Regulatory Transparency and Efficiency in the Communications Industry in Australia Jennifer Bryant Office of Regulation Review Australia

Outline l Regulatory Best Practices l Overview of the Communications Sector l E-commerce

Regulatory Best Practices l Legislation Review Program –Reviews regulation identified as restricting competition or imposing costs or conferring benefits on business; l Regulation Impact Statements –Prepared for new or amending regulation where direct or substantial indirect effect on business or restriction on competition. u A Guide to Regulation

Transparency of Decisions l Public consultation process documented in Regulation Impact Statement (RIS); l RIS provided to decision maker; l RIS made public: –tabled in Parliament; –Placed on website or otherwise made public.

Communications Sector Regulation l Telecommunications l Broadcasting l Radiocommunications l Information Economy

Regulation Review l Telecommunications – Market liberalisation: u removed restrictions on the number of carriers; u removed restrictions on installation of infrastructure. – Regulation to promote competition and strengthen market: u ensures access to network infrastructure on reasonable terms; u provides for telephone number portability; u protects the integrity of the telecommunications network.

Regulation Review (cont’d) l Broadcasting –Review of anti-competitive policy; –Recommendations for reform; –Review of digital TV and datacasting. l Radiocommunications –Review of legislation to take place; –Spectrum management and access..

E-commerce l Conduct of commercial transactions through electronic means.

International Interest in E-commerce l 1997 APEC summit - Vancouver: –Identify ways to maximise social and economic benefits; l Key issues: –ensure and improve access; –build user and consumer trust; –minimise regulatory uncertainty.

Access to Information Infrastructure l National Office of Information Economy established to advise on policies to enhance take-up of e-commerce; l Strategic framework for Information Economy: –educational and training programs; –ongoing assessment of access issues.

User and Consumer Trust: Privacy Regulatory Framework l Principle-based regulation allows business flexibility to pursue own code: –default principles apply if code not developed. l Addresses: –consumer concern; –international trade/EU directive; –costs to business.

Impact on Small Business l Small business exempt (if turnover below $3m) l Small business caught if: –provides a health service; –provides information for gain; –collects information for gain; –provides a service under Government contract.

Electronic Transactions Regulatory Framework l Removes uncertainty as to validity and enforceability of electronic transactions; l Consistent with international rules; l Allows business flexibility to determine electronic signature; l Allows business and community to enter into electronic dealings with the Government.

Minimise Regulatory Uncertainty l Government body oversights information economy issues; l Telecommunications regulation underpins e-commerce and addresses access, capacity, integrity and security issues; l Copyright and intellectual property rights addressed. l

Conclusion l Regulatory efficiency and transparency to be improved by: –Greater compliance with requirement to prepare Regulation Impact Statements; –Preparation of statements early in the policy development stage; –Increased level of analysis in these statements; –Review of regulation to continue on terms of reference based on cost-benefit analysis. –