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EU regulatory framework for electronic communications
- Introduction
Richard HarrisIndependent EU telecommunications consultant
ICTtrain workshopLondon 3-14 November 2008
This project is funded by the European Union
Agenda
– the basis of policy for this sector– the common approach– the global dimension– the present EU legislation– the wider EU regulatory space– points to watch and summary
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The basis of the policy
The convergence of technologies and industries:
– Telecommunications - monopoly
– Data processing - competition
– Broadcasting – some competition
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Data
Fixed
PC
Broadcasting
CableSatellite
Terrestrial
Television
Voicetelephony
Fixed Mobile
Telephone/Handset
Service
Network
Terminal
Convergence is a reality
Wireless Satellite Cable Telecoms
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The common approach - 1
Competition policy– In the USA – anti-trust court
decisions from the 1950s onwards• Law not changed between 1934 and
1995
– In the EU – the Treaty of Rome• “British Telecom” case in 1982/5
showed that the competition rules apply to telecommunications
• EU obliged to develop a policy for telecommunications – adopted 1987
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The common approach - 2
• The UK opened its market between 1981 and 1990
• EU decided in 1987 to abolish the monopolies in stages
• The first stage was in 1988• The last stage was 1998
• Review in 2000 led to 2002 framework
• Further EU review in progress today
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The global dimension• The WTO decided in 1994 to open
telecomms services markets• 95 signatories initially, now many more
• The ITU sought to find a solution for the host of smaller 3rd world countries
• The EBRD has financed telecommunications only where modern policy is pursued.
• The World Banks has adapted its lending policy for telecommunications to competition.
• The OECD reports on this sector as an important indicator of economic health.
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EU telecommunications legislation
• Almost entirely in the form of Directives• First one in 1983• Mostly Council and Parliament Directives• Underpinned with Commission
Directives• A series of Directives which opened the
market gradually• 1998 package – complete market
opening3rd November 2008 8
2002 regulatory framework
- for all electronic communications
Privacy DirectiveSpectrumDecision(Art. 95)
LiberalisationDirective(Art. 86)
Framework Directive(Art. 95)
Authorisation Directive
Access & Interconnection Directive
Universal service Directive
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2002 regulatory framework
Key principles:• Independent national regulators• Minimise regulation• Technological neutrality• Consistency across the EU market• Level playing field for new
entrants• Universal service
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2002 regulatory framework - laws Framework Directive: outlines general principles,
objectives and proceduresAuthorisation Directive: replaces individual licences
with general authorisationsAccess and interconnection Directive: sets out rules
for a multi-carrier market place, ensuring access to networks and services, interoperability etc
Universal service Directive: guarantees basic rights for consumers and minimum levels of availability and affordability
Privacy Directive: covers protection of privacy and personal data protection communicated over public networks
Liberalisation Directive: prohibits special or exclusive rights in this sector
Radio spectrum Decision: principles and procedures for developing a EU radio spectrum policy
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2002 regulatory framework - minimise
• Regulation is limited to situations where an operators has “significant market power” - SMP
• SMP status is determined by NRAs on the basis of market analysis
• These decisions are based on competition law principles
• Status under 1998 framework is unchanged until analysis has been done
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2002 regulatory framework - consistency
Communications Committee: regulatory and advisory functions on implementation of the Directives
European Regulators Group: helps consistent application of the regime throughout the EU
Radio Spectrum Policy Group: high level platform where member states and the Commission coordinate use of the spectrum
Radio Spectrum Committee: deals with technical issues around harmonisation of frequency allocation across Europe and develops an external EU policy
Notification procedures: “Article 7” procedure
Independent EU Advisory Body on Data Protection and Privacy (Article 29 working party)
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EU regulatory space
• The context - treaty relations with the
EU • Adoption of EU laws• EU accession negotiations• Monitoring the markets (Cullen)• Consistency arrangements - non EU
countries not yet fully part of these
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EU Neighbourhood policy – 16 countries
Associated countries
• Treaty relationship
• Approximate national laws to the acquis
• Principles of EU competition rules apply
• Cooperation regarding
telecommunications
• Committee structure3rd November 2008 16
Points to watch
• Investors draw confidence from knowing
that regulation is fair and reasonable
• The NRAs should have powerful tools and
not be open to pressure from operators
• GSM operators in the EU vicinity have
greater market power than in EU15
• EU universal service model not a good fit
in the EU vicinity3rd November 2008 17
Summary
• Regulation is needed only where policy aims cannot be achieved without it
• Competition is intended to stimulate incumbents
• Industry should take the lead in finding solutions
• Ministers regard this sector as an aspect of the IS
• They discuss cartels, abusive practices, spam, IPRs, the digital divide, universal service, eGovernment, promoting broadband and security
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Typical EU Council agenda
• Mobile satellite systems• Digital dividend• Legislative package in the area of
electronic communications• Radio spectrum policy• Safer use of the Internet• World Summit on Information Society• Spam
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Thank you for your attention
For more information:See - Europa web-site
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