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EPP-ED Public Hearing: ‘Telecom Package’. Roland Doll, Vice President International Government Relations, Deutsche Telekom AG Brussels, March 05 2008. Deutsche Telekom in Europe…. Operation of Fixed and/or Mobile networks. Provision of integrated ICT solutions for business costumers.
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EPP-ED Public Hearing: ‘Telecom Package’ Roland Doll, Vice President International Government Relations, Deutsche Telekom AGBrussels, March 05 2008
Deutsche Telekom in Europe… Operation of Fixed and/or Mobile networks Provision of integrated ICT solutions for business costumers Denmark Sweden Germany Russia Great Britain Poland Czech Republic Slovakia The Netherlands Hungaria Belgium Croatia Switzerland Montenegro Turkey Austria Macedonia Portugal Italy Spain 05.03.2008
Asia and the US successfully extend their fiber-based infrastructure. Number of fibre-based connection subscribers(IDATE 2007) 12 2006 10 8 6 Subscribers in Mio. 2004 4 2007 2 2007 2004 2004 0 USA Europe* Asia** * EU-5, The Netherlands, Sweden ** Korea, Japan (2007 figures n.a.) Source: IDATE (2007) 05.03.2008
Telecommunications-Investment per capita (OECD 2007) 200 USA Asia** US Dollar 150 Europe* 100 2003 2004 2005 Investment levels in telecommunications - Successful turnaround after deregulation. • Europe lags behind competing economic regions in terms of Telco-investments. Per capita levels are 50% higher in the US than in Europe. • In addition, investment rates in the US are rising due to consistent deregulation. • Result: the investment gap is widening. *EU-15 **Japan, Korea Source: OECD (2007) 05.03.2008
Limits on Internet access capacity will eventually hamper innovation and growth. 1) nemertes research, The Internet Singularity, Delayed: Why Limits in Internet Capacity Will Stifle Innovation on the Web, November 2007 05.03.2008
Deregulation intended by Review ‘99 has not been achieved despite competitive market development. Chart by European Commission, DG Infso, Nov. 2001, road show on the Review ’99 05.03.2008
Conclusions. • The European Telecoms sector faces major challenges: against the backdrop of shrinking revenues in the sector, new fibre based access networks and next generation mobile broadband networks have to be rolled out to secure Europe’s competitiveness in the next decade. • Europe lags behind East Asia and North America in the deployment of high-speed next generation access networks and in overall investment levels. • Rapid increase in data traffic will lead to a multiplication of capacity required by consumers and businesses from fixed and mobile networks. • The regulatory concepts of the past have been successful in opening up former monopolistic markets but they are not adequate for stimulating investments in new fibre based access networks. The review must give answers how to adapt the regulatory regime to the investment challenge facing the industry. • If we want to stimulate growth in the telecommunications sector with positive spill over effects for the entire EU economy, deregulation must now be implemented, instead of further extending regulation. In order to achieve such a move towards the application of general competition law, legally binding exit rules are needed. 05.03.2008