Brussels, 09/01/2013 (Agence Europe) - As part of the revision process of the recommendation on relevant markets started by the European Commission and in response to a public consultation launched on 17 October 2012, the association of incumbent operators - ETNO - said on 8 January that the new legislation will not only have to be based on the way the market currently functions but will also have to anticipate the changes that will come about in the near future, given technological developments and the new behaviour of consumers which make the markets increasingly competitive. In other words, the Commission should lighten regulatory pressure on telecoms markets which, in ETNO's view, discourages investors.
“This review offers an opportunity to make another bold step towards the deregulation of the sector which is essential to unlock investments that are indispensable for meeting the policy goals of the Digital Agenda. The new recommendation should reflect the new regulatory paradigm for broadband investment announced by Vice-President Kroes and take into account new market developments that should determine the scope of regulation for the years to come”, said the head of ETNO, Luigi Gambardella.
In the view of the incumbent operators, the new recommendation should be more targeted and include the following changes: (1) a reduction of the list of relevant markets; in particular the retail market for access to the fixed telephone market should be removed from the regulation, as this is now subject to competition pressure from mobile networks and increasingly abandoned by consumers in favour of internet communication; (2) the adoption of a new regulatory approach to the wholesale supply of broadband access, which should take into account all competing platforms at the retail level, in accordance with the principle of technological neutrality.
The recommendation on relevant markets was adopted in 2003 and brings together wholesale and retail telecoms markets which are subject to ex ante legislation. Initially numbering 18, the relevant markets were reduced to seven at the first update of the recommendation in 2007, the Commission having noticed a development in competition in certain sectors. (IL/transl.fl)