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Image header Agence Europe
Europe Daily Bulletin No. 10908
SECTORAL POLICIES / (ae) digital

DG Competition remains cautious over market reform

Brussels, 27/08/2013 (Agence Europe) - Competition Commissioner Joaquin Almunia is critical of the proposal made by Neelie Kroes, Commissioner for the Digital Agenda, to create a single telecoms market in Europe, The Financial Times reports in an article published mid-August. While their aim is laudable, the plans to be presented by the commissioner this autumn lack ambition, according to the conclusions of a report drafted by Almunia's services.

The report suggests replacing the current 28 national regulators with a single pan-European regulator, which would be the most effective solution for putting an end to the obstacles that prevent market consolidation. Such reform, however, could be contentious given the desire among some countries in Europe to retain control of national infrastructure and the lucrative revenues often generated by spectrum auctions, the British daily underlines. A senior official at the European Commission nonetheless played down the report's conclusions, underlining that criticism is solely aimed at improving the proposals and that the services responsible for competition are, on the whole, largely in favour of Kroes' proposal. They apparently look positively on the proposals relating to the radio-electric spectrum (better access to frequencies), but are keeping a close eye on the draft proposals which could negatively impact on some competition rules, especially those allowing operators into other countries. While Kroes clearly indicated that she intended, in the near future, to completely abolish roaming costs, the services under Joaquin Almunia expressed concern at the “regulatory uncertainty” that would arise from such a measure and the “harmful consequences” that would arise from roaming alliances between operators in the telecoms sector, which are allowed by the proposed single market. (IL/transl.jl)