The European Commission officially adopted a New Regulatory Framework that requires national regulators in EU member states to review and/or adapt policies governing electronic communications by 24 July 2003. The European Commission said the new regulatory environment would ensure the sustainable development of the telecommunications sector, which recently has been characterized by postponement in investment and large-scale layoffs. Principle aims of the framework include:
- to provide legal certainty needed to create the conditions for long-term investment;
- to ensure access to existing networks as a transitional measure and facilities based competition as a medium-term objective;
- to provide timely implementation of the eEurope 2005 plan (see below);
- to ensure regulatory harmonization across the single market;
- and to strengthen current investment in R&D at the national and EU level, which it considers necessary to ensure Europe’s long-term competitiveness.
The framework covers regulations for fixed and mobile wireless networks, cable television networks, satellite networks, and IP networks, whether used for voice, fax, data or video. Specific directives address unbundled access to the local loop, differentiating between existing metallic loops and new optical builds, while guaranteeing universal service and affordable access for all citizens. The Commission also defines a market for wholesale broadband access, covering “bit-stream” services and equivalent wholesale services provided over other infrastructures that permit the transmission of broadband data in both directions. In addition, the new framework defines a market for Voice call termination on individual mobile networks, enabling termination prices from fixed locations to mobile networks to be analyzed and regulated.Intervention in markets other than those identified in the Recommendation is possible, but only if the Commission agrees that the following three criteria are met: (a) the existence of high barriers to entry into the market concerned, (b) the absence of dynamic competition in spite of these barriers and (c) the fact that competition rules are not sufficient to address the perceived market failures.
Erkki Liikanen, European Commissioner Enterprise and Information Society, said the ultimate aim is that half of all Internet connections in Europe are broadband connections in 2005.
http://EURpa.eu.int/information_society/topics/telecoms/regulatory/new_rf/index_en.htm
- The eEurope 2005 Plan aims to stimulate secure services, applications and content on widely-available broadband infrastructure. The plan includes a number of measures for both the supply and demand sides of the equation. On the demand side, eEurope 2005 calls for new initiatives in eGovernment, e-health, e-learning and e-business. On the supply side, eEurope 2005 advocates policy measures to review and adapt legislation at the national and European level. The plan also calls for the creation of a CyberSecurity Task Force. The full text of the eEurope 2005 Plan can be found online:
http://europa.eu.int/information_society/eeurope/
news_library/eeurope2005/index_en.htm - The European Competitive Telecommunications Association (ECTA) said the new framework “puts competition at the heart of the eEurope broadband agenda… with ISPs tailoring their packages to consumer needs not just in terms of content but also at various speeds and with various other services.�? ECTA’s DSL scorecard shows that today incumbents still have around 80% of the DSL market directly through retail lines, rising to 95% of the market when re-sold connections are added back. As of the end of 2002, ECTA estimates there were 8.2 million DSL lines across the EU, of which 415,000 where unbundled local loop lines. http://www.ectaportal.com
- The European Telecommunications Network Operators Association (ETNO), which represents large telecom incumbents in Europe, expressed disappointment with the broadband wholesale provisions of the framework. http://www.etno.be
