Extending self- and co-regulation

OIF 23 March 2001

Nic Green

Regulatory Policy

(nic.green@oftel.gov.uk)

Various routes to less regulation

FORMAL REGULATION

CO-REGULATION

SELF-REGULATION

MARKET FORCES

Benefits of self- and co-regulation

improve relevance of policy and quality of implementation: specialist skills/knowledge

more flexible in face of changing markets

may meet regulatory objectives at a lower cost

move responsibility to meet consumer needs closer to providers

encourage take-up of services through better consumer information and protection measures

The policy is appropriate regulation

As competition develops, we would expect relatively more self/co-regulation

but self/co-regulatory options will only be chosen if they make sense for individual initiatives

NOT an indiscriminate shift to less regulation

formal regulation will still be used where necessary

Drivers for policy (1)

OFTEL framework for the next few years • supported by general success from

existing initiatives: outcomes improved through extra expertise and flexibility

broad support from stakeholders, but • most against large structures• many against rapid OFTEL withdrawal • concerns over resources of smaller players

Drivers for policy (2)

changes due at EU level • from individual licences to non-sector-specific

laws

Communications White Paper (Dec 2000)• “OFCOM will have a duty to….roll back

regulation promptly where increasing competition renders it unnecessary. It will encourage co-regulation and self-regulation where these will best achieve the regulatory objectives.”

Communications White Paper

“we challenge the industry to come forward, even before legislation, with an effective code or codes of practice for service delivery, and with effective means of redress where service standards are not met”

“OFCOM should ensure continuing and effective mechanisms for tackling illegal material on the internet, such as those being pursued under the auspices of the Internet Watch Foundation”

Statement - conclusions

make self/co more effective in the short-run

but without creating large structures• not clear outcomes would be better

likely focus • co- regulation in short-term, moving to more

self-regulation over time• “consumer information” & “consumer

protection” objectives

Statement - proposals (1) Linking up initiatives

• stakeholder web site: promote transparency, communication & participation

• residential consumer web site: information & protection outputs combined, links to elsewhere

• working groups models, with role definitions

OFTEL guidance for self and co-regulation • what level of regulation: cost-benefit analysis • what OFTEL role, including monitoring

Statement - proposals (2)

Promoting appropriate/effective codes of practice

• to implement telecoms consumer protection rules

• to facilitate shift to general consumer protection laws

• aligning with OFT approach; question of who accredits codes in telecommunications