1. Dick Harris - 18/10/2004 - 1 EU policy for electronic communications: what does it mean for Turkey? Richard Harris, DG Information Society TELKODER 2004 Istanbul, 19 th October 2004 TELKODER 2004 Istanbul, 19 th October 2004

2. 18/10/2004 2 This session EU opinion EU opinion News from EU, near future projections News from EU, near future projections Data collection Data collection Accession negotiations? Accession negotiations?

3. 18/10/2004 3 Agenda A short talk from an EU point of view covering, Turkey's formal relationship with the EU, what this means for telecoms, how this might be affected if accession negotiations begin and, finally, some current issues in the EU The context – commercial The context – commercial A lost decade - 1990 to 2000 A lost decade - 1990 to 2000 What is the motive - who has the initiative? What is the motive - who has the initiative? Monitoring the markets Monitoring the markets A topical issue A topical issue

4. 18/10/2004 4 Context – 1990s telecommunications sector Liberalisation of telecomms had already begun Liberalisation of telecomms had already begun The “Information Society” gained currency The “Information Society” gained currency GSM and Internet technology arrived GSM and Internet technology arrived Remaining EU monopolies abolished 1 st Jan 1998 Remaining EU monopolies abolished 1 st Jan 1998 GATS was made, including the telecomms annex GATS was made, including the telecomms annex For C&EE telecomms the rate of change was huge For C&EE telecomms the rate of change was huge

5. 18/10/2004 5 Context – 2000 telecommunications and IT Lisbon agenda - eEurope action plans Lisbon agenda - eEurope action plans Third generation mobile technology arrived Third generation mobile technology arrived The Internet bubble burst The Internet bubble burst 2002 package, designed for an open market 2002 package, designed for an open market 10 new members joined the EU 1 st May 2004 10 new members joined the EU 1 st May 2004 Slow progress in Turkey Slow progress in Turkey

6. 18/10/2004 6 Preparing for accession Abolition of monopolies in line with treaty obligations or with GATS - whichever is sooner Abolition of monopolies in line with treaty obligations or with GATS - whichever is sooner Implementation of market opening and of an effective regulatory regime Implementation of market opening and of an effective regulatory regime Full transposition and implementation of the acquis before accession Full transposition and implementation of the acquis before accession Promotion of knowledge based economy Promotion of knowledge based economy Use of EU aid programmes where needed Use of EU aid programmes where needed

7. 18/10/2004 7 Regular report - 2004 There is a certain level of alignment with the acquis. There is a certain level of alignment with the acquis. Full market liberalisation was achieved at the end of 2003 in legal terms. Full market liberalisation was achieved at the end of 2003 in legal terms. Further efforts are essential to complete the regulatory framework and to implement and enforce the rules in relation to the large powerful companies. Further efforts are essential to complete the regulatory framework and to implement and enforce the rules in relation to the large powerful companies. The progress achieved in some markets, such as mobile telephony or internet service provision, could not be achieved in all telecommunication services. The progress achieved in some markets, such as mobile telephony or internet service provision, could not be achieved in all telecommunication services. Turkey needs to take further steps in order to achieve genuine competition in all telecommunication markets. Turkey needs to take further steps in order to achieve genuine competition in all telecommunication markets.

8. 18/10/2004 8 Monitoring the markets Annual implementation reports by the Commission – for Member States Annual implementation reports by the Commission – for Member States Monitoring of regulatory aspects for 13 candidates is available as a multi-client commercial service Monitoring of regulatory aspects for 13 candidates is available as a multi-client commercial service Monitoring of commercial aspects was done for two years under a special contract for 13 candidate countries Monitoring of commercial aspects was done for two years under a special contract for 13 candidate countries Monitoring for the present 8 candidate and potential candidates will start soon under a special contract Monitoring for the present 8 candidate and potential candidates will start soon under a special contract

9. 18/10/2004 9 Telecommunications market indicators

10. 18/10/2004 10 Telecommunications market indicators

11. 18/10/2004 11 Telecommunications market indicators - 30/6/2003 ??

12. 18/10/2004 12 Telecommunications market indicators - 30/6/2003 ??

13. 18/10/2004 13 Telecommunications market indicators - 30/6/2003

14. 18/10/2004 14 Technological neutrality The 2002 regulatory framework applies regardless of the technology involved The 2002 regulatory framework applies regardless of the technology involved This means that mobile operators can be regulated just as heavily as fixed operators if necessary This means that mobile operators can be regulated just as heavily as fixed operators if necessary Another consequence of this is that radio technology can be used for basic fixed access Another consequence of this is that radio technology can be used for basic fixed access Where fixed penetration is low, this could be very significant, especially for GSM operators and radio based broad band services Where fixed penetration is low, this could be very significant, especially for GSM operators and radio based broad band services

15. 18/10/2004 15 What next? 10 th Implementation report later this year 10 th Implementation report later this year Next EU enlargement in 2007 Next EU enlargement in 2007 New external agenda: New external agenda: EU candidates - BG, RO, TR, HR West Balkans - ALB, BiH, MK(FYRo), SCG Neighbourhood - Belarus, Moldova, Ukraine, Mediterranean countries, Caucasian republics Russia – treated separately

16. 18/10/2004 16 What might this mean for large operators? Liberalisation is not an end in itself (and not a formula for making easy money). Liberalisation is not an end in itself (and not a formula for making easy money). It is a key building block of the Information Society It is a key building block of the Information Society NRAs will have the powers. To avoid heavy regulation, large operators need to help policy makers without being forced NRAs will have the powers. To avoid heavy regulation, large operators need to help policy makers without being forced When EU ministers meet, they no longer discuss liberalisation – this is history When EU ministers meet, they no longer discuss liberalisation – this is history They discuss cartels, spam, IPRs, the digital divide, universal service, eGovernment, how to promote broadband access and security They discuss cartels, spam, IPRs, the digital divide, universal service, eGovernment, how to promote broadband access and security

17. 18/10/2004 17 What is the EU doing? Liberalisation of telecommunications Liberalisation of telecommunications One framework – many situations eEurope action plans – Lisbon eEurope action plans – Lisbon Education Content Trust and confidence National broadband strategies National broadband strategies Common elements of strategies Supply side policies Demand side policies

18. 18/10/2004 18 Broadband penetration rates – EU15

19. 18/10/2004 19 Broadband penetration in the New Member States (January 2004)

20. 18/10/2004 20 Broadband take-up by technology in the EU15 - July 2002 to January 2004

21. 18/10/2004 21 Facility-based competition (January 2004)

22. 18/10/2004 22 DSL and cable modem coverage in the EU15 (December 2003)

23. 18/10/2004 23 Conclusions - broadband Growth of broadband has accelerated Growth of broadband has accelerated Wide differences between countries Wide differences between countries Most growth is in DSL and cable TV Most growth is in DSL and cable TV Other technologies are in evidence Other technologies are in evidence Competition stimulates growth Competition stimulates growth Even rural areas have 50% accessibility Even rural areas have 50% accessibility Scope for increased take-up is high Scope for increased take-up is high

24. 18/10/2004 24 What might all this mean for Turkey? The political dialogue continues The political dialogue continues Turkey needs success regardless of the EU Turkey needs success regardless of the EU Accession negotiations could be helpful Accession negotiations could be helpful Turkey has some unique problems but there are useful lessons to be learned from elsewhere Turkey has some unique problems but there are useful lessons to be learned from elsewhere Continuous monitoring and comparison Continuous monitoring and comparison Turkish authorities cannot be compelled by the EU Turkish authorities cannot be compelled by the EU Industry must be active and constructive Industry must be active and constructive

25. 18/10/2004 25 What might all this mean for Turkey? Most important to achieve successful market opening Most important to achieve successful market opening Settle the future of Turk Telekom Settle the future of Turk Telekom Monitor progress in the EU, through the Cocom and the newly emerging ERG/IRG network Monitor progress in the EU, through the Cocom and the newly emerging ERG/IRG network Fully implement 2002 acquis only when the liberalisation has achieved some maturity but, in any event, before accession Fully implement 2002 acquis only when the liberalisation has achieved some maturity but, in any event, before accession Meantime, make full use of the formal dialogue with the EU under the association agreement Meantime, make full use of the formal dialogue with the EU under the association agreement

26. 18/10/2004 26 Thank you for your attention richard.harris@cec.eu.int For more information: See - Europa web-site

27. 18/10/2004 27 For more information europa.eu.int/comm/enlargement/index_en.html europa.eu.int/comm/external_relations/ europa.eu.int/comm/world/enp/index_en.htm europa.eu.int/information_society/topics/ecomm/index_en.htm europa.eu.int/information_society/topics/ecomm/all_about/implemen tation_enforcement/annualreports/9threport/index_en.htm europa.eu.int/information_society/topics/ecomm/all_about/internatio nal_aspects/main_areas_work/eu_enlargement/index_en.htm europa.eu.int/comm/competition/liberalization/others/#telecom trade-info.cec.eu.int/doclib/cfm/doclib_search.cfm?action=search www.wto.org/english/tratop_e/serv_e/serv_e.htm