Progress Made in Major Reform of EU Telecom Rules
In November 2007 the European Commission ('Commission')
proposed a major reform of the European telecommunications rules.
In brief, the result of this reform should be that citizens,
wherever they live or travel in the European Union ('EU'),
are offered better and cheaper communication services in the field
of, for instance, mobile telephony, internet connections and
television. In the Commission's view, the former Telecom
Directive of 1997 did not suffice. In first reading the European
Parliament ('Parliament') agreed to a large part of the
proposals on 24 September 2008. Afterwards, the Commission adjusted
the texts slightly, so that the European Council as well as the
Parliament - which parties both have to comment on the reform plan
(once again) - should agree to these texts.
Contents of the Proposals:
Establishment of the Body of the European
Telecoms Regulators
The original proposals of the Commission included the
formation of a European supra-regulatory authority. By guaranteeing
that national telecom authorities - in the Netherlands: the
Independent Post and Telecommunications Authority ('OPTA')
- act similarly when they are confronted with the same market
situation, this regulatory authority would ensure fair competition
and quality services in the EU. The regulatory authority would also
occupy itself with internet safety.
In the accepted proposals only this latter duty was deleted. The
'Body of the European Telecoms Regulators' to be
established will not have direct power, but will only be a small
and independent advisory body, which must assist the Commission to
make the regulation measures for the European telecom markets more
consequent. The national telecom authorities will constitute the
core of the Body. These national authorities will be obliged to
present scheduled regulatory measures to the Commission and the
Body for advice. If they are of the view that the measure is not
appropriate or not efficient with respect to the internal market or
Community law, the Commission can blow the whistle on the national
authority.
Functional Separation
Another very conspicuous proposal has been approved fully.
Functional separation of telecom providers will become possible.
This means that a provider can be split up into two parts: one part
containing the infrastructure and one part containing the services.
Such a split-up, however, will only take place if a national
telecommunications authority is of the view that the provider has
such a dominant position that there is no prospect of competition
based on infrastructure. In the event of a split-up both parts must
operate fully independently. Thus it will be possible for small and
smaller businesses to enter into competition more effectively. A
national telecommunications authority can only really execute such
a split-up after having obtained the Body's and the
Commission's approval.
Copyright Protection
Drastic proposals regarding the protection of copyrights had
ended up in the reform plan by means of amendments. Internet
providers would have to check the internet behavior of their
customers for copyright-infringing activities - for instance
illegal downloading - and in the event of repeated violations,
internet access would have to be refused. Neither the check nor the
possible access refusal have been accepted. Providers must,
however, inform their customers regularly about what is and what is
not legal on the Internet.
Other important - approved - proposals are:
- Customers must be able to switch fixed or mobile telephony
providers - with number portability - within 24 hours.
- Providers (for instance internet providers and telephony
providers) must publish clear information about the applicable
rates and other conditions, so that comparing providers becomes
easier.
- Consumers must get the opportunity to subscribe for a
period of no more than twelve months instead of two years.
- In the event of significant internet disturbances customers
should be compensated.
- In the event that customer data are lost or stolen,
providers must report this to the national telecommunications
authorities as well as to the customers. Since providers wish
to prevent bad publicity, the idea is that they will invest
more - for instance in their networks - in order to prevent
loss of data.
- Everybody must know the European emergency call cumber 112
and the number must become fully accessible in all Member
States. This means that for instance also providers of VoIP
services must design their network in such a manner that their
customers will be able to call 112.
To Conclude
On 27 November of this year the European Council,
consisting of the heads of state and the heads of government of the
EU - in this case particularly the authorized ministers in the
field of telecom - and the chairman of the Commission, will meet to
further discuss the proposals. In second reading, planned for April
2009, Parliament will vote on the proposals once again. Meanwhile,
a public consultation has been started, which will close on 9
January 2009, in which everybody may respond to the proposals.
Already in 2010 the proposals could actually be transposed into
binding rules. After that time, the Member States will have to
implement these rules.
The actually implemented proposals may have a substantial impact
on all providers of telecommunications services and on consumers.
For example, providers will have to comply with more and stricter
rules and will have to take the influence of the new European
authority into account. In addition, for dominant providers the
existence of possibilities for functional separation is relevant.
Providers and other market parties that disagree to the proposals
would do well to participate in the public consultation.