International Telecommunication Union
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The New
Communication
Legislative Package
Meni Styliadou
Director European Government Affairs
CORNING
ITU-T Workshop All Star Network Access
Geneva, 2-4 June 2004
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ITU-T
The New Communication
Legislative Package
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Will EU rules on Network Access
allow the deployment of next generation
broadband infrastructure in Europe ?
June 4, 2004
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Agenda
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ITU-T
o Principles
o How it works in practice
o What are the implications
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ITU-T
EU Communications
Legislative Package
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1. Framework Directive (2002/21/EC)
• Sets the principles and mechanisms
• Defines relationship between NRAs &
Commission
2. Authorization Directive (2002/20/EC)
• Licensing and authorization for services &
networks
3. Access Directive (2002/19/EC)
• Access and interconnection of electronic
communications networks & associated
facilities
June 4, 2004
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ITU-T
EU Communications
Legislative Package
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4. Universal Service (2002/22/EC)
• Universal service & users rights
5. Data Protection (2002/58/EC)
• Data processing and protection of privacy in
the electronic communication sector
6. Consolidated Competition Directive
(2002/77/EC)
• Competition in the markets for electronic
communications networks & services
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EU Communications
Legislative Package
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Basic Principles
1. Technological Neutrality
• Same rules should apply to all networks
2. Regulatory Intervention
• Should be limited to cases where there is no
effective competition
3. Licensing
• Required only for scarce resources such as
frequencies or numbering
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EU Communications
Legislative Package
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How it Works
o Competition in Communication market :
same rules apply to all technologies
« Electronic communications network shall mean
transmission systems and, where applicable, switching or
routing equipment & other resources which permit the
conveyance of signals by wire, by radio, by optical or by
other electromagnetic means, including satellite
networks, fixed (circuit - & packet- switched, including
internet) and mobile terrestrial networks, and
electricity cable systems, to the extent that they are
used for the purpose of transmitting signals, networks
used for radio and television broadcasting, and cable
television networks, irrespective of the type of
information conveyed »
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EU Communications
Legislative Package
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How it Works
o Authorization :
• Operators can provide services and/or establish
networks subject to a general authorization.
• Individual licensing may be required only for
 Use of radio frequencies
 Use of number
• General authorization may include a number of
obligations defined in the directive
• NRAs may stop an undertaking from providing
electronic communication services if found in breach
of conditions attached to a general autorization
• Operators may also be subject to « specific
obligation » by virtue of the Access Directive, USO etc.
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ITU-T
EU Communications
Legislative Package
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How it Works
o Access Obligation :
• NRAs and the Commission periodically assess all
communication markets to identify which markets
present the following characteristics:
 High and non-transitionary entry barriers
 No dynamic leading to effective competition
 Competition law cannot resolve the issues
• If a market presents these characteristics, the NRAs
need to assess whether there is an operator with SMP
in one of these markets
• If yes, NRAs need to impose adequate remedies
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EU Communications
Legislative Package
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How it Works
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Examples of markets found to be
susceptible to ex-ante regulation :
Retail level
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June 4, 2004
Access to the public telephone network at a
fixed location for residential customers
Access to the public telephone network at a
fixed location for non residential customers
Etc.
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EU Communications
Legislative Package
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How it Works
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Examples of markets found to be
susceptible to ex-ante regulation :
Wholesale level
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Call origination on the public telephone
network provided at fixed location
Call termination on individual public telephone
networks provided at fixed location
Voice call termination on individual mobile
networks
Wholesale broadband access
Etc.
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EU Communications
Legislative Package
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How it Works
o Examples of possible remedies :
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Transparency
Non discrimination
Accounting separation
Access to and use of specific network facilities
Price control and cost accounting obligations
Retail obligations
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EU Communications
Legislative Package
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Implications
o Advantages :
one applies regulation only if necessary
• Old « mechanic » rules run the risk of
regulating what is not necessary or not
regulating what is necessary
• Under the new framework, regulation will only
target those markets and situations where it is
strictly needed. Each market will be subject to
an appropriate regulatory response to specific,
clearly identified problems
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EU Communications
Legislative Package
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Implications
o Disadvantages :
there is a lot of uncertainty : investors’
nightmare
• Periodic assessments mean frequent changes
• Reliance on NRAs and frequently on an eventual
« compromise » between NRA and the
Commission makes « legal predictability »
impossible
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EU Communications
Legislative Package
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Implications
o Disadvantages :
particular challenges for fibre deployments
• If an operator deploys fiber in access, there is a
high probability that this fibre infrastructure
may be construed as « a high non-transitionary
barrier to entry » and the operator may be
subject to ex ante regulation and more
specifically to an access obligation. This may
create disincentives for fibre deployments, in
particular in view of the cost involved and the
long depreciation period of such investments
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e-Europe
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ITU-T
o Lisbon agenda : EU to become the most
competitive and dynamic knowledgebased economy by 2010
o In order to achieve this, the Commission
has been asked to draw an action plan
o e-Europe 2005 aims to stimulate
services, applications and content-based
on a widely available broadband
infrastructure
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e-Europe
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o The initiatives focus on :
• e-government
• e-learning
 to stimulate demand
• e-health
• e-business
o Widespread availability of broadband access
at competitive prices (with public sector
intervention if necessary)
o Secure information infrastructure
June 4, 2004
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Thank you
June 4, 2004
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