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Telecoms package passes final hurdle

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Published 25 November 2009

A highly contested set of telecoms rules finally won broad consensus in the European Parliament yesterday (24 November), paving the way for high-speed Internet across Europe. Though some say the final package is not the "alpha or the omega," they concede that it is a step in the right direction.

Yesterday, MEPs approved a compromise proposal on the EU's telecoms rules, to be transposed into national law by 2011. 

Amended versions of the text have been passed from pillar to post since the package failed to win the Parliament's approval in June (EurActiv 12/06/09). 

The package's original author, the European Commission, hailed the EU assembly's decision as a victory for European consumers. According to the EU executive, consumers are set to reap a plethora of benefits in 2010 including: 

  • The right to switch fixed or mobile operators in one working day while keeping their number; 
  • the right to be better informed about subscription-based services; 
  • the right to be informed about data breaches by their telecoms operator, and; 
  • the obligation for operators to give consumers the option of signing a contract which lasts no longer than 12 months.

Europe's network operators welcomed the package, the adoption of which had been marred by disagreements, delaying investment in the construction of networks for high-speed Internet (EurActiv 13/11/09), according to statements from trade associations. 

Operators are also set to gain from freed up radio spectrum intended to extend broadband access to areas where building new lines would be too expensive. 

"The Commission's own data published this month shows that no progress has been made towards competitive broadband markets for more than two years with incumbents continuing to dominate most markets," the European Competitive Telecommunication Association said in a statement hailing the package's approval. 

Additionally, at the insistence of the European Parliament, an Internet freedom rule will prevent national authorities from cutting off suspected illegal downloaders' access unless there has been "a prior, fair and impartial procedure and effective and timely judicial review," the Commission said in a statement. 

Hadopi or no Hadopi? 

The provision on Internet freedom was the package's stumbling block in June and could still cause quarrels between the Commission and member states wishing to interpret the provision differently. 

Sweden's Pirate Party have argued since the package's inception that the text's wording would allow member states to cut off suspected Internet pirates' connections without a fair trial – a draft law called Hadopi in France. 

Hadopi – named after the agency that would penalise offenders – is also considered a three-strike approach, as the agency first sends a warning email to a suspected pirate, then a letter and then a copyright judge orders the suspension of the user's Web connection. 

Britain's business secretary, Lord Peter Mandelson, has also expressed support for a similar law and UK lawmakers are reportedly busy creating a draft. However, EU Information Society Commissioner Viviane Reding said that under no circumstances was the text a green light for a Hadopi-like law. 

She repeated her view at a telecommunications conference in Barcelona on Monday (23 November), warning Spain that if it were to cut off Internet access without a procedure in front of a judge, it would conflict with the European Commission. 

A minor spat on cookies 

In what lawmakers call "a silly and onerous point," the text's safeguards on Internet cookies caused some controversy last week as some member states rushed to declare how they would interpret the law before it went to a parliamentary vote (EurActiv 23/11/09). 

The EU text states that those distributing cookies – a tool used by marketers to track a user's Internet habits and send targeted advertising – must seek authorisation from the user before installing the trackers on their browser. 

The UK delegation allegedly feared that users would be bombarded with authorisation requests every time a browser tried to install a cookie. 

However, the European Publishers Council said the package's ePrivacy law accepts that controls on Firefox, Internet Explorer, Chrome, Opera and Safari comply with the consent requirements. 

A Commission spokesman added that the law makes a distinction between cookies and unwanted software such as adware, junk, or even viruses and spyware, requiring software vendors to seek a user's consent before installation. 

Positions: 

Greens/EFA MEP Christian Engström, a member of Sweden's Pirate Party, said his party "will be extremely vigilant on how member states adopt this text in their national legislation. It is high time that the EU adopted a true charter for Internet users in order to define right of access, respect of privacy, freedom of speech and net neutrality". 

Engström  added: "The EU compromise reached on protecting Internet users' rights is far from perfect but it does represent a step in the right direction. It sends a clear message to Nicolas Sarkozy, Peter Mandelson and others that draconian copyright enforcement measures will not be allowed to override Internet users' fundamental rights in the EU." 

"The EU legislator kept the existing opt-out regime for cookies and improved it to the benefit of Internet users. Importantly, business now has a solid legal basis to rely on the browser settings when deploying cookies. This recognises the established practice that web users set their cookie preferences in their settings managers," said Kimon Zorbas, vice-president of the pan-European association for online advertisers, IAB Europe

"The amendment increases consumer protection while not impeding the way the internet works. The majority of the Parliament recognised the importance of the Internet and digital advertising for the future of publishing," said Angela Mills Wade, executive director of the European Publishing Council

"I believe that fundamentally the internet should be free, although it should not be entirely regulation free. That is why the European Parliament has put in place clear safeguards for users that national governments must build into any law that would enable disconnection for acts of infringement," said UK Conservative MEP Giles Chichester, commenting on the package's Internet freedom laws. 

"The challenge now is for the Commission, governments and national regulators to remove the remaining barriers to competition," said Innocenzo Genna, chairman of European Competitive Telecommunication Association  (ECTA). "We can no longer afford to be in the slow lane of the digital economy. President Barroso needs to make the digital agenda a priority for Europe and appoint a commissioner with the drive and vision to kick-start the market and resist pressure from governments seeking to protect inefficient dominant firms," Genna added.

Michael Bartholomew, director of the European Telecommunications Network Operators' Association (ETNO), welcomed the vote by saying "[it] highlights the necessity to encourage large-scale private investment in high-speed broadband access networks for the full benefit of consumers". 

"ETNO calls on the next Commission to echo the Parliament's vote by placing NGAs at the top of their political agenda. The new provisions for a more targeted and proportionate regulatory approach must now be fully translated into practice through the forthcoming EC NGA recommendation," he added. 

Next steps: 
  • 25 Nov.: Signature of the legislation by the presidents of the European Parliament and Council.  
  • Spring 2010: Establishment of the European Body of Telecoms Regulators, BEREC. 
  • June 2011: Transposition of the telecoms reform package into national legislation in the 27 EU member states. 
Background: 

On 13 November 2007, the European Commission proposed a general review of rules governing electronic communications. The package provided for the establishment of a new EU telecoms authority, the introduction of functional separation to spur competition, a review of radio spectrum management and a range of consumer protection measures (see EurActiv LinksDossier). 

The new rules were approved by the European Parliament at first reading in September 2008. But the EU Council of Ministers took divergent positions on many issues, triggering a range of inter-institutional negotiations which ended up with apparent compromises in March and April 2009. 

The most controversial issue concerns the protection of Internet users, enshrined in the notorious Amendment 138. In a surprise move, the European Parliament blocked the reform in May 2009 by rejecting an earlier compromise with member states over the protection of Internet users' rights (EurActiv 07/05/09). 

The rejection came in response to a draft French anti-piracy bill, which had caused uproar among MEPs and consumer groups because it suggested that the Internet connections of users of peer-to-peer services could be cut without the prior intervention of judicial authorities. 

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