This project is funded by the European Union
This project is funded by the European Union EU regulatory framework for electronic communications - Introduction Richard Harris Independent EU telecommunications consultant ICTtrain workshop London 3 -14 November 2008
Agenda – the basis of policy for this sector – the common approach – the global dimension – the present EU legislation – the wider EU regulatory space – points to watch and summary 3 rd November 2008 2
The basis of the policy The convergence of technologies and industries: – Telecommunications - monopoly – Data processing - competition – Broadcasting – some competition 3 rd November 2008 3
Convergence is a reality Service Network Voice telephony Fixed Mobile Wireless Telephone/ Handset Data Fixed Satellite Cable PC Broadcasting Cable Satellite Terrestrial Telecoms Television Terminal 3 rd November 2008 4
The common approach - 1 Competition policy – In the USA – anti-trust court decisions from the 1950 s onwards • Law not changed between 1934 and 1995 – In the EU – the Treaty of Rome • “British Telecom” case in 1982/5 showed that the competition rules apply to telecommunications • EU obliged to develop a policy for telecommunications – adopted 1987 3 rd November 2008 5
The common approach - 2 • The UK opened its market between 1981 and 1990 • EU decided in 1987 to abolish the monopolies in stages • The first stage was in 1988 • The last stage was 1998 • Review in 2000 led to 2002 framework • Further EU review in progress today 3 rd November 2008 6
The global dimension • The WTO decided in 1994 to open telecomms services markets • 95 signatories initially, now many more • The ITU sought to find a solution for the host of smaller 3 rd world countries • The EBRD has financed telecommunications only where modern policy is pursued. • The World Banks has adapted its lending policy for telecommunications to competition. • The OECD reports on this sector as an important indicator of economic health. 3 rd November 2008
EU telecommunications legislation • • • Almost entirely in the form of Directives First one in 1983 Mostly Council and Parliament Directives Underpinned with Commission Directives A series of Directives which opened the market gradually • 1998 package – complete market opening 3 rd November 2008 8
2002 regulatory framework - for all electronic communications Authorisation Directive Framework Directive (Art. 95) Access & Interconnection Directive Liberalisation Directive (Art. 86) Universal service Directive Privacy Directive Spectrum Decision (Art. 95) 3 rd November 2008 9
2002 regulatory framework Key principles: • Independent national regulators • Minimise regulation • Technological neutrality • Consistency across the EU market • Level playing field for new entrants • Universal service 3 rd November 2008 10
2002 regulatory framework - laws Framework Directive: outlines general principles, objectives and procedures Authorisation Directive: replaces individual licences with general authorisations Access and interconnection Directive: sets out rules for a multicarrier market place, ensuring access to networks and services, interoperability etc Universal service Directive: guarantees basic rights for consumers and minimum levels of availability and affordability Privacy Directive: covers protection of privacy and personal data protection communicated over public networks Liberalisation Directive: prohibits special or exclusive rights in this sector Radio spectrum Decision: principles and procedures for developing a EU radio spectrum policy 3 rd November 2008 11
2002 regulatory framework minimise • Regulation is limited to situations where an operators has “significant market power” - SMP • SMP status is determined by NRAs on the basis of market analysis • These decisions are based on competition law principles • Status under 1998 framework is unchanged until analysis has been done 3 rd November 2008 12
2002 regulatory framework consistency Communications Committee: regulatory and advisory functions on implementation of the Directives European Regulators Group: helps consistent application of the regime throughout the EU Radio Spectrum Policy Group: high level platform where member states and the Commission coordinate use of the spectrum Radio Spectrum Committee: deals with technical issues around harmonisation of frequency allocation across Europe and develops an external EU policy Notification procedures: “Article 7” procedure Independent EU Advisory Body on Data Protection and Privacy (Article 29 working party) 3 rd November 2008 13
EU regulatory space • • • The context - treaty relations with the EU Adoption of EU laws EU accession negotiations Monitoring the markets (Cullen) Consistency arrangements - non EU countries not yet fully part of these 3 rd November 2008 14
EU Neighbourhood policy – 16 countries 3 rd November 2008 15
Associated countries • Treaty relationship • Approximate national laws to the acquis • Principles of EU competition rules apply • Cooperation regarding telecommunications • Committee structure 3 rd November 2008 16
Points to watch • Investors draw confidence from knowing that regulation is fair and reasonable • The NRAs should have powerful tools and not be open to pressure from operators • GSM operators in the EU vicinity have greater market power than in EU 15 • EU universal service model not a good fit in the EU vicinity 3 rd November 2008 17
Summary • Regulation is needed only where policy aims cannot be achieved without it • Competition is intended to stimulate incumbents • Industry should take the lead in finding solutions • Ministers regard this sector as an aspect of the IS • They discuss cartels, abusive practices, spam, IPRs, the digital divide, universal service, e. Government, promoting broadband security 3 rd November 2008 18
Typical EU Council agenda • Mobile satellite systems • Digital dividend • Legislative package in the area of electronic communications • Radio spectrum policy • Safer use of the Internet • World Summit on Information Society • Spam 3 rd November 2008 19
Thank you for your attention dickharris@btinternet. com For more information: See - Europa web-site 3 rd November 2008 20
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