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The European Commission adopted today a package of legislative proposals designed to strengthen competition in the electronic communications markets in the EU for the benefit of consumers and European economy. It aims to drive forward the liberalisation of telecommunications markets by adapting regulation to the requirements of the Information Society and the digital revolution. The package puts particular emphasis on the stimulation of affordable high-speed Internet access and providing a light-touch legal framework for market players. This package of proposals represents a comprehensive reform of the regulatory framework for telecommunications in Europe and is aimed at providing the best conditions for a dynamic and competitive industry in Europe. (Especially regarding the unbundling of the local loop)
On 1st January 1998, telecommunications markets were fully liberalised
in almost all Member State markets. The present proposals adapt the current legislation
to technology-driven market changes. The convergence between telecommunications,
information technology and media and the emergence of Internet mean that same
services can be delivered over a variety of platforms and received via a range
of terminals. The new regulatory framework has to ensure that markets become and
remain competitive for all electronic communication services in a rapidly changing
technological environment.
"Less regulation, easier market entry and a level playing field across EU
are pre-requisites for development of world class telecommunications and Internet
services in Europe", said Erkki Liikanen, Commissioner for Enterprise and
the Information Society. "Liberalisation of the EU telecommunications market
in 1998 has brought the benefit of competition to private and corporate users:
more choice, better services, lower prices. The telecommunications market is now
a significant contributor to economic growth in the EU. But there are limits to
the progress we have achieved: competition in the local market remains limited,
and incumbent operators still dominate by far. Only fierce and fair competition
will yield lower prices, better quality and the most innovative services in telecoms
and Internet. We need to act by Internet speed."
To achieve this, the new package proposes to:
· Liberalise the "last mile" of telecommunications markets by
unbundling access to the local loop. This will lead to cheaper and faster Internet
access over local copper-wire networks. (see also IP/00/750 of today);
· Introduce flexible mechanisms in the legislation to allow it to evolve
with future technology and market changes and to roll back regulation when markets
become competitive;
· Create a level playing field across EU by facilitating market entry through
simplified rules and ensuring harmonised application through strong co-ordination
mechanisms at European level;
· Adapt regulation to increasing competition by limiting most of market
power based regulation to dominant operators, as defined in EC competition law;
· Maintain the universal service obligations in order to avoid exclusion
from Information Society; and
· ensure the protection of right to privacy on the Internet.
The new regulatory framework will significantly simplify and clarify the existing
regulatory framework, bringing the number of legal measures from 28 to 8:
· Five harmonisation Directives, including a Framework Directive and four
specific Directives on authorisation, access and interconnection, universal service
and user rights, and data protection in telecommunications services.
· A Regulation on the unbundling of the local loop.
· A draft Commission Liberalisation Directive.
· A Decision on Community radio spectrum policy (see IP/00/751 of today).
The new regulatory framework for electronic communications services is a corner
stone in ensuring Europe's transition to a new knowledge based economy, as envisaged
in the conclusions of the Lisbon European Council. Information society industries
account already for 1 in 4 new jobs in Europe. The aim is to have the new legislation
in place as of beginning of 2002.
For documents see http://europa.eu.int/comm/information_society/policy/framework/index_en.htm
Especially regarding the unbundling of the local loop: http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/00/750|0|RAPID&lg=EN
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Verlag Dr. Otto Schmidt, Köln