Brussels, 13/11/2007 (Agence Europe) - It was not without a certain pride that European Commissioner Viviane Reding (information society and media) presented her reform on Tuesday in Strasbourg, on telecommunications. This reform received unanimity at the College, she explained. The proposed reform is an example of the single market kind of reform, namely, the implementation of a borderless market for operators and consumers. During a press conference the Commissioner explained that the telecoms market still remained fragmented and functioned in separate parts. She warned that the fight against abusive roaming prices is only one symptom of the disease, “today it is a disease that is attacking its very heart”. To end this fragmentation, the Commission is proposing the following (EUROPE 9540)
- Reduction of markets subject to ex-ante legislation: currently 18 of them but to be reduced to 7. Most retail markets have been struck from the list. Reding explained that this involved one of the biggest every Commission proposed initiatives in the field of deregulation. The Commission will focus its attention on the main bottlenecks that essentially occur in the retail markets. The Commissioner criticised the fact that as well as land lines, broad band, in particular, remains the privilege of the traditional operators, which control an average of 55.6% of the market.
Unbundling: the Commission is looking at the possibility of national regulatory authorities (NRA) to impose unbundling on the activities of networks and services to enable newcomers to not be handicapped by the traditional operators that want to control the networks. This involves an additional instrument in the event of competition problems for national regulators, in an effort to compel the operators to provide more transparency, especially in their pricing. Reding said that they would not be proposing a separation of heritage, which exists for energy but simply greater flexibility in the structure, as was the case in the United Kingdom. She asserted that effective separation could prove highly useful in guaranteeing competition but also said that it was not a panacea and should not be used in an abusive way. She warned that, “the Commission will always have to give its agreement”.
- European telecommunications authority: with network unbundling, this second reform element is likely to provoke a sharp reaction from operators. Implementation of this supervisory body will be done in a way that enables national regulators to work together, in synergy, and facilitate similar decision making when settling similar problems. Commissioner Reding said that this would involve a centre of excellence. The lack of success by the European Regulars Group (ERG), which failed to set up a single electronic communications market, encouraged the Commission to propose setting up this pan-European entity while strengthening the independence of the national regulatory authorities. The Commission has explained that it will not replace the ERG but will work with it and provide it with opinions. This will involve a Community authority that has full rights, independence and with adequate resources.
- Radio-electronic spectrum management: wireless applications (Wifi) are expected to experience extraordinary development; Commissioner Reding deplored the fact that the management of radio-electronic spectrum, necessary to the function of these new technologies, is still like it was in the 1950s. The Commission wants to encourage member states to better use radio-electronic spectrum and allow the market to decide how the spectrum should be used and for what applications. The transition from analogue to the “digital dividend” will free up frequency bands and promote more efficient use. The Commission wants more concertation between member states, as spectrum management has implications that go far beyond national borders, explained the Commissioner.
Reform also includes measures for fighting piracy and strengthening authors' rights. Amendments to the “authorisation” directive will in effect oblige telecoms operators and access providers to respect the Community acquis on authors' rights. Amendments to the “universal services” directive also demand that operators inform their subscribers before signing a contract about the rights and obligations concerning copyright, as well as the legal consequences in the event of piracy. As well as having an obvious effect on the European economy, the reform will directly benefit consumers, stressed Ms Reding in her conclusion. She emphasised that freedom of choice and access, reduction in the waiting time when changing an operator to a day, improved access to the 112 emergency number, are the immediate beneficial effects. New rules adopted this Tuesday will enter into force as from 2010, following adoption by the European Parliament and Council. Commissioner Reding is hoping for an agreement in the second half of 2008 under the French presidency. (I.L.)
European Parliament Plenary Session