regulation is important
DESCRIPTION
How to optimise the regulatory environment for NGA roll-out Key issues, regulatory strategy and tactics Paul Brisby Towerhouse Consulting LLP November 2010. 1. Introduction. Regulation is important For big buyers of regulated inputs, up to c50% of cost - more than any other single line item - PowerPoint PPT PresentationTRANSCRIPT
How to optimise the regulatory environment for NGA roll-out
Key issues, regulatory strategy and tactics
Paul BrisbyTowerhouse Consulting LLPNovember 2010
1
• Regulation is important
– For big buyers of regulated inputs, up to c50% of cost - more than any other single line item
– Openreach generates a significant proportion of BT Group EBITDA
– Essential facility inputs of strategic importance
• In this presentation
– A complex environment - stakeholders and policy goals
– Key issues for the aspiring NGA network
– Policy tools
2
Introduction
• Everyone has a view on NGA
– Government – BIS
– Ofcom
– Government – VOA / DCLG
– Communications Providers – private sector
– Communications Providers – public sector
– European Commission
– End users
• Different technologies
• Complex statutory framework
• Creates an unusual environment for effective regulatory action
3
A complex environment
• The regulatory narrative - how many horses?– Late ‘90s – Oftel back 1 broadband horse– Early 2000s – Oftel back zero broadband horses– 2003 onwards – Ofcom back multiple broadband horses– 2010 – what are the key issues? How may NGA horses?
• PIA - the uses to which duct / pole access may be put; price, process
• SLU – price, process, automation• FTTH regulation / fibre unbundling• GEA – price, processes
– BT / Competitors: is it a binary choice?
• Who to convince?– BIS may have the money. But...– Ofcom have [a lot of] the power
4
Key issues
• Market reviews (e.g. WLA)
• Enterprise Act undertakings v. SMP conditions
• Lobbying
• Regulatory Disputes
• Regulatory Appeals
• The European Commission
• Conclusions • Where to focus?• When to invest?
5
Policy tools
