ANRCETI experience on

Roman BAHNARUConsultant,Executive Regulation Department ANRCETIroman.bahnaru@anrceti.md

Republic of MoldovaMD-2012, ChişinăuBd. Ştefan cel Mare, 134

E-mail: office@anrceti.mdWeb: www.anrceti.md

Tel: +373 22 251 317Fax: +373 22 222 885

Regulatory Governance

accountability

integrity

transparency

independence

New regulations with new services and technologies

Riga, 7 April 2016

Today’s regulatory frameworks should pave the way for new services and technology. The digital ecosystem is changing the environment in which the people live, work and interact with each other.

The ICT development is one of the most important element for social and economic growth.Therefore, adaptability must characterize all regulators around the world who want to drive digital communication forward and to provide Level playing field between all players.

Best Practice Principles on Regulatory Policy

Riga, 7 April 2016

Regulators, under unprecedented pressure, face a range of demands, often contradictory in nature: be less intrusive – but be more effective; focus your efforts – but be consistent; process things quicker – and be more careful next time; deal with important issues – but do not stray outside your statutory

authority; be more responsive to the regulated community – but do not get

captured by industry.

Malcolm K. Sparrow (2000), The Regulatory Craft: Controlling Risks, Solving Problems, and Managing Compliance, Brookings Press, p. 17.

National regulatory framework in a nutshell

Riga, 7 April 2016

Law on electronic communications nr.241/2007 – entered into force in March 2008. It transposes into the national legislation the provisions of the regulatory framework for electronic communications networks and services, adopted by the European Union in 2002: Directive 21/2002/EC (Framework Directive) Directive 19/2002/EC (Access Directive) Directive 20/2002/EC (Authorization Directive) Directive 22/2002/EC (Universal Service Directive)

Currently, ANRCETI and the Ministry of ICT consider law changes to align national law to European Union framework of 2009, that means aligning the law to the provisions of the Directive 140 2009 (also known as “Better regulation directive”) and to the Directive 136 (also known as “Citizens’ rights directive”),

Tasks of the sectorial regulator ANRCETI

Riga, 7 April 2016

ANRCETI is empowered to: regulate the activity in the field of electronic communications and

information technology ensure the implementation of development strategies of the sector supervise compliance of electronic communications networks and/or service

providers with the sectorial legislation

The purposes of ANRCETI: promoting competition in the provision of networks, associated facilities and

electronic communications services development of electronic communications sector promoting the interests of end users

ANRCETI performs its duties and powers based on its Regulation, approved by the Government.

Main functions of the sectorial regulator ANRCETI

Riga, 7 April 2016

Symmetric regulation

• Consumer protection• QoS monitoring• Interconnection rules for end-

to-end connectivity• Universal service• Dispute resolution between

operators and users vs operators• NNP management, number

portability, etc

Asymmetric regulation

• Market analysis and SMP designation

• Ex-ante remedies imposed on SMP operators

• Least onerous obligations to resolve the competition failure

Authorization regime

• No license required to start an activity

• General authorization regime. A notification only is required

• ANRCETI only issues licences for spectrum and numbering resources

Institutional framework

Riga, 7 April 2016

ANRCETI

Ministry of ICT

Broadcasting Council

Competition Council

Radio Frequency

Centre

Under the existing electronic communications framework, ANRCETI is an independent authority, that exercises its powers:

- Impartially- transparently and in a timely manner, - has adequate financial and human resources

to carry out the assigned tasks - has separate annual budget, which has to be

made public.

ANRCETI has functional independence in its relationship with market players.

ANRCETI Board

Riga, 7 April 2016

ANRCETI is managed by an Administrative Board, Chairman (Director) and two Deputy Directors; The Board decisions are adopted by the majority of votes. Every Board member has one vote; The Director and Deputy Directors are appointed by the Government for four years. None of the

Board members may stay in term of office for more than 8 years. The duration of mandates is never linked to electoral cycles

A cooling off period can be applied after the end of their terms, members cannot occupy positions neither within public institutions nor within private companies operating in regulated sectors.

The Agency Director, Deputy Directors are citizens of the Republic of Moldova, have university degree, high professional qualification and experience in the field of electronic communications

Rules against conflicts of interests are prescribed in the electronic communication law

ANRCETI human resources

Riga, 7 April 2016

ANRCETI has autonomy as regards its internal organization and functioning.

The main subdivisions of ANRCETI are:•Regulations development department - has the task to develop measures of economic and technical regulation of activities in the field of electronic communications and information technology, to promote effective and sustainable competition in this area•Regulations executive department - has the task of ensuring the economic and technical regulations of ANRCETI in order to implement the existing regulations framework•Legal department – the main objective of the Legal department is to provide legal assistance to other ANRCETI subdivisions, to ensure uniform compliance with legislation, working to improve the regulatory framework of the regulatory area.•Monitoring and control department - The main objective of the Monitoring and Control department is to supervise the compliance with relevant legislation by electronic communications networks and/or service providers.

ANRCETI budget – financial autonomy

Riga, 7 April 2016

By November 15, every year the Agency draws up its annual budget for the following year, based on: a) annual regulatory and monitoring payments; b) payments for the assigned numbering resources

The Agency budget is approved by the Administrative Board within the limits necessary to ensure its adequate activity and financial independence. The administration of the budget is verified by an independent audit, whose report is presented to the Government

ANRCETI establishes the amount of regulatory and monitoring fees for the following year sufficient to cover the expenses necessary in order to conduct its activity. The amount of regulatory and monitoring fees is established on basis of estimation of revenues, generated by activities in electronic communications, up to 0,3% of the estimated revenue;

Yearly, by November 1, ANRCETI publishes in the Official Journal of the Republic of Moldova the amount of regulatory and monitoring contributions for the following year.

In compliance to the principle of accountability, ANRCETI’s financial statements is subject to external examination by an independent and qualified institution.

Enforcement power

Riga, 7 April 2016

ANRCETI has sufficient enforcement powers embedded in law - in line with best regulatory practice.

To avoid political interference and ambiguous decisions influenced by the interests of market players, the regulatory authority is empowered to enforce its decisions and regulations and thus ensure compliance with the rules set, improve the predictability of the regulatory frameworks in place and grow a level-playing field. Particularly, ANRCETI has sufficient powers to - enforce procedures in place- enforce regulations and license conditions- issue orders, directions to operators to carry out or cease certain activities

As an exception to the above, ANRCETI cannot impose sanctions, fines and other penalties for breach of legal/regulatory obligations – ANRCETI does not have direct enforcement power, prescribed by electronic communication law

Transparency

Riga, 7 April 2016

the sessions of the Administrative Board of ANRCETI are public; the Administrative Board decisions are approved only after following the

public consultation procedure; All ANRCETI’s decisions as well as the list of issued licenses and Public Register

of electronic communications network and service providers are published on the ANRCETI’s web site and, as applicable, in the Official Journal of the Republic of Moldova;

ANRCETI’s decisions and regulations can be appealed to the competent court. On yearly basis, by March 1, the Agency submits to the Government a

financial report, which is published in the central press, and also is published on www.anrceti.md

Transparency regarding decision making is essential for all regulatory bodies to act in an impartial manner.Provisions on transparency of ANRCETI is embedded in electronic communication law

The decision-making process is transparent to its stakeholders

Reporting

Riga, 7 April 2016

Every year by April 30, the ANRCETI publishes an annual report on its activity regarding the implementation of the electronic communications development strategy and enforcement of its regulations, as well as a statistical yearbook on the electronic communications development in the Republic of Moldova for the previous year.

Every year by March 1, ANRCETI submits to the Government a financial report, which is published in the central press

ITU Regulatory tracker – useful tool for Regulatory Governance Benchmark

Riga, 7 April 2016

ITU Regulatory tracker - a tool to monitor and measure the changes taking place in the telecommunication/ ICT regulatory environment.It is based on self-reported data (by each country) gathered yearly via ITU’s World Telecommunication Regulatory Survey. The number of indicators – 50 questions.

The indicators are divided in 4 different clusters, each cluster is designed in order to take stock of the different areas of the regulatory analysis

1. Separate telecom NRA2. Autonomy in decision making3. Accountability4. Percentage of diversified funding5. Public consultations mandatory before decisions6. Enforcement power7. Sanctions or penalties imposed by regulator8. Dispute resolution mechanism9. Appeals to decisions10. Existence of Competition authority

1. Cluster 1 - Regulatory authority2. Cluster 2 - Regulatory mandate3. Cluster 3 - Regulatory regime 4. Cluster 4 - Competition framework.http://www.itu.int/en/ITU-D/Regulatory-Market/tracker/Pages/default.aspx

Thank you!