The Inquiry believes policy settings should facilitate innovation and market developments where these improve system efficiency and consumer outcomes. In making the following recommendations, the Inquiry has been guided by these principles:
- Industry and government should work together to identify innovation opportunities and emerging network benefits. Government should facilitate industry coordination where competitive forces prevent these opportunities from being fully realised.
- Regulation should be functional to ensure competitive neutrality and facilitate innovative business models. Regulation should also be graduated to enable market entry and ensure regulation is targeted to where it is most needed. At times, this may increase risks for some consumers, but it is expected to improve consumer outcomes overall.
- Regulation should aim to be technology neutral in design. Regulation should only be technology specific where selecting a common standard would improve overall system efficiency. Review mechanisms are needed to ensure technology-specific regulation does not become an impediment to innovation over time.
- Policy settings should aim to reduce information asymmetries by improving access to public and private sector data, subject to appropriate privacy safeguards to preserve consumer confidence and trust in the system, and maintaining private sector incentives to collect data.