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From: John Armitage <john.armitage@UNN.AC.UK> Date: Wed Jun 19, 2002 08:42:28 AM US/Eastern To: CYBER-SOCIETY-LIVE@JISCMAIL.AC.UK Subject: [CSL]: [World Dialogue on Regulation for Network Economies] Reply-To: The Cyber-Society-Live mailing list is a moderated discussion list for those interested <CYBER-SOCIETY-LIVE@JISCMAIL.AC.UK>

(Hi all, a short reminder: I shall be closing CSL on **Friday 28 June**. As usual, CSL will be closed through July and August and re-open early September. Best wishes to all. John) ====================================== [World Dialogue on Regulation for Network Economies]

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WDR e-Brief - No. 08, 19 June 2002

In this e-Brief

* Q&A: The thin line between policy and regulation * WDR expert forum in September * WDR schedule of activities * Two new books o Networking Knowledge for Information Societies o Global Media Governance * Conference Reports o TU Delft 5th international conference o CTI - Internet & Mobility: Technologies and Implications for Work and Leisure * African WSIS meeting calls for regulation tailored to region s needs * Regulatory news archives now searchable * Southern African telecom news and information from MISA * CTI newsletter available online * Subscribing and unsubscribing

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Welcome to the eighth issue of the WDR e-Brief, a bi-weekly bulletin from the World Dialogue on Regulation for Network Economies (WDR). The WDR e-Brief keeps you informed of new documents and ongoing discussions on our website and features information and comment of interest to the regulatory community. Please forward the e-Brief to interested colleagues and let them know they can subscribe for free from the WDR website at http://www.regulateonline.org/ .

For more information on any of the items discussed here, visit the web addresses provided.

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Q&A: The thin line between policy and regulation In each WDR e-Brief we feature a question or comment posted to the Online Dialogue at http://www.regulateonline.org/dialogue/ and ask our research teams to comment. The featured question in this e-Brief comes from Rodrigo de la Parra, advisor to the chair at Mexico s Federal Telecommunications Commission. De la Parra s question follows up on an earlier discussion on independence and political interference (see http://www.comunica.org/w- agora/view.php?site=wdr&bn=wdr_multisector&key=101 5945573&first=1022164447&last=1012306680 ).

The reply comes from Rohan Samarajiva, coordinator of the Multisector research team based at the Economics of Infrastructures at the Delft University of Technology, with additional comments by WDR general manager, William Melody.

Question: The line that divides policy and regulation is a very thin one even before we think of a convergent regulatory and institutional framework. In e-brief #7 Samarajiva comments that political interference may be reduced if service providers are completely privatized. But what if this has been already done. In this new convergent environment what new definitions can be given regarding policy and regulation powers? and what would be the optimal institutional design?

- Rodrigo de la Parra

Answer: It is correct that the line between policy and regulation is a thin one. The margin is problematic, but the core of policy is distinct from the core of regulation.

The question is about political interference. It may be necessary to distinguish between politicians taking political positions in public from covert political interference. The former is part of democracy, while the latter is not. What motivates persons within government to engage in covert political interference? The most obvious reason is if the government is a shareholder in a regulated company. This has been stated in a previous response. The question now is what if the government no longer holds shares in the regulated company? In an environment of good governance, it is unlikely that persons within government will seek to engage in covert efforts to influence regulatory decisions on behalf of regulated companies. But if the environment is not one of good governance, it is possible that such actions may take place for various reasons. The interferor may honestly believe his/her action to be correct, but for some reason wishes to hide the fact of influencing. This is less blameworthy, but is nevertheless wrong. The most problematic case is where the interference has some ulterior motive. This kind of covert influencing is not unique to regulated industries. It is found wherever public officials are given discretionary power.

The solutions are not perfect but include: - Creating channels for the communication of legitimate concerns. As long as the communication is seen by others, it is acceptable. For example, it is a good thing to give government ministers the right to give written public directions on specific subjects to regulatory agencies. - Saying no, or disregarding improper and covert communications. Provisions regarding independence are intended to make it possible for decision makers in regulatory agencies to say no. It is a pity that more regulators do not avail of these protections to do the right thing. - Reducing areas of discretion. This can be done by statute and policy as well as by regulatory procedures. Sometimes it is easier to say "I cannot do it" than "I will not do it."

The diffuseness of the boundary between regulation and policy is not increased or decreased by convergence. The problem is no different in a convergence environment than in a pre-convergence environment. The problem is one of poor governance. The real answer is that we convince ourselves of the overall benefits of good governance, through explicit educational activities as well as good institutional design and in some cases plain raw acts of courage.

- Rohan Samarajiva, LIRNE.NET & Delft University of Technology Follow the dialogue post a question or make a comment at http://www.regulateonline.org/dialogue/ .

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WDR s Managing Director, William Melody added the following points in response to the excellent, but difficult question raised by Rodrigo de la Parra.

The observations made by Rohan Samarajiva are fundamental, and link directly to some practical steps that can be taken to strengthen the positive role that regulation can play in the telecom reform process. Channels of communication and regulatory credibility are strengthened when clear administrative procedures are established, regulatory processes are made transparent and information is made publicly accessible. (See, Samarajiva, R., Regulating in an imperfect world: building independence through legitimacy, Telecom Reform, Vol. 1, No. 2 - http://www.telecomreform.net/volume2/#policy ).

For the range of issues - e.g. spectrum management - that sit in the grey area between the core policy and regulation functions, the dividing line is best drawn with reference to the capabilities for effective performance in achieving the policy objectives. Given the increasing complexity of issues associated with convergence, one can see the potential for regulation taking on a broader mandate. But only if the regulator has the expertise, independence and objectivity to implement it effectively. That is why training is such an important issue for the staff of regulatory agencies. The answer to the question may depend as much on the technical and strategic competences of the staff of the regulator as anything else.

- William Melody, WDR

Follow the dialogue post a question or make a comment at http://www.regulateonline.org/dialogue/ .

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WDR Expert Forum September 12 & 13 - "Designing Next Generation Regulation" Dates for the WDR Expert Forum have been set for September 12 - 13, 2002 in Copenhagen, Denmark. It will be hosted by LIRNE.NET s partner, the Center for Tele-Information (CTI) of the Technical University of Denmark. The purpose of the Forum is to critically assess the draft report on Next Generation Regulation, being prepared by the LIRNE.NET research teams, and then to review suggestions for next year's World Dialogue Theme.

About forty experts from regulatory agencies, government ministries, international organizations, academia and other organizations will bring a diversity of informed views to help shape the final report on this year's dialogue theme, as well as the direction of next year's theme. Forum participants will be acting in their individual capacities, not as representatives of organizations.

For more information, including about how to participate, see http://www.regulateonline.org/news/experts.htm or write LIRNE.NET Coordinator, Merete Henrikson at henriksen@lirne.net .

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WDR and e-Brief Schedule of Activities The WDR e-Brief will be going offline for most of July and August, but the research teams will continue to work and to receive your input to the draft report to be presented at September s Expert Forum.

E-Brief number 09 will appear in two weeks, before taking a short holiday. We ll be back with e-Brief 10 in August, to give you a chance to comment on the draft research report on Next Generation Regulation before it is discussed at the Expert Forum.

We ll be back as usual in September, with a report from the Expert Forum and an introduction to next year s research topic.

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Two new books Two new books have appeared in the last few weeks with significant contributions from WDR staff. WDR researchers Rohan Samarajiva and Amy Mahan are co-editors, with Robin Mansell of the London School of Economics, of Networking Knowledge for Information Societies: Institutions and Interventions. Amy Mahan also collaborated with Bruce Girard (editor of the WDR e-Brief) and Sean S Siochrz on Global Media Governance.

Networking Knowledge for Information Societies: Institutions and Interventions Edited by Robin Mansell, Rohan Samarajiva and Amy Mahan

This volume includes state-of-the-art analyses of the problems of and prospects for information societies. It is about the structures and processes of inquiry and institutional change and their relationship to rapid innovations in information and communication technologies. It contains over 50 contributions by outstanding scholars whose choices of topics cover issues that are of substantial significance today.

Each of the book's five sections addresses a central question: - What is the role of institutions of higher education in the 'Information Age' and how does scholarly research become involved in 'networking knowledge'? - What are the institutional strategies and practices of policy and regulatory reform in the communication industry? - How and why are people accommodating or resisting the new technologies and the emerging information societies? - What are the biases in the processes of networking knowledge and what insights can be drawn from the social sciences, and particularly from Institutional Economics? - What are the structures and processes for sharing the content of the media and information services industries and for exchanging knowledge in today's global networks?

For more information, including the table of contents and how to order the book, visit http://www.comunica.org/netknowledge/

Global Media Governance: A beginners guide By Sean S Siochrz, Bruce Girard and Amy Mahan Published by Rowman and Littlefield

This book is about media and communication governance at a global level and its key influencing forces, elements and organizations, such as ITU, WTO, UNESCO, WIPO, and ICANN. Governance oversees regulation, and questions addressed here include: Why do we regulate the media at all? What are the major forms of global regulation, and how do they work? Who participates in, and who benefits from, media regulatory and governance structures? What are the trends?

Anyone interested in the media and its progressively rising influence over so many dimensions of society will sooner or later find themselves confronted with these questions. This book does not claim to answer all the questions, but it raises key ones and points in directions where more complete answers can be found.

For more information, visit http://www.comunica.org/gmg/

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Conference Reports

TU Delft - Regulation: Shaping Markets in Liberalized Infrastructure Industries for Better Performance

The Economics of Infrastructures (EI) section of the Faculty of Technology, Policy and Management of Delft University of Technology (TU Delft) held its 5th annual Conference on May 30 and 31, 2002. The theme of the conference was Next Generation Regulation: Shaping Markets in Liberalized Infrastructure Industries for Better Performance. Organized in honour of Professor William Melody, the retiring chair of the EI section, the conference critically addressed the role of regulation in the performance of liberalized infrastructure industries.

A report of the conference by TU Delft researcher Andrew Barendse is at http://www.regulateonline.org/news/ei5.htm

CTI - Internet & Mobility: Technologies and Implications for Work and Leisure

On May 29 the Center for Tele-Information held its 7th international conference on the theme of 'Internet & Mobility: Technologies and Implications for Work and Leisure', with participation from business and academia.

Convergence of Internet and mobile networks and services were to open new potential for communications and access to information. However, in Europe WAP never lifted off and GPRS has not yet been successful. Third generation networks are on the way but are challenged by the WLAN options. The conference centred on technology and market developments. The idea was to explore convergences between Internet and mobile technologies in the context of mobility in work and leisure situations.

Read a brief report of the conference by Anders Henten at http://www.regulateonline.org/news/cti7.htm

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African WSIS meeting calls for regulation tailored to region s needs

The Africa Regional Meeting Preparatory to the World Summit on the Information Society was held in Bamako, Mali from 28 to 30 May 2002. Representatives from 51 African countries and delegates from numerous other countries and global organisations attended.

A number of statements in the final declaration address the issue of universal access to ICTs, calling for research and policies to deal with Africa s specific environment. On balance, the declaration calls for regulations that are fair, efficient and tailored to the specific development requirements of Africans and African countries. Now comes the difficult task of creating such a regulatory environment and seeing a movement from pilots with dubious success to an environment that encourages and promotes viability for service providers and access businesses.

From the WDR/Intelecon Regulatory News Service Full story at http://www.regulateonline.org/intelecon/A-Africa-020613.htm

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WDR/Intelecon news now searchable The archive of WDR/Intelecon Regulatory News produced since March 2002 can now be consulted online at http://www.regulateonline.org/intelecon/ . You can access a monthly list of all the news or type keywords into the search engine to find exactly what you want.

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Southern African telecom news and information from MISA The Media Institute of Southern Africa (MISA) offers an occasional "Telecommunications Update" by email. The latest issue includes news and links about telecom privatisation in Malawi, regulatory proposals for South Africa's second national operator, proposals for cooperation between South Africa's Independent Communicatios Authority (ICASA) and its Competition Commission, and lots more. To subscribe, write telecom@misa.org.na

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CTI newsletters available online and via email The Center for Tel-Information (CTI) is on of the LIRNE.NET universities and a WDR partner. The Center's newsletters have been available on the web for some time but a new service enables you to receive them free by e-mail. Just go to http://www.cti.dtu.dk, click publications, and follow the instructions. You can, of course, also unsubscribe from the same site. In addition to the newsletter you may receive invitations to conferences and open seminars arranged by CTI from time to time. The CTI Newsletter is published three times a year and provides information on research and teaching activities at the Center for Tele-Information. More information on CTI and the newsletter can be found at http://www.cti.dtu.dk.

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Questions and support If you have questions about WDR, send them to info@regulateonline.org . For technical matters, contact us at webinfo@regulateonline.org or see the Frequently Asked Questions section in the Online Dialogue. http://www.regulateonline.org/dialogue/ -----------------------------

Subscribing and unsubscribing The WDR e-Brief is a bi-weekly bulletin from the World Dialogue on Regulation for Network Economies - http://www.regulateonline.org . Subscribe from the site or by sending a message to ebrief@regulateonline.org with the subject wdr e-brief list . To unsubscribe, send a message to nobrief@regulateonline.org -----------------------------

Bruce Girard - bgirard@regulateonline.org - edits the e-Brief with assistance from Divakar Goswami. Archives: http://www.comunica.org/w-agora/index.php?bn=wdr_ebrief

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The purpose of the World Dialogue on Regulation is to critically examine ideas and evidence. Unless otherwise indicated, the views expressed in content appearing on the WDR website, the Online Dialogue and the WDR e-Brief are the personal views of the individuals submitting them. Content does necessarily reflect the views of LIRNE.NET, infoDev, the World Bank, the International Telecommunication Union or any other organisation associated with the World Dialogue on Regulation.

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World Dialogue on Regulation c/o LIRNE.NET Technical University of Denmark Center for Tele-Information, Building 371 2800 Kgs. Lyngby, DENMARK Email: info@regulateonline.org Phone: +45 4587 1577 - Fax: +45 4596 3171 http://www.regulateonline.org -----------------------------

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