Revisiting regulatory independence: The relationship between the formal and de-facto independence of the Egyptian telecoms regulator
| Author | Ahmed Badran |
| Published date | 01 January 2017 |
| Date | 01 January 2017 |
| DOI | http://doi.org/10.1177/0952076716643381 |
| Subject Matter | Articles |
Public Policy and Administration
2017, Vol. 32(1) 66–84
!The Author(s) 2016
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DOI: 10.1177/0952076716643381
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Article
Revisiting regulatory
independence: The
relationship between
the formal and
de-facto independence
of the Egyptian
telecoms regulator
Ahmed Badran
Assistant Professor of Public Policy, Department of International
Affairs, College of Arts and Sciences, Qatar University, Doha,
Qatar
Abstract
Regulatory governance scholars tend to focus on either the formal or de-facto
independence of regulatory agencies. Very little attention has been given to linking
these two sides together and even less has been said about the relationship between
these two aspects. In this paper, the relationship between the formal and de-facto
independence of the Egyptian telecoms regulator will be investigated. The aim is to
contrast these two aspects of regulatory independence. In addition, the way in which
the formal independence is translated by the sector regulator into practice. The paper
argues that the formal independence of the Egyptian telecoms regulatory agency is an
important but not a sufficient factor to guarantee the de-facto independence of the
agency. Empirical data collected from 44 interviews with different stakeholders in the
Egyptian telecommunications market is analyzed. Documentary analysis of the telecoms
Law and other official policy documents and reports is also considered. The initial
findings of the paper show that the telecoms law grants the regulator the ability
to act independently from the Ministry and the regulated industry. Nonetheless, this
strong legal mandate has not been fully translated into independent practices on the
ground in regards to the way the regulatory agency connects with the Ministry of
Telecoms and the previous sector incumbent. The paper suggests that the relationship
Corresponding author:
Ahmed Badran, Assistant Professor of Public Policy, Department of International Affairs, College of Arts and
Sciences, Qatar University, Doha, Qatar.
Email: Badranahmed@rocketmail.com
between formal and de-facto independence of telecoms regulators should be carefully
considered.
Keywords
Developing countries, public administration, public management, policymaking,
regulation
Introduction
A glance at the literature on regulatory independence reveals that the autonomy
of regulatory agencies is important in establishing effective and functional regula-
tors. The reality of independent utility regulators is far more complex and pro-
vides different modalities with regard to legal formal independence and the way
in which regulators turn those formal aspects into independent practices when
dealing with other regulatory stakeholders. In this context, a fundamental question
would be in what way is formal legal independence linked to regulatory
practices. In other words, would formal independence automatically lead to inde-
pendent regulatory decisions? Also, would a formally independent regulator
work at equal distance from all regulatory stakeholders? When we consider
the formal and informal aspects of utility regulators’ independence, what are
the possible theoretical modalities? And where the telecoms regulator in Egypt
could fit?
This paper will address these questions by reflecting on formal and de-facto
regulatory independence in the Egyptian telecoms sector. The aim is to determine
the relationship between these two aspects of regulatory independence. Such an
investigation will help in understanding whether formal independence is enough to
guarantee independent regulatory practices and decisions. The paper is divided into
three sections. In the first section, a theoretical and conceptual framework is devel-
oped in which the concept of regulatory independence is examined as is the rela-
tionship between formal and de-facto independence. The second section provides
an empirical analysis of the formal and de-facto independence of the telecoms
regulator in Egypt. In the third section, the paper concludes with some reflections
on the way in which regulatory independence is perceived and interpreted by the
telecoms regulator in Egypt as well as the studied policy actors.
Formal and de-facto regulatory independence: A theoretical
and conceptual framework
The number of Independent Regulatory Agencies (IRAs) established worldwide
has dramatically increased (Busch et al., 2004; Jordana and Levi-Faur, 2005; Levi-
Faur, 2005, 2011). In this section, the concept of independence will be unpacked
Badran 67
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