Luxembourg, 04/04/2001 (Agence Europe) - The Telecommunications Ministers, gathered on Wednesday under the Presidency of the Swedish Minister Bjorn Rosengren, had difficulty reaching an agreement over the new framework for electronic communications put forward by the European Commission to adapt this sector to changes in technology. They showed themselves to be reassuring against the setbacks seen by third generation mobile telephony. No new development arose over the liberalisation of postal services, but the Swedish Presidency confirmed its intention to reach a decision before the Gothenburg European Council. A legal battle over two key provisions in the framework Directive of the "telecommunications package" monopolised the meeting. The Member States refuse to give the Commission the right to amend or reject decisions taken by the National Regulatory Authorities (NRA) in the harmonisation process (article 6). The compromise by the Swedish Presidency gives it the right to a detailed opinion in the case were a measure taken by a NRA is incompatible with Community law. Some delegations want to give it even less power (Germany, Austria and Spain). This position recently provoked the lifting of shields by private telecommunications operators, who call on the Commission, more flexible in their eyes, to have the last word in the harmonisation process. Commissioner Erkki Liikanen, responsible for information society, stated that the Commission cannot backtrack on its decision-making powers. Ministers agreed on the compromise concerning the definition of significant market power (Article 13) which must allow the National Regulatory Authorities (NRAs) to designate the companies on which specific obligations will be imposed. Although the Commission proposal to refer to the common competition law does not encounter any obstacles in the case of individual domination, several delegations consider that the situation is not clear a in the case of collective domination. By way of solution, the Commission had proposed, in March, that a reference be included in the directive on the guidelines on market analysis and the calculation of significant market power based on Court of Justice case law. The Swedish Presidency's compromise does not take this solution on board and recommends introducing a list of specific conditions into the directive. The compromise was supported by a majority of Member States, and the United Kingdom in particular, through a series of reservations that set out qualified criteria. In order to satisfy the Commission, the text refers to an equivalent position of dominance, which is challenged by France and the United Kingdom. One English diplomat explained that only a precise text would make it possible to avoid frequent action being taken with the Court of Justice against NRA decisions. Germany and Italy supported the European Executive, considering it of no purpose to add new rules to common competition law. Commissioner Mario Monti, responsible for competition, stressed on Wednesday morning that Community case law is amply sufficient for defining the dominant position. French Secretary of State Christian Pierret considers, for his part, that it is not up to the telecommunications ministers to set new guidelines for the breakdown of powers between the Commission and the Council.
Over lunch, ministers took note of a Commission communication on third generation mobile telephony (3G). Given the start-up difficulties this technology is experiencing, ministers expressed a message of confidence and underpinned the importance of coordinating efforts for its development. "Everyone would like not to be as pessimistic today as we were over optimistic last year", declared Mr. Pierret. Member States and the Commission remained divided on how to coordinate and how to resolve difficulties in the different sectors, notably regarding companies indebted by the acquisition of UMTS licenses.
Commissioner Liikanen, moreover, placed emphasis on the unbundling of the local loop being accelerated.