The Methodology

1. NRA General Powers Dispute Settlement Body Access Regulation Key Access Products Implementation of NRF Speed of process Speed of process Cost models Voice Interconnect Timely Implementation Transparency Transparency Account Separation Leased lines and PPC Market Reviews Sanctions Sanctions Availability of Information Fixed to Mobile Appeals Appeals Negotiating RO LLU Independence Rights of Way Wholesale DSL The Methodology Result

2. Results There remain significant variations in the regulatory environment across Member States, despite the introduction of the NRF which is supposed to create a level playing field and a single market in electronic communications networks and services. The best performing countries have fully privatised incumbents. Worse performing countries have active state holdings in the incumbent operator.

3. Economic Analysis New entrants expected to invest €19 billion during 2004 – 2006* Analysis of past investments show that this money is most likely to go to countries with pro-competition regulatory environments *Source: ECTA/SPC Network Survey March 2004