Brussels, 25/03/2009 (Agence Europe) - In its progress report for 2009, the Commission explained on Wednesday 25 March that despite the economic crisis, the EU's telecoms sector continued to grow in 2008, with performances improving now for the last six years. “This is good news for a sector that can help Europe defy the downturn," said Viviane Reding, the EU's telecoms commissioner. She did say, however, that not everything was perfect and they still had a lot to do to develop a coherent single market. The commissioner added that “the road to fair competition and investment in these networks does not lie through 27 different solutions mainly favouring national champions, but through open markets, legal certainty and equal chances for all investors and operators."
The report presents a snapshot of the European telecoms market and competition achieved in the 27 member states last year. Despite the economic crisis, the EU's telecoms sector (worth about 3% of EU GDP) continued to grow in 2008 with revenues estimated at above €300 billion, up 1.3% compared to 2007 and outperforming the rest of the economy (up by 1% only). The sector is continuing to weather the storm of inflation because the price for the majority of basic communications is constantly falling. The report also confirms Europe's top ranking in the mobile phone sector: the most dynamic telecoms segment in the EU with mobile phone use rising to an average subscription rate of 119% in 2008, seven percentage points higher than in 2007, well ahead of the US (87%) and Japan (84%). Italy, Lithuania and Luxembourg are particularly dynamic with a rate of over 140%. The mobile sector is increasingly more competitive than in previous years, with an increase in voicemail and text messages at tariffs at least 34% lower than those in 2004. The number of fixed broadband internet connections in the EU keeps growing: 14 million more in 2008, reaching over 114 million in total. Denmark and the Netherlands are world leaders in broadband, with take up over 35% of population. Along with Sweden, Finland, the UK, Luxembourg, Belgium, Germany and France, they lead the US, which was at 25% in July 2008. Mobile broadband is also taking off, with the number of connections now representing 13% of the EU population. 20.5 million consumers switched phone operators in 2008 while keeping their fixed or mobile numbers. By October 2008, about 84 million subscribers (17% of EU citizens) had switched operator since it became possible in 2003.
The Commission revealed, however that barriers still remain towards creating a genuine single market. Independent national telecoms regulators are essential to ensure fair and effective regulation, but are not yet a reality in all 27 EU countries. Infringement proceedings launched by the Commission are pending against Lithuania, Latvia and Romania, while a case against Poland was taken to the European Court of Justice.
The independence of national telecoms regulators is not problem-free in Lithuania, Latvia and Romania, which are all facing infringement procedures, while a case against Poland was taken to the European Court of Justice. Inconsistent regulation of similar competition problems can be an extra burden on telecoms operators, especially the growing number of companies active in several countries or offering cross-border services. Diverging approaches to the regulation of new fibre networks could impair competition between operators in the single market and lead to regulatory uncertainty for new investment and the Commission deplores the fact that some regulators' decisions even appear to be taken in a manner which attempts to bypass EU rules. (I.L./transl.rh)