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Telecommunication Sector Liberalisation and Regulation Overview

Explore the European Regulatory Framework for Telecommunication Sector, including key legislative measures and current trends in market liberalization. Learn about regulatory aspects, market opening, network provision, licensing, and more.

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Telecommunication Sector Liberalisation and Regulation Overview

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  1. Liberalisation and regulation in the telecommunication sector: Theory and empirical evidence Week 3 The European Regulatory Framework for the Telecommunication Sector: Main Issues and Current Trends

  2. Overview of presentation • Regulatory aspects of EC policy. Main legislative measures in relation to: • Opening up of markets • Open Network Provision • Licensing • What next?

  3. Opening up of markets • Legislative measures are introduced after consultation with interested parties and the publication of Green Papers • Opening up of markets in • Terminal Equipment (Directive 88/301/EEC) • Services other than voice telephony (Directive 90/388/EEC) • Satellite services and equipment (94/46/EEC) • Cable TV networks carrying liberalised telecom services (other than voice telephony) (Directive 95/51/EEC). Led also to Dir. 99/64/EC addressing the problem of cross-ownership of telecom and Cable TV networks by an incumbent in the same market. Please comment...

  4. Opening up of markets (cont’d) • Mobile communications (Directive 96/2/EC). Required • early liberalisation in infrastructure building, • the right for interconnection, and • licenses for DCS 1800 issued from 1/1/1998. • Public Voice Telephony and Infrastructure (Directive 96/2/EC) • Telecom markets should fully open by 1/1/1998 (transition periods allocated to certain M-S) • Restriction on use of alternative infrastructure for services other than voice telephony lifted by 1/7/1996 • Provisions for interconnection agreements and for safeguarding universal service • Special case: Voice over Internet (Notice of 1/1/1998)

  5. Open Network Provision (ONP) • ONP Framework Directive (90/387/EEC): stressed the need for harmonisation measures. • Revised ONP Directive (97/51/EC) called for structural separation between the regulator and the Tos • Specific ONP Directives on • Leased Lines (92/44/EEC) revised in 1997 (97/51/EC) • Voice Telephony (95/62/EC) revised by Dir 98/10/EC • Interconnection (Directive 97/33/EC) • Also Recommendations for ISDN and PSDS

  6. Application of ONP principles to Leased lines • Purpose: • To ensure a minimum set of analogue and digital leased lines up to 2 Mbps with harmonised technical characteristics • Also availability of info on technical characteristics, tariffs, supply, and usage conditions • establishment of common ordering and billing procedures • Cost orientation of tariffs • Dispute resolution procedures in place • Revised Directive called for a mandatory set of leased lines to be providedby Operators with Siginificant Market Power (SMP)

  7. Application of ONP principles to Voice Telephony • It addresses detailed service issues: • definition of targets for supply time and quality of service at national level • provision of advanced facilities • discounts, low-user schemes, and other tariff provisions • availability of itemised billing • directory services • public payphones • provisions for the disabled and people with special needs

  8. ONP principles to Voice Telephony (cont’d) • The revised Directive 98/10 further defines: • A common set of parametres and measurement methods for monitoring quality of service • Definition of affordability by M-S • Regular reports on tariff evolution throughout the Union

  9. Application of ONP principles to Interconnection • Interconnection Directive • It describes a framework for action not specific rules • Organisations specified in Annex I and have SMP should provide interconnection upon demand • Definition of the term ‘SMP’ • Requirement to define which TO are responsible for Universal Service

  10. Interconnection Directive (cont’d) • Obligations of TO with SMP • Tariffs should be reasonable, non-discrimant, and transparent • Timely provision of information to new comers, so that they are in a position to negotiate • Timely information regarding changes in network architecture • Publicise interconnection agreements (except parts related to commercial policy practices) • Cost-based interconnection tariffs (not applicable to mobile operators)

  11. Interconnection Directive (cont’d) • Publication of a Reference Interconnection Offer (RIO) • Transparency in accounting systems • Accounting separation between activities and adoption of appropriate costing methodology, Recommendation of 8/4/1998 recommends disaggregation into the following business lines: • Non telecom-related activities • Telecom-related activities • Retail • Core network • Local access network • Value-added services • Other activities

  12. EC Recommendation C(97) 3148 - Part I Proposes the use of Βest Current Practices Ιn order to simplify comparisons, the approach taken in the Recommendation is to examine the interconnection charges to the incumbent's fixed public network under three different scenarios: 1.'Local' level interconnection A call handed over for termination at the local level represents interconnection at (or nearest to) the local exchange to which the destination user is connected and represent the lowest level of interconnection charge which is available in a given country. 2."Single transit' interconnection, (metropolitan level) Single transit interconnection allows access to all customers in a metropolitan region, such as a large city. This is likely to be the level of interconnection most often demanded by new entrants in a national market. 3.'Double transit' interconnection ( 'national' level) Double transit interconnection allows access to all customers on the incumbent's network ('national' level' interconnection). A call handed over at this level normally incurs the highest level of interconnection charge.

  13. Licensing • Directive 97/13/EC • general and individual licences • prohibition of any limitation in the number of new entrants • harmonisation licensing procedures and requirements • Set up of one-stop-shopping procedures

  14. What next? • New Regulatory Framework for electronic communications infrastructure and associated services • Regulation of the European Parliament and of the Council on Unbundled Access to the Local Loop (final text, adopted by Council 5 December 2000, incorporating EP amendments) • Proposal for a Directive of the European Parliament and of the Council on common regulatory framework for electronic communications networks and services Com (2000)393 • Proposal for a Directive of the European Parliament and of the Council on universal service and users' rights relating to electronic communications networks and services Com(2000)392

  15. Cont’d • Proposal for a Directive of the European Parliament and of the Council on access to, and interconnection of, electronic communications networks and associated facilities Com(2000)384 • Proposal for a Directive of the European Parliament and of the Council concerning the processing of personal data and the protection of privacy in the electronic communications sector Com(2000)385 • Proposal for a Directive of the European Parliament and of the Council on the authorisation of electronic communications networks and services Com(2000)386

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