ITU/ITC Regional Seminar Moscow 27-30 April 2004 The EU regulations on Electronic Communications Networks and Services Marianne Rögeberg Information Society, European Commission 205-28 1 Hans-peter Gebahard DG Information Society I DG INFSO • Developing and Implementing overall IT policy at European Level: • eEurope 2005 • Research Activities/the IST Programme • The Regulatory Framework for Electronic Communications Hans-peter Gebahard I Objectives of the New Regulatory Framework • Create a Dynamic, Innovative Single Market for Telecommunications Services and Equipment in Europe, Providing Users with Choice and Quality • Liberalisation to Remove Barriers to Competition • Harmonisation to Prevent Unnecessary Differences Between Member States • Promote the Interests of the Citizen (Universal Services, Consumer Protection, Privacy, Dispute Resolution) Hans-peter Gebahard I Predictable Withdrawal of Regulation Amount of regulation Pro-competitive sectorial telecoms Laws Competition Law 1990 Monopoly 205-28 17 1998 2003 Towards full competition Hans-peter Gebahard DG Information Society I Convergence is a reality Service Network Terminal 205-28 21 Voice telephony Fixed Wireless Mobile Telephone/ Handset Data Broadcasting Cable Fixed Cable Telecoms Satellite Satellite Terrestrial PC Television Hans-peter Gebahard DG Information Society I 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) 205-28 25 and associated facilities (e.g. CAS)Hans-peter Gebahard DG Information Society I The new package Authorisation Directive Access & Interconnection Directive Framework Directive (Art. 95) Users’ Rights Directive Data Protection Directive Unbundled local loop Regulation 205-28 40 Liberalisation Directive (Art. 86) Spectrum Decision Hans-peter Gebahard DG Information Society I Framework Directive !Definitions and scope !National regulatory authorities: !Transparency and consultation procedures !Numbering naming addressing; rights of way; collocation & facility sharing !SMP and market analysis !Standardisation !Dispute resolution procedures !Communications committee 17 Hans-peter Gebahard DG Information Society I Authorisation Directive ! Establishes right of market entry ! Limits the conditions that Member States can impose in authorisations ! Rights of use of radio frequencies and numbers ! Compliance and information provision ! Charges and fees ! Transition from existing licences 18 Hans-peter Gebahard DG Information Society I Access Directive !Covers relationships between suppliers of networks and services (ie wholesale) !Ensures “any to any” interconnection !Provides NRAs with menu of obligations to use to address interconnection and access issues 19 Hans-peter Gebahard DG Information Society I Universal service Directive !Scope, costing and financing of Univ service !Leased lines, carrier (pre) selection !Number portability, caller location (fixed and mobile) !Contracts and user rights !Transparency of information, quality of service !Network integrity, ‘must-carry’, interoperability of digital TV equipment 20 Hans-peter Gebahard DG Information Society I Data Protection Directive ! Processing of traffic data ! Processing of location data ! Calling line identification ! Directories ! Unsolicited communications (‘spam’) ! Exceptions for national security and law enforcement purposes 22 Hans-peter Gebahard DG Information Society I New approach to Radio Spectrum in EU !Policy framework will: "address the strategic planning and harmonisation of the use of ALL radio spectrum in the Community (broadcasting, transport, communications etc) "take into account economic, health, public policy, cultural, scientific, social and technical aspects "seek to balance the various interests of different spectrum users 24 Hans-peter Gebahard DG Information Society I Additional Measures • Commission Guidelines on the Assessment of Significant Market Power (SMP) • Commission Recommendation on Relevant Markets • ERG and the EC – Common Position on the Application of Regulatory Remedies Hans-peter Gebahard I Players to be regulated ! Undertakings with a dominant position in an identified market where competition is not effective ! NRA designates such players as having SMP and imposes appropriate obligations ! Commission can block NRA decisions regarding designation, or not, of undertakings with SMP 205-28 31 Hans-peter Gebahard DG Information Society I New Groups and Committees ! Spectrum policy group " High level policy group established by Commission decision, chaired by M State ! Radio Spectrum Committee " standard comitology committee with regulatory and advisory roles ! Communications Committee " standard comitology committee with regulatory and advisory roles ! European Regulators group " Chaired by a Regulator; aim is to to seek consistent application of rules in all M States 205-28 38 Hans-peter Gebahard DG Information Society I 9th Implementation Report • Electronic communications market “Renewed confidence”, driven by – Market growth – Broadband rollout – Mobile subscriptions Hans-peter Gebahard I Growth in the market EU electronic communications market value (€ billion) 260 251 250 242 240 231 230 220 211 210 200 2000 2001 2002 2003 Hans-peter Gebahard I High Speed Internet (Broadband) Access • 19.5 million lines at 1 October 2003 • More than doubled July 2002 to October 2003 Local loop unbundling - numbers starting to go up Hans-peter Gebahard I Significant increase in the number of broadband lines... EU broadband lines, July 2002 - October 2003 22 000 000 19 456 924 20 000 000 17 497 140 18 000 000 5,338,635 16 000 000 5,036,276 12 898 260 14 000 000 10 906 357 12 000 000 3,810,967 9 052 497 10 000 000 3,383,821 8 000 000 2 934 172 14 118 289 12 460 864 6 000 000 9 087 293 4 000 000 7 522 536 6 118 325 2 000 000 July 02 DSL lines October 02 January 03 July 03 October 03 Other technologies (cable, satellite, wireless local loop) Hans-peter Gebahard I …and in broadband penetration Broadband penetration rate in the EU, Oct. 2003 (% of population) 12% 11.08% 11.22% 10.10% 10% 9.04% 8% 7.40% 6.64% 6% 4.90% 5.00% 5.06% 5.18% 4.72% E F EU D UK 4.16% 4% 3.19% 2.82% 2% 0.56% 0.05% 0% EL IRL L I P FIN A S NL B DK Data for the US: EC estimates Hans-peter Gebahard I Mobile Telephony 305 million users at August 2003, up from 69 million in 1998 and 194 mill in 2000. • 81% EU penetration, up from 18% in 1998, 51% in 2000. 3G services already launched in 4+ Member States Hans-peter Gebahard I Price Reductions Continue Consumers continue to benefit on prices (fixed voice) • Average EU consumer spends 13.5% less on national calls every month • 23% cheaper for national business calls • International call in EU 45.5% cheaper now than in 1998 Hans-peter Gebahard I More consumer choice % of subscribers using an alternative provider 50% 40% 32,66% 29,23% 30% 24,50% 20% 10% 17,53% 5,64% 4,87% 0% 2002 Local calls 2003 Long-dist./ Internat. Calls Direct access Hans-peter Gebahard I …but transposition important • Predictable environment in which investment can thrive • Only 8 Member States have transposed Denmark, Spain, Ireland, Italy, Austria, Finland, Sweden and the United Kingdom Hans-peter Gebahard I 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 205-28 42 Hans-peter Gebahard DG Information Society I