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EUROPEAN COMMISSION. Liberalisation and regulation in Electronic Communications in the EU 2nd ICT Summit Istanbul, 3-6 September 2002. Hans-Peter Gebhardt DG Information Society. 1. The Benefits of Liberalisation since 1998. Key market indicators:. Number of operators and consumer choice
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EUROPEAN COMMISSION Liberalisation and regulation in Electronic Communications in the EU2nd ICT SummitIstanbul, 3-6 September 2002 Hans-Peter Gebhardt DG Information Society
1. The Benefits of Liberalisation since 1998 Key market indicators: • Number of operators and consumer choice • Rebalancing of (retail) tariffs • Market shares
15 14 14 12 10 10 8 6 5 0 Local calls Long-dist./Int'l calls 2 operators 3-5 operators More than 5 operators Consumer choice in voice telephony Number of Member States where 100% of the population has a choice between: Source: NRAs and European Commission
EU15 weighted average 80 72,69 70 60 57,91 50 45,52 €-cents, VAT included 40,31 40 30 20 14,55 13,33 13,51 13,04 10 0 Aug. 1998 Aug. 1999 Aug. 2000 Aug. 2001 Local call Long-distance call Local and long-distance call charges (3 min) Source: Teligen
International Leased lines Price trends 1998 - 2001
100% 90% 80% 70% 90% 80% 60% 71% 50% Local calls Long-distance calls International calls 1997 1998 1999 2000 Market shares (voice telephony) EU incumbent operators' averagecall market shares (by revenue) Source: NRAs and European Commission
Outlook • Liberalisation successful, but: • Full and consistent application of current framework essential • Progress in local loop unbundling crucial • Leased line prices and provisioning times need to be brought down even further • More flexible regulatory environment in future
2. The New EU Regulation A successful legal framework will: • Attract investment, by - encouraging market entry- providing legal certainty - restraining firms with undue market power- keeping regulation to the minimum necessary • Promote choice and competition • Safeguard users interests, where market forces do not
Electronic communications networks and services - Scope Content Services - outside scope of new framework(e.g. broadcast content, e-commerce services) Communications services (e.g. telephone, fax, e-mail) Communications networks (fixed, mobile, satellite, cable TV, powerline systems, networks used for radio and television broadcasting) and associated facilities (e.g. CAS)
Players to be regulated • Undertakings with a dominant position in an identified market where competition is not effective • NRA designates such players as having SMP and imposes appropriate obligations • Commission can block NRA decisions regarding designation, or not, of undertakings with SMP
Market entry procedures • Market entry needs no prior permission • Conditions are set out in general authorisation, and are limited • Individual rights-of-use of frequencies and numbers assigned via individual authorisations
National Regulatory Authorities Effective implementation of regulation requires: • Rapid decision-making / dispute resolution • Systematic appeals mechanisms • Power, clarity of address, resources, skills
Authorisation Directive Access & Interconnection Directive Data Protection Directive Users’ Rights Directive The new package Framework Directive (Art. 95) Liberalisation Directive (Art. 86) Spectrum Decision (Art. 95) Unbundled local loopRegulation 1.1.2001
FOR MORE INFORMATION On DG Information Society: http://europa.eu.int/information_society/topics/telecoms/index_en.htm On the new legislation: http://europa.eu.int/information_society/topics/telecoms/regulatory/new_rf/index_en.htm On the 7th Implementation Report: http://europa.eu.int/information_society/topics/telecoms/implementation/annual_report/7report/index_en.htm