# **Box 2:  The Importance of Public Consultation in the Licensing Process**

Engaging in public consultation is an important good practice for regulators—especially in the licensing process. Consultation with stakeholders reinforces the perception of a transparent process and allows the regulator to learn the views of the proposed initiative directly from consumers, existing operators, and other interested parties. Consultation also promotes the finetuning of proposed initiatives (early consultations will allow interested parties to comment on structure of the process), and ensures that the regulator is made aware of issues relevant to the process (including any potential ground for legal challenges). In the case of licensing attribution, for example, consultation will maximize the prospects for a successful bidding/licensing process. For Ofcom (the regulator in the United Kingdom) _“...consultation is an essential part of regulatory accountability—the means by which those people and organizations affected by our decisions can judge what we do and why we do it.”_ Consultation can be formal and informal. Through informal consultations regulators learn about the concerns of people and organizations; while informal consultations are useful to provide a snapshot of industry and consumer views and to “test the ground” before issuing formal consultation documents, they are not a substitute a formal process. Whenever possible, consultations should be formal, with proceedings and written materials made available to the public (or at least to all applicants). During, for example, a licensing process, regulators can publish a notice stating its proposed approach, and inviting comments on different options considered and any related issues.

Notices of this kind should be sent to all interested parties, including prospective applicants, existing licensees, and consumer and industry interest groups.

Ofcom provides some details on how it expects to implement consultation processes effectively by trying to:

- involve, as much as possible, all the voices that need to be heard, whether they belong to big or small companies, industries, consumer and community groups, or individuals (whenever possible regulators should reach out to all interested parties, with a special concern for those who are less likely to respond);

- explain fully the different options under consideration before making the final decision;

- • help those with views to respond fully and in an informed way; and

- listen to the views and provide explanations as to the effect of any action .

- It will also try to:

- do this clearly and openly so all are aware of what, when, and why it is happening;

- deliver value for money by ensuring the reasonable cost of the consultation process; and

- avoid taking too much time with the consultations, as markets change quickly.

_Source: Adapted from Telecommunication Regulation Handbook, H. Intven, M. Tetrault, infoDev, 2000, available at http://www.infodev.org/files/1081_file_module2.pdf; Trends in Telecommunications Reform 2004/2005 – Licensing in an era of convergence, ITU, and “How will Ofcom consult? A guide to our consultation process”, available at : http://www.ofcom.org.uk/consult/consult_method/consult_guide.pdf_

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