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Image header Agence Europe
Europe Daily Bulletin No. 7761
Contents Publication in full By article 27 / 55
GENERAL NEWS / (eu) eu/information society

Cable industry and private operators welcome Commission's telecom "package" - Public operators concerned at unbundling of local loops

Brussels, 18/07/2000 (Agence Europe) - The cable industry (represented by ECCA (European Cable Communications Association), is satisfied with the Commission's proposals for a directive that we renew the legal framework of telecommunications in the EU (see EUROPE of 13 July). It nevertheless deplores "certain anomalies in the directive's proposals". In particular, it opposes the provision providing for the obligation to carry certain channels used by public services in the networks. Peter Kokken, EEVA Secretary-General, is concerned that "this proposal provides Member States with a free hand to impose obligations difficult to meet for private operators that would low down development and innovations in the digital age". For GTS (global TeleSystems), the leading provider of broadband services in Europe, the telecom "package" is also good news. Ian Osborne, one of its directors, declared that these proposals "will shape the information society for the next decade". As positive effects, he stresses the reduction in entry costs for new operators, improved transparency mechanisms, the fall in the price of communications.

ETNO, the European telecommunications network operators' association, approves the package in the sense that it adapts the legislation to developments in new technologies. But it is against the proposal of proceeding, through legislation, of the unbundling of local loops by the end of 2000. Unbundling is open to competition in copper lines between individuals and the central network. For ETNO, this important part of the package raises exaggerated expectations. For Michael Bartholomew, ETNO Director, "It would be naïve to think that unbundling is a quick fix to close the gap in Internet market penetration rates between Europe and the United States". For him, there is no correlation between costs and this measure. He cites a Commission survey that demonstrates that only 11% of people asked cite the cost of communication as being a reason not to connect. He considers that there are other reasons that slow down potential users, such as knowledge of computer language and possessing a sufficiently powerful computer.

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