An Independent Perspective on the Regulation of the Belgian Telecommunications Market and an Apprais

1
An Independent Perspective on the Regulation of
the Belgian Telecommunications Market and an
Appraisal of the Transition to a Fully
Liberalised Competitive Market Structure
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Prof. dr. J. Dumortier
• drs. Peggy Valcke

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
2
Overview
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• I. Liberalization
• II. Current Belgian legislation
• III. Future developments

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
3
Overview
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• I. Liberalization
• II. Current Belgian legislation
• III. Future developments

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
4
The 1991 Act
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Title I State companies
• Title II Reform of the RTT
• Title III Telecommunications
• Title IV - VII Reform of Belgian Post, Rail
  Company, Airway Company and Belgocontrol

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
5
The Road to Liberalization
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• 1996 liberalization of non-public networks
• 1997 The Act of 19 December 1997
• liberalization of public networks
• liberalization voice telephony
• creation of universal service
• extension of powers of the regulator
• rights of way
• 1997 - 1999 secundary legislation

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
6
Overview
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• I. Liberalization
• II. Current Belgian legislation
• III. Future developments

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
7
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Telecom vs. broadcasting
• Telecom national matter
  Federal Authority
• NEW
• SERVICES?
• Broadcasting cultural
  aspects Communities

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
8
Telecommunications
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Institutions
• Services
• Networks
• Market access
• Fair competition cases
• Other regulated issues

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
9
Institutions
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Minister of Telecommuncations R. DAEMS
• Belgian Institute of Postal Services and
  Telecommunications (B.I.P.T.)
• Chamber for Interconnection, Leased Lines,
  Special Access and Shared Usage
• Consulting Committee
• Mediation Service for Telecommunications
• Competition Authority

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
10
Services
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• 2 categories
• public telecommunications service
• universal service (art. 84 - 86)
• universal acccess (art. 86bis)
• services of public interest (art. 86ter)
• other telecommunications services

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
11
Other Telecom Services Fixed
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• voice telephony (art. 87) licence
  specifications
• secondary Royal Decree of 22 June 1998 (B.S. 15
  July 1998)
• leased lines (art. 88) declaration
  specifications
• secondary Royal Decree of 11 June 1999. (B.S. 21
  July 1999)
• other public and private telecom services (art.
  90)
• declaration operating conditions
• secondary Royal Decree of 20 April 1999 (B.S.
  21 July 1999)

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
12
Other Telecom Services Mobile
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• mobile telephony paging (art. 89 1) licence
• secondary Royal Decree of 8 September 1997
  MOB2 (B.S. 5 December 1997)
• secondary Royal Decree of 7 March 1995,
  modified by Royal Decree of 24 October 1997 (B.S.
  5 december 1997) GSM
• secondary Royal Decree of 24 October 1997 (B.S.
  5 december 1997) DCS-1800
• secondary Royal Decree of 17 juli 1997 (B.S. 22
  augustus 1997) ERMES -paging
• secondary Draft Royal Decree on UMTS
• other mobile telecom services (art. 89 2
  3) licence

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
13
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven
URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
14
Networks
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• public networks art. 92bis licence
  specifications
• secondary Royal Decree of 22 June 1998 (B.S. 24
  juli 1998)
• non-public networks art. 92 declaration
• secondary Royal Decree 16 July 1998 (B.S. 26
  september 1998)
• secondary Royal Decree 3 August 1999 (B.S. 23
  september 1999)
• satelite-connections art. 92ter
• secondary Royal Decree of 16 April 1998 (B.S. 27
  juni 1998)

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
15
Market access
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• 4 categories
• access by Government decision public telecom
  services (3)
• licence public networks, fixed voice telephony,
  mobile services networks
• declaration leased lines, non-public networks,
  other public private services
• free access

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
16
Fair competition
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Chapter X, Act 21 March 1991 article 106 -
  109ter B
• special obligations for operators with
  significant market power in the field of voice
  telephony, leased lines, interconnection and
  special network access cf. European directives
• Case studies
• local loop unbundling
• interconnection tariffs for Internet traffic

URL www.law.kuleuven.ac.be/icri e-mail
peggy.valcke_at_law.kuleuven.ac.be
17
1. Local loop unbundling
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Problem incumbent controls last mile to
  end-user
• Forms
• copper loop rental
• bit stream access
• Legal arguments
• obligation for SMPs to meet reasonable requests
  for network access including access at points
  other than normal NTPs
• article 4, 2 Interconnection Directive
• abuse of dominant position
• article 82 (former article 86) E.C.-Treaty

URL www.law.kuleuven.ac.be/icri e-mail
peggy.valcke_at_law.kuleuven.ac.be
18
1. Local loop unbundling
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Situation in Europe
• 1. explicit obligation of LLU by law
• Austria, Finland, Denmark, Spain
• Germany Ordinance concerning Special Network
  Access, 23 October 96
• 2. obligation imposed via decision of national
  telecoms regulator
• Italy
• Netherlands Guidelines on MDF-access, 12 March
  1999
• 3. consultation round
• France, Ireland
• U.K. gt deadline for LLU 1 July 2001 !
• 4. no initiative
• Belgium, Greece, Luxembourg, Portugal, Norway,
  Sweden

URL www.law.kuleuven.ac.be/icri e-mail
peggy.valcke_at_law.kuleuven.ac.be
19
2. Interconnection tariffs Internet
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Traditional revenue distribution model
  termination fees (reciprocal)

20
2. Interconnection tariffs Internet
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Free serve model

21
2. Interconnection tariffs Internet
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• The story of Belgacom
• 1) March 1998 lower retail tariff for Internet
  dial-in calls (off-peak)
• 2) September 1998 special retail tariff only if
  ISP is connected to Belgacom-network or connected
  to network of competitor whose termination rates
  lt reference level set by Belgacom

BIPT no discrimination lower retail tariff of
Belgacom must apply to the customers of all ISPs,
independent of network ISP is connected with
URL www.law.kuleuven.ac.be/icri e-mail
peggy.valcke_at_law.kuleuven.ac.be
22
2. Interconnection tariffs Internet
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• The story of Belgacom
• 3) March 1999 BIPT approves 2 new systems, 12
  March 99
• 1. non-geographic numbers (078) with Special
  Internet Terminating interconnection rate and
  even lower retail tariffs (peak and off-peak)
• 2. 0909-numbers higher tariffs, no subscription
  (pay as you go)
• Belgacom announces introduction new systems,
  15-16 March 99
• BIPT advice on the tariffs for Internet access,
  22 April 99
• abuse of dominant position complaint by six
  operators (BT, Mobistar, Telenet, Unisource
  Belgium, Versatel, Worldcom) before Brussels
  Court (and Competition Council)
• new system temporarily forbidden
  until verdict Competition Council, 25 June 99

URL www.law.kuleuven.ac.be/icri e-mail
peggy.valcke_at_law.kuleuven.ac.be
23
2. Interconnection tariffs Internet-
Solutions in neighbouring countries e.g.
Ireland, U.K. shift from system with
termination fees to system with originating fees
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• e.g. Netherlands (OPTA, Enertel v. KPN, 22
  September 1999) differentiation of retail
  tariffs f(different termination fees)

URL www.law.kuleuven.ac.be/icri e-mail
peggy.valcke_at_law.kuleuven.ac.be
24
Other regulated issues
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Numbering (Chapter IX bis)
• Rights of way (Chapter IX)
• Terminal equipment (Chapter VIII)
• Protection of Users (Chapter IX ter)
• Confidentiality of calls and protection of
  privacy (Chapter X bis)

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
25
Overview
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• I. Liberalization
• II. Current Belgian legislation
• III. Future developments and evalution

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
26
Future developments
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Royal Decree consolidating Telecom legislation
• Other secondary legislation
• Draft Royal Decree on UMTS
• Draft Royal Decree Leased Lines (art. 88)
• Draft Royal Decree Universal Directory (art. 113)
• Draft Royal Decree Information to the B.I.P.T.
  (art. 105sexies 1)

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be
27
Interdisciplinary Centre for Law and Information
Technology K.U.Leuven

• Prof. dr. J. DUMORTIER
• drs. Peggy VALCKE
• David STEVENS, lic. iur.
• Interdisciplinary Centre for Law and Information
  Technology
• Katholieke Universiteit Leuven
• Tel [phone]
• Fax [phone]
• email icri_at_law.kuleuven.ac.be
• www.law.kuleuven.ac.be/icri

URL www.law.kuleuven.ac.be/icri e-mail
david.stevens_at_law.kuleuven.ac.be