Commission adopts Directive on implementation of full competition in telecommunications by 1998
At the initiative of Commissioners Van Miert and Bangemann, the European Commission has adopted its proposed Directive, amending Directive 90/388/EEC, on the implementation of full competition in telecommunications markets by 1 January 1998. In addition to the 1998 date for opening up the markets in voice telephony and public network infrastructure, the Directive accelerates the liberalization process in all areas. The lifting of all remaining Member State restrictions which do not require major changes in legislative and regulatory frameworks must be achieved in 1996. Restrictions have already been abolished in satellite, cable and mobile communications. As of 1 July 1996, use of all alternative infrastructure (such as the telecoms networks of railways, energy and water companies which are currently only authorized for restricted "in-house" purposes) must be liberalized for carriage of commercial telecoms services. This provision excludes public voice telephony service which may be reserved to the national telecoms organization until 1998. The original date put forward by the Commission, of 1 January 1996, for lifting restrictions on alternative infrastructure has been moved back six months as a compromise to the Member States. Two factors were taken into consideration here: - The time needed to achieve the implementation requirements; - Bringing the date in line with the agreement conditions set down by the Commission in important competition cases. As regards the deadlines of July 1996 and January 1998 for alternative infrastructure and full competition respectively, Member States with less developed networks shall be granted, upon request, additional implementation periods of up to five years provided that this is needed to achieve the necessary structural adjustments. Member States with very small networks may be granted up to two years under the same conditions. Underpinning the Directive is the recognition that competition, in the presence of necessary regulatory safeguards, enhances the provision of universal service. In this respect, Member States must notify the Commission of measures to ensure universal service by 1 July 1997 at the latest. Alongside the lifting of government restrictions, the Directive also sets down broad competition principles as regards the appropriate national regulatory frameworks for the post-1998 environment. This concerns, in particular, interconnection, licensing and financing of universal service.