European Commission The new regulatory framework for Electronic

European Commission The new regulatory framework for Electronic Networks and Services Peter Scott DG Information Society Brussels 206 -04 1 DG Information Society

The new package Authorisation Directive Framewor k Directive (Art. 95) 206 -04 2 Access & Interconnection Directive Users’ Rights Directive Data Protection Directive Liberalisation Directive (Art. 86) Spectrum Decision (Art. 95) DG Information Society

Contents 206 -04 3 1. Background and Objectives 2. Key features of new framework 3. On-going regulatory issues 4. Next steps DG Information Society

EU Telecoms Policy 1987 -1998 THE GOAL u to create a flourishing single market for telecommunication services and equipment in Europe, providing users with choice, quality and value for money 206 -04 4 DG Information Society

Problems with current legal framework u Long and complex individual licensing procedures in some Member States u Not enough flexibility to cope with rapidly changing / converging markets u Not enough consistency in how rules are applied in Member States u Designed for a newly liberalised market, not one moving to a fully competitive market without sector specific rules 206 -04 5 DG Information Society

General principles set for new regulatory framework u be the minimum necessary to achieve goals u balance sector-specific legislation and competition rules u protect users where market forces do not u be open, flexible, adaptable u stimulate investment and provide legal certainty u be technologically independent, as far as possible 206 -04 6 DG Information Society

Objectives for NRAs u Promote competition u Contribute to the development of the internal market u Promote the interests of the citizen 206 -04 7 DG Information Society

Objective - Promoting competition u users to get maximum benefit in terms of choice, price and quality u no distortion or restriction of competition u efficient investment in infrastructure; innovation u efficient use of radio spectrum and numbering resources 206 -04 8 DG Information Society

Objective - Contributing to the development of the internal market u removing obstacles u encouraging trans-European networks, interoperability, end-to-end connectivity u similar treatment in similar circumstances - no discrimination u consistent regulatory practice and consistent application of rules u efficient use of radio spectrum and numbering resources 206 -04 9 DG Information Society

Objective - Promoting the interests of the citizen u universal service, (including special social groups, eg disabled users) u high level of consumer protection, including simple and independent dispute resolution procedure u high level of data protection and privacy u provision of clear information, in particular tariff transparency u maintaining integrity and security of public networks 206 -04 10 DG Information Society

Contents 206 -04 11 1. Background and Objectives 2. Key features of new framework 3. On-going regulatory issues 4. Next steps DG Information Society

Electronic communications networks and services - Scope Content Services - outside scope of new framework (e. g. broadcast content, e-commerce services) Communications services (e. g. telephone, fax, e-mail) Communications networks (fixed, mobile, satellite, cable TV, powerline systems, networks used for radio and television broadcasting) 206 -04 12 and associated facilities (e. g. CAS) DG Information Society

Key features u Consistent treatment of all communications network infrastructures, including networks used for delivery of broadcast services u Simplification of market entry procedures (reliance on general authorisations) u Dynamic process for identifying markets that justify ex-ante regulation u Alignment with competition law principles (market definition, dominance) u Enhanced coordination between NRAs, and between Commission and NRAs 206 -04 13 DG Information Society

Rely increasingly on competition rules Amount of regulation Pro-competitive sectorial telecoms Laws Competition Law 1990 Monopoly 206 -04 14 1998 2003 Towards full competition DG Information Society

Contents 206 -04 15 1. Background and Objectives 2. Key features of new framework 3. On-going regulatory issues 4. Next steps DG Information Society

Top 10 Regulatory issues in EU 15 (Nov 2001) u local loop unbundling u mobile call termination and international roaming u flat rate internet access u prices and delivery times for leased lines u tariff distortions and price squeezes 206 -04 16 DG Information Society

Top 10 Regulatory issues in EU 15 (Nov 2001) u numbering : carrier selection and preselection u rights of way u consumer protection u licensing conditions for 3 G services u organisation and powers of NRAs 206 -04 17 DG Information Society

Local loop unbundling u Problem : slow implementation u Remedies : - hands-on monitoring by NRAs - binding deadlines - credible penalties - provision of wholesale DSL offerings in addition to ULL 206 -04 18 DG Information Society

Mobile call termination and international roaming u Problem : High cost of peak time call termination charges and international roaming charges in mobile networks u Remedy : Regulator needs to have the legal powers to impose obligations on operators (eg in resolving disputes) + Commission investigation into roaming charges 206 -04 19 DG Information Society

Leased Lines u Problem: Continuing high prices, lengthy delivery times and absence of cost orientation for leased lines, particularly for high speeds u Remedy: Effective implementation by operators of reporting mechanisms and cost accounting systems, to allow NRAs to verify costs and delivery times 206 -04 20 DG Information Society

Tariff distortions and Price squeezes u Problem : Persisting tariff distortions and price squeezes (between wholesale and retail prices) u Remedy : Better verification by NRAs of operators’ regulatory accounts 206 -04 21 DG Information Society

Numbering u Problem : Full range of carrier selection and preselection services not always available u Remedy : NRAs to impose carrier selection and preselection for all types of call (including local, long distance and international calls) 206 -04 22 DG Information Society

Rights of Way u Problem : Disparities in the roll-out of rights of way u Remedy : Clarify respective roles of NRA and local and municipal authorities 206 -04 23 DG Information Society

Consumer protection u Problem : inadequate monitoring of service quality, price transparency and contract issues; lack of effective redress mechanisms u Remedy: NRAs to strengthen their activities with regard to consumer protection issues 206 -04 24 DG Information Society

Licensing of 3 G services u Problem : Disparities between licensing conditions in Member States u Remedy: Better co-ordination of future licensing rounds, as foreseen under Radio Spectrum Decision http: //europa. eu. int/ISPO/infosoc/telecompolicy /en/com 2001 -141 en. pdf 206 -04 25 DG Information Society

National regulatory authority u Problems: - assignment of powers - ability to resolve disputes rapidly - staff and resources u Remedy: Requires action at political level 206 -04 26 DG Information Society

Ensuring effectiveness of the regulatory authority u Regulator needs to have the legal powers to impose obligations on operators (eg in resolving disputes) u Staff need to be equipped with the necessary technical, economic and legal expertise u Decision-making processes need to be impartial and transparent, and subject to an appeal procedure 206 -04 27 DG Information Society

Independence of Regulatory Authority 206 -04 28 u Independent of any operator or service provider u Independent of any government department that is a shareholder in an operator or service provider u Independent of political interference with regard to individual decisions DG Information Society

Contents 206 -04 29 1. Background and Objectives 2. Key features of new framework 3. On-going regulatory issues 4. Next steps DG Information Society

Next steps Commission - SMP Guidelines - Recommendation on relevant markets, and possible Decision on trans-national markets - List of Standards (Art 17 of Framework Directive) - Art 86 Directive Member States - transposition and preparatory market analysis Council and EP - adoption of data protection Directive 206 -04 30 DG Information Society

New Groups and Committees u Spectrum policy group w High level policy group established by Commission decision, chaired by M State u Radio Spectrum Committee w standard comitology committee with regulatory and advisory roles u Communications Committee w standard comitology committee with regulatory and advisory roles u European Regulators group w Chaired by a Regulator; aim is to to seek consistent application of rules in all M States 206 -04 31 DG Information Society

Lisbon European Council March 2000 A “competitive and dynamic knowledge-based economy” demands “an inexpensive, world-class communications infrastructure” 206 -04 32 DG Information Society

For more information. . . On DG Information Society: http: //europa. eu. int/information_society/topics/ telecoms/index_en. htm On the new legislation: http: //europa. eu. int/information_society/topics/ telecoms/regulatory/new_rf/index_en. htm On implementation issues: http: //europa. eu. int/information_society/topics/t elecoms/implementation/annual_report/7 rep ort/index_en. htm 206 -04 33 DG Information Society