Commission spells out plans for radical telecoms shake-up

The European Competitive Telecoms Association, which brings together new, market-entrant telecoms operators, was positive about the review. ECTA Chairman Innocenzo Genna said: "We believe this to be a strong package overall and one that will result in tangible growth in investment and competition in high-speed broadband across Europe. The proposed framework provides the tools, including functional separation and the extension of access markets to include fibre, to ensure the smooth roll-out of Next Generation Networks, and the sharing of the substantial costs required to deliver them."

Genna added: "The Commission's decision regarding functional separation is a particularly critical one. Seventeen countries in Europe are lagging in broadband provision because they have little or no unbundling of the incumbent network. Europe could today have been a worldwide broadband leader if regulators had had the opportunity to use functional separation to support open markets. And equally Europe could tomorrow fall below its more competitive global rivals if it fails to address firmly bottlenecks preventing competition in high speed broadband services. The future of the European telecoms industry is now in the hands of the Council and the Parliament, and we hope they will take note."  

ETNO, the federation of incumbent telecoms operators, is positive about the significant reduction in the number of markets subject to ex-ante regulation: "The suppression of most retail markets (except retail access markets) and some wholesale markets, which are already highly competitive, is a positive step. ETNO strongly regrets, however, that at the same time the Commission recommendation proposes the extension of wholesale regulation to any new network, including new high-speed access networks, thereby increasing the scope of regulation. Moreover, continued regulation of the retail access market, which has not been removed from the list of markets, is a missed opportunity to strengthen innovation on consumer markets."

ETNO also praised Reding's move to allocate radio spectrum for new services: "The proposals to open up spectrum have the potential to boost the deployment of innovative services and stimulate wireless broadband access technologies, thereby leading to more infrastructure-based competition", said ETNO Director Michael Bartholomew. 

However, he added: "Mandatory functional separation risks, on the contrary, resulting in increased costs for access and less investment in new and alternative networks, thereby reducing long-term network competition and limiting consumer choice."  

BEUC, the European consumers' association, saw pros as well as cons in the Commission proposal. BEUC regretted the reduction in the number of significant markets, stating its fear that "consumers will not be adequately protected in countries which do not have strong regulators". 

In addition, the consumer association criticised the fact that text messaging was not included in the new proposal and that the Commission did not propose a more rigid 'opt -in' regime to fight spam. 

BEUC Director Jim Murray said: "BEUC welcomes the proposals to bring forward consumer rights in the telecom sector. However, the ultimate goal of this package should be to ensure, for all consumers, safe, affordable and fair access to all telecom services. We call on the member states and the European Parliament to put in place additional measures to fight spam and to guarantee a wider scope of the universal service provision."

German EPP-ED MEP Angelika Niebler, Chair of the European Parliament's Industry Committee, warned the Commission to keep any extension of its powers "proportional": "The Commission wants to exert a considerably stronger influence on the interplay with member states and national regulators. In order to institutionalise the co-operation of regulators, the Commission wants to set up a European Regulator for Telecommunications. However, many details still need clarification, especially as far as the Commission's plans to gradually extend its own competences are concerned." 

Niebler added: "Telecom companies and consumers have made good experiences with the existing legal framework. The old legislative package of 2002 completely fulfilled the expectations. Only few adjustments are therefore needed."  

UK Conservative MEP Malcolm Harbour said: "European communications rules have been a big success for the internal market and have encouraged high levels of investment and a big range of new services for consumers and business. This package builds on that success and tackles a number of areas where we have demanded action. But the Commission has got carried away with big ideas of building a new power base, instead of leaving local regulators to get on with the job. We shall be demanding answers about the costs and benefits of this new authority. But we must press ahead with those changes that benefit customers and competition."  

German Green MEP Helga Trüpel, Vice-Chair of Parliament's Culture Committee, said: "The Commission's proposals are too market-oriented and risk undermining the current balance between public and private broadcasters. We are undergoing a fundamental transformation in how we communicate and what media we use. In adapting the EU's telecommunications rules, we must ensure that the current cultural and media diversity is not undermined. It is in this regard crucial to ensure that all citizens have access to affordable broadband. In addition, it is important to ensure that public broadcasters and non-subscriber broadcasters continue to thrive in the new environment." 

Roberto Viola, Chairman of the European Regulators Group, said: "The ERG will continue to provide advice on the reform of the EU framework to the Commission and other European institutions. In the short term, the ERG urges the Commission to amend the decision that set up the ERG in order formally reflect the ERG's current and potential role in promoting the single market. The ERG is ready to act on the agenda being proposed today by the Commission. There is no need to wait until 2010. The ERG must get on with this essential work right away."