31 March 2009
A report has been published for the Minister of Economic Development on the findings of a review into the powers, resources and functions of the Jersey Competition and Regulatory Authority (“JCRA”) as a telecommunications regulator.
The consulting company LECG in partnership with law firm Charles Russell LLP reviewed the JCRA’s legal powers and analysed whether the introduction of new powers are required to make the JCRA more effective. They also reviewed the appropriateness of the current statutorily prescribed consultation process and considered if it should be streamlined.
The main recommendations from this review include:
1. The provision of evidence that additional regulatory resources would strengthen the JCRA’s ability to regulate the sector effectively. This is desirable whether or not Jersey Telecom (JT) is privatised, but will have particular relevance in the event of the privatisation of JT.
2. The review shows that increased transparency and accountability would enhance the effectiveness of the regulatory process. It is recommend that in carrying out its functions, the JCRA publishes a range of additional information regarding the context within which it sets out its objectives, selected Key Performance Indicators, casework and market information.
3. The review recommends that the procedure in Article 11 of the Telecommunications Law should be reconsidered so that a less prescriptive regime is implemented with no obligation to issue fresh notifications when changes to consultations are made. The JCRA should be able to start a new notification in cases where it feels that the proposals have changed so significantly that there would be benefit from starting a new consultation, but there should be no obligation on the JCRA to do so.
4. The duty to consult (in recommendation 3 above) should be restricted to those regulatory decisions that serve a “policy” function. Enforcement / compliance functions should not be subject to consultation. Instead, the JCRA should have a duty to investigate and issue a decision in a transparent manner that preserves the right to be heard for both the operator allegedly in breach and any affected third parties.
5. The review recommends that whilst the necessary legislative changes go through the States, the JCRA should consider issuing guidance on the way that it intends that Article 11 (10) should be interpreted.
6. Powers to fine are recommended; the review proposes that JCRA should be empowered with the ability to fine operators in breach of a licence condition up to 10% of turnover, which would bring the regulator in line with other jurisdictions.
7. The JCRA is recommended to provide increased clarity of its process and the factors it takes under consideration in its assessment of proposed regulatory functions under Articles 7 and 11 of the Law.
8. The review recommends that JT’s separated accounts be published to increase the transparency of JT’s activities to the market. JT should be free to make representations to the JCRA as to the confidentiality of such information.
9. There is no provision allowing the JCRA to publish clarification on a licence measure. It is therefore recommended that the ability to clarify the position of the JCRA in relation to licence conditions should be given.
To access the full report please click on the following link
Review of the regulatory powers, resources and functions of the JCRA as a telecommunications regulator
gov.je