Peru. In order to have a more stable regulatory framework, the Supervisory Agency for Private Investment in Telecommunications, OSIPTEL, has been reviewing all its regulations and plans to reduce, by 2023, up to 34% of its regulatory stock.
This was announced by the executive president of the regulatory entity, Rafael Muente Schwarz, during the webinar Regulatory Simplification, organized by the American Chamber of Commerce of Peru (AmCham Peru), where he stressed that the objective of regulation is to establish a balance between social welfare and the incentive to investment.
"Since 2018, we have initiated a process of regulatory simplification and ex-post review of all our standards in order to continuously promote the efficiency and effectiveness of the regulatory framework. It is clear that an overregulated market is not efficient," he said.
Muente pointed out that OSIPTEL is the only regulator in Peru that has been carrying out the ex post evaluation of all its standards, through regulatory review and simplification. "After the ex-post regulatory review, the goal was to reduce the regulatory stock by 34%, that is, 24 out of 71 standards."
The process of regulatory simplification seeks to eliminate and avoid overlapping standards, update regulatory frameworks to new market environments, simplify processes and regulations, evaluate standards according to their objectives and avoid over-regulation. An inadequate regulatory framework can generate negative effects of lower economic growth, lower investment, less innovation, reduced competition, higher prices, among others.
Meanwhile, through the ex-post review of the rules, it is sought to determine if the regulatory framework implemented met the objectives set, as well as to reject those that have been outdated or that have already met their objectives.
He also pointed out that, to date, the entity has issued 83 regulatory reports under the Regulatory Impact Analysis (RIA) approach, following the best practices recommended by the OECD and the OSIPTEL regulatory quality guidelines.
Positive results
According to the regulator, the ex-post review of the standards shows positive results for both the market and users. For example, in the case of claims attention, by 2018 OSIPTEL identified two major problems: the congestion of the claims system in the first and second instance (more than 260 thousand files without being able to resolve), as well as claims presented in procedural bad faith.
"To resolve this entrapment, the regulator adopted extraordinary measures to streamline the claims procedure such as promoting the mechanism of early claims solutions, as well as the delimitation of the concept of claim by billing," he stressed. Last year the results of the application of these extraordinary measures were evaluated and it was found that they had a positive effect and generated savings of S / 99 million "to society.
Finally, Muente Schwarz pointed out that, for 2023, a regulatory agenda has been established in which the modification of the Quality Regulation, the review of the cap interconnection charge in fixed networks, the modification of the Regulation of the Tariff Registration System, the modification of Regulatory Quality Guidelines and the fixing of rates for reconnection of service and for the planned services stand out. "An agenda oriented towards the promotion of competition and the welfare of the user of telecommunications services in Peru," he said.
