Commission proposes overhaul of electronic communications rules
A package of measures designed to bring telecommunications regulations in line with the requirements of new technologies in the electronic communications market has been adopted by the Commission, in a move it hopes will strengthen competition. The legislative proposals aim to drive forward liberalisation of the telecommunications markets, with particular emphasis on stimulating high-speed Internet access and ensuring the legal framework is not overly burdensome on market players. Convergence between telecommunications, information technology and media combined with the emergence of the Internet means that the same services can be delivered over a variety of platforms and received on a range of terminals. The new regulatory framework is designed to keep up with technological changes so the market for electronic communications remains competitive. 'Less regulation, easier market entry and a level playing field across the EU are pre-requisites for the development of world class telecommunications and Internet services in Europe,' said Commissioner for Enterprise and the Information Society Erkki Liikanen. 'Liberalisation of the EU telecommunications market in 1998 has brought the benefit of competition to private and corporate users - more choice, better services and lower prices. '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 at Internet speed.' Cheaper and faster Internet access will be achieved by what is known as 'unbundling the local loop' - introducing competition into the last few miles of copper-wire connecting homes to telephone exchanges. The Commission proposals would require all Member States to unbundle their local telecoms loop by 31 December 2000, one of the requirements set at the Lisbon Council Summit, and endorsed in the conclusions of the Feira European Council. The decision 'is an adrenaline shot for industry and the Internet,' said Commissioner Liikanen. Incumbent telecommunications operators have also been asked by the Commission to provide information on whether, and under what conditions, they allow their competitors access to the local loop. Despite the liberalisation of telecommunications markets in 1998, incumbent operators have been able to retain market shares approaching 100 per cent of subscriber access services and local communications by controlling access to the local loop. Competition Commissioner, Mario Monti, promised to recommend legal proceedings be taken against operators found to be abusing their dominant position. Local loop to be unbundled by end 2000 Included in the Commission's package of proposals are several measures designed to make the legislative framework responsive to technological change. Flexible mechanisms will be built into legislation to allow it to evolve with future technology, allowing for the legislation to be rolled back when markets become competitive. Simplified rules and harmonised application procedures have been designed to create a level playing field across the EU, bearing in mind EC competition law which limits the market power of dominant operators. Citizens' rights will be protected by ensuring universal service obligations are maintained to avoid exclusion from Information Society; and ensuring the protection of right to privacy on the Internet The new framework will also simplify and clarify the existing regulatory framework by reducing the number of legal measures. Proposal for radio spectrum policy A regulatory framework for radio spectrum policy has also been proposed, aimed at ensuring the harmonised availability and efficient use of radio spectrum, the platform for applications associated with the third generation of mobile communications. In the wake of the auctions of licences for third generation mobile communications in several Member States, Commissioner Liikanen said the EU should give policy guidance on its requirements for radio spectrum in the future. The proposals establish a legal framework, which will allow the Commission to ensure Member States harmonise the availability and use of radio spectrum for EU policies. In the international arena, it is hoped that these proposals will safeguard EU interests by ensuring that common positions on radio spectrum are adopted to reach EU policy objectives. Consolidation of competition directives in the telecoms markets The Commission also intends to simplify liberalisation directives affecting competition by replacing all previous directives adopted by the Commission with one single directive. A draft competition directive covering the six previous directives without imposing new obligations on Member States has been put forward by the Commission, and will shortly be submitted for public consultation.