particular are reliant on effective regulation and policy making. In this regard, it
reaffirms its commitment to securing independence, impartiality as well as sufficient human and financial capacity of respective regulatory authorities, in particular the Telecommunications and Radiocommunications Regulator (TRR) or any
successor to it, which should operate in a stable and predictable regulatory environment in an efficient, effective, transparent and non-discriminatory manner.
International commitments, specifically Section 5 of the Reference Paper
included in the Vanuatu commitments undertaken in the context of acceding
to the World Trade Organization, requires any regulatory body to be “separate
from […] any supplier of basic telecommunications services. The decisions of
and the procedures used by regulators shall be impartial with respect to all
market participants.” Further to this, the international best practice, which the
Government accepts, requires independence and impartiality of regulatory
entities in relation to market players, consumers, but also with regard to political
influence46.
Independence does not mean a disregard of interests of the above-mentioned
groups. On the contrary, their interests are important and should be taken
into account in the regulatory process. Therefore an appropriate definition of
independence is “keeping equal distance from all involved parties”47.
In terms of independence from political influence, in particular, it is important
to recognize that no regulator can be absolutely independent. It will always
be constrained by laws, political realities, public sentiments, budgets, license
provisions, etc.48 Absolute independence is neither possible, nor desirable.
The international regulatory theory and practice also recognize that there is no
requirement for a regulator to be independent from the Government’s longterm policy or its powers to formulate such policy—it is solely required to be
independent from day-to-day undue interference49. Furthermore, appropriate
controls are necessary to ensure that a regulator is acting in the public interest.
Therefore it is important to achieve an appropriate degree of independence
that would guarantee necessary freedom for a regulator to act for the long-term
benefit of the society and implement long-term policy, without being distracted
by short-term interests, while at the same time recognising the reality (and, to
some extent, desirability) of various practical influences on the activities of the
regulator50.
In the context above, it is clear that the regulatory independence does not
restrict the Government and the Minister responsible for a specific policy area,
46
Smith, W. (1997). ‘Utility Regulators—The Independence Debate’. Public Policy for the Private Sector. Note No. 127,
October 1997, Washington, World Bank Group; Lamanauskas, T. (2006). ‘The Key Features of Independence of
National Telecommunication Regulatory Authorities and Securing them in Law’ Teisė (Law). Research Papers. Vol.
61, 2006. P. 71-82.
47
Karnitis E. (2004). ‘Multi-Sectoral Regulation for Services of General Interest: the Latvia’s experience’. International
conference “Legal aspects of the liberalisation of public utilities: practical issues and future trends”, Vilnius.
48
Jamison, M. A. (2004). Survival Guide for the Independent Regulator. Accessible at: http://bear.cba.ufl.edu/centers/
purc/documents/SurvivalGuidefortheIndependentRegulator.pdf.
49
Melody, W. H., Ed. (2001). Telecom Reform. Principles, Policies and Regulatory Practices. Denmark, Schultz
DocuCenter.
50
Lamanauskas, T. (2006).
‘The Key Features of Independence of National Telecommunication Regulatory
Authorities and Securing them in Law’. Teisė (Law). Research Papers. Vol. 61, 2006. P. 71-82.
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National Information and Communication Technology Policy