Commission bids for more power over telecoms

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The European Commission yesterday (2 September) played its last card in its attempt to gain more control over the European telecoms sector, while the European Parliament is heading towards a wide-ranging review of Brussels’ original proposals.

After suffering an initial blow following the Parliament’s clear opposition to the creation of a new EU body to oversee the telecoms sector, Information Society Commissioner Viviane Reding tried to guarantee stronger powers for the European Commission even without a new authority in an industry worth 3% of the EU’s overall GDP.

During the last parliamentary debate on the telecoms review before the final plenary vote (scheduled for 23 September), Reding called for the Commission to be granted a sort of veto power against regulatory measures adopted at national level which are not in line with the EU approach.

Furthermore, Reding insisted that a European financial umbrella be introduced for whatever body is in charge of harmonising national authorities’ positions, whether it be a stronger ERG, the current ERG or something else entirely.

Again, the response from the Parliament was not conciliatory. In particular, the idea of the new body being covered by the EU budget was opposed, on grounds of both independence from the Commission and EU budget limitations.

At stake here is ultimate control of the new body, designed to monitor critical developments of the telecoms sector. EU money would mean more Commission involvement. National funding would leave the current situation unchanged, with some national authorities considered too financially weak to be regarded as independent from governments.

The French EU Presidency reported divisions within the Council on the subject, suggesting that further debates are needed to establish a common position by the next Telecoms Council, scheduled for 27 November.

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EU Information Society commissioner Viviane Reding made her point: "It surely makes sense that when the body warns that there is an internal market problem, in conjunction with the concerns raised by the Commission, then there should be real consequences.  In the interests of the internal market, and of legal certainty, there must be a power for the Commission to require the notifying national regulator to change its approach in such a case."

Regarding the new body, Reding added that it "has to operate in such a way that it is efficient, fair, reliable and above the suspicion that it is perhaps closer to some regulators than to others. That is why there must be full Community financing. National financing, in whatever proportion, will bring the body's credibility into question and open the door for administrative and legal uncertainty".

MEP Pilar del Castillo (EPP), Parliament's rapporteur on the new telecoms authority, reacted by saying "co-funding is the right response to co-responsibility".

Her Socialist colleague Haug Jutta, who sits on the Parliament's Budget Committee, welcomed Castillo's stance on the budget issue, warning that "we would not have enough money to fund the BERT".

The European Commission proposed a general review of the rules governing electronic communications on 13 November 2007. The application of the proposals would increase the EU executive's power over the sector, allowing Brussels to block decisions taken by national regulators (see our Links Dossier).

The proposals included the establishment of a new EU Telecoms Authority (EECMA - European Electronic Communication Market Authority) meant to take over and strengthen most of the tasks of the European Group of Regulators (ERG), which brings together national watchdogs. The new body would have been ultimately controlled by the Commission and would have also assumed the tasks of ENISA, the temporary EU agency dealing with the security of communication networks.

However, the Parliament and the Council ruled out the idea of establishing a new EU authority and instead proposed to strengthen the ERG, referred to as BERT, the Body of European Regulators in Telecoms (EURACTIV 09/07/08).

The review also entails the introduction of functional separation, reform of radio spectrum regulations to exploit the so-called digital dividend, provisions to facilitate investment in new telecoms infrastructure (in particular fibre-based) and new services and protection for consumers.

  • 23 Sept. 2008: Vote on the EU Telecoms review in the Parliament's plenary.
  • 27 Nov. 2008: EU Telecoms Council.

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