Brussels, 18/06/2012 (Agence Europe) - In addition to the Digital Strategy Scoreboard (the above), the European Commission has also published a report that looks at implementation of European telecoms rules in the 27 member states. The Commission is calling for better coordination between national regulations, as a means of supporting broadband internet development.
The report illustrates the following positive trends:
1) Demand for data is exploding: The huge potential growth for data traffic volumes opens up new business opportunities for the telecoms sector and online service providers.
2) Freeing up radio spectrum frequencies. A significant amount of radio spectrum was freed up during 2011: Belgium, Lithuania, Slovenia, Greece, Malta, Spain and Portugal opened up the 900 MHz and 1800 MHz bands (“GSM bands”) to new mobile services, while the 800 MHz band was assigned to mobile broadband in Spain, France, Italy, Portugal and Sweden.
3) Improved supply of mobile services. The average revenue per user (ARPU) dropped in many member states with the average EU level decreasing from €244 in 2009 to €221 in 2010. This is due to the implementation of European rules on mobile termination rates.
Targeted efforts, however, are required in several areas:
1) Delays in the transposition of European rules. To date, four member states (Belgium, Poland, Portugal and Slovenia) have not yet transposed all these 2009 rules into their national legislation. The Commission is particularly concerned about issues like the independence of regulators, consumer protection (in particular over the adequate implementation of EU rules on number portability) but also specific taxes on operators where infringement proceedings are ongoing against Hungary, Spain and France.
2) Sharp price disparity for access to broadband products. The Commission notes the (whosesale) price alternative operators pay to use incumbents' networks to provide services to customers where the monthly average wholesale price for access to the “local loop” varies between €5.3 in Poland and Slovakia and €14.4 in Finland.
3) Up to 80% of the costs of rolling out high speed broadband networks are related to civil engineering. The Commission believes this high percentage calls for harmonised measures to reduce these costs and is envisaging an EU initiative in the beginning of 2013.
4) Internet neutrality and quality services. Member states are taking divergent approaches on the issue of net neutrality and quality of services, which slows down the development of the digital Single Market. Recent analysis from BEREC - the body of European network regulators - shows that at least 20%, and potentially up to half of EU mobile broadband users have contracts that allow their internet service provider to restrict access to services like VOIP (e.g. Skype) or peer-to-peer file-sharing. This shows the need for co-ordinated action to ensure better consumer information and choice of internet services at a European level. (IL/transl.fl)