The difference between telecoms & media regulators

Universiteit Utrecht

The difference between telecoms & media regulators

October 29, 2012

Prof Annetje Ottow

Florence


Institutional design (1)

• NO single model of institutional design

• Correlation between regulation and institutional design

• The existence of the current structure is the result of historical and political factors and the old market structure



• Important: distinction between institution/authority and the power/authority to intervene

• Integrated regulator does not necessarily mean integration of regulation and actions



• OPTA: telecom and post regulator

• Commissariaat voor de Media: media regulator

• Regulatory competition?

• How to divide the tasks between the regulators?


Traditional view on regulation

• Structural division of networks: TV (media) and telecommunications

• No cross overs: complete isolation of both regimes

• Content regulation vs. Transmission (netwok) regulation


Traditional view on supervision

Media:

• content

• Services delivered over networks

Communications:

• Transmission of the

content by signals

• Netwoks and facilities


Traditional view on the market

• Source: Rand Report (2008), figure 1


Different models of institutional design

MODEL I: coordination model

--� different supervisors coordinate their interventions

MODEL II: convergence model

--� one integrated supervisor acts on the basis of converged regulation


Model I: coordination model

• Traditional model: existing structures remain in place

• Coordination instruments are used:

- consultation

- coordination procedures

- giving advice in the decision making process


Principle of coordination

media communications

Coordination protocol:

* overlapping competences?

* coordination of procedures

* complex procedures and decisions


Model II: convergence model

• Integrated policy, powers and instruments

• Concept of concurrent powers

• Less coordination: internal coordination is still required (different cultures!)


Case of OFCOM

• Convergence model of the institutional design

• Mix of activities and responsabilities:

* has powers to intervene at all levels of the information delivery chain

* including spectrum allocation and management

* general convergence policy (”regulation for convergence”)


Importance of integration

• Importance of spectrum policy: competitive and innovative instrument in the near future

• Net neutrality: capacity problems may cause discrimination on the networks

• Coordination of policy instruments will be necessary!!!


Institutional design and convergence

• Due to technical developments the market landscape is changing:

CONVERGENCE

------� but this is not always followed by restructering the institutional and regulatory landscape


Defining Convergence

• Tendency for services to merge into one offering that combines the features of the original product

• Convergence of companies: active on different markets coming together

• In transmission context: integrated delivery via one single channel/network

• User perspective: one single platform or device

• Regulatory convergence: one single framework


Framework Directive 2002/21/EC and 2009/140/EC

Recital 5:

(i) The convergence of telecommunications, media and information technologymeans all transmission networks and services should be covered by a single regulatory framework

(ii) It is necessary to separate the regulation of transmission from the regulation of content


Problem of distinction (1)

• How to divide between media and communication regulation?

• Dutch EU infringement procedure by the European Commission


Problem of distinction (2)

content publisherConnection

providerDevices consumer

usagetransmission

Media/TV programs


Regulation of cable TV networks NL (1)

Private agreement

• Content regulation

• Price regulation on

the basis of contract

• Framework directive

is not applicable: OPTA has no

authority

Public regulation

• Framework Directive

is applicable (OPTA,

European Commission,

administrative Court)

• Intervention is not

appropriate (retail and whole sale

regulation)


Regulation of cable TV networks NL (2)

• New legislation introduced by Parliament: media regulator is obliged by law to impose access obligations on the TV cable providers on cost based tariffs

• Commissariaat has to implement this

• European Commission: contrary to EU law, started infraction procedure against the NL

• Transmission and not content


UPC case in The Netherlands

Main question: is the communications regulation applicable?

• Sale of the cable network in Amsterdam by the council to UPC

• Price cap agreed in the sale agreement

• UPC claims that this agreement is nul and void (in conflict with Framework Directive)

• Preliminary question to the European Court of Justice: hearing

The difference between telecoms & media regulators

Education

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