Rights of Users of Electronic Communications in the European Community

1. Rights of Users of Electronic Communications in the European Community Barbara Delaney 18 September 2013

2. Introduction • Barbara Delaney • I work for the electronic communications regulator in Ireland (ComReg) • Thank you to the hosts of the conference • REGULATEL – OSPITEL • Looking forward to participating • Share my experiences • Learn from your experiences

3. Presentation • About Me • About ComReg • About The European Union (EU) • Member States • Legislative Framework for electronic communications • About BEREC • Purpose and Outputs • Design of Implementation Bodies • EU Consumer Policy • EU Key Electronic Communications Consumer Protections • ComReg Consumer Strategy and approach • Empower • Protect • Complaint Handling • Compliance and Enforcement

4. About me...... • Information Technology (IT) Graduate • IT Consultant • IT Manager • Degree in Business Strategy • Masters in Management Practice • Realising the value of consumers in competitive markets • Consumer Policy Manager • Director of Retail and Consumer Services 1997 2001 COMREG

5. About ComReg • ComReg is the statutory body responsible for the regulation of the electronic communications sector in Ireland • National Regulatory Authority (NRA) • ComReg has three key objectives • Protecting and Informing Consumers • Promotion of Competition • Encouraging Competition

6. The European Union – Member States(28)

7. The European Union – Member States Estimated Population 2012 - 506,820,764  (source Eurostat)

8. The Framework for Electronic Communications in Europe • The electronic communications is supported at EU level by a regulatory framework. • A revised package was agreed by the European Parliament and the Council of Ministers and came into force in December 2009. • Better Regulation Directive (Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009) • Citizens’ Rights Directive (Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009) Transposition Some flexibility to allow for national conditions

9. The Framework for Electronic Communications in Europe • Better Regulation Directive (Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009) • Framework Directive which established the objectives of a framework to regulate electronic communication networks and services. • Authorisation Directive which creates a legal framework to allow the freedom to provide electronic communications networks and services. • Access Directive which covers access to and interconnection arrangements between publicly available electronic communications networks. • Citizens’ Rights Directive (Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009) • Universal Services Directive which ensures that a defined minimum set of services is provided to all end-users at an affordable price. • E-Privacy Directive which protects the fundamental rights and freedoms of citizens with regard to automated storage and processing of data.

10. The Framework for Electronic Communications in Europe • Roaming Regulation • Regulation on roaming on public mobile communications networks within the Union • Directly applicable to Member States • Enforced by NRAs • Proposals for Single market initiative • http://ec.europa.eu/digital-agenda/en/users-rights

11. About BEREC • BEREC – Body of European Regulators for Electronic Communications - Established in 2009 MISSION “Committed to independent, consistent, high-quality regulation of electronic communications markets for the benefit of Europe and its citizens.”

12. About BEREC • Aiming to ensure a consistent application of the EU regulatory framework • Furthermore, BEREC assists the Commission and the NRAs in implementing the EU regulatory framework • to give advice on request and on its own initiative to the European institutions • to complement at European level the regulatory tasks performed at national level by the regulatory authorities. • NRAs and the Commission have to take utmost account of any opinion, recommendation, guidelines, advice or regulatory best practice adopted by BEREC. BEREC

13. About BEREC • In particular, BEREC is requested to: • develop and disseminate among NRAs regulatory best practices, such as common approaches, methodologies or guidelines on the implementation of the EU regulatory framework; • on request, provide assistance to NRAs on regulatory issues; • deliver opinions on the draft decisions, recommendations and guidelines of the Commission as specified in the regulatory framework; • issue reports and provide advice, upon a reasoned request of the Commission or on its own initiative, and deliver opinions to the European Parliament and the Council, when needed, on any matter within its competence; • on request, assist the European Parliament, the Council, the Commission and the NRAs in relations, discussions and exchanges of views with third parties; • and assist the Commission and NRAs in the dissemination of regulatory best practices to third parties.

14. About BEREC • Examples of BEREC Outputs • BEREC Guidelines on Roaming Regulation (EC) N 531/2012 (Third Roaming Regulation) (Articles 4 and 5 on Separate Sale of Roaming Services) • Article 28(2) Universal Service Directive: a harmonised BEREC cooperation process • BEREC Guidelines for quality of service in the scope of net neutrality BEREC • BEREC Guidelines on the application of Article 3 of the Roaming Regulation - Wholesale Roaming Access • BEREC Guidelines on the application of Article 3 of the Roaming Regulation – Wholesale Guide on the Article 7/7a procedure – steps and best practices BEREC Guidelines on transparency in the scope of net neutrality: best practices and recommended approaches • BEREC report on best practices to facilitate consumer switching • Report on Universal Service – reflections for the future • Electronic communications services: Ensuring equivalence in access and choice for disabled end-users BEREC Report

15. European Consumer Rights -Structure Telecoms Sector Specific Consumer Rights Energy Finance Travel Consumer Rights Applicable to all sectors Misleading Advertising Directive Distance Selling Directive Unfair Commercial Practices Directive Regulation on co-operation in consumer protection

16. European Consumer Rights Implementation • Design of implementation bodies • Principles Required by European Legislation • Competent Body specified • Independent • Sufficient Financial and Human Resources • Act independently in Disputes • Consultation and co-operator between consumer authorities, NRAs and competition authorities • Utmost account of BEREC positions

17. European Consumer Rights Implementation Varied approach to design of Remit of implementation bodies Netherlands – ACM - Authority for Consumers and Markets Regulation of consumer and competition matters in energy, telecommunication, transport and postal services industries, and, more in general, at free enterprise and consumer protection law. UK – Ofcom Regulation of Telecommunications and Broadcasting and general consumer legislation in these sectors Ireland - ComReg Regulation of electronic communications, Premium Rate Services and Postal consumer legislation, data privacy in respect of telecommunications providers but not general consumer legislation.

18. Consumer Rights Implementation Design of remit of authorities responsible for implementation Sector Specific General

19. EU Consumer Policy Electronic Communications Consumers • Empower consumers - allowing consumer to be in control of their purchasing decisions • Real choice • Accurate information Market transparency • Confidence (welfare and rights) • Enhance Welfare – in terms of price, choice, quality. • Protect consumers – risks that they cannot be expected to address by themselves EU Consumer Policy Strategy - Empowering consumers, enhancing their welfare, effectively protecting them. Source EU Consumer Policy Strategy 2013 - http://ec.europa.eu/consumers/overview/cons_policy/doc/EN_99.pdf

20. Consumer Policy Electronic Communications Consumers If there is competition why do we need to protect and empower consumers?

21. European Consumer Electronic Communications Legislation – Key Protections • Universal service • Privacy of electronic communications • Access to numbers and services • Access to Emergency Services • Contracts • Quality of Service • Transparency and publication of information • Facilitating change of provider - Switching • Ensuring equivalence in access and choice for disabled end-users • Roaming • Out of court dispute resolution • Additional Facilities for control of expenditure

22. Contracts – key provisions • Right to a contract which must specify • Service provided • Details of prices and tariffs • Information on conditions limiting access • Information on traffic shaping to avoid congestion • Duration of contract and conditions for renewal and termination • Charges due on termination • Inside the minimum term • Cost recovery of terminal equipment • Restrictions on use of terminal equipment • The means of initiating procedures for settlement of disputes

23. Contracts – key provisions • Duration - must offer 12 months; cannot be > 24 months • Notification of modifications 1 month in advance & right to exit without penalty • Conditions and procedures for contract termination shall not act as disincentive against changing service provider

24. Facilitating change of provider – key provisions • Number portability • One day porting • Compensation of subscribers for abuse or delay of porting • Contract provisions • Length • Conditions and Procedures

25. ComReg Strategy Electronic communications Consumers Source ComReg’s Strategy 2012-2014 http://www.comreg.ie/_fileupload/publications/ComReg1269.pdf

26. ComReg Strategy Electronic communications Consumers Source ComReg’s Strategy 2012-2014 http://www.comreg.ie/_fileupload/publications/ComReg1269.pdf

27. ComReg Strategy Electronic Communications Consumers Source ComReg’s Strategy 2012-2014 http://www.comreg.ie/_fileupload/publications/ComReg1269.pdf

28. Protect Consumers–Regulatory Interventions • In addition to standard requirements • Specify the scope of Universal Service • Specify format of notification of changes to contracts • Establish industry switching process • Define Measures to control expenditure • Billing Itemisation and Mediums • Bill shock Some flexibility to allow for national conditions

29. Empower - Availability of Appropriate Transparent information • Consumer Portal – www.askcomreg.ie • News • FAQs • Complaints • Interactive Tariff Guide www.callcosts.ie • Outreach Events • Consumer events • Local presence – libraries • Consumer Guides

30. Empower - Availability of Appropriate Transparent information

31. Empower - Availability of Appropriate Transparent information http://www.callcosts.ie – 16/09/2013

32. Empower - Effective Complaints handling and timely redress • European Requirements - Member States shall ensure • Transparent, simple, inexpensive out of court procedures are available to consumers and undertakings providing electronic communications (networks/services) • To be settled fairly and promptly • May where warranted have a system of reimbursement and/or compensation Source ComReg’s Strategy 2012-2014 http://www.comreg.ie/_fileupload/publications/ComReg1269.pdf

33. Approach to Redress

34. Approach to Redress • Code of practice must contain • Point of contact • Means of recording complaint • Timeframe for referring to ComReg – not more than 10 days • Specification of appropriate cases where reimbursement or compensation apply • Retention of records

35. Approach to Redress • European Research – some statistics • A quarter of EU consumers have had a legitimate cause for complaint when buying or using goods or services. • More than eight out of ten Consumers who experienced problems took action to solve them. Most of them complained to the retailer/provider, as opposed to manufacturer, public authority, out-of-court body or court. • 66 % of those who took their complaint to the retailer/provider expressed satisfaction with the way it was handled — more than those who took their complaints elsewhere. • Some common reasons for not pursuing a complaint are • that it would have taken too long (37%); • the sums involved were too small (37%); • or a satisfactory solution appeared unlikely (27%). • Less than half of EU consumers (44 %) find it easy to resolve disputes with sellers/providers through alternative dispute resolution (ADR) and only 36% find it easy to resolve disputes through courts. Source http:www.ec.europa.eu - The Consumer Conditions Scoreboard - Consumers at home in the single market Ninth edition - July 2013

36. Approach to Redress • Alternative Dispute Resolution - Examples http://www.consumers.ofcom.org.ukwww.cisas.org.uk

37. ComReg Consumer approach - Analysis to Action

38. ComReg Consumer approach – consumer issues reported

39. Protect - Ensuring Service Providers uphold their obligations • Approach to compliance • Establish monitoring priorities • consumer harm • Service Provider’s Role– self declaration

40. Protect - Ensuring Service Providers uphold their obligations • EU Regulations • Member states to lay down rules on penalties for infringement of national provisions • Penalties • Appropriate • Effective • Proportionate • Dissuasive

41. Protect - Ensuring Service Providers uphold their obligations • Irish enforcement Regime Service Provider has period of time to State views Or remedy non-compliance

42. Protect - Ensuring Service Providers uphold their obligations • High court Order • a declaration of non-compliance, • an order directing compliance with the obligation, term or condition, requirement, specification or direction, • an order directing the remedy of any non-compliance with the obligation, term or condition, requirement, specification or direction, or • An order to pay to the Regulator such amount, by way of financial penalty

43. Protect - Ensuring Service Providers uphold their obligations • High court Order • a declaration of non-compliance, • an order directing compliance with the obligation, term or condition, requirement, specification or direction, • an order directing the remedy of any non-compliance with the obligation, term or condition, requirement, specification or direction, or • An order to pay to the Regulator such amount, by way of financial penalty

44. Factors in determining penalty • Duration of the non-compliance • the effect on consumers, users and other operators, • the submissions of the Regulator on the appropriate amount, and • any excuse or explanation for the non-compliance.

45. Thank you