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The 1999 Communications Review

EUROPEAN COMMISSION. The 1999 Communications Review. Peter Scott DG Information Society Brussels. Liberalis- ation: experience, 5th report. Globalis- ation: alliances, WTO. Convergence Green Paper. Spectrum Green Paper. The 1999 Review. Markets: data, internet, mobile, new

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The 1999 Communications Review

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  1. EUROPEAN COMMISSION The 1999 Communications Review Peter Scott DG Information Society Brussels

  2. Liberalis- ation: experience, 5th report Globalis- ation: alliances, WTO... Convergence Green Paper Spectrum Green Paper The 1999 Review Markets: data, internet, mobile, new services, DVB, e-commerce... Technology: digitisation, wireless, satellite, fibre optics, compression...

  3. POLICY OBJECTIVES • To promote and sustain a competitive European market for communications services • To benefit the European citizen • To consolidate the internal market in a convergent environment

  4. Communications infrastructure and associated services Services provided over networks (outside scope of 1999 Review) Communications & access services (eg telecoms or conditional access services) Communications infrastructure (networks and associated facilities)

  5. FUTURE REGULATORY FRAMEWORK • EU legislation to set out principles, not details; aim is to be technologically neutral • Regulation to be responsive to market conditions; more reliance on ‘soft’ law • Consolidation, simplification and clarification of the legal framework - mixture of sector-specific and competition rules

  6. Future Directives Five EP and Council Directives • Framework Directive • Universal service Directive • Licensing Directive • Access and interconnection Directive • Data protection Directive One Commission Directive (Art 86)

  7. DECREASING REGULATION AS COMPETITION INCREASES Degree of regulation Degree of competition

  8. AREAS FOR PUBLIC COMMENT • licensing and authorisations • access and interconnection • management of radio spectrum • universal service • user and consumer interests • naming, numbering and addressing • competition aspects • institutional issues

  9. LICENSING AND AUTHORISATIONS • coherent approach to all communications networks (eg no specific rules for internet) • greater use of general authorisations • specific authorisations reserved for assignment of spectrum and numbers • restricted range of supplementary conditions that may be imposed • fees to cover only justified and relevant administrative costs (EU guidelines)

  10. ACCESS AND INTERCONNECTION • Identify markets or market segments where competition is not effective • Impose obligations for access or interconnection linked to market power • Remove obligations when competition becomes effective

  11. LINKING REGULATION TO MARKET POWER Dominant position Degree of regulation Significant market power Neither Market power

  12. ACCESS ISSUES • access to the local loop (local loop unbundling) • access to cable TV networks or satellite systems, • access to mobile network infrastructures (MVNOs) • access to IN functionality of fixed and mobile networks • access to broadband networks • access for ISPs to cable TV networks • access to set-top boxes, electronic program guides (EPGs), and application program interfaces (APIs)

  13. MARKET POWER • dynamic definition of relevant markets • relevant markets to be defined by EC and national regulatory authorities (NRAs), in coordination with competition authorities • NRAs to decide which market players have a dominant position or significant market power (SMP) on those markets • periodic review of markets and players

  14. ACCESS AND INTERCONNECTION • threshold for cost orientation and non-discrimination raised to ‘dominant position’, instead of significant market power (SMP) • SMP operators to have an ‘obligation to negotiate’ access, at commercial prices • NRAs to intervene in case of dispute • SMP mobile operators to offer carrier selection

  15. A framework for regulation for interconnection and access

  16. MANAGEMENT OF RADIO SPECTRUM • encourage effective use of radio spectrum (eg pricing, auctions), taking into account general interest principles • spectrum trading to be possible (decided at national level) • new mechanisms to address cross-sectoral and pan European aspects (including a radio spectrum policy expert group)

  17. UNIVERSAL SERVICE • maintain current definition and scope (ie access to the fixed public telephone network and provision of a good quality telephone service) • allow for periodic review and possible extension of scope • encourage more use of ‘pay or play’ • EC to publish pricing principles to ensure affordability

  18. USER AND CONSUMER INTERESTS • update telecoms data protection and privacy directive • make caller location mandatory for all emergency <112> calls • strengthen provisions on complaint handling, dispute resolution and tariff transparency for consumers • suppliers to publish quality-of-service information, under NRA supervision • Leased line Directive ?

  19. EUROPEAN CO-ORDINATION • European regulatory authority not seen to be justified • New Communications Committee, chaired by EC, which could vote on positions to be made binding for Member States(replacing ONP and Licensing committees) • New High level Communications Group of NRAs and EC, to facilitate consistent application of EU rules by NRAs

  20. COMMISSION TIMETABLE 2000 • 15 February - end of public consultation • April - publication of Report on consultation • April - publication of Recommendation on access to local loop • 2 May - Telecom Council • end May - submission to EP and Council of proposals for new Directives

  21. THE 1999 REVIEW • Information at: http://www.ispo.cec.be/infosoc/telecompolicy/review99/ • Comments to: 99 review@cec.eu.int

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