Annexes to COM(2008)153 - Progress Report on the single European electronic communications market 2007 (13th Report) - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2008)153 - Progress Report on the single European electronic communications market 2007 (13th Report). |
|---|---|
| document | COM(2008)153  |
| date | March 19, 2008 |
One of the areas where a lack of consistency in the implementation of remedies is most apparent is in cost-orientation and cost-accounting methodologies. The move towards cost-orientation can also be subject to very different time frames and involve different degrees of asymmetry, not necessarily justified by different national market conditions.
These differences act as an extra burden on operators seeking to offer pan-European services, and impede the completion of an internal market for electronic communications services. Lack of NRA enforcement powers or unwillingness to exercise them can be a further reason why remedies are still not implemented in practice.
These shortcomings have convinced the Commission of the need for it to have a ‘say’ on remedies and of the need for enhanced enforcement powers for NRAs, both of which have been included in the Commission’s reform proposals.
The difficulties experienced by NRAs in ensuring the timely and effective application of non-discrimination across regulated markets has led a number of them (e.g. Italy, Poland, Sweden) to consider the introduction of the functional separation of the fixed incumbent’s local network access services from its other retail and wholesale business units in order to ensure equality of access to wholesale inputs for the incumbent’s retail arm and alternative operators alike. In Ireland the incumbent has itself proposed a form of structural separation. These developments highlight the need to find a mechanism to ensure consistency of approach across Member States.
Spectrum management
2007 saw further progress towards a single market for wireless communications, through a number of harmonisation measures at EU level for the use of spectrum without the need for individual rights of use (Short Range Devices, RFID, and R-LAN). The trend towards greater use of market-based approaches to spectrum management has also continued. The proposed changes to the regulatory framework are expected to consolidate this trend as required by the pace of new technologies, changing demands for services and the growing globalisation of markets.
There is also a move in some Member States towards making spectrum authorisations technology and service neutral, in line with the proposals made by the Commission in relation to the repeal of the GSM Directive and in the proposed amendments to the framework. For example, the Swedish and United Kingdom regulators have announced their intention to make at least part of the spectrum released by the switch to digital broadcasting technology and service neutral, and a number of Member States have begun a process which would lead to the use for 3G services of spectrum in the 900MHz band, up to now reserved for GSM services[13]. Malta, Denmark and Finland are also preparing a major spectrum management reform.
While Commission spectrum harmonisation decisions taken in accordance with the Radio Spectrum Decision 676/2002/EC during the period 2004 to 2007 have been implemented in most Member States, a significant effort is needed to complete the process. A further difficulty is that the EU spectrum harmonisation legislation is duplicated in non-binding intergovernmental agreements in the CEPT.
The Commission followed up its Decision 2007/98/EC harmonising the use of spectrum for the implementation of systems providing mobile satellite services (MSS) with a proposal in August 2007 for a European Parliament and Council Decision to create a legal basis for the pan-European selection and authorisation of MSS operators. Coordinated action at pan-European level is also under way to facilitate mobile communications on aircraft.
Further harmonised procedures are clearly needed at Community level in order to ensure that spectrum required for the provision of pan-European services can be licensed in a coordinated and timely manner. The Commission has therefore proposed a role for a new body, the European Electronic Communications Market Authority, in facilitating the process of licensing pan-European services.
4. Consumer INTEREST
NRAS HAVE INCREASINGLY FOCUSED ON CONSUMER ISSUES, POSSIBLY REFLECTING THE INTENSIFYING COMPETITIVE ACTIVITY ASSOCIATED WITH CONVERGING MARKETS, THE BUNDLING OF DIFFERENT SERVICE OFFERINGS AND CORRESPONDING EFFORTS BY OPERATORS TO WIN AND RETAIN CUSTOMERS.
Tariff transparency
Price transparency remains a concern, although a growing number of regulators are developing web-based price comparison tools to help consumers decide which service provider offers the service best for their needs.
Several Member States have also introduced measures to reinforce transparency for premium rate and other services using non-geographic numbers, where hidden costs and lack of pricing information often give rise to concern.
The Commission welcomes these developments, which are in line with the proposed amendments to the framework.
Universal service
Germany and Luxembourg remain the only Member States where universal service is provided under normal market conditions. A number of other Member States, however, have chosen to exclude individual elements from the designation (e.g. directories and directory enquiry services in Italy and Estonia and the latter services in Ireland and Austria). The Czech Republic no longer includes access at a fixed location as a designated element, and Sweden and Finland are considering mobile solutions. Romania limits the service to the provision of ‘tele-centres’ to provide access in rural areas.
Users with disabilities and special needs continue to face numerous limitations on their access to services which are essential for social and economic life. While the framework encourages Member States to take measures to facilitate access to the services enjoyed by the majority of users, the measures taken and the results achieved vary greatly across the EU.
Number portability
Number portability is now available for mobile and fixed users in all Member States except Bulgaria and Romania. A number of Member States have acted to facilitate number portability for VoIP and mobile virtual network operator (MVNO) services, but the rules vary widely, depending on the classification and use of relevant numbers. The time taken to port numbers (as well as cost) is critical in enabling competition. While some improvements have been made (e.g. France, Spain, United Kingdom), delays are still hampering competition in many Member States, which is why the Commission has proposed a legal requirement for porting to take place within one working day.
112
The European emergency number 112 can be used to call emergency services free of charge from fixed and from mobile phones throughout the EU except in Bulgaria.
The provision of caller location information to the emergency services remains problematic. The Commission has decided to refer six Member States (Italy, Netherlands, Lithuania, Slovakia, Latvia and Poland) to the Court of Justice, and opened a proceeding against Romania, for failing to ensure the provision of caller location information for 112 calls on mobile networks.
The quality of the response to emergency calls varies considerably across the EU, since this area is not subject to harmonised rules. Pending the amendment of the current EU regulation, which will provide a framework for best practice in this area, the Commission is working through the Communications Committee and its specialised subgroup on emergency access, as well as the Civil Protection Committee, to promote the quality of response to 112 calls.
5. Conclusions
The sector continues to enjoy increased revenues from continued growth in turnover for fixed broadband and mobile services. At the same time, consumers have benefited from a strengthened competitive environment through lower prices.
The EU regulatory model has shown itself capable of ensuring increasingly competitive markets while providing solid consumer protection and a guaranteed basic service.
In Member States where regulation has been applied at best practice levels, the potential for consumers to benefit has been demonstrated, for example in the roll-out of innovative broadband services. Regulatory action has been particularly successful where the market analysis process was carried out on time, remedies imposed on SMP operators have been sufficiently precise and detailed, the appeals process and judicial intervention have been carried out efficiently, and regulators have not been constrained from tackling non-price-related issues actively.
However, the regulatory framework currently allows a great deal of latitude as to the exact rules to be put in place and in the way in which they are actually applied. The result is that the regulatory environment is frequently based on inconsistent approaches which greatly hinder the realisation of a real single market across the Union and the economic benefits flowing from it. Examples of disparate regulation include that relating to mobile termination rates and glide paths, accounting methodologies, treatment of VoIP, mobile number portability, and non-price discrimination by dominant players.
The Commission’s proposals currently before the European Parliament and Council seek to address these issues, using innovative approaches where appropriate while retaining the basic overall concept that formed the 2002 framework.
[1] Unless otherwise indicated the situation is that at 31 December 2007 and market data that at 1 October 2007.
[2] Commission Recommendation 2007/879/EC.
[3] COM(2007)697-699.
[4] European Information Technology Observatory (EITO) 2007 .
[5] EITO Update 2007.
[6] Estimate based on EU KLEMS.
[7] Regulation (EC) No 717/2007.
[8] OECD methodology – see Commission staff working paper.
[9] IDATE - PAC Consultants – Coe-Rexecode November 2007.
[10] e-Communications Household Survey (Nov.-Dec. 2007).
[11] ERG (07) 56 rev 2.
[12] IDATE ‘Broadband Coverage in Europe’ 2007 (data as at 31 December 2006).
[13] A proposal for an EU Decision is pending.