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Europe Daily Bulletin No. 9554
GENERAL NEWS / (eu) eu/telecoms council

Member States suspicious of idea of pan-European telecoms regulator but most would accept functional separation of networks under certain conditions

Brussels, 29/11/2007 (Agence Europe) - Functional separation of networks, yes, but under certain conditions. Establishing a pan-European telecoms watchdog, no. In summary, this is how EU telecoms ministers on Thursday reacted to the European Commission's plans to reform e-communications. Meeting in Brussels for a joint Transport, Telecoms and Energy Council, the ministers said they agreed with the general principles underlying the reform plans drawn up by EU Information Society and Media Commissioner Viviane Reding, who briefed them on the main thrust of the plans she has unveiled.

Public discussion was meant to have been brief and end after the commissioner had made her speech, but 19 states were at pains to express their views, demonstrating the particular importance they attach to the reform plans and the aims being pursued. The delegations which took to the floor all backed the aims being pursued by the Commission, namely creating a genuine single market in telecoms, encouraging investment, reducing unnecessary legislation, introducing tighter rules to relieve bottlenecks on markets which remain largely inaccessible, establishing a system that benefits consumers by giving them access at competitive prices to all technology, ensuring the independence of national regulators and respecting technological neutrality. Apart from Italy, which backs the idea of a pan-European telecoms watchdog as long as it respects the independence of national regulators, the 18 member states which expressed their views were all suspicious of the idea of setting up yet another authority. Many argued that such an authority already exists - the European Regulators Group or ERG - and introducing yet another would simply add a further layer of bureaucracy, not to mention the time it would take to roll out such a body.

On the functional separation of networks, the new remedy Viviane Reding is proposing would add to the current toolbox for national regulators when they detect lack of competition on the networks. Most are not against the idea at first sight as long as it is not compulsory, is applied as a last resort and following an in-depth study of the market. The United Kingdom, which already applies the idea, was the most enthusiastic of the member states. Romania was far more reluctant, noting that it was not something that could be applied in Romania. Spain pointed out that the remedy could actually strengthen the position of the dominant operator as it would not encourage new operators to consolidate their position by creating their own networks. When it came to the radio spectrum, all ministers who expressed their views backed the idea of more rational management, as suggested by the Commission, but many argued that member states should have control over this. Summing up, Commissioner Reding welcomed the consensus over the aims of the reform package, saying she had taken on board the doubts expressed on certain issues while re-assuring member states over functional separation and spectrum management. The review of the regulations is only at its first stages and will continue under the French and Slovenian presidencies, explained the Portuguese public works, transport and communications minister, Mário Lino. (I.L.)

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