Annexes to COM(2006)334 - Review of the EU Regulatory Framework for electronic communications networks and services

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agreement on common usage conditions as well as on common approaches to authorisation, to allow for co-ordinated deployment of services. This authorisation system would be complementary to the current system and would be applied in specific cases (e.g., satellite communication services). The Authorisation Directive would be amended to allow the Commission to adopt Decisions with the assistance of a committee, while monitoring and enforcement of compliance with the authorisation conditions for such services would continue to be handled by Member States at national level. Once authorisations are harmonised through this common mechanism, an authorisation granted in one Member State would be sufficient for the pan-European deployment of services.

5.3.4. Other proposed changes

Other changes designed to strengthen the internal market aim to: ensure that users can access information society services provided in other Member States (e.g. freephone numbers); strengthen the ability of NRAs to sanction a breach of regulatory obligations; extend the scope of the technical implementing measures that the Commission can take, e.g. in areas like numbering; introduce a mechanism for Commission approval of measures taken by NRAs under Article 5(1) of the Access and Interconnection Directive; require ‘must carry’ obligations to be reviewed by a specific deadline; and establish a procedure to facilitate agreement at EU level on common requirements on networks and services.

5.4. Strengthening consumers’ and users’ rights

A central goal of the regulatory framework is to deliver substantial consumer benefits. This is in large part achieved by relying on enhanced competition to provide choice, innovative services and value for money to consumers. This is complemented by specific consumer protection measures, including universal service obligations to safeguard users’ needs.

Responses to the ‘Call for Input’ on the Review, together with contributions received on the Commission consultation on the scope of Universal Service [25], suggest a need for a fundamental reflection on the role and concept of universal service in the 21st century, and raise questions on the balance between sector specific and horizontal rules for protecting consumers, and the feasibility of a one-size-fits-all approach to universal service in a Union of 25 Member States. For these reasons, the Commission intends to publish a Green Paper on universal service in 2007, to launch a wide ranging debate.

Irrespective of the outcome of this debate, many of the provisions in the Universal Service Directive are linked to traditional telephone services, and need to be modernised. Other proposed changes will improve the quality of tariff information available to consumers, allow third parties to take legal action against ‘spammers’, ensure that caller location information is available to the emergency services, and facilitate access to emergency services by disabled users.

5.5. Improving Security

Security is identified in i2010 as one the four challenges for the creation of a Single European Information Space. Modern electronic communications networks and services are becoming essential for everyday life, in business and at home. The availability of communications services can be threatened by technical, organisational or human failure. The trend towards IP technology also means that networks are in general more open and vulnerable than in the past. The growth of spam, viruses, spyware and other forms of malware, which undermines users’ confidence in electronic communications, is partly due to that openness, and partly due to the lack to appropriate security measures. The Communication on a strategy for a secure Information Society (COM(2006) 251) highlighted the need to ensure the right balance between technological development, self-regulation and regulatory measures. Specific regulatory measures are proposed in the context of this review.

In order to reinforce the trust and confidence of business and individual users in electronic communications, a series of measures is proposed: 1) to impose specific requirements on providers of electronic communications to notify certain breaches of security and to keep users informed; 2) to authorise competent national authorities to require specific security measures that implement Commission recommendations or decisions; and 3) to modernise the provisions on network integrity.

5.6. Better regulation: removing outdated provisions

It is proposed to withdraw the provisions on the minimum set of leased lines in the Universal Service Directive, since there are other provisions that allow NRAs to address problems in this area. The Regulation on unbundled access to the local loop [26] (ULL) is also due for repeal, since once all NRAs have completed their market analysis of the ULL market, the Regulation becomes unnecessary and can be withdrawn.

Other candidates for removal include the provisions on the European Telephony Numbering Space (ETNS) in the Universal Service Directive, and various other obsolete articles detailed in the associated Working Document.

6. Conclusion

The current regulatory framework has produced considerable benefits but it needs attention in a number of areas in order to remain effective for the coming decade. The two main proposals are to implement the Commission’s policy approach on spectrum management, and to reduce the resources associated with the reviews of relevant markets by streamlining the procedures. Other changes proposed would strengthen the internal market, reinforce consumers’ interests, improve security and generally update the framework.

The Staff Working Document describes these proposals in more detail. An evaluation of these changes as well as other options that were considered can be found in the associated Impact Assessment document.

[1] Directives 2002/19/EC, 2002/20/EC, 2002/21/EC, 2002/22/EC (OJ L 108, 24.4.2002, p. 7) and 2002/58/EC (OJ L 201, 31.7.2002, p. 37). See also Annex I of Impact Assessment.

[2] COM(2005) 24, 2.2.2005.

[3] Commission Recommendation on Relevant Product and Service Markets within the electronic communications sector susceptible to ex ante regulation, C(2003) 497.

[4] Commission Staff Working Document on the Recommendation on relevant markets.

[5] COM(2006) 28, 6.2.2006.

[6] COM(2006) 68, 20.2.2006.

[7] The responses are available at

- http://ec.europa.eu/information_society/policy/ecomm/info_centre/documentation/public_consult/review/index_en.htm.

[8] The Radio Spectrum Decision 676/2002/EC allows for technical harmonisation of spectrum usage conditions (via the Radio Spectrum Committee); strategic advice on radio spectrum policy via the Radio Spectrum Policy Group.

[9] See footnote 6.

[10] London Economics in association with PricewaterhouseCoopers, study for DG Information Society and Media of the European Commission on ‘An assessment of the Regulatory Framework for Electronic Communications - Growth and Investment in the EU e-communications sector’ (to be published).

[11] See associated Commission Staff Working Document, section 2.

[12] ibid.

[13] Recital 27 Framework Directive.

[14] The 3 criteria are: a) the market is subject to high and non-transitory entry barriers; b) the market has characteristics such that it will not tend towards effective competition over time; c) competition law by itself is insufficient to deal with the market failure (absent ex ante regulation). See the Commission Staff Working Document on the Recommendation on relevant markets.

[15] Article 12(2) Access Directive.

[16] ibid.

[17] COM(2005) 411, 6.9.2005.

[18] See the study by Analysys et al. ‘Conditions and options in introducing secondary trading of radio spectrum in the European Community’ (2004), p. 12.

[19] See footnote 5.

[20] The R&TTE Directive 1999/5/EC (OJ L 91 7.4.1999, p. 10) harmonises requirements on equipment but does not harmonise spectrum allocation.

[21] See footnote 5.

[22] As in a case where mobile termination rates were only regulated for calls originating on mobile networks or abroad, but not for calls originating on fixed networks.

[23] e.g. where price regulation was not based on the most appropriate cost model or where choices of cost model and cost accounting rules were left to the undertakings concerned.

[24] e.g. where cost-oriented mobile termination rates based on an LRIC cost model were left to private negotiations between operators first, before the regulator intervened in the context of dispute settlement.

[25] COM(2005) 203, 24.5. 2005.

[26] OJ L 336, 30.12.2000, p. 4.

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