1. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 MODULE: 4 INVESTIGATION

2. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 2 – Principles Investigation is a critical step in the broader enforcement process. Any investigation needs to be conducted under the same principles that apply to enforcement generally. Module 4 – Page 9

3. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Overview of Investigation Process Every investigation needs: to be fast, fair, firm and flexible to be suited to the country’s legal system to have a clear timeline to have well-defined procedures to have clear confidentiality guidelines Module 4 – Page 9

4. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Notification of an Investigation Level of Complaint Reasons for investigation Information to identify the complainant Investigation reference number Name of the investigation officer Issue(s) in dispute Information and/or documentation required Interim requirements Date for carrier’s response Module 4 – Page 10

5. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Obligation to Supply Documentation Legislation or regulations normally provide that the carrier or service provider is obliged, within a fixed period (perhaps 21 days) after receiving notification of an investigation, to provide all documentation relevant to the complaint Module 4 – Page 10

6. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Principles for Handling Investigations When to go public Correspondence Requirements Discretion Not To Investigate Module 4 – Page 11

7. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 When to Go Public When the regulator issues the first official document stating that a violation has been discovered Module 4 – Page 11

8. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Discretion Not To Investigate Investigation is frivolous or vexatious or not in good faith Complainant does not have a sufficient interest Not warranted on the merit evidence to hand Better handled by another authority Module 4 – Page 12

9. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 3 – Process Models Regulator open lines of communication Regulator obtains information Information is used to seek a resolution If a resolution is not reached the matter moves on to become an enforcement issue Module 4 – Page 12

10. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Investigation Process Model Module 4 – Page 14

11. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Investigation Process Model Module 4 – Page 14

12. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Conducting Investigations Three investigation triggers: Regulator Initiated Consumer Complaint Carrier to carrier Complaint Module 4 – Page 15

13. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Regulator Initiated Investigations Regulator has complete control over investigation Regulator initiates the investigation Proceeds following due processes Ends the investigation when the regulator deems it appropriate : Module 4 – Page 15

14. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Carrier to Carrier Complaints “Formal” complaints can be filed by a licensee, a competitor, or other interested party. Useful for companies taking another party to court, but would like the expertise of the regulator. Where carrier-to-carrier complaints have detailed lodgment requirements, the regulator simply acts as a mediator Module 4 – Page 15

15. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Consumer Complaints Consumers can bring complaints to the regulator. If the regulator sees a pattern of abuse the regulator could start an investigation Module 4 – Page 15

16. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Range of Complaints Discussion points: Which of the three triggers are most common that you are aware of? How have these been dealt with? What were the outcomes?

17. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Common Investigation Methods Investigation plan Collection and analysis of documentation Review and analysis of the complainant's case and documentation Testing and collection and analysis of test results Communication and consultation with carrier Module 4 – Page 16

18. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Common Investigation Methods Communication and consultation with the complainant Consideration of Law or Codes of Practice Legal or other specialist advice Decisions based on the evidence Documenting the investigation Module 4 – Page 16

19. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Complaint Classification Complaints are classified at one of four levels and can be classified at levels 1 to 3 at the outset. Level 4 Complaints must be escalated from Level 3.

20. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Complaint Classification Factors which determine how to classify The prior opportunities to resolve the complaint The length of time the complaint has been ongoing The length of time required to investigate and respond The complexity of the complaint The amount of money in dispute

21. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Complaint Classification Table

22. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Investigation Planning Statement of purpose Relevant laws or rules Statement of the matter to be investigated Operations and personnel to be involved Expertise required to complete the investigation Timelines and costs for the investigation Milestones or reference points within the timeline Possible outcomes Possible appeal processes Module 4 – Page 18

23. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Investigation Planning The level of planning will vary according the scale of the investigation. Module 4 – Page 19

24. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Gathering Information Letter of inquiry Inspections Legal Orders Module 4 – Page 19

25. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Types of Information Test results Customer care records Carrier or dealer statements Statements by the complainant Call data Contracts Correspondence Complainant record Financial records Copies of advertisements Module 4 – Pages 20-21

26. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Investigation Records Complainant's name and details Any co-complainant details Date and time Category or level of the investigation The carrier or service provider details Details of the service identifier A summary of the complaint Details of advice Time taken The outcome Module 4 – Pages 21-22

27. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Outcomes of Investigations Investigations produce evidence that can be used in a number of ways: Complaint handling Dispute resolution and arbitration Enforcement Module 4 – Page 22

28. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Rules of Evidence The Rules of Evidence are dependent on the legal system of an economy & may include: 1. Types of Evidence Real evidence – material & physical objects Documentary evidence – primary & secondary Corroborating evidence

29. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Rules of Evidence 2. Sources of evidence Exhibits Searches or inspections Information from reliable sources Inspection of records Surveillance Interviews

30. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Rules of Evidence 3. Validity Party who made or signed it Witness to party who made or signed it Recognition of handwriting Expert (forensic) testimony

31. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Rules of Evidence 4. Relevance 5. Admissible Hearsay Similar acts or facts Opinion Character

32. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Rules of Evidence 6. Inadmissible Evidence from children, insane or senile persons Where a person could incriminate themselves

33. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 4 – Case study 3 Mobile number portability dispute Industry developed rules for transfer of a customer 95% in three hours 100% in two days Regulator supervision of rules & monitoring of performance (2 years satisfactory performance) Complaints from three operators about poor performance from one operator

34. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 4 – Case study 3 Regulator actions: Regulator investigation Regulator requested & attempted negotiations to comply Regulator Direction to operator to comply

35. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 4 – Case study 1: Outcomes Complete the Case Study activity by working through the Discussion points

36. NATIONAL COMMUNICATIONS COMMISSION REGULATORY PRACTICES WORKSHOP - 2006 Topic 5 – Application Option Working with a more experienced regulator – a mentor - in your organisation Step through the methods outlined in this module Ask which of the principles and processes are used in your economy Ask what other principles and processes are used Ask your mentor for examples of these principles and processes in past cases Ask your mentor which of the principles or processes could be adopted Discuss how they could be adopted or strengthened