EUROPEAN COMMISSION
Implementation of the NRF in C&E
European countries
Some regional particularities?
Vilnius 5 October 2004
George Papapavlou
Head of unit ‘Implementation of the Regulatory
Framework (II)’
DG Information Society
1
OUTLINE
• Transposition status
• The ‘starting conditions’
• The challenges
• Some (provisional) market data
• Regional particularities?
2
The New Regulatory Framework
Authorisation Directive
Framework
Directive
Access Directive
Universal Service Directive
e-Privacy Directive
Guidelines on
SMP
Liberalisation
Directive
Recommendation on
relevant markets
Spectrum
Decision
Recommendation
on Article 7
3
Transposition status
• No new Member State asked for
transitional measures or derogations as
regards transposition and
implementation of the NRF
• Hungary, Latvia, Lithuania, Poland,
Slovakia and Slovenia have transposed
the NRF
• The Czech Republic and Estonia have not
4
Transposition status
• The Commission has been in regular
contact with the Ministries, the NRAs
and the market players in the new
Member States to help the
transposition process
• New Member States have been full
active participants in the institutional
bodies, the Communications
Committee and the European
Regulators Group
5
Transposition status
• The Commission has to follow normal
infringement proceedings as regards
the NRF in terms of noncommunication of transposition
measures and in terms of possible
non-conformity of national measures
with the NRF
6
‘Starting conditions’ – the requirements
• Implementation of the ‘acquis’ – the 1998
regulatory framework
• Independent NRA
• SMP designations and related remedies
(cost orientation, RIO, non-discrimination,
carrier [pre-] selection…)
• LLU and bit-stream access (on basis of
non-discrimination)
• Universal service
7
Starting conditions – the background
• Since 1990 rapid and dramatic change of
political and economic framework
• Telecommunications legacy until the late
1990s similar than in the old Member
States before 1990
• Important progress achieved – liberalising
laws in all new Member States
• Some significant problems remaining
8
Starting conditions
conditions-- the problems
• Heavy government participation in
incumbents
• Varying degrees of NRA independence
• Interconnection tariffs and conditions
unfavourable to effective market entry
• C(P)S, LLU, NP not fully implemented
• Tariff re-balancing not completed
• Limited effective competition
9
The regulatory challenges
•
Good transposition and effective
implementation of the NRF
•
•
Secondary legislation
•
•
•
•
•
•
Limited government involvement
Independent NRAs with sufficient powers,
expertise and resources
Fast, efficient, appeal procedures
Good market analysis
Adequate consultation
Steady progress towards more competition
Good cooperation with Commission and other
European NRAs
10
Some market data
The enlarged EU electronic communications market
(% of of the total market value)
CZ
1,2%
SK
0,3%
10 new MS
7,3%
PL
3,4%
SI
0,3%
CY & MT
0,2%
EE
0,2%
LT
0,2%
LV
0,2%
HU
1,3%
EU 15 pre-accession
92,7%
11
0%
27%
UK-BT
SE-TeliaSonera
FI-TeliaSonera
SK-Slovenské
telekomunikácie, a.s.
0%
19%
6%
4%
21%
6%
46%
49%
47%
72%
60%
51%
42%
34%
43%
40%
SI-Telekom Slovenije
PT-PT S.A.
PL-Telekomunikacja
Polska S.A.
AT-Telekom Austria
AG
NL-KPN
MT-Maltacom plc
HU-Matav 0%
LU-P&T Luxembourg
LT-Lietuvos
Telekomas
LV-Lattelekom SIA
CY-Cyta
IT-Telecom Italia 0%
IE-Eircom 0%
FR-France Telecom
ES-Telefonica
EL-OTE
EE-Elion Ettevotted AS
DE-Deutsche Telekom
DK-TeleDenmark 0%
51%
CZ-Cesky Telecom
0%
50.0%
20%
BE-Belgacom
100%
100%
Some market data
Share of public ownership in incumbent operators, August 2004
100%
80%
60%
12
Some market data
Fixed lines per 100 inhabitants in the EU25
70
60
50
22.3
LT
29.1
LV
35.1
51.9
23.7
10
25.7
35.5
49.9
31.9
PT
35.5
37.6
AT
59.3
61.5
52.4
37.1
48.2
40.1
46.4
56.7
40.6
50.8
45.4
39.2
20
44.1
30
54.4
40
0
BE
DK
DE
EL
ES
FR
IE
Fixed line penetration
IT
LU
NL
FI
SE
UK
EU15 AVG. PENETRATION
CY
CZ
EE
HU
MT
PL
SK
SI
EU1O AVG. PENETRATION
13
Some market data
3
14
6
3
15
12
15
14
11
6
7
0
15
8
0
13
19
18
6
5
15
14
19
13
19
19
13
7
1
0
5
6
5
8
21
20
53
54
SI
LV
20
26
52
29
26
52
26
32
50
32
32
50
32
33
31
40
34
36
34
27
28
34
37
29
25
IT
19
20
37
30
29
ES EU10 SK
EE
PT
62
HU
61
BE
59
44
AT
48
43
IE
48
43
NL
47
42
SE
47
42
DE
46
40
UK
46
40
FI
45
39
33
25%
44
30
50%
9
13
22
19
19
23
26
75%
7
7
13
11
9
11
4
100%
3
Breakdown of national telecommunications markets (2004)
CZ
LU
LT
0%
DK
Mobile telephone services
FR EU15 PL EU25 EL
Fixed Voice Telephony services
Fixed data services
CaTV Services
14
Some market data
Mobile penetration rate, 2004
EU25 average penetration: 83%
130%
125%
120%
Penetration rate
110%
100%
101%
99%
92%
90%
99%
83%
81%
78%
93%
92%
88% 98%
90%
80%
95%
93%
92%
84%
73%
82%
74%
74%
74%
70%
68%
60%
50%
61%
50%
40%
BE
CZ
DK
DE
EE
EL
ES
FR
IE
Penetration rate 2004
IT
CY
LV
LT
LU
EU25
HU
MT
NL
AT
PL
PT
SI
SK
FI
SE
UK
EU15
15
Some market data
EU Broadband penetration rate, 1 July 2004
Broadband lines per 100 population
16
14.4
14.0
14
14.7
12.4
12
11.0
10
9.3
8
6
5.5
5.7
PT
LU
7.8
8.3
7.4
7.6
7.8
EE
IT EU15 FR
6.8
6.6
6.7
6.7
DE
ES
MT EU25 UK
3.8
4
2
0.2
0.4
0.5
EL
SK
PL
1.4
1.5
1.7
CY
LV
IE
2.5
2.6
2.7
LT
HU
CZ
0
SI
AT
FI
SE
BE
DK
NL
16
Some market data
4 500 000
4395561
4945446
5 000 000
4442611
Total broadband retail lines
4 000 000
BE
CZ
DK
DE
EE
EL
ES
July 2002
FR
IE
IT
CY
LV
LT
LU
July 2003
HU
MT
NL
AT
PL
PT
572100
SI
20337
76339
567605
192307
751798
26593
264043
25334
88279
33904
10063
65570
500 000
25931
276000
1 000 000
102771
1 500 000
773974
2 000 000
1444673
2 500 000
1106167
3 000 000
2372529
2767627
3 500 000
SK
FI
SE
UK
July 2004
17
Regional particularities
• Pre-liberalisation legacy
• (Mostly) small markets
• Still very dominant incumbents
• Fixed to mobile substitution
• (Mostly) small broadband take-up
18
Regional particularities
• Despite some regional particularities,
all main principles of the NRF remain
valid
• Detailed examination of transposing
laws is still ongoing
• The real test will be implementation,
in particular market analysis (art. 7
proceedings), NRA independence,
expertise and resources
• The Commission is here to help
19
Thank you!
For more information:
DG Information Society
http://europa.eu.int/information_society/
topics/telecoms/index_en.htm
George Papapavlou
E-mail: George.Papapavlou@cec.eu.int
20