EUROPEAN COMMISSION Implementation of the NRF in … · Spectrum Decision Framework ... implementation of the NRF ... Share of public ownership in incumbent operators, August 2004

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Implementation of the NRF in C&E European countriesSome regional particularities?

Vilnius 5 October 2004Vilnius 5 October 2004

George PapapavlouGeorge Papapavlou

Head of unit ‘Implementation of the Regulatory Head of unit ‘Implementation of the Regulatory Framework (II)’Framework (II)’

DG Information SocietyDG Information Society

EUROPEAN COMMISSIONEUROPEAN COMMISSION

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OUTLINEOUTLINEOUTLINE

•• Transposition statusTransposition status

•• The ‘starting conditions’The ‘starting conditions’

•• The challengesThe challenges

•• Some (provisional) market dataSome (provisional) market data

•• Regional particularities?Regional particularities?

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SpectrumDecision

FrameworkDirective

Authorisation Directive

Access Directive

Universal Service Directive

Guidelines on SMP

Recommendation on relevant markets

LiberalisationDirective

The New Regulatory FrameworkThe New Regulatory FrameworkThe New Regulatory Framework

Recommendation on Article 7

e-Privacy Directive

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Transposition statusTransposition statusTransposition status

•• No new Member State asked for No new Member State asked for transitional measures or derogations as transitional measures or derogations as regards transposition and regards transposition and implementation of the NRFimplementation of the NRF

•• Hungary, Latvia, Lithuania, Poland, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia have transposed Slovakia and Slovenia have transposed the NRFthe NRF

•• The Czech Republic and Estonia have not The Czech Republic and Estonia have not

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•• The Commission has been in regular The Commission has been in regular contact with the Ministries, the NRAs contact with the Ministries, the NRAs

and the market players in the new and the market players in the new Member States to help the Member States to help the

transposition processtransposition process

•• New Member States have been full New Member States have been full active participants in the institutional active participants in the institutional

bodies, the Communications bodies, the Communications Committee and the European Committee and the European

Regulators GroupRegulators Group

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•• The Commission has to follow normal The Commission has to follow normal infringement proceedings as regards infringement proceedings as regards the NRF in terms of nonthe NRF in terms of non--communication of transposition communication of transposition measures and in terms of possible measures and in terms of possible nonnon--conformity of national measures conformity of national measures with the NRF with the NRF

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‘Starting conditions’ – the requirements‘Starting conditions’ ‘Starting conditions’ –– the requirementsthe requirements

•• Implementation of theImplementation of the ‘acquis’ ‘acquis’ –– the 1998 the 1998 regulatory frameworkregulatory framework

•• Independent NRA Independent NRA

•• SMP designations and related remedies SMP designations and related remedies (cost orientation, RIO, non(cost orientation, RIO, non--discrimination, discrimination, carrier [precarrier [pre--] selection…)] selection…)

•• LLU and bitLLU and bit--stream access (on basis of stream access (on basis of nonnon--discrimination)discrimination)

•• Universal serviceUniversal service

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Starting conditions – the backgroundStarting conditions Starting conditions –– the backgroundthe background

•• Since 1990 rapid and dramatic change of Since 1990 rapid and dramatic change of political and economic frameworkpolitical and economic framework

•• Telecommunications legacy until the late Telecommunications legacy until the late 1990s similar than in the old Member 1990s similar than in the old Member States before 1990States before 1990

•• Important progress achieved Important progress achieved –– liberalising liberalising laws in all new Member Stateslaws in all new Member States

•• Some significant problems remainingSome significant problems remaining

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Starting conditions- the problemsStarting conditionsStarting conditions-- the problemsthe problems

•• Heavy government participation in Heavy government participation in incumbentsincumbents

•• Varying degrees of NRA independenceVarying degrees of NRA independence

•• Interconnection tariffs and conditions Interconnection tariffs and conditions unfavourable to effective market entryunfavourable to effective market entry

•• C(P)S, LLU, NP not fully implementedC(P)S, LLU, NP not fully implemented

•• Tariff reTariff re--balancing not completedbalancing not completed

•• Limited effective competitionLimited effective competition

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The regulatory challengesThe regulatory challengesThe regulatory challenges•• Good transposition and effective Good transposition and effective

implementation of the NRFimplementation of the NRF

•• Secondary legislationSecondary legislation

•• Independent NRAs with sufficient powers, Independent NRAs with sufficient powers, expertise and resourcesexpertise and resources

•• Limited government involvementLimited government involvement

•• Fast, efficient, appeal proceduresFast, efficient, appeal procedures

•• Good market analysisGood market analysis

•• Adequate consultationAdequate consultation

•• Steady progress towards more competitionSteady progress towards more competition

•• Good cooperation with Commission and other Good cooperation with Commission and other European NRAsEuropean NRAs

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Some market dataSome market dataSome market data

The enlarged EU electronic communications market (% of of the total market value)

EE0,2%

HU1,3%LV

0,2%

PL3,4%

CZ1,2%

SK0,3%

SI0,3%

CY & MT0,2%

LT0,2%

EU 15 pre-accession92,7%

10 new MS7,3%

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Share of public ownership in incumbent operators, August 200450

.0%

51%

43%

27% 34

% 42%

100%

51%

100%

60%

21%

47%

72%

49%

19%

46%

0%

6%

4%

0%

6%

0%0%0%0%

0%

20%

40%

60%

80%

100%

BE

-Bel

gaco

m

CZ

-Ces

ky T

elec

om

DK

-Tel

eDen

mar

k

DE

-Deu

tsch

e T

elek

om

EE

-Elio

n E

ttevo

tted

AS

EL-

OTE

ES

-Tel

efon

ica

FR

-Fra

nce

Tel

ecom

IE-E

ircom

IT-T

elec

om It

alia

CY

-Cyt

a

LV-L

atte

leko

m S

IA

LT-L

ietu

vos

Tele

kom

as

LU-P

&T

Lux

embo

urg

HU

-Mat

av

MT

-Mal

taco

m p

lc

NL-

KP

N

AT

-Tel

ekom

Aus

tria

AG

PL-

Tel

ekom

unik

acja

Pol

ska

S.A

.

PT

-PT

S.A

.

SI-T

elek

om S

love

nije

SK

-Slo

vens

kéte

leko

mun

ikác

ie,

a.s.

FI-T

elia

Son

era

SE

-Tel

iaS

oner

a

UK

-BT

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Fixed lines per 100 inhabitants in the EU2544

.1

39.2 45

.4 50.8

40.6

56.7

40.1 46

.4

54.4

48.2

37.1

37.6

52.4

61.5

49.9

59.3

35.5

31.9 35

.5

25.7

23.7

51.9

29.1

22.3

35.1

0

10

20

30

40

50

60

70

BE DK DE EL ES FR IE IT LU NL AT PT FI SE UK CY CZ EE HU LV LT MT PL SK SI

Fixed line penetration EU15 AVG. PENETRATION EU1O AVG. PENETRATION

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Breakdown of national telecommunications markets (2004)33

39 40 40 42 42 43 43 44 44 45 46 46 47 47 48 48 50 50 52 52 5

3 54

59 61 62

30

29 30

37

25

29

37

28 27

34 34

36

34

40

31 33 32 32 32 26

32

26

29

26

19

20

26

23 19

19

20

22

13

20 21

19

19

13

19

13

14

15

19 18

13

14

15

15

12

11

15

14

11 9 11

4

13

7 7 9 8

3 5 6 5

0

7 5 1 0

6 8

0

7 6 3 6 3

0%

25%

50%

75%

100%

DK FI UK DE SE NL IE AT BE FR EU15 PL EU25 EL HU EE PT ES EU10 SK IT SI LV CZ LU LT

Mobile telephone services Fixed Voice Telephony services Fixed data services CaTV Services

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Mobile penetration rate, 2004 EU25 average penetration: 83%

92%90%

84%

93%

50%

92%95%

101%

93%99%

74%74%

68%

74%81%

99%

78% 82%

92%88% 98%

83%

61%

73%

125%

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK

Pen

etra

tio

n r

ate

Penetration rate 2004 EU25 EU15

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EU Broadband penetration rate, 1 July 2004

0.2 0.4 0.5

1.4 1.5 1.7

2.5 2.6 2.7

3.8

5.5 5.7

6.6 6.7 6.7 6.87.4 7.6 7.8 7.8

8.3

9.3

11.0

12.4

14.714.0

14.4

0

2

4

6

8

10

12

14

16

EL SK PL CY LV IE LT HU CZ SI PT LU DE ES MT EU25 UK EE IT EU15 FR AT FI SE BE DK NL

Bro

adb

and

lin

es p

er 1

00 p

op

ula

tio

n

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Total broadband retail lines

1444

673

2760

00

7739

74

1027

71

2593

1

2767

627

6557

0

4442

611

1006

3

3390

4

8827

9

2533

4

2640

43

2659

3

2372

529

7517

98

1923

07 5676

05

7633

9

2033

7

5721

00

1106

167

4395

561

4945

446

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

4 500 000

5 000 000

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK

July 2002 July 2003 July 2004

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Regional particularitiesRegional particularitiesRegional particularities

•• PrePre--liberalisation legacyliberalisation legacy

•• (Mostly) small markets(Mostly) small markets

•• Still very dominant incumbentsStill very dominant incumbents

•• Fixed to mobile substitutionFixed to mobile substitution

•• (Mostly) small broadband take(Mostly) small broadband take--upup

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Regional particularitiesRegional particularitiesRegional particularities

•• Despite some regional particularities, Despite some regional particularities, all main principles of the NRF remain all main principles of the NRF remain validvalid

•• Detailed examination of transposing Detailed examination of transposing laws is still ongoinglaws is still ongoing

•• The real test will be implementation, The real test will be implementation, in particular market analysis (art. 7 in particular market analysis (art. 7 proceedings), NRA independence, proceedings), NRA independence, expertise and resourcesexpertise and resources

•• The Commission is here to helpThe Commission is here to help

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Thank you!Thank you!Thank you!For more information:For more information:

DG Information SocietyDG Information Society

http://europa.eu.int/information_society/http://europa.eu.int/information_society/

topics/telecoms/topics/telecoms/index_en.htmindex_en.htm

George PapapavlouGeorge Papapavlou

EE--mail: mail: [email protected]@cec.eu.int

Documents

EUROPEAN COMMISSION Implementation of the NRF in … · Spectrum Decision Framework ... implementation of the NRF ... Share of public ownership in incumbent operators, August 2004