THE IMPORTANCE OF NON-FUNCTIONAL FACTORS IN EXPLAINING DELEGATION TO NON-GOVERNMENTAL AGENCIES: THE CASE STUDY OF RADIO SPECTRUM By Gary Healy A dissertation submitted for the degree of Ph.D (Doctor of Philosophy) Under the supervision of Professor Robert Elgie and Professor Gary Murphy Dublin City University, Faculty of Humanities and Social Sciences, School of Law and Government September 2008 Declaration I hereby certify that this material, which I now submit for assessment on the programme of study leading to the award of a PhD (Doctor of Philosophy) Degree is entirely my own work and has not been taken from the work of others save and to the extent that such work has been cited and acknowledged in the text of my work. Signed: ID No: Date: i Table of Contents List Of Tables.............................................................................................................. v Abstract......................................................................................................................... vi Acknowledgements………………………………………………………..viii Abbreviations……………………………………………………………...x Introduction.................................................................................................................. 1 Chapter 1: Literature Review .............................................................................11 Introduction........................................................................11 Credibility & Functional explanations of delegation...18 Non-Functional Explanations of Delegation...............37 Conclusions.........................................................................50 Chapter 2: Radio Spectrum ................................................................................52 Introduction........................................................................52 Telecommunications.........................................................54 History of Radio Spectrum regulation...........................64 Increasing commercialisation of Spectrum...................71 Institutional Solutions.......................................................80 Conclusions.........................................................................82 Chapter 3: Methodology .....................................................................................85 Introduction.........................................................................85 ii Narrative Stories & Case Studies ....................................88 Telecommunications………………………………100 Assessing agency independence....................................104 Case Selection....................................................................116 Case Study approach and methodology .......................124 Conclusion .........................................................................128 Chapter 4: The evolution of Telecommunications Regulation in the UK with specific reference to radio spectrum regulation .......................................130 Introduction......................................................................................130 The Development of Radio Communications regulation........135 Telecommunications Regulation and the Creation of Ofcom 153 Non-Functional Explanations of delegation in the UK...........190 Conclusions.......................................................................................195 Chapter 5: Delegation of radio spectrum functions and the creation of the Irish telecommunications regulator ..........................................................198 Introduction......................................................................................198 The development of radio spectrum regulation.........................207 Telecoms regulation in Ireland......................................................214 Non-functional reasons for delegation in Ireland .....................259 Conclusions.......................................................................................281 Chapter 6: Telecommunications regulation in the Netherlands: the iii non-delegation of radio spectrum...........................................................………287 Introduction……………………………………………… 287 The History of radio spectrum regulation in the Netherlands292 Telecoms regulation in Netherlands ............................................297 The Regulation of Radio Spectrum in the Netherlands: The Radio Communications Agency ..................................................309 Non-functional explanations in the Netherlands ......................323 Conclusions.......................................................................................338 Conclusions...............................................................................................................342 Bibliography..............................................................................................................350 iv LIST OF TABLES Table 1: Evolution of mobile and fixed telecommunications subscribers, 1996-2001................................................................................................................ 65 Table 2: Radio Spectrum based sectors and activities.................................................... 72 Table 3: 3G Licence Assignment in the European Union............................................. 74 Table 4: Responsibility for Telecommunication Regulatory Activity ........................... 83 Table 5: Common Approaches to Comparative analysis............................................... 94 Table 6: Tenbucken and Schneider agency institutional and operational criteria...................................................................................................................117 Table 7: Tenbucken and Schneider Independence ranking..........................................119 Table 8: Schneider and Tenbucken’s Independence Index – scatter chart..................120 Table 9: List of Interviewees for UK case study.............................................................133 Table 10: Agencies merged to become Ofcom...............................................................161 Table 11: Principal UK Privatisations 1983-87 ................................................................191 Table 12: Key legislative changes in radio spectrum management in Ireland............. 200 Table 13: List of Interviewees for Irish Case Study ....................................................... 204 Table 14: List of interviewees for Netherlands case study............................................ 289 v ABSTRACT This thesis examines the non-functional factors explaining the growth and variation of delegation to independent agencies. The literature argues that delegation is more likely in sectors subject to market opening, like telecommunications or energy. The functional reasons for the creation of independent agencies such as credibility, complexity or expertise, explain the growing incidence of delegation to independent agencies. However, there are still wide variations in the level of independence given to independent agencies. The literature has identified a number of the non-functional factors which may explain the variations in the levels of independence. The non-functional factors are concerned with the role of political traditions; isomorphism, specifically the role of the European Union, and blame-shifting. This thesis examines the delegation process in the UK, Ireland and the Netherlands. It examines Telecommunications as a sector subject to market opening but specifically examines the delegation of radio spectrum management. Radio spectrum is a key operational responsibility of Telecommunications regulatory agencies however it has been delegated through different institutional solutions. An examination of radio spectrum delegation will help to explain the vi non-functional factors for delegation and offer a better understanding of the delegation process. This dissertation highlights the importance of the non-functional factors in the decision to delegate. Radio spectrum management is not delegated, without constraints on the agent, in cases where policy actors believe they need to retain control over the financial rewards of radio spectrum licences. The review of the delegation process also highlights that the non-functional factors differ at a national level. In some cases blame shifting is a factor, in others it is not. Political traditions can act both for and against delegation depending on the political culture. The importance of the European Union is reinforced in these case studies and is considered a key driver behind the creation of independent agencies. vii ACKNOWLEDGEMENTS I would like to take this opportunity to thank the many people who have advised and supported me in this research. Primarily, my thanks go to Professor Robert Elgie and Professor Gary Murphy who patiently guided me through this process, at all times steering me on the right course. I am equally indebted to the Commissioners and Staff at the Commission for Communications Regulation (ComReg) who supported this research financially and in terms of study leave. Particularly, I would like to thank Etain Doyle, John Doherty and Isolde Goggin. I would especially thank Patricia Dowling and the Trend research team in ComReg who sourced articles, books and numerous reports. I would also like to thank the staff of the libraries in Dublin City University and at Dublin University. Much of the drafting of this thesis took place in various European cities and I am indebted to my regulatory colleagues in the