Brussels, 13/07/2007 (Agence Europe) - Some markets remain fragmented and the sometimes differing measures imposed by national regulators to remedy lack of competition could complicate the completion of the internal telecoms market, says a report published by the European Commission on Thursday. While the EU's telecoms rules have led to significant benefits, such as reduced prices and increased choice, for citizens and businesses alike, important challenges remain for national and European regulators, it says.
The main aim of the telecoms regulatory framework, which came into effect in 2003 and is being reviewed, is to encourage competition, investment and innovation in the internal market, in the interests of consumers and competitiveness. The market is to be allowed to develop freely, with only a minimum of regulation so as not to impede its growth. National Regulatory Authorities (NRAs) are responsible for analysing the 18 national markets and taking appropriate measures where the market does not function properly, although they must first submit their market analyses to the Commission (Community consultation mechanism known as the Article 7 procedure). According to the report, the submissions hitherto received indicate that the remedies imposed are not always as effective as they might be and that regulation is not always consistent throughout the EU, even where market conditions are similar. Consequently, market players wishing to operate in several member states sometimes face very different regulatory environments. In some cases, the submissions received show that competition could develop without additional regulation. More particularly, the Commission notes that most retail regulation is no longer necessary because effective wholesale regulation should safeguard consumer interests. The Commission also found that some wholesale markets could be deregulated further, while other markets will continue to require specific targeted regulation for the foreseeable future. In its review of the telecoms regulatory framework which it will bring forward in mid-October, the Commission intends to reduce the administrative burden on market players and regulators. It will take the measures needed to complete the internal telecoms market, it says.
ETNO, the Association of European telecoms and electronic communications operators, has welcomed the Commission's analysis, which says there is strong competition in retail markets, and feels that this should lead to their removal from the list of relevant markets still under “ex-ante” regulation. The operators consider that the same approach should apply to the wholesale markets as recent technological developments make it possible for new operators to develop their services without necessarily relying exclusively on tradition operators' infrastructures. ETNO says that the review of the framework should now focus on “how to stimulate highly risky investment in the next generation access networks and stimulate the emergence of a truly facilities-based competition in Europe”. (il)