ETNO recommends root-and-branch review of e-communications legislation

Brussels, 03/02/2006 (Agence Europe) - The European Telecommunications Network Operators' Association ETNO has submitted to the European Commission its ideas on the review of the regulatory framework for e-communications. The deadline for preliminary contributions from all stakeholders was last Tuesday and the European Commission will now study the information submitted and prepare a draft new regulatory framework before the end of year.

Explaining that the current framework fails to meet market demands, ETNO urges the Commission to reduce the burden of regulation to respond to technological change and encourage investment. 'The regulatory framework has led to a continuous increase of regulatory intervention which in turn slows down development and discourages investment both by new entrants and established players,' said Michael Bartholomew, ETNO Director. Commissioner Viviane Reding has hinted that she will not be making any substantial changes to the current regulations, but ETNO argues that more fundamental amendments are required and urges the Commission to anticipate changes in the market. The new regulatory framework would not come into force in the Member States until 2010, but which time the market will have changed substantially, explain telecoms operators. ETNO recommends:

• Focussing objectives on consumer benefits and welfare. 'EU e-communications policy must aim at ensuring benefits for the end-users (competitive offerings and choices, constantly improving services and products) and also overall economic welfare.'
• A clear commitment to a timed phasing out of regulation. 'The new framework must re-affirm the transitory nature of ex-ante regulation by including a clear timetable for a shift, once markets are competitive, towards a sector mainly driven by market dynamics under EU competition law.'
• Changes in methodology to accelerate deregulatory trends. 'The framework should require that national regulatory authorities systematically ensure that competition law is not sufficient before applying any ex-ante regulatory remedy on a given market. The precondition for any intervention should not focus on the mere existence of a dominant player.'
• 'Wait and see' approach to encourage investment. 'A time limited abstention form regulation on new services and infrastructure would allow everyone to see whether other forms of competition or alternative platforms arise in the market. Instead, the current systematic application of access obligations and price control to new infrastructure or services pre-empts the way markets develop and dissuades investors.'

'The orientation that the Commission will take in this review is of crucial important. It will determine whether the EU will be able to fully reap the benefits of convergence or whether, to the contrary, the current gap between Europe and its main economic partners will further deepen,' added Bartholomew.