Brussels, 23/11/2007 (Agence Europe) - The reform of the regulatory framework on electronic communications, more commonly known as the “telecoms package”, which was presented last week by Commissioner Viviane Reding who is responsible for the information society and media (see EUROPE 9540 and 9542) has provoked numerous reactions. Among them:
European Parliament. Rebecca Harms (Greens, Germany) welcomes the proposal on possible recourse to a functional separation of networks “as this is the only way to guarantee real liberalisation of the market to the benefit of consumers”. By contrast, the Greens reject the proposal to liberalise radio frequencies, believing that these are not commercial goods: "Only when enough frequencies have been guaranteed for key services such as radio broadcasting can discussions begin on how to distribute the rest” Ms Harms continues. In the view of Helga Trüpel (Greens, Germany), the Commission proposal is too oriented towards the market and risks undermining the current balance between public and private radio broadcasters. Cultural and media diversity must be guaranteed by the reform and, in this respect, all citizens should be offered access to broadband, she said. Conservatives are broadly supportive of the reform proposal, which “opens up the markets, reduces legislation and encourages the new wireless services”. These measures also benefit consumers as they improve price comparison and speed up the process of changing operator. On behalf of his group, Giles Chichester (EPP-ED, UK) said that the reform was a chance to re-evaluate the current framework, eliminating the bottlenecks and promoting the future development of the telecoms market. The creation of a new European telecoms authority received a more mixed response, however: “We will demand explanations on the costs and benefits of this new authority” commented Malcolm Harbour (EPP-ED, UK). Referring to radio broadcasters' concern that the reform would hurt the transmission of their programmes, Angelika Niebler (EPP-ED, Germany) said: “We must ensure that media diversity can be defended, even when the market conditions change”.
Established telecoms operators. The European Telecommunications Network Operators' Association - Etno - welcomes the reduction in the number of markets subject to ex ante regulation and the opening up of the radio spectrum proposed by the reform, which “will boost the deployment of innovative services and stimulate wireless broadband access technologies, thereby leading to more infrastructure-based competition”. It is opposed, however, to the functional separation of networks, even with conditions, as this measure will not encourage investment in new and alternative networks and long-term competition. Etno also fears that the regulators will be too ready to use this instrument rather than existing remedies.
New operators. The new operators joined by the organisation ECTA welcome the Commission's proposals which will “give national regulators the tools to break down monopolies and deliver consistent results across the single market”. They particularly welcome the Commission's resolve to end the “regulatory holidays” on next generation fibre access, and to introduce functional separation into the body of regulation “despite intense lobbying by large dominant firms”. The creation of a European telecoms authority will also be beneficial in achieving concrete results, they say.
Cable operators. Cable Europe welcomes the Commission's desire to pursue the deregulation of the broadband and communications markets, and to reduce the number of markets subject to ex ante regulation. However, the organisation is much more circumspect when it comes to the proposal on functional separation, which would be a regulatory measure with many consequences and would, in its view, require a detailed impact assessment before being proposed. The creation of the new telecoms regulatory authority does not convince the cable operators either, as they believe the proposal contradicts the claimed desire to pursue deregulation. Cable Europe approves, however, of the Commission's policy on managing the spectrum.
Radio broadcasters. The EBU (European Broadcast Union) is alarmed at the opening of frequencies reserved for radio broadcasting to mobile telephony in the reforms proposed for better management of the radio spectrum. In its view, it risks creating significant problems of interference, to consumers' detriment. Market-based management of the radio spectrum in the broadcast range constitutes a threat to European radio broadcasting systems, it says. (I.L.)