Brussels, 28/02/2012 (Agence Europe) - Digital Strategy Commissioner Neelie Kroes reminded the chief executives of the major telecoms operators, meeting in Barcelona at the annual Mobile World Congress on 27-28 February, of the importance of investment in next generation mobile networks to meet the EU 2020 broadband targets and make up ground on the United States, Asia and Latin America. She also spoke of the radio spectrum and the need for a common EU approach so that wireless applications can be allocated the frequencies needed for them to develop. She argued for a “truly competitive single market for roaming services”, expressing the view that operators had still not lowered their roaming rates enough.
To reach the target of at least 50% of the population having access to ultra-fast broadband (over 100 Megabits per second) by 2020, what is needed is the phased roll-out of an intelligent mix of complementary technologies, according to local circumstances, Kroes said. Such technologies include Fibre-to-the-Home, upgraded Cable, Fibre-to-the-Cabinet and LTE (Long-Term Evolution for mobile telephony). Together, these technologies “will help create a virtuous circle of supply and demand”, she argued. Under the EU's radio spectrum policy programme, she said, at least 1200 MHz will be freed for mobile data traffic by 2015, though, “as it stands, we have not - yet - identified where that extra spectrum will come from”. Discussions were opened in Geneva a few weeks ago on the possible allocation of the 700 MHz for mobile broadband and some member states are considering moving ahead in this band, she said. “We must start working on a common EU approach to ensure the efficient and coherent use of this band across Europe”, she added.
It was on the issue of roaming tariffs that Kroes' speech gave annoyance. “We will inject competition into the roaming market”, she warned, stating that she wanted “to reach an ambitious political agreement next month”. At the same time, she is calling on operators to invest in next generation networks, suggesting that “the industry has the confidence to invest and the incentives to innovate”. Her view was not, however, shared by several industry leaders. The chief executives of Vodaphone, Deutsche Telekom, Telefonica and France Telecom-Orange were all critical of the Commission's overly rigid approach and railed against its intervention to bring down roaming prices. Vittorio Colao, Vodaphone Chief Executive, said the question was whether Europe needed jobs or lower rates. He argued that continuing intervention on pricing had to stop and the industry had to be allowed to reinvest money earned. Supported by Franco Bernabe (Telecom Italia), he threatened to invest outside Europe where regulation is not as severe. In a press release, the commissioner replied: “Message to Vittorio and Vodaphone: I call your bluff, and indeed do not respond well to threats. I take the side of the Vodaphone customer. And I will remind everyone that we want to get the mobile sector more spectrum and a bigger market. A fair competition in roaming is a good exchange for those opportunities. Remember, if consumers lose their fear of using smart phones and tablets when travelling across Europe, operators will benefit as well.” A permanent solution on roaming is needed, where consumers can choose the best deal, as they currently choose the best wireless network, Kroes said. (IL/transl.rt)