The EU regulatory framework for electronic communications

1
The EU regulatory framework for electronic
communications

• Faculty of Electrical Engineering
• Belgrade, 14 October 2009
• Ivo Locatelli
• European Commission
• DG Information Society and Media

2
The Regulatory Framework
Roaming regulations
Framework Directive (Art. 95)
Liberalization Directive (Art. 86)
Spectrum Decision (Art. 95)
Decisions (ERG, 116)
Recommendation on relevant markets
3
The EU Regulatory Framework Guiding Principles

• Promote interest of citizens
• Protection of Citizens
• Universal Service
• Consumer Protection
• Privacy
• Dispute Resolution

• Promote Competition
• Foster innovation
• Offer more choice, quality,...
• Liberalisation of market
• Simplify Market Entry

• Promote Single European Market

• Technology Neutrality
• ? Competitive Neutrality

4
Dealing with convergence

• Ability of any infrastructure to deliver any
  service
• Same rules are applicable to all kind of networks
• Two sets of regulation
• communications infrastructures and associated
  services
• content

5
National Regulatory Authority

• Independent of any operator or service provider
• Independent of any government department that is
  a shareholder in an operator or service provider
• Independent of political interference with regard
  to individual decisions
• Transparency and accountability
• Right of appeal

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Market entry procedures

• Market entry needs no prior permission
• Conditions are set out in general authorisation,
  and are limited
• Rights to use spectrum and numbers may be
  assigned via individual authorisations if
  necessary to avoid harmful interference and
  ensure efficient use
• Charges and fees

7
Significant market power (SMP)

• SMP is the threshold for ex-ante intervention by
  NRAs, when competition is not effective
• old threshold of significant market power based
  on 25 market share
• new SMP threshold linked to competition law
  concept of dominance
• gt position of economic strength affording an
  undertaking the power to behave to an appreciable
  extent independently of competitors, customers
  and ultimately consumers
• gtMarket Power and the ability to raise prices
  profitably on a given market

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Regulating eCommunications markets- the
so-called Article 7 procedure

• NRAs define markets, based on the markets listed
  in the Recommendation - (NRAs notify
  Commission for agreement)
• NRAs designate operators with Significant Market
  Power - (NRAs notify Commission for agreement)
• - NRAs impose appropriate obligations (remedies)
  from EU menu
• (NRAs notify Commission)

Which markets Which companies What
obligations
NRA National Regulatory Authority
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Obligations on undertakings with SMP

• May include
• transparency
• accounting separation
• non discrimination
• mandatory provision of specific facilities
• mandatory access to specific facilities
• price control, including cost accounting and cost
  orientation

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Universal service

• Scope basic set of services
• Designation of provider
• Calculation of cost (incl. indirect benefits) gt
  audit
• Unfair burden on the provider ?
• Request of provider ?
• gtFinancing fund / public funds
• Transparency of cost sharing, mechanism

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Transition

• EU framework transition articles ensure that
  existing obligations (under the old framework)
  remain in place until market analysis performed
• Serbia Implementation of the current action plan
  -updated in Jan. 2009- not to be delayed
  (introduction of the necessary competitive
  safeguards)

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Achievements of the framework

• Better value for money, innovation and choice for
  consumers
• Investment, innovation and growth increased EU
  penetration in broadband (23) and mobile
  telephony (119)
• Withdrawal of regulation in some markets and some
  regions
• A successful legal framework will
• Attract investment
• Encourage market entry
• Provide legal certainty
• Promote choice and competition
• Safeguard users interest

13
Broadband in the EU
SOURCE COCOM
14
The EU mobile market
SOURCE EC
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For more information

• EU regulatory framework
• http//ec.europa.eu/information_society/policy/eco
  mm/current/index_en.htm
• Thank you for your attention !!