Telecommunications: EU Telecoms Reform: The 6 Most Important Reform Proposals

The European Commission has proposed on 13 November 2007 to the European Parliament (“Parliament”) and the Council of Telecoms Ministers (“Council”) to reform the EU Telecoms rules to reinforce competition and investment and to create a Single Telecoms Market in the EU. After a 2 September 2008 plenary session debate on the reform, the Parliament is expected to vote on the reform proposals in first reading on 23 September 2008. The new regulatory framework would become the law in all EU Member States by 2010. The 6 most important reform proposals presented hereafter are still under discussion between the Parliament and the Council. In the first proposal it is considered that the independence of national telecoms regulators is an indispensable basis of an efficient, fair and competition-oriented telecoms regulation system in Europe, and thus the Commission wants to strengthen this independence. National regulators should enjoy financial and operational independence both from operators and governments. In the second proposal the Commission wants to give national regulators a tool of imposing functional separation when it can be shown that other remedies are not sufficient to achieve effective competition. The third proposal concerns radio spectrum management reform and the digital dividend that aim to facilitate the roll out of wireless services in Europe and, in particular, to promote innovation and achieve high speed Internet access even in less populated areas outside the main cities. The fourth reform is on the investment into new networks. The Commission considers that legal certainty and effective and fair regulation of network bottlenecks are the key factors to competition and investment in the telecoms markets. The fifth proposal concerns phone number portability, according to which consumers should be able to change their fixed or mobile operator while keeping their phone number, within 1 working day. The Commission considers this a key facilitator of consumer choice and effective competition. The sixth proposal concerns the creation of a European telecoms authority, called “European Telecoms Market Authority”, which would not replace national regulators, but would allow them a stronger and more effective role at the European level.

Source: Commission Press Release 2/9/2008

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