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Image header Agence Europe
Europe Daily Bulletin No. 10219
Contents Publication in full By article 16 / 20
GENERAL NEWS / (eu) eu/digital

Commission strategy relating to new generation networks gives rise to comment

Brussels, 21/09/2010 (Agence Europe) - The European Commission's strategy on high and very high output networks announced on Monday (see yesterday's EUROPE) has given rise to considerable comment, as follows:

ETNO, the association of European Telecommunication Network Operators, welcomes the policy proposed by the European Commission on managing the spectrum, “an ambitious and timely instrument in view of maximising the potential of spectrum to bridge the digital divide”. More harmonised and flexible use of the spectrum and the opening up of additional frequencies for mobile and cordless services are essential for the deployment of rapid and ultra-rapid broadband networks, including in the most isolated rural areas, Michael Bartholomew, ETNO Director, underlined. Although traditional operators share the aims of the Commission when it comes to recommendations regarding the new generation networks, namely to encourage investment while respecting competition, they consider that ways to achieve this, as proposed by the Commission, will not stimulate investment. Systematic application of access obligations based on cost is not appropriate while price flexibility is essential for operators, in order to meet the varied consumer demands, ETNO maintains.

ECTA, the European Competitive Telecommunications Association, which defends the interests of new operators, believes “new measures signal an end to 'regulatory holidays' for fibre, but the regulated charges for access will be key in determining whether consumers see the benefits”. Nonetheless, the costs relating to compulsory charges for access to the networks will be the key factor determining whether consumers really gain any benefit. ECTA also welcomes the Commission's position on spectrum management, which will ensure that consumers have the possibility of choosing their operator for mobile broadband services. “Setting the correct wholesale price for both legacy copper lines and the new fibre will be fundamental in determining whether consumers reap the benefits of this new Commission recommendation”, ECTA President Hubertus von Roenne explains.

Cable Europe, which groups European cable TV operators and their representative associations, considers that the Commission's strategy for deployment of broadband underlines the need to pay greater attention to competition as a stimulating element for investment. According to this association, the Commission acknowledges that the objective, namely that of pushing traditional telecoms operators to carry out further investment in fibre, is stimulated by the presence of the cable industry throughout Europe. Cable Europe President Manuel Kohnstamm announced: “Our fibre powered networks will be needed to fulfil the ambitious policy goals of 2020. The market should be led by consumer demand and we are more than ready to step up to such demands”.

GSMA, which represents the global mobile communications industry, especially welcomes in the spectrum proposal the opening of 800MHz frequency bands for cordless electronic communications services and calls on member states to harmonise delivery of this band as soon as possible. GSMA Europe Director Martin Whitehead states: “This will create economies of scale, lowering both the cost of deploying mobile networks and the cost of mobile devices for consumers, allowing the delivery of mobile broadband services to rural areas as cheaply as possible and helping deliver broadband for all”.

The European Broadcasting Union welcomes the commitments taken by the Commission to ensure the spectrum's cultural, social and economic values are respected, in accordance with the provisions set out in the Telecoms Package. Nonetheless, the use of the spectrum for services other than broadcasting must be restricted exclusively to the 800 MHz band given the risk of endangering the diversity and the quality of broadcasting services because of interference created by overlapping on one and the same portion of the spectrum. “We should be able to offer our viewers the same quality of services and features as on other platforms”, said Ingrid Delterne, EBU Director General.

BEUC, the European Consumers' Organisation, welcomes the Commission's strategy on the high output network and its intention to study funding solutions for gaining access for all Europeans. It takes the view that the recommendation on the new generation networks provides a clear regulatory framework that will promote competition and investment, and ensure consumers have a real and viable choice between competitive high output access providers. These new rules will put an end to the “regulatory holidays” enjoyed by firms that dominate the telecoms sector in a way that is detrimental to market liberalisation, BEUC states. Monique Goyens, BEUC Director, states it is now up to national regulators to ensure consumers reap the benefits by supervising a competitive European network. (I.L./transl.jl)

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