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CROATIAN REGULATORY AUTHORITY FOR NETWORK INDUSTRIES (HAKOM) TELECOM SINGLE MARKET – CHALLENGES AND CONCERNS DOMAGOJ MARIČIĆ, CROATIAN REGULATORY AUTHORITY FOR NETWORK INDUSTRIES (HAKOM) September 29 th, 2014
9.9.2014HAKOM © 20142 1.Introduction & Content Overview of the EC proposal of the TSM Regulation A brief description of the EU Ordinary legislative procedure Overview of the EU Parliament’s amendments to the TSM proposal Recapitulation of key challenges and concerns
9.9.2014HAKOM © 20143 2. TSM Proposal - General In September 2013 the EC submitted proposal of the TSM Regulation to the Council and European Parliament (EP) Planned date for the adoption – spring 2014 i.e. before the end of the EP and EC mandate Planned entry into force – July 2014 and July 2016 Aim - completion of a fully functioning Digital Single Market by 2015 Desired impacts - growth & jobs; better productivity; benefits for citizens; a consolidation of telecoms sector
9.9.2014HAKOM © 20144 3. TSM Proposal – Main elements Single EU authorization European inputs for high-speed broadband Spectrum coordination and facilitating small cells for the wireless bb. European virtual access products for the fixed bb. Net neutrality and Harmonized end user’s rights Roaming
9.9.2014HAKOM © 20145 4. TSM Proposal – Single EU authorization Regime applicable only to “European electronic communications providers (EU operator)” while pure domestic providers stay within current national regime Wide notion of EU operator – undertaking established in EU providing or intending to provide services directly or by means of one or more subsidiaries (subsidiary – any form of control e.g. more than half the voting rights, right to manage affairs, right to nominate more than a half of board) Concept of a home Member State (for EU operator) and host Member States (for subsidiaries)
9.9.2014HAKOM © 20146 5. TSM Proposal – Single EU authorization Single notification to the home Member State NRA of the home MS forwards information to the host MS and to the BEREC Shared authority of the home and the host MS Benefits for EU operators – thresholds for USO costs and administrative charges, EC veto power as regards regulatory obligations
9.9.2014HAKOM © 20147 6.TSM Proposal - European inputs, Spectrum coordination Detailed regulatory principles Relevant criteria to be taken in account for use of radio spectrum Harmonization of authorization timetables and durations by EC implementing acts Coordination of authorization procedures and conditions ("Article 7" procedure for spectrum authorization measures) Access to radio local area networks Deployment and operation of small-area wireless access points Radio spectrum coordination among Member States
9.9.2014HAKOM © 20148 7. TSM Proposal - European inputs, European virtual access products Common features for European virtual broadband access products – recommended remedy Common features for European virtual broadband access products – recommended remedy Quality across the Union, interoperability, end-user focus, cost effectiveness, operational effectiveness, security & privacy Quality across the Union, interoperability, end-user focus, cost effectiveness, operational effectiveness, security & privacy European assured service quality connectivity products (ASQ) upon reasonable request European assured service quality connectivity products (ASQ) upon reasonable request
9.9.2014HAKOM © 20149 8.TSM Proposal - Net neutrality and harmonized end users’ rights Introduction of the “net neutrality” principle and allowed exceptions Introduction of the “net neutrality” principle and allowed exceptions Full harmonization of end users’ rights See separate presentations on these topics!
9.9.2014HAKOM © 201410 9.TSM Proposal – Roaming Free incoming roaming calls as of 1 July 2014 Free incoming roaming calls as of 1 July 2014 Operators may introduce optional regime “Roam like at home” (RLAH) Operators may introduce optional regime “Roam like at home” (RLAH) Wholesale costs through bilateral or multilateral roaming agreements (“Roaming alliances”) Wholesale costs through bilateral or multilateral roaming agreements (“Roaming alliances”) Subject to reasonable use criteria Subject to reasonable use criteria Exemption from roaming decoupling and retail caps Exemption from roaming decoupling and retail caps Outside RLAH offers - retail caps apply Outside RLAH offers - retail caps apply
9.9.2014HAKOM © 201411 10. Ordinary legislative procedure Joint adoption (co-decision) by the European Parliament (EP) and the Council of a regulation, directive or decision on a proposal (usually by the EC) Stages: First reading, possible 2 nd and 3 rd, reading + conciliation First reading – joint examination of a proposal in the EP (committees) and Council (working groups) No time limits for the 1 st reading
9.9.2014HAKOM © 201412 11. Ordinary legislative procedure 1 st reading - EP adopts its position. If Council accepts the EP’s position a proposal is adopted 1 st reading - If Council does not approve the EP’s position, than 2nd reading 2 nd reading - 3 (+1) months for the EP to approve, to reject or to amend the Council’s position 2 nd reading - 3 (+1) months for the Council to approve or reject the EP’s amendment 3 rd reading/Conciliation – conciliation committee (6 weeks), agreement on a joint text (6 weeks), adoption of the text (6 weeks)
9.9.2014HAKOM © 201413 12. Ordinary legislative procedure - TSM Agreement on the 1 st reading - the Council without modifications adopts the text adopted by the EP in its position at 1 st reading Agreement on the 1 st reading - the Council without modifications adopts the text adopted by the EP in its position at 1 st reading Agreement on the 2 nd reading – the Council adopts position at first reading which is negotiated with the EP; EP approves the Council’s position Agreement on the 2 nd reading – the Council adopts position at first reading, EP adopts negotiated position, and the Council approves the EP’s position To reach agreement - “trialogue” between Council, EP, EC TSM – EP position (amendments) adopted. There has been no agreement. The Council has not yet adopted its position in the 1st reading.
9.9.2014HAKOM © 201414 13. EP’s amendments on the TSM Proposal On 3 April 2014 EP (plenary) adopted its position at first reading Single EU authorization – deleted Amendments to the Authorization Directive - notification requirement only if MS explicitly wish to keep it, notification via harmonized template only to BEREC Spectrum coordination – supported with amendments Virtual access product and ASQ product – deleted Proposed - “Wholesale high-quality access products allowing the provision of business communications services ” Harmonized end users’ rights and Net neutrality – see separate presentations
9.9.2014HAKOM © 201415 14. EP’s amendments on the TSM Proposal Roaming – no roaming alliances, full RLAH as of 15 December 2015 subject to a “fair use clause” Consumers must be in a position to confidently replicate the typical domestic consumption pattern – BEREC guidelines + EC implementing acts If there is no level playing field between operators – EC legislative proposals by 30 June 2015. i.e. before abolition of retail roaming charges Need to change the duration or lower the level of maximum wholesale charges or to provide for other arrangements to address wholesale market problems including by a significant reduction of the mobile termination rates.
9.9.2014HAKOM © 201416 15. Key challenges and concerns TSM proposal overlaps with the framework review due for 2015 Aims of the telecom market consolidation and of the promoting of the EU global competitiveness can’t be reconciled with the aim of protection of the competition Aims of the telecom market consolidation and of the promoting of the EU global competitiveness can’t be reconciled with the aim of protection of the competition Spectrum harmonization effectively means a transfer of powers from Member States (subsidiarity, proportionality) Spectrum harmonization effectively means a transfer of powers from Member States (subsidiarity, proportionality) Abolition of roaming charges may lead to higher domestic prices Abolition of roaming charges may lead to higher domestic prices Legal uncertainty of the TSM proposal
25.5.2015HAKOM © 201417 Thank you for your attention
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