[kictanet] Parliament vote paves way for Single Telecoms Market in Europe

[alice at apc.org]

Today the European Parliament in its plenary session voted on the  
European Commission's proposals of November 2007 to reform the EU  
Telecom rules, in place since 2003. The EU Telecoms Reform aims to  
create a Single EU Telecoms Market with improved rights for consumers  
and businesses by reinforcing competition and investment and boosting  
the take-up of cross-border services and wireless high-speed broadband  
for all.

"Today's vote is good news for European consumers," said Viviane  
Reding, the EU Telecoms Commissioner. "The European Parliament has  
today voted in favour of a strong and competitive Single Telecoms  
Market without borders for cross-border services, competition and  
investment in Europe. This will level the playing field for telecoms  
operators in Europe, enhance legal certainty, and broaden consumer  
choice."

"Yesterday, the European Commission had to propose new rules to bring  
down the excessive prices of SMS and data roaming in the EU  
(IP/08/1386). These proposals will provide a fast cure to one of the  
most dramatic symptoms of the lack of a single telecoms market under  
which European companies and consumers are suffering at the moment.  
Today, the European Parliament has gone an important step further by  
proposing to tackle once and for all the root of the problem: by  
paving the way for a single market in regulatory terms.

"I welcome in particular the fact that, after an intense debate, the  
European Parliament today voted in favour of establishing a European  
telecoms regulator. Although the new body is smaller than proposed by  
the Commission ? it will not have any responsibility for network  
security, which I regret ? the Parliament's amendments have made sure  
that the new European telecoms regulator will be fit for purpose,  
namely to deal efficiently with the remaining business obstacles and  
consumer problems in the single market. I welcome in particular that  
Parliament has confirmed that the new body will be financed from the  
EU budget in order to strengthen its independence and to ensure  
equality among national regulators. The European Parliamentarians also  
ensured that the new European telecoms regulator will be able to  
operate independently in the interest of everyone in the EU while at  
the same time being sufficiently close to the market. The proposal  
that half of the European telecoms regulator's staff should be  
seconded from national telecoms regulators, thus working alongside  
experts which the new European body would recruit itself, is a very  
constructive improvement on the Commission's initial proposal that I  
fully support."

"Although work is still needed on the details, I support the  
Parliament's proposal to modify the Article 7 procedure. By voting for  
a system of 'checks and balances' Parliament ensures that measures  
proposed by a national telecoms regulator ? like market analyses and  
regulatory remedies ? cannot be adopted when called into question by  
both the new European telecoms regulator and the European Commission.  
In so doing, Parliament has found a sound compromise between  
consistency and subsidiarity in the interest of an efficiently  
functioning Single Market that I very much appreciate."

"I also thank Parliament for its strong support for greater  
independence of national regulators. Independent national regulators  
are the backbone of an efficient application of telecoms rules for  
fair competition and tangible consumer benefits. Despite its  
importance, in reality it cannot be taken for granted, as seen last  
week with the surprisingly blunt interference with the independence of  
the Romanian telecoms regulator."

"I strongly welcome the European Parliament's support for adding the  
new remedy of functional separation ? which requires an incumbent  
operator to separate its network infrastructure from its services  
branch ? to the toolbox of national regulators. This last-resort  
remedy has the capacity to rapidly improve competition in markets  
while maintaining incentives for investment in new networks, as shown  
in the UK where it has already been implemented. The Parliament's vote  
will contribute legal certainty to countries where functional  
separation is already under discussion, especially Sweden, Poland and  
Greece."

"At the same time, the European Parliament has today opened new  
opportunities for investment in high-speed fibre optical broadband  
networks. The Parliament has confirmed and reinforced EU law on this  
important matter. On the one hand, it has clearly rejected all calls  
for 'regulatory holidays', as new monopolies would stifle competition  
and investment into fibre. On the other hand, it wants telecoms  
operators to receive a fair return on investment for allowing access  
to new fibre optic networks, including a substantial risk premium. I  
welcome this, and the Commission intends to give more detailed  
regulatory guidance on such next generation access networks at the  
beginning of next year." (IP/08/1370)

"Competition brings lower prices, better-quality services and more  
choice, so consumers are the real winners in today's vote. Increased  
transparency and information for consumers, better access to services  
for users with disabilities, a more efficient 112 European emergency  
number and number portability within one day ? all these Commission  
proposals have received strong support in Parliament, for which I am  
very grateful."

"Some important questions remain open. On number portability ? the  
consumer's ability to change their fixed or mobile operator while  
keeping their phone number ? I welcome the Parliament's overall  
approach supporting the one-day limit proposed by the Commission. But  
we need to ensure that the option now given to national regulators to  
extend the period for number portability will not reduce the benefits  
of a competitive market where consumers benefit from choosing  
different operators when they make better offers."

"More will also have to be done on spectrum policy if we want to  
attract investment to new wireless services in Europe. The  
Commission's proposal to reform the management of radio spectrum  
intends to facilitate the roll out of such services, especially high  
speed wireless broadband connections that can reach less populated and  
rural areas to help achieve 'Broadband for All' in Europe. I welcome  
the support expressed by the European Parliament for more flexibility  
and harmonisation in spectrum use, but I hope that even more ambitious  
solutions can be agreed so that Europe gets the most efficient and  
consistent management of spectrum possible in order to bring about  
'Broadband for All Europeans'. I also support Parliament's intention  
to increase its involvement in the EU's spectrum strategy, and will  
continue to work with Parliament and Council to reach a satisfactory  
solution that provides more certainty for forthcoming EU decisions on  
distributing the so-called 'digital dividend' - the additional radio  
spectrum made available as a result of the transition from analogue to  
digital TV."

"I would like to thank the rapporteurs in the ITRE Committee,  
Catherine Trautmann (France, PSE) and Pilar del Castillo Vera (Spain,  
EPP-ED) and in the IMCO Committee, Malcolm Harbour (United Kingdom,  
EPP-ED), for their constructive work. The Parliament's reports, as  
adopted today by its plenary, are a very solid basis for its  
negotiations with the Council of Telecoms Ministers."

"I will now continue working with the European Parliament and the  
Council to ensure the adoption of the package before the end of this  
Parliament's term in 2009. Agreement is needed if consumers are to be  
adequately protected in a Single EU Telecoms Market and if operators  
can expect Europe to offer them a level playing field for telecoms  
investments."

Background:

The European Commission tabled its proposals for the reform of the  
Telecoms Reform Package on 13 November 2007 (IP/07/1677). Before the  
summer, the Council of Telecoms Ministers expressed its views on the  
Commission proposals (MEMO/07/522, MEMO/08/384) and the European  
Parliament debated the reform first at Committee level (MEMO/08/491)  
and then during its plenary session on 2 September. Following today's  
European Parliament vote, it is again up to the Telecoms Ministers to  
give their views.

For further details, see

MEMO/08/551: EU Telecoms Reform: the 6 Most Important Issues Still Open

MEMO/08/552: EU Telecoms Reform: 7 Very Concrete Improvements for  
European Consumers

Next steps:

27 November 2008: the Council could reach a first political agreement  
on the EU Telecoms Reform.