Brussels, 12/09/2013 (Agence Europe) - When presenting the telecommunications legislative package on Thursday 12 September - a package that was adopted the previous day (see EUROPE 10919) - European Commissioner for the Digital Agenda Neelie Kroes said that there is no easy or overall response to eliminate the barriers that slow down the emergence of a true single digital market. The proposals are not perfect, she conceded, but the European Union no longer has time to beat about the bush or wait for “the panacea” in order to take action. Europe cannot allow the opportunities to pass it by that are offered by the digital economy to achieve Europe's objectives of growth and employment. And she quoted the example of the mobile applications (Apps) economy, which is taking off fast. This industry did not exist five years ago, but it currently generates €11 billion - and in 2016 it is expected to generate €16 billion. If Europe keeps waiting, Kroes said, it will lose the race on the international scene. She also wanted to put an end to the rumours that there is disagreement between her and other commissioners, particularly Joaquin Almunia (see EUROPE 10908), on the adoption of the package. She said that the College had shown a united front on this package and that it had been received with very wide support. The person who says otherwise is a liar, Kroes said. The commissioners are very much in favour of net neutrality, she went on, and there has been great cooperation between the different Commission Directorates-General - those of Joaquin Almunia, Michel Barnier and Olli Rehn.
Net neutrality. Kroes believes that the proposals contained in the package will guarantee net neutrality - in other words, an open internet, without a deterioration or blockage in content, in all the member states (although until now only two states - the Netherlands and Slovenia - give guarantees on this level). There will still be a choice for the speed of the internet but there will be no two-speed internet, Kroes stated. Consumers will be able to benefit from access to everything, independently of the subscription chosen, and if they choose specialist services, operators will not be able to slow down the access speeds promised to clients, Kroes reassured. And this is where the problem lies for those who support net neutrality: “[The commissioner] claims protection of neutrality by forbidding operators to block or slow down certain types of traffic on the internet. And at the same time she gives a blank cheque to these same operators so that they can get rich by giving privileged traffic conditions to a restricted number of online services”, says the co-founder of Quadrature du Net, Félix Tréguer (our translation). There will be legal guarantees for all citizens in the member states, and there will not be any blockage to or reduction in quality, and if someone wants to withdraw from these obligations, we will be watchful and we will take action, Kroes replied. The Commission highlights the future role of the European Parliament in adopting the package, with the Parliament being totally free to introduce suggestions and amendments, especially with regard to net neutrality, if the Parliaments considers that the text has loopholes. “There will be a transparent debate between the co-legislators - the Council and the Parliament”, Kroes assured.
The Parliament has published an initial reaction to the package in a resolution prepared by Jens Rhode (ALDE, Denmark), which was adopted by a show of hands on Thursday. The text especially stresses the need to abolish roaming charges by 2015 - charges which are particularly symbolic of the lack of a single telecoms market. It also suggests training and access to funding in order to be able to fill vacant posts in ICT domains, and incentives for those who want to create their own company. The EU should also invest in broadband internet so that, by 2020, all European households can take advantage of a throughput of 100 megabits per second.
The digital industry welcomes the Commission's intention to create a true single market in telecommunications. There was an urgent need to act in order to stimulate the sector and remove the obstacles to the deployment of the digital economy, the industry states. Unsurprisingly, the incumbent telecoms operators and alternative operators do not agree on the means to achieve this. ETNO, which represents the interests of the incumbent operators, does not consider that the proposal will create the necessary conditions to reach the objectives of the digital agenda and to contribute to economic growth in Europe. While the arrangements for radio spectrum are good, the approach remains, overall, too regulatory. In the view of ECTA, which represents the alternative operators, the Commission is not proposing a genuinely pro-competitive approach. Cable Europe, which brings together European cable operators, is more optimistic: “We see some benefits for stability and predictability in the EU telecom markets”. The proposal includes arrangements which will lead to less regulation while encouraging market strengths, Cable Europe states. Mobile operators, brought together within GSMA, call for a more precise agenda to meet the challenges of growth, jobs and competition. “The package needs to do much more (...). A more thorough and comprehensive approach is required”, stated GSMA Director General Anne Bouverot. (IL/transl.fl)