DG Information Society 1 Liberalisation and regulation in Electronic Communications in the EU 2nd ICT Summit Istanbul, 3-6 September 2002 Hans-Peter Gebhardt DG Information Society EUROPEAN COMMISSION
DG Information Society 2 1. The Benefits of Liberalisation since 1998 Number of operators and consumer choice Rebalancing of (retail) tariffs Market shares Key market indicators:
DG Information Society 3 Almost 1600 operators
DG Information Society 4 Consumer choice in voice telephony Local callsLong-dist./Int'l calls 2 operators 3-5 operatorsMore than 5 operators Number of Member States where 100% of the population has a choice between: Source: NRAs and European Commission
DG Information Society 5 Cost of international calls
DG Information Society 6 Local and long-distance call charges (3 min) Local callLong-distance call 13,33 13,04 13,51 14,55 72,69 57,91 45,52 40, Aug. 1998Aug. 1999Aug. 2000Aug €-cents, VAT included EU15 weighted average Source: Teligen
DG Information Society 7 International Leased lines Price trends
DG Information Society 8 Market shares (voice telephony) EU incumbent operators' average call market shares (by revenue) Source: NRAs and European Commission
DG Information Society 9 Market shares (mobile)
DG Information Society 10 Outlook Liberalisation successful, but: Full and consistent application of current framework essential Progress in local loop unbundling crucial Leased line prices and provisioning times need to be brought down even further More flexible regulatory environment in future
DG Information Society The New EU Regulation A successful legal framework will: Attract investment, by - encouraging market entry - providing legal certainty - restraining firms with undue market power - keeping regulation to the minimum necessary Promote choice and competition Safeguard users interests, where market forces do not
DG Information Society 12 Content Services - outside scope of new framework (e.g. broadcast content, e-commerce services) Electronic communications networks and services - Scope Communications services (e.g. telephone, fax, ) Communications networks (fixed, mobile, satellite, cable TV, powerline systems, networks used for radio and television broadcasting) and associated facilities (e.g. CAS)
DG Information Society 13 Players to be regulated Undertakings with a dominant position in an identified market where competition is not effective NRA designates such players as having SMP and imposes appropriate obligations Commission can block NRA decisions regarding designation, or not, of undertakings with SMP
DG Information Society 14 Market entry procedures Market entry needs no prior permission Conditions are set out in general authorisation, and are limited Individual rights-of-use of frequencies and numbers assigned via individual authorisations
DG Information Society 15 National Regulatory Authorities Rapid decision-making / dispute resolution Systematic appeals mechanisms Power, clarity of address, resources, skills Effective implementation of regulation requires:
DG Information Society 16 Data Protection Directive Unbundled local loop Regulation Spectrum Decision (Art. 95) The new package Liberalisation Directive (Art. 86) Framework Directive (Art. 95) Authorisation Directive Access & Interconnection Directive Users’ Rights Directive
DG Information Society 17 FOR MORE INFORMATION On DG Information Society: On the new legislation: new_rf/index_en.htm On the 7th Implementation Report: ual_report/7report/index_en.htm