a hearing or speach impediment to engage in communications by wire or radio with a hearing aid. Vene- 1. Promotion of the developnment of zuela the sector 2. fair regulation of all the operators 32 Main Objectives and Goals of the Regulatory Agency Country Universal Supervision of the Stimulate of Verifying the absence of Achieving technical preconditions other Service dominant PTO innovation discriminatory policies for effective operations Denmark The Minister exercises He ensures that the supervisory control of provision of the telecommunications telecommunications services in Denmark companies always takes place on a non-discriminatory basis. France Yes. DGPT supervises It ensures non- Yes. It has a limited role in changing France Telecom and discriminatory access to It is one of its major objectives. the industry structure and monitors the the public network and stimulating innovation. conditions of fair transparent conditions. competition in particular between the public operator and private operators for competitive services. Spain Yes. Yes. Yes. According to To ensure that Telecommunications Law one of telecommunications services are its major roles is that organized in such a way as to telecommunications services meet guarantee effectively the secrecy certain required technical of communications specifications. 33 Main Objectives and Goals of the Regulatory Agency Country Universal Supervisi Stimulate of innovation Verifying the absence of discrimninatory Achieving other Service on of the policies technical dominant preconditions PTO for effective ._______._.__. operations Mexico Yes The main objective of the Secretariat is the creation of the basis and mechanisms necessary so that the sector be as little as regulated possible and that it be fundamentally ruled by the principles of free competition within the context of no discrimination and equal terms and conditions for all participants. Canada CRTC has as Yes. Yes. It stimulates Yes. The commission determines that 1. It ensures that the regulation is major role research and every rate charged by a Canadian carrier efficient and effective and it fosters securing the development in for a telecommunication service is just and increased reliance on market forces provision of Canada and reasonable and that no Canadian carrier, in for the provision of quality of encourages innovation relation to the provision of a telecommunications services. services in in the provision of telecommunications service or the both urban telecommunications charging of the rate for it, unjustly 2. It encourages the promotion of and rural services. discriminates or gives an undue or Canadian ownership and control of areas of u-reasonable preferen1ce towards any telecommunications services. Canada person. It also determines that the provision of telecommunications services responds to the economic and social requirements of the users of these services. Switz- Yes. Yes. It ensures the Yes erland technical development 34 Main Objectives and Goals of the Regulatory Agency Country Universal Service Supervision of Stimulate of innovation Verifying the absence of Achieving technical other the dominant discriminatory policies preconditions for PTO effective operations Japan It ensures that the It supervises Yes. 1. It supervises the Type I It ensures that the universal service the public telecommunications carriers to carriers maintain their objective is telecommuni- 1. It promotes the ensure that they don't facilities in conformity promoted. cations digitalization of networks, the unreasonably discriminate with the technical operators. development of ISDN and against specific carriers in standards in order that requests the interconnection. the provision of the Telecommunications telecommunications Technology Council to 2. It ensures that the tariffs services be of adequate investigate and examine items which are proposed for quality. related to telecommunications authorization by the carriers technologies for the do not include provisions that development of the sector. unfairly discriminate against any person. 2. It has established a study group (Study Group on Telecommunications Numbering) to propose a numbering system. Germany It ensures that Yes. 1. It assures the Yes 1. effective equal services for discrimination-free user access protection of rural and urban for the services offered. consumers and areas are offered data and that 2. It takes measures to widerspread, prevent unjustified cross- 2. consideration modern and subsidies within Deutsche for social issues. reasonably priced Bundespost. services are provided 35 Main Objectives and Goals of the Regulatory Agency Country Universal Service Supervision of Stimulate Verifying the absence of Achieving technical preconditions Other the dominant innovation discriminatory policies for effective operations FTPO .. . ___. Australia AUSTEL is Yes. It is responsible for the AUSTEL is responsible for 1. Promotion of competition responsible for the protection of the public economic and technical among carriers. administration of the interest and consumers regulation of the universal service from unfair practices telecommunications industry 2. Protection of persons who levy. of carriers and other including the promotion of fair supply telecommunications persons engaged in and efficient market conduct services or facilities from supply of within the industry and the practices of the carriers that are telecommunications implementation of the damaging to competition. services. government's industrial policies relating to telecommunications. It also gives advice and assistance to the telecommunications industry. Sri Lanka DG ensures that the Ensures that Promotes Yes. By promoting the The promotion of the interests of universal service the public research into rapid and sustained consumers with respect to the obligation is operator acts and development of charges and the quality and implemented and all in the public development telecommunications variety of telecommunications reasonable demands interest. and use of facilities both domestic services provided and in respect to the new and international. telecommunications apparatus provision of a techniques. supplied. reliable and etticient national and international telecommunications services are satisfied. 36 Main Objectives and Goals of the Regulatory Agency Country Universal Service Supervision of Stimulate innovation Verifying the absence of Achieving technical Other the dominant discriminatory policies preconditions for PA O effective operations Argentina UN I ensres t.h rNT controls Yes. It prevents anticompetitive and The prevendon of universal provision of and monitors the It provides incentives discriminatory practices anticom petitive basic telecommuni- services for innovation and use between providers behavior including cations services. provided either of modem technology. unfair subsidies exclusively or in It also guarantees the competition development of more and better services Peru OSIPTEL secures the Yes. It ensures the OSIPTEL intends to implement OSIPTEL is OSIPTEL development of the implementation of the an access charge system under implementing the guarantees the rural expansion and update of agreement between mechanism to quality and telecommunications the telecommunications interconnected companies and permanently supervise efficiency of the in Peru. The network, provided by in compliance with the equal the quality of service, service offered to concessionnaire has the basic access, non-discriminatory and verify that the users and requires the obligation to telecommunications neutrality principles. equipment that measure operators to comply achieve certain services, national and the quality are reliable with service quality expansion objectives, international long and of high quality, and standards stipulated including the distance services evaluate the in the privatization installation of public operators (the increase achievement of the agreement. telephones, mostly in of telephone lines established goals rural areas. penetration, update of related to local and long the networks by distance telephone digitalization). I services. 37 Main Objectives and Goals of the Regulatory Agency Country Universal Service Supervision of Stimulate innovation Verifying the Achieving technical Other the dominant absence of preconditions for PTO discriminatory effective operations _____________ ____ ____________ _ _ policies Malaysia Yes. Yes. DG promotes 1. In discharging its statutory responsibilities, It assures that all By promoting measures for the the DG shall have regard to efficiency and reasonable dernands research in safety of life through economy. for telecommunica- telecommunications telecommunications tions, in particular 2. DG fosters the development and expansion services are satisfied peaceful uses of of the telecommunications service in telecommunica- collaboration with other countries and tions technology, international organizations. iincluding that relating to the 3. DG assures the provision of domestic and geostationary- overseas services at rates consistent with satellite orbit efficiency. 4. DG collaborates with educational institutions for the promotion of technical education in the field of telecommunications. 38 Decision and Rule Making Procedure Country "due process" "discretionary" United The due process approach is followed in general. Kingdom 1. The Director prior to making a final order or confirming a provisional order (with respect to a contravention in the condition of a license), gives notice stating that he proposes to do this, the condition which is contravened, and the time within which representations or objections may be made. 2. He makes determinations on interconnection issues through a process of public consuitation with interested parties. He issues these determinations with explanatory documents on how he came to his decision. 3. He keeps a register of licenses granted and final orders open to public inspection, and publishes the terms of OFTEL's interconnection and the reasoning behind them. 4. When he decides to make a modification in a license he has to give a notice in this respect, stating that he proposes to do this. United States The FCC follows in principle the "due process" approach. A legislative requirement and important component of its decision-making process is the opportunity for public participation. As a rule, it makes its decisions after hearing the concerned parties either by its own initiative or upon a filed complaint. This is based on the principle that public participation in the process will make better decisions by bringing before the FCC the various viewpoints that are relevant to its decisions. Under the Administrative Procedures Act (APA), interested persons must be provided with notice on matters that come before the FCC and have an opportunity to comment on such matters. Further, the FCC must explain its rationale for its decisions in writing. There are also established objective standards for review of final FCC decisions. The Freedom of Information Act provides a mechanism for the public to request access to records that are not available for public inspection. The Sunshine in Government Act provides for most agency meetings to be opened to the public and free from political influence. The public has the right to make comments on petition for Rulemaking, after a Notice of Inquiry (NOI) or Notice of Proposed Rulemaking (NPRM) is issued. When the commission does not receive sufficient public comments to make a decision, it may reissue the NOI or NPRM, seeking additional comments and replies. Further NOIs or NPRMs may be issued in a proceeding if additional issues arise and new proposals need to be considered. Venezuela CONATEL follows the due process approach. 39 Decision and Rule Making Procedure Country "due process" "discretionary" other Denmark The due process approach is followed. In the process of regulatory decision making, a fornal hearing is always carried out. Draft Bills, draft Executive Orders etc. are circulated for comment among involved organizations, operators, etc., as well as relevant industries. All Bills and Executive Orders are issued in official publications. France DGPT follows the due process. In awarding an authorization it consults the CCST (Consultative Committee for Telecommunications Services) which makes proposals after it examines a draft telecommunications services licensing and notification procedure. It makes formal public notices, issues consultative documents, and an annual report with information for its activities and aims. Spain Both the "due process" and "discretionary" approaches are followed. Mexico Each of the telecommunications services is subject to different regulatory process, considering the circumstances and its characteristics. Canada The CRTC follows the discretionary process of consideration. In tariff issues, it adopts any method or technique that it considers appropriate, whether based on a carrier's return on its rate base or otherwise. Chile The "discretionary" approach is followed. 40 Decision and Rule Making Procedure Count y "due process" "discretionary" other Japan The "due process" is followed. It follows a predefined procedure in granting authorizations, in providing a.b.aini infecoreein isus annling i ul ~~~n~,ppjf~issue-, ~innlie in each case the provisions of the telecommunications business law. It notifies the other party or parties concerned of the applications submitted to it and gives them the opportunity to present their comments in writing. It may also hold hearings with the concerned party upon request or on its own motion and it sends notifications with statements articulating the rationale for its decision. Germany The process for voting and decision-making cannot yet be disclosed under the conditions of the New Post Order Law. Australia Both of the approaches are followed. In considering a matter, the Telecommunications Act provides that AUSTEL shall, where it is appropriate and practicable, consult with government, commercial, industry, consumers, and other relevant bodies and organizations. AUSTEL does this through various means, for example, through its public inquiry process, its Part 15 investigations, and its advisory committees, such as the Number Advisory Conunittee and Standards Advisory Committee. The Act provides AUSTEL with certain discretionary powers, such as determining whether a tariff lodged by a carrier for a particular service is anti-competitive. With respect to public inquiries and Part 15 investigations in particular, the Act also sets out procedures with which AUSTEL must comply to ensure that due process is followed when a matter is being considered or investigated. (e.g., it cannot make a finding during an investigation, that is adverse to a complainant or a respondent, unless: they had the opportunity to make submission in relation to the matter to which the investigation relates; it holds public inquiries relating to the performance or exercise of its I functions and powers. 41 Decision and Rule Making Procedure Country "due process" "discretionary" other Sri Lanka The DG follows the "due process". There is a detailed procedure provided in the Telecommunications Act which he has to follow. More specifically the DG under the ACT: 1. makes investigations 2. in order to inspect the performance of the operators he requires them to open their books, accounts and any necessary documents 3. gives a notice before making an order and considers any representations or objection by the licensee 4. gives a notice before revoking an order 5. holds public hearings 6. participates in the committee of inquiry which may require evidence or arguments to be presented in writing. Argentina The decisions adopted by CNT require the consent of the majority of the Board Members. Tlhe decision making procedure is governed by the National Law of Administrative Procedures no. 19549 and its regulatory decree, which, among others, mandates as a basic requirement the expression of cause (factual and legal information or data) and compliance with established procedures, and those that are implicit in the legal system or framework. The substantive proceedings include the compliance with the "adjective due process" which implies 1. the right to be heard 2. the right to s-ubm-it and produce evidence 3. the right to a decision, substantiated by a written opinion. Without effecting the above, the CNT cannot set aside the other principles that this law establishes, such as objective legality and search of the real truth and especially informality for the benefit of the petitioner. Those requirements apply with respect to the exercise of regulatory powers and also to the exercise of discretionary powers. 42 Decision and Rule Making Procedure Country "due process" "discretionary" other Peru OSIPTEL has the competence to know all the controversies among the operator companies on the basis of an administrative or arbitral way, concerning free competition, interconnection, tariffs and charges in relation to agreements between provider companies. This way is obligatory and OSIPTEL has the exclusive competency on the basis ordinary or arbitration administrative procedure mechanisms. All the process of taking decision in OSIPTEL, is absolute transparence; the norms, directives, regulations and some resolutions are published in the official journal "El Peruano" before being put into effect. Colombia Depending on the issue, the decision process can be a "due process" or a "discretionary" process. "Due process" is followed especially in the provision of cellular telephone service and national long distance service. 43 PROCESS OF REGULATORY DECISION MAKING HOW ISSUES ARE DEFINED AND SELECTED BY THE REGULATOR Country Internally generated Legislative From interested parties European comniission Executive mandate Others initiatives requirement directives United Kingdom Yes Yes Yes Yes Yes USA Yes Yes Yes 1. Court (e.g. Congress) (e.g. applications for a decisions license by interested 2. Informal persons) suggestions Venezuela Yes "Planning Manager" Denmark Yes Yes (i.e. TeleDanmark proposals The Danish liberalization for tariff principles and plans are to a very large tariffs for new services). extent based on EEC directives, regulations, proposals, etc. France Yes Yes Yes Yes Yes The Minister has delevgted the tasks entrusted to him by the Telecommunications Law to DGPT 44 PROCESS OF REGULATORY DECISION MAKING Country Internally generated Legislative requirement From interested parties European Executive mandate others initiatives commission j _ directives P Spain Y Loa Yes yes Yes Periodic Reviews. The DGT studies the The basic framework for They are represented in the Annual review of potential introduction of the regulations is the Telecommunications tariffs. new services and Telecommunications Advisory council, and can establishes the conditions Law (LOT) influence telecom- for the licensing munications policy Mexico Yes Yes The Secretariat identifies The Secretaria takes into the services to be account the opinions and regulated pursuant to suggestions of the private technological advances sector and other and the requirements of organizations interested in the country. the regulation of certain activities. Canada Yes Yes Yes Yes (the Governor in Council) n Switzerland Yes Yes Yes EC directives have no Yes Courts decisions may OFCOM follows the direct impact on lead to a change. development of the legislation, but efforts market and adapts the are made to comply regulatory framework. with them as much as possible and ensure that there is no major divergence on technical or policy matters with the countries of the ________________________ _________________________ European Union. 45 PROCESS OF REGULATORY DECISION MAKING Country Internally generated Legislative requirement From interested parties European Executive mandate others initiatives commission directives Japan Yes Yes Yes 1. By advisory committees 2. Decisions by the Telecommunications Council Germany Yes Yes Yes The most important initiatives are provided by the European Commission directives Australia Yes Yes Yes Yes (i.e. Telecommunications (i.e. by the Minister) Act requires A[JS1EL to hold a public inquiry about a matter) Sri Lanka Yes Yes Yes DG directs the (e.g. when the consumers (by the Minister of operators to comply make complaints or the Post and Telecom- with the requirements licensees make munications who of ITU and other representations or issues directives) international objections) organizations with respect to equipment and other technical standards 46 PROCESS OF REGULATORY DECISION MAKING Country Internally generated Legislative From interested European commission Executive mandate others initiatives requirement parties directives Argentina Yes l CNT advises the National Executive Power on new services entering the market and the standards that should be applied to them. As an organization with specialized technical staff, CNT has to take a position on issues defined by either the Judiciary or any other state or private organization. 47 PROCESS OF REGULATORY DECISION MAKING Country Internally generated Legislative requirement From interested parties European Executive mandate others initiatives commission .______________ ________________________ _______________________ ________________________ directives_ .__________di e ti e Peru Yes Yes 1. Periodic reviews (OSIP'rEL is subject 2. International to the Presidency of bodies such as ITU. the Cabinet of Ministers, and has to follow its executive mandate) Colombia The Telecommunications The Ministry of Regulation Commission Telecommnunications analyzes issues concerning develops technical competition, tariff structure regulation for the and defines the process by management of the which certain services spectrum and assures should be provided. that the carriers meet the technical standards established for equipment and network infrastructure. , _ _ _ _ .__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ £ _ _ _ _ _ __ . _ _ _ _ _ _ _ I _ _ _ __4_ l 48 Procedures for Granting Licenses Country case-by-case judgment call for tenders lotteries auctions/bid- mixture of ding process approach/other United Yes. OFrEL has only a Kingdom consultative role. The licenses are granted by the Secretarv of State (Department of Trade and Industry) The criteria vary according to the type of service to be offered, the financial ability of the business plan, the degree of promoting economic growth, technical expertise, and the managerial and operational competence of the applicant. United Yes, as a rule. The FCC grants licenses for Auctions for States In general, the procedure depends mobile (cellular) services by special use on the service to be provided lottery. It follows a duopoly policy with respect to the cellular market whereby up to two licenses for each service area are granted, one of which is reserved for a local wireline carxier. Venezuela For telecommunications services For broadcast services there is a two steps process: CONATEL must consult the registration and concession granting. Minister and the president of the Republic, prior to granting a concession. 49 Procedures for Granting Licenses Country case-by-case call for tenders lotteries auctions/bid- mixture of approach/other judgment ding process Denmark The issuance of licenses When issuing special rights, the for aeronautical, license awards are based on public maritime and land tendering procedures. The awards mobile radio equipment are always based on an open, non- and mobile satellite discriminatory and transparent stations, is being carried procedure. Usually a limitation of out on a case-by-case the number of licenses to be issued basis by the regulator in is established on the basis of accordance with the requirements for the efficient use provisions of the Radio of frequencies. Communications Act. France The procedure is usually a call for It also grants authorizations to operators (i.e. tenders, applied notably to public Telepoint) taking into account their particular radio telephone, ERMES, the 3RP situation (frequencies, interfaces). The service (trunked systems) and 3RD Consultative Committee for (mobile data networks). Telecommunications services (CCST) makes proposals to the DGPT, after it examines the technical prescriptions and the DGPT gives the authorization (only for value-added _____________ _______ ______________I services) Spain They are determined by means of _ alls for tenders. _ Mexico Concessions are In some cases direct adjudication is followed. granted in open ._________ ._______________._____ ________________ _ __ _ _ bi ocess Canada Licenses for mobile services are granted on a competitive basis with no fixed number of __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _applicants specified in advance. 50 Procedures for Granting Licenses Country case-by-case judgment call for tenders lotteries auctions/bid- mixture of approach/other ding process Switzer- Yes. Criteria depend Mixture of approaches. land on the service in _ question. _ Chile The concessions are granted according to the date of application, on a "first come first served" basis. Japan Yes Comparative evaluation of bids. Germany Yes. (trunking Comparative General approval networks) bidding evaluation Australia AUSTEL' s class licensing system regulates the provision of eligible services by non- carriers. DOCA is responsible for awarding carrier licenses. Sri Lanka Yes. _ Argentina Yes Yes. The National Telecommunications Only for the Commission follows a predefined provision of new procedure in dealing with licences. services. The applicant submits written information concerning the general and financial condition of its enterprise, the technical characteristics and a brief description of the services to be provided. The Secretary of Public Works and Communications makes the final decision 51 Procedures for Granting Licenses Country case-by-case judgment call for tenders lotteries auctions/bid- mixture of approach/other ding process ___ Peru The MTC grants licenses, but the Telecommunications Act indicates that limited concessions must be sold at an .____________________ ._____________ auction. Colombia Local telephone and value added or Cellular telephone Long distance services licenses are granted telematic services licenses are licenses are granted through a selection process, still to be granted to any carrier who applies through a public defined. and has the required financial and bidding process. technical conditions to provide these services 52 Communications Services Included in Telecommunications Regulator's Jurisdiction Country Services United Fixed public networks and services, private fixed networks, public mobile networks, telephone services of cable TV companies. Kingdom It has a limited role in cable TV by ensuring the compliance of cable operators with their license conditions, taking enforcement action where necessary, and modifying the condition of their licenses. United FCC regulates all interstate and foreign communication by means of wire, radio, television, cable and satellite (broadcasting, States common carriage, private radio, cable TV). State public utility commissions have exclusive control of intrastate telephone services. Venezuela All telecommunications services are regulated by CONATEL except for TV and radio. Denmark Nearly all telecommunications services in Denmark are included in the regulator's jurisdiction. The only exception is radio and TV broadcasting, which is administered by the Minister of Culture. France Fixed public switched services, public mobile networks, broadcasting. It has some role in radio spectrum regulation, by granting licenses and regulating the frequency allocation. There is no cable TV in France but cable is used for the provision of telecommunications services. Spain All telecommunications services are included in DGT jurisdiction, including broadcasting and spectrum regulation. Mexico All telecommunications services. Canada All telecommunications services except for radio spectrum regulation. Switzer- All telecommunications services except for cable TV and broadcasting. land 53 Communications Services Included in Telecommunications Regulator's Jurisdiction CounLtry Services Japan All telecommunications services. The services which are provided by Type II carriers are less regulated than the others. Germany All telecommunications services, except for broadcasting. It has a limited role in cable TV and radio spectrum regulation. Australia Public switched services, private network services and mobile communications services all fall within AUSTEL's jurisdiction. Broadcasting and cable TV service are regulated by AUSTEL when telecommunications infrastructure is used for the supply of such services. The Australian Broadcasting Authority (ABA) is responsible for regulating licensing, spectrum allocation and content relating to these services. Radiocommunications services are regulated by AUSTEL only when the supply of such services involves interconnection with PSTN, otherwise these arc regulated by the Spectrum Management Agency. Sri Lanka Basic local and long distance (national and international) services, value-added services, cellular mobile, paging data transmission, public card phones, store and forward fax, radio spectrum regulation. Argentina CNT has authority on all types of services throughout the entire national territory, except for radio broadcasting. It also administers and controls the radio spectrum. Peru All telecommunications services except broadcasting and radio spectrum regulation. Colombia All the telecommunications services. The Ministry of Communications is in charge of the Radio Spectrum regulation and administration, and all the communication services that require the use of it. Thc Telecommunications Regulation Commission deals with basic services (both local and long distance service), cellular, telephone, telegraphic service and telex. The Superintendency of Public Services is responsible for the control and inspection of companies providing public services. 54 INTERCONNECTION Is the Regulatory Agency Involved with Interconnection Issues and How? Country Determination/Approval by the regulator Commercial agreements In failure of commercial agreements, who provides arbitration? United Only in the event that no commercial Yes. There are agreements OFTEL. Kingdom agreement is reached between the operators which were negotiated without There are cases in the past in which OFTlEL had the intervention of OFTEL. to make a determination. United The FCC oversees the interconnection States agreements by approving their terms. Prior to the determination by the FCC, the carrier has no duty to provide interconnection to another carrier. FCC voted in 1993 to require telephone companies to provide more opportunties for competitors to interconnect with their networks, an action that should promote additional competition in the provision interchange service. In 1992, FCC decided to remove barriers to interstate special access competition by allowing independent providers to connect their facilities to those of the local exchange carriers (LECs) to provide interstate special access. Later the Commission adopted a policy that would cap the fees that local exchange carrier (LEC) may I impose on certain customers.. 55 INI'ERCONNECTION Is the Regulatory Agency Involved with Interconnection Isses atid How? Country DDetermination/Approval by the regulator Commercial agreements In failure of commercial agreements, who r S Il)~~~~~~~~~~~~~~~rovides arbitratiod. Venezuela CONATEL rules on interconnection issues Denmark Although the interconnection agreements are The Minister of Communications and Tourism. as a starting point based on commercial If no agreement can be reached in areas where agreements, the agreed principles of such agreements are needed, the Minister has the interconnection must be approved by the power to lay down the terms and to ensure that Minister of Communications and Tourism. the interests of all operators are taken into __________ _account. France Yes. Direction General des Postes et Telecommunications, which in this case acts as an arbitration authority. Spain Direccion General de Telecommunicaciones establishes on a case-by-case basis the obligation of the PTO to allow the interconnection of new service providers and monitors the process to ensure that interconnection is not denied for technical reasons. It may also establish technical standards for the interconnection as well as set interconnection tariffs. 56 INTERCONNECTION Is the Regulatory Agency Involved with Interconnection Issues and How? Country Determination/Approval by the regulator Commercial agreements In failure of commercial agreements, who provides arbitration? Mexico Yes. The Ministry limits itself to issuing basic guideiines under which interconnection services are rendered leaving it up to the parties to freely negotiate the terms and conditions. Canada CRTC approves the proposed agreements by the operators. If no agreements are reached then CRTC may set the terms of the agreement. Switzerland Federal Department has no role in the interconnection issues. Chile The interconnection agreements were left to the concerned parties. These agreements must comply with the technical rules established by SUBTEL. Interconnection is obligatory among concession holders of public services. The interconnection charges are determined by the authority in accordance with the procedure established by law. These charges are published so that they become known to the public and are equally applicable to all users. 57 INTERCONNECTION Is the Regulatory Agency Involved with Interconnection Issues and How? Country Determination/Approval by the regulator Commercial agreements In failure of commercial agreements, who ____ _ ___ provides arbitration? Japan The Type I and Special Type II carriers, before entering into an agreement with another Type I and Special Type 11 carrier to interconnect or share facilities, must obtain an authorization from the Telecommunications Bureau (there is exception when two Special Type II carriers interconnect to provide facilities not designed for communications between Japan and foreign points). An authorization is needed also when the Type I carrier provides its facilities on a new tariff basis. When a Type I and a General Type II carrier reach an interconnection agreement they make a notification to the regulator. The regulator supervises the Type I carriers to ensure that they do not unreasonably discriminate against specific carriers' interconnection or sharing facilities. It may order the carriers to improve the manner in which their activities are carried out or to take I other actions. Germany Yes. In that casc, thc Dcutsche The Federal Minisftr of Post and Bundespost TELEKOM Telecommunications. There are cases that had establishes specific access rates. to be decided by the regulator. An approval by the Ministry is _____________________________ required. 58 INTERCONNECTION Is the Regulatory Agency Involved with Interconnection Issues and How? Country Determination/Approval by the regulator Conmnercial agreements In failure of commercial agreements, who provides arbitration? Australia Yes. Either of the concemed AUSTEL. When two carriers cannot agree carrieTs or both of them may on the terms and conditions of request a representative of interconnection or of a supplementary AUSTEL to attend the access condition of a license held by one of negotiations. The Minister may them, either or both of them may submit the determine principles that are to matter to AUSTEL, which within a certain be applied in access pricing., period of time makes a determination about it. The determination sets out the terms and conditions of the interconnection (technical standards, points of it, supply of facilities, supply of traffic information, charges payable). The determination on charges payable must be consistent with the determination by the Minister. Such a determination is taken to be an access agreement between carriers who were parties in the arbitration. Sri Lanka The Director General monitors all interconnection terms Telecommunications. He approves the interconnection charges when operators agree and determines such charges when operators are unable to agree. 59 INTERCONNECTION Is the Regulatory Agency Involved with Interconnection Issues and How? Country Determination/Approval by the regulator Commercial agreements In failure of commercial agreements, who provides arbitration? Argentina The Comision Nacional de Telecommunicaciones (CNT) decides for the interconnection of networks as well as the standards and rules for interconnection. 'T'he ENTEL Privatization Bill establishes that the basic service exclusive providers and owners of the public network are required to provide on a non-discriminatory basis, access to the public network to service providers. The interconnection charges must not be discriminatory or anticompetitive, and must reflect the normal price for the use of the facilities. The network owners and service providers, under a competitive regime, can freely agree on the terms and conditions of interconnection. If an agreement cannot be reached by the interested parties then the CNT has the authority to determine the appropriate terms and conditions. Its intervention may be requested by official notice. Interconnection charges must be calculated taking into account costs of service plus a reasonable return on fixed assets. (Currently under study is the establishment of and general regulation of rules and conditions of interconnection for all telecommunications services without prejudging the commercial agreements between the concernedparties)_ 60 INTERCONNECTION Is the Regulatory Agency Involved with Interconnection Issues and How? Country Determination/Approval by the regulator Commercial agreements In failure of commercial agreements, who provides arbitration? New Yes. In case no agreement is reached between Zealand No regulatory conditions are imposed. the concerned parties, they can apply to Interconnection is a matter for the courts for arbitration. commercial negotiations with other network operators, especially with TCNZ as the dominant network operator, subject to competition law. Peru OSIPTEL deals with interconnection issues (administrative, financial and technical terms, including setting of interconnection charges). Colombia The 'elecommunications Regulations Commission (TRC) is responsible for all interconnection issues. It determines whether interconnection should be provided, and sets the technical network standards, in order to protect users, guarantee the quality of service and promote competition. Among issues that TRC considers arc: 1. the establishment of general requirements that any public service operator should fulfill in order to use the existing networks and access the interconnecting public networks. 2. the definition of tariffs that public service companies should charge for interconnection to the existing networks. 3. elaboration of studies that determine the access and interconnection charges to the state-owned nctworks,. 'T-hese chargcs arc applied 'lo internaational and national long distance operators whenever they Imlake UisC of ihe networks. It also sets access cha-fgcs for cellujlar telephone Karnics and determies, acceSs charges a or other j 6e1 Distinction Between Services Country Distinction Between Services United Services are classified into four categories: broadcasting, common carriage, private radio, and cable TV. Broadcasting is defined as the dissemination of States radio communications intended to be received by the public, directly or by the intermediary of relay stations and is distinguished from common carriage in that "a person engaged in radio broadcasting shall not...be deemed a common carrier." Common carrier is one who holds itself to the public for hire to transmit communication of the user's choosing. Mobile radio services (including SMRS) are not common carriers. Only if the service provides their connections with exchange or interexchange telephone facilities to resell telephone services or telephone company facilities for a profit, it becomes a common carrier. Private radio services include nationwide and international uses of radio byindividuals, businesses, state and local governments, and other organizations licensed to operate their own communications systems as adjunct of their primary business or other activity. Enhanced services refer to services, offered over common carrier transmission facilities used by interstate communications, which employ computer processing applications that act on the format, content, code, protocol or similar aspects of the subscriber's message. Cable TV is defined as a transmission system that is neither broadcasting nor common carriage. Venezuela Services are classified as basic, value added services, data switched networks, private networks, trunking, paging, mobile data, digital radio. Basic includes national and international. Telephone service is provided by CANTV under exclusivity for a period of nine years. The terminal equipment market and data and paging services are open to competition. Mobile services are provided by only two licensees. Denmark The telecommunications services by Denmark are divided into two main areas: "the reserved area" and "the liberalized area". The reserved area means that on the basis of an exclusive right, only one operator/service provider exist in a given geographical area or that on the basis of special rights, a pre-fixed number of operators is designated to compete among themselves in defined areas. TeleDanmark A/S holds exclusive right to provide voice telephone, text and data communications services (except those that have been opened to competition according to EEC rules), leased lines, mobile communications, satellite services, transmission of radio and television programs through the telecommunications network. The liberalized area comprises services not covered by exclusive or special rights. Currently this area includes certain pay-phones, data communications services, SNG services and premium rate services (900 services). France Telecommunications services are divided into those provided to the public and those provided to private groups (e.g. services provided to a closed user group). The latter are not regulated. The services provided to the public fall into the categories of telephone and telex, bearer services, and "value added" services. These three categories have different regulations. The provision to the public of telephone services between fixed points, telex services and phone booths on the public highways is in the exclusive domain of the public operator, France Telecom. Bearer service, namely, simple data transport services, are open to competition. Mere switching, without transport, is not a bearer service. Services which are not in real time, for example, because they use storage functions, are not bearer services (e.g. E-mail, which is a value-added service). Value-added services are also open to free competition (either following a prior declaration to the DGPT or not). 62 Distinctiop. Between Services Country Distinction Betweeni Services Spain The Spanish Telecommunications Law differentiates three niajor categories of service: final services, bearer services and "value added" services, Final services includes the services which are provided under special or exclusive rights. Thiese are: basic telephone (local, long distance and international) services, telex and telegram. Bearer services are "hose which provide tianslspoi capability between public network termination points (e.g. provision of leased lines). Value added services, include the rest of the services and are open to competition. 'These are divided into two categories: those requiring licensing (mobile telephone, wide area ing) and those requiring just an administrative agreement (teletex, videotex, MHS). _,_ Mexico Basic telecommunications services (basic telephone public services, telegraphs and national communication via satellite, the installation, establishment, operations and exploitation of public telecommunications networks within national territory) are provided by TFLMEX. Value added services and terminal equipment, which are opened to competition. Radio communications service, mobile radio telephone service (between fixed stations and mobile areas or between mobile stations), and paging service. There are regional duopolies in the mobile cellular service. Canada There are two classes of telecommunications carriers. Type I or facilities-based carriers which own and operate facilities and Type It or non-facilities- based carriers who use facilities leased from Type I. Basic local services arc provided on a monopoly basis by local telephone companies. Long distance telecommunication services have opened in 1992 to competition. Public mobile scrvices (cellular, paging) are provided on a competitive basis with no fixed number of applicants specified in advance. rTerminal equipment, private line services, and public switched data are also open to competition. Switzerland Basic telephone services are provided under monopoly status. The resale of basic services except for telephone services is open to competition. The provision of terminal equipment, value added, radiocommunications, satellite services is open to competition insofar as they do not provide voice telephony. All telecommunications services can be provided over public nctworks or on leased lines, or on licensed radiocommunications networks, except telephones. 63 Distinction Between Services Country [ _ Distinction Between Services Chile Chilean law encourages free competition without monopolies of any kind. Therefore, the installation, operation and exploitation of the telecommunications infrastructure network, the provision of public or private and value added services, and the supply of terminal equipment is open to competition. The provision of telecommunications services may be carried out by any person or entity if the relevant authorization is obtained, without limitations. Competition may exist in even the same geographical area. There is only one restriction in participating simultaneously in the provision of local public telephone services and long distance telephone services which may be done only through separate legal entities in the form of a joint-stock corporation. Basic services refer to local public telephone services. These services are provided by the concessionnaire of public telephone services (mobile telephone services are not included), an area of services which is cal ..d primary zone, and are subject to regulations concerning the obligation to provide services, technical quality etc. Any other service in addition to local telephone services, such as long distance services and those which are different from telephone services, are not basic services and are not subject to service obligation. Installations are distinguished from basic services. Concessions are granted for installations, which are called intermediary services, whereby a concessionaire may provide services to other concessionaires or licensees by means of installations and networks intended to satisfy the needs of transmission of communications. A distinction is made between public and limited services. [Public services are defined as those services which intend to satisfy the telecommunications needs at large, and are limited to those services which intend to satisfy specific telecommunications needs.] A concession granted by executive decree is required for the operation and exploitation of (a) the public (b) intermediate and (c) radio broadcasting services. Japan The telecommunications businesses in Japan are categorized into Type I and Type II carriers. Type II are further classified into special Type II and general Type II. Type I are those which provide long distance and international telecommunications service via their own telecommunications circuit facilities, and Type II are those which provide value added services through leased circuits from Type I. A Special Type II telecommunications business is defined as a business that provides telecommnunications facilities for an unspecified number of general subscribers and has a scale of facilities which exceeds the minimum standard prescribed by Ministerial Ordinance, and a business that provides telecommunications facilities for communications with locations outside Japan. A General Type II is a business not covered by the definition of a special Type II business. Since 1985, the telecommunications sector was reformed and the principle of competition was introduced, in both the domestic market, a former monopoly of NTT Public Corp., and the international market, which was monopolized by Kokusoi Deyshily Denwa co. Ltd. (KDD) Telecommunications services are provided competitively in all fields of Type I businesses, including international, domestic long distance and regional telecommunications, cellular phones, radio paging and satellite communications. The terminal equipment market also is liberalized. 64 Distinction Between Services Country Distinction Between Services Germany The basic distinction between services in Germany depends on whether the service is classified as exclusive or competitive. The Federal Minister of Posts and Telecommunications has transferred to Deutsche Bundespost TELECOM under the provisions of the Telecommunications Installation Act his exclusive right to set up and operate transmissions lines including the associated network terminations. The voice lelephone monopoly is in the exclusive domain of the fcdcral governm.ent to operate tceicomiirunications instaiiations for the purpose of switching voice for third parties. Except for the transmission lines and the public voice telephone service, all other services are open to competition. In mobile communications, a second national network, according to GSM standards is operated by Mannesmann Mobilfunk GmbH. As in digital cellular radio, trunking networks can operate, given the use of transmission lines from the Deutsche Bundespost TELECOM monopoly connecting the technical installations, and given access to the telephone service. Satellite communications and the terminal equipment market are also open to competition. Australia Telecommunications services are classified as basic carriage service (BCS) and higher level service (HLS). A BCS service is defined as a service for basic communications carriage between two or more distinct places and is supplied by means of at least one reserved line link or by the use of satellite based facilities. These services involve the functions of establishing, maintaining or terminating a connection across the telecommunications network, modifying a connection and carrying a communication across the network. BCS' s include basic local telephone services and basic long distance telephone services. They are supplied by carriers. Any person may resell a BCS provided by a carrier with or without the addition of value. HLS are defined as any service other than a BCS. HLS's can be regarded as BCS's with a value-added component. The BCS's and HLS's supplied by entities under AUSTEL's class licensing system are called "eligible services" which are defined in principle as services supplied by someone other than a general carrier or mobile carrier by means of facilities including at least one reserved line link, or by use of satellite-based facilities. Pre-existing va]ue added and private network services are also regarded as eligible services. A duopoly regime will exist in the provision of network facilities and basic services (local, long-distance and international), between Telstra and its private competitor Optus until June 1997, when full competition will be introduced. The provision and operation of value added services and customer premises equipment is open to competition. Mobile carriers - three until at least 1995 - are the exclusive primary suppliers of public mobile telecommunications services. Sri Lanka Basic local and long distance (national and international) services are distinguished from the provision of other services. They are provided exclusively by Sri Lanka Telecom although there are hundreds of unlicensed agencies which resell SLT exclusive services by providing telephone and fax facilities to the public. SLT provides a standard telephone set with the connection of a new line. The private sector can provide mobile cellular, data transmission, paging, value-added services. The division is getting blurred as SLT has delegated some of its monopoly rights to the private sector, e.g., to the card phone operator and data transmission computers. OJ Distinction Between S rvices Country Distinction Between Services Argentinia Basic telephone services are defined in the "Pliego de Privatization de Entel" Decree no 62/90, as t.he provision of fixed telecommunications links which form the public network or are connected to such networks and the provision by local long distance and international telephone services. Basic services are provided exclusively. Value added services include audiotext telephony, voice mail, etc. These services are distinguishied from the transmission of data, cellular mobile teiphone, paging, trunking which are not basic telephone services, but constitute other telecommunications services provided under a competitive regime. Ternminal equipment is considered the apparatus connected to the termination points of the user's network. 'I'he provision of terminal equipment is open to competition. The operators of exclusive services cannot provide termrinal equipment, including the first apparatus. Companies may provide the telephone terminal equipment including the first one, in competition. In any case, they must comply with certain standards and are tested in laboratories. These requirements refer to radio transmission equipment, T.V., and radio communications equipment (transmitters for mobile land and maritime service, rural telphone and telephone service such as private networks, telep, etc.) ___ Colombia Services are classified as local and long distance telephone services (national and international), value added services, cellular telephone service. Local and long distance services are provided under monopoly. Value added services are open to competition, and cellular telephone service are provided on a duopoly basis. One of the companies must be owned by the state either wholly or p ally Peru Basic local and long distance services, value added and cellular telephone services. Basic services are provided under monopoly. Value added services are open to competition and cellular telephone services are provided on a duopoly __________ basis. ________ _ ___ ____ Ownership of the Facilities - Public Telecommunications Operator Country State-owned Private Partially State/Privately Owned United All the companies are privately owned except for Kingdom the Kingston Communications (Hull) which is owned by Hull City Council United No IUS teleconimunications operator is partially or States completely owned by the government. UJnited States does not have a PTO, but common carriers. More than 2000 companies provide public telecommunications services __ Venezuela CANTV, the public telecommunications operator, is in part privately owned with the state holding 40% of its shares. Denmark 51 percent of the Danish PTO's shares (TeleDanmark A/S) are owned by the Danish state, and the rest 49 percent by ._____________________ private investors. France Francc Telecom, the French PTO is wholly state owned, yet enjoys autonomy from the state. Spain Telefonica Espana, Sociedad Anonima, the Spanish PTO is partially state-owned and partially private, with the Spanish government holding approximately 33 percent of its shares. Mexico Telefonos de Mexico (TELMEX) is partially state-owned and private, with the private sector holding 95 percent of its shares and the remaining 5% is held by the state. As regards the satellite and telegraphic systems, their exploitation is exclusively reserved for the state and consequently the installations belong to the state through TELECOMM. 67 Ownership of the Facilities -- Public Telecommunications Operator Country State-owned Private Partially State/Privately Owned Canada Most Canadian telecommunications carriers are privately owned. Among independent companies there are 16 municipally owned carriers in Ontario and Quebec. The dominant carrier is Sentor, a consortium of nine companies, all of whom are privately owned except for Sasktel and Manitoba Telephone System. All other major carriers are privately owned. Switzer- Swiss PTT Telecom, the Swiss PTO, is wholly land state-owned. Chile Both Compania de Telefonos de Chile (CTC), the domestic operator, and Empresa Nacional de Telecomunicaciones (ENTEL), the long distance and international operator, are wholly privately owned. Japan Kokusai Deyshin Deywa Company Ltd., (KDD), Nippon Telegraph and Telephone the international Type I telecommunications Corporation (NTTC) the domestic carrier, is privately owned. telecommunications operator, and a Type I The rest of the operators, either Type I or Type II, operator, is partially state and privately domestic and international, are private. owned with the government holding 65% of its shares. Germany Deutsche Bundespost Telecom, the German PTO, is wholly state owned. Since 1992 there has been a second network operator and service provider, the Mannesmann Mobifunk GmbH, which is privately owned and provides GSM digital cellular telephone services. 68 Ownership of the Facilities -- Public Telecommunications Operator Country State-owned Private Partially State/Privately Owned Australia Telstra, the main telecommunication operator, is wholly state-owned. OPTUS, the second telecommunications operator, provides services in competition with Telstra under a duopoly regime established in 1990. It has the right to install, maintain and operate facilities. However, it has chosen to interconnect with Telstra's PSTN to provide local call access to its customers. OPTUS also installed its own fiber optic network for long distance calls. It is the current owner of the fornier satellite communications carrier, AUSSAT. Sri Lanka Sri Lanka Telecom (SLT) is a state-owned corporation with a nationwide network providing domestic local and long distance and international facilities for telecommunication services. Argentina The country is divided into two regions: north and south. Telefonica de Argentina SA and Telecom Argentina Stet France Telecom S.A., which were granted exclusive licenses to provide basic local and long distance (urban and interurban) telephone services, are both wholly privately owned, by local and foreign investors. Telecomunicaciones Internacionales Argentinas Telintar S.A., the international service operator, is owned by these two companies Peru The Peruvian government holds part of shares in one of the two operators, ENTEL PERU S.A. (Empresa Nacional de Telecomunicaciones) 69 Ownership of the Facilities - Public Telecommunications Operator Country State-owned Private Partially State/Privately Owned Colombia TELECOM, the Colombian public telecommunications provider of local, long distance and international services is wholly state-owned. There are 27 more state owned companies which provide local telephone servicec. New In 1990, the government sold 100% of its shares in Zealand the Telecommunications Corporation of New Zealand (TCNZ). Currently it holds a "kiwi" share that provides the government with a veto power to ensure that the company meets foreign ownership restrictions and meets other obligations as specified in the Companies Articles of Association. There is a second public switched network, the Clear Communiications Limited, which operates as a ____ rivate competitor to Telecom New Zealand. 7 0 Oversight of the Regulatory Entity Country Oversight of the Regulatory entity United The Director General reports at the end of each year to the Secretary of State, who then presents the report to parliament and publishes it. Kingdom France The Minister of Posts and Telecommunications Spain The Minister of Public Works, Transportation and Environment Canada The Governor in Council. He may also require it to makc a report on any matter within the Commission's jurisdiction under the Telecommunications Act. Switzerland Federal Department of Transport, Energy and Communications Chile SUBTEL is under the Ministry of Transport and Telecommunications Japan According to the Japanese constitution, the Diet has the right to investigate any administrative dispositions of the cabinet. United States The FCC is subject to Congressional oversight. Sri Lanka The Minister of Posts and Telecommunications oversees the DG 71 Appealing a Regulator's Decision Country To whom may parties appeal a regulator's decision ___= United Actions of the Director General may be subject to judicial review, a court procedure which enables the reasonableness of official decisions to be Kigdom_ challenged. If the telecommunications operator is aggrieved y an order he may make an application to the court. The courtaqh o _r. United States FCC actions are appealable to the Federal Courts. Regulations adopting rulemaking proceedings and final decisions in adjudicatory proceedings may both be appealed to the IJS Circuit Court of Appeals. Decisions of the Court of Appeals may be further reviewed by the Supreme Court of the __________ _ United States. __- Venezuela The court Venezuela Ihey ma appeal to the courts_ Denmark Decisions made by the National Telecom Agency may be referred to the Miniistry of Communications and Tourism. 'lle 'I'elecommunications Board deals with complaints about decisions made by the National T'elecom Agency. The National Telecom Agency deals with comrlaintsconcerning the licensees' activities. France _hmay appea to an admnistrative court, up to the council of State (Conseil d'Ftat). ____ __ Sp)ain T 'I'he DGT is partof the Public Adminstration and complaints against its_ruling ar eexamined under the General Administrative Procedures Law. Mexico Within the Ministry there are various appeal instances against decisions taken by the authority. There are judicial instances as well. Canada The Governor in Council may, on petition in writing modify or rescind a Commision's decision or refer it back to the commission for reconsideration of all or a portion of it. Chile 'lThe disputes between the operators and SUB'TEL with respect to the establishment of tariffs are resolved by a group composed of three experts, one appointed by SUBTEL, another bythe oeatorand the third by an agreement between SUBT EL ad the operator.__ _ Japan Concerned parties may file a lawsuit to the courts against the regulator authority_s decisions. Gerniany [Once the New Order Post Laws become effective, the administrative orders and legal directives will be modified.] Legal channels are open for measures to be taken against the regulators, e.g., one can register a complaint with the courts against decisions of the regulator and by so doing, _ ._______ _rocure an observation/investigatioin of the_rulin ___ ____ __ Australia The Telecommunications Act enables applications to be made to the Administrative Appeals Tribunal (AAT) for a merit review of certain AUS'J'EL decisions. In general, the decisions for which AAT review can be sought are those attecting individuals directly, sucih as applications for extensionis of time for reconsiderations and decisions for registration of eligible services, declarations that services are unlicensed and customer equipment and customer calling. The Act also enables AAT review to be sought for reconsideration of AUS'TEL decisions regarding _ authorizations of the use of the links or satellite facilities. Judicial reviews are dealt with under the Administrative Decision Judicial Review Act. Sri Lanka Any person aggrieved from an order, award, or direction made by the DG or the cornmittee, may appeal to the Court of Appeals. Some of the representations or objections made by the licensees to the DG are considered by a committee by hearing open to the public. 'I'he committee_ma mtransmit the representation or objection to the Court of Appeals when it is satisfied that an offense has been coTnmitted. Peru They my_ppeal_only_under_the superior instancae of the ciar. Co(lomia Concerned_arlies mayape.a eitherdeclytothe reu:atory entit or- follow u ai rue s _ 72 Informing the Public of the Issues to be Addressed so as to Promote Transparency Country Notification by Consultativ Open hearings Written notices/ opinions/ orders/ Others publication e documents determinations United Yes. Yes. Yes Public consultation with Yes. 1. OFTEL keeps a register of Kingdom interested parties licenses granted and 1. In such a manner as the 1. OFTEL sends copies of notices to the provisional and final orders Director General considers telecommunications operators. open for public inspection. appropriate for the purpose of bringing matters to which the 2. DG issues final orders or provisions. 2. It produces publications notice relates to the attention of Prior to issuing such order, he gives notice and revised editions. persons likely to be affected by stating what he proposes to do and the time them. within which objections or representations may be made. 2. DG arranges for the publication of such information 3. DG issues and publishes determinations as it may appear to him to be on how he had come to his decision (i.e. the expedient to providc to determinations on interconnection charges consumers and other users of and access deficit contribution (ADC) to be telecommunications services or paid by Mercury to BT). apparatus in the U.K. 73 Informing the Public of the Issues to be Addressed so as to Promote Transparency Country Notification by publication Consultative Open hearings Written notices/ opinions/ Others _ _____________________________ _____ documents orders/ determinations _ United Yes Yes. A written process is FCC issues written opinions with States (on a weekly basis the FCC issues a public notice followed more often than specific justification of decisions. which may list among other things, all accepted oral hearings. petitions for rulemaking). 1. Proposed changes to the rules or new rules are presented to the public in a Note of Inquiry (NOI) or Notice of Proposed Rulemaking (NPRM). The commission will issue an NOI when asking for information on a broad subject or trying to generate ideas on a given topic. 2. FCC's measurements assessing customer satisfaction are published in the Commission's Report on Quality of Service for Operating Companies. 3. The FCC allocation decisions arc published in the FCC Record. 4. Some notices of FCC actions are published in the Federal Register. 5. FCC decisions are also available through private organizations and on-line information databases. Venezuela Yes. Public statements through national newspapers, Yes. CONATELI uses public inviting all interested parties to the public hearings hearings exclusively. a __ __ 74 Informing the Public of the Issues to be Addressed so as to Promote Transparency Country Notification by Consultative Open hearings Written notices/ opinions/ Others publication documents orders/ determinations Denmark Yes. All bills and executive Yes. Draft bills and draft executive orders are orders are issued by publication circulated for comment among interested in official publications. organizations, operators, etc., as well as relevant ministries. France Yes. It issues an annual report Yes. Yes. Formal public notices. 1. DGPT participates in trade fairs in order to with information for its inform users. activities and aims. 2. It encourages direct contacts with users, manufacturers, operators and professional bodies. Spain Yes. Final decisions are 1. Interested parties participate in procedures for published in the Spanish the development of technical standards carried Official Journal. out by technical committees. 2. Telecommunications council may set up working groups to discuss particular topics. Concemned PARTIES have the opportunity to present their views in an early stage. 75 Informing the Public of the Issues to be Addressed so as to Promote Transparency Country Notification by publication Consultative Open hearings Written notices/ opinions/ Others documents orders/ determinations_ Mexico Yes. Norms, agreemernts, decrces, rulings etc., are published in the Official Gazette of the Federation. Canada The CRTC publishes the tariffs and Yes. 1. Written opinions justifying its makes thcm available for public decisions inspection. 2. Orders Switzerlan Decisions are issued in official For legislative changes, there is a d publications. consultative procedure. Concerned entities in the Administration are able to give their view on the legislative project. During its preparatory work on a regulatory issue, the responsible entity is free to choose whom to consult and how to proceed. 76 Informing the Public of the Issues to be Addressed so as to Promote Transparency Country Notification by Consultative Open hearings Written notices/ Others publication documents opinions/ orders/ determinations Japan Yes. Public notices. Yes. Written notificatiors Advisory Comittees provides inputs. addressed to concerned When the Minister makes parties. administrative decisions on certain issues (e.g. revocation of a permission, amendment of Type I carriers tariffs) he must hold hearings with the parties involved after reasonable noticc is given. Gcrmany Yes. Yes. Yes, Australia Yes. In such a manner as Discussion papers Yes. Usually for the Written notices (i.e. AUSTEL keeps a register of its investigations AUSTEL thinks when AUSTEL holds a purposes of a public AUSTEL may direct remedy open for public inspection. For each apprepriate (e.g., public inquiry to inquiry forum for public of the breach of license complaint the register sets out the name and notification of the fact that identify the issues for discussion is provided of conditions or to fulfill address of complainant, summary of the it is holding an inquiry, the inquiry and set out issues relevant to the prescribed carrier nature of the complaint, summary of the period it is to be held, the background material of matter. obligations). outcome, etc. nature of the matter, the those issues it thinks period and the form in appropriate. AUSTEL which members of the must ensure that copies public may make of the discussion submissions to AUSTEL papers are available for about it, the matters that purchase at a AUSTEL would like such reasonable price. submissions to deal with). 77 Informing the Public of the Issues to be Addressed so as to Promote Transparency Country Notification by Consultative Open hearings Written notices/ opinions/ Others puilication documents orders/ determinations Sri Lanka Yes. In such way DG Yes. (either by DG's or the 1. Written notices, copies of which considers appropriate Minister's motion). are sent to the concernied parties (e.g. (i.e. written notices, when the DG asks for the furnishing of orders). the operators' books, accounts and any The order, award or document for inspection or in order to direction made by a invite interested parties to make an committee of enquiry is objection or a representation to a published in the Gazette. proposed order). The rules are also 2. orders (e.g. when a licensee published in the Gazette. contravenes a condition of its license for the purpose of securing compliance with that condition). DG sends copies of his order to the concerned parties. Argentina Yes. Yes. Yes. All the information All administrative acts Matters of special public A written opinion is issued when a received and kept by CNT must be appropriately interest may be resolved in a declaration is made comprising the in relation to licence notified, andl all public hearinlg in which the justification of the adopted holders, authorizations or regulations published so public has the right to administrative act or regulation permits are available to that they'll assure public participate and present its the public unless it is awareness, as well as Iopinion confidential. transparency of governmental actions and compliance with doe process. Peru Yes. Norms and Yes. directives are previously published in the oflficial journal "El __._.________________ ________.._.____._____.______.___._______._ _ _ _.______.__._____.7 8 78 Informing the Public of the Issues to be Addressed so as to Promote Transparency Country Notification by Consultative Open hearings Written notices/ Others publication documents opinions/ orders/ determinations Colombia Transparency is promoted by a) the process which is followed for the grant of certain licenses and b) the establishment of committees by users of basic public services for the promotion and social control of these services. The objective of these committees is to promote user participation in the control of .______________ _____ ____ ____ ____ ____ ____ _____ __ _ ____ ___performance of operators of these services. 79 FUNDING OF THE REGULATORY ENTITY Source of Funding Rules Governing the Use of Funds Country Sources and Rules tJnited The parliament provides for the funding of OFTEL and the Treasury is responsible for its remuner ation by the funds received from the Secretary of State, which Kingdom are equal to an amount paid by operators in license fees each year. United The FCC is funded by the Treasury. Congress determines the size of the FCC's budget. The appropriation must be sufficient to provide tbe FCC with the States r__resources necessar to do its job. Lincense fees and fees received from auctions are forwarded to the Treasury. Venezue]a CONATEL's funds are provided by the Ministry of Finance. It has also an income, generated from the fees paid for the concessions. Denmark All expenses of the Ministry of Communications and Tourism, the General Directorate of Post and Telegraphs within the area of communications are covered by legislative appropriations. Approximately 80% of the National Telecom Agency's expenses are funded by fees and reimbursements and the remaining 20% is covered by legislative appropriations. France DGPT is funded by the Ministry of Finance. Spain DGT is funded through the government's budget. Mexico The Secretaria de Communicaciones y Transportes is funded from federal appropriations. Switzerland The OFCOM, as a part of the Federal Administration, is financed by public funds. It also has revenues generated from granting licenses, and type-approval of terminal equipment. fChile Thc Pmnn1cv_ees of ST.BTEIL are paid from the Escala Unica de Sueldes of the public sector Japan The Telecommunications Bureau is funded by general funds of the government budget and spectrum user fees. The system of "spectrum user fees" was introduced in 1993. It generates the funds necessary for increased supervisory costs and regulatory activities related to wireless telecommunications. The fees collected are used for hiring additional staff, developing new systems to smooth the licensing procedures, and investigating illegal stations. The income from spectrum user fees is special revenue which must be used to meet costs associated with radio wave use. The use of the funds generated by the fees must be approved by the Diet as part of the Japanese government's annual budget. 80 FUNDING OF THE REGULATORY ENTITY Source of Funding - Rules Governing the Use of Funds Country_ Sources and Rules Germany The Federal Ministry of Post and Telecommunications is funded from the general budget of the Federal government. Australia AUSTEL is funded by a Federal Government budget appropriated by the Parliament. C-cncrall carier license fees form pail of tle FeUdeial Governmeni's consolidated revenues. Funds for the purposes of AUSTEL are appropriated annually to the Federal Government's Department of Communications and the Arts (DOCA). AUSTEL draws money from DOCA to meet its cash flow requirements and the Department of Finance makes the framework of finance directions for the management of AUSTEL's budget. Argentina CNT's primary sources come from (1) charge equivelent of 0.5% on total telecommunications revenues derived from the provision of telecommunication resources. (2) The license charges to users of the radio spectrum. (3) Funds and resources assigned by law or some other regulation. (4) Subscriber, inheritances, legacies, donation. These funds are deposited in an account at the Bank of Argentina and administered by CNT. Any funds not used by CNT in performing its assigned tasks are used to develop both public and official telecommunications and broadcasting services. Use of these funds requires pricr approval by the General Law of Budget (Ley General de Presepuesto). All these sources constitute the National Telecommincations Fund (Fondo Nacional de la Tclecommunicaciones) which has the purpose to facilitate and allow CNT to exercise its tasks. Peru The OSIPTEL funds are derived as a percentage of the operator's billings. The funds are used according to the general norms established by the government to autonomous entities. Malaysia The Director General and other persons employed by the government in the Tclecommunications Department are paid from money standing to the credit of the Telecommunications Fund. The Telecommunications Fund is supported by sources appropriated from the Consolidated Revenue Account for the purposes of the telecommunications authority, sources from the Development Fund for expenditure on the development and expansion of the facilities required by the telecommunications authority in the exercise of its power and functions, and money received in respect of any license issued or service performed. The Director General, with the Treasury, issues directions as to the manner in which the books and accounts are kept. 81