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HELLENIC TELECOMMUNICATIONS & POST COMMISSION

COMMUNICATIONS IN HIGH SPEED

ΕΕΤΤ NEWSLETTER

JULY 2012ISSUE Νο 33

7th EETT International Conference: The Road to Recovery is Digital

11 Proposals for the Growth of the Greek Postal Market

New Law for Electronic Communications

ΕETT NEWSLE T TER • JULY 2012 • ISSUE Νο 33

The two conferences organised this year by EETT, in April and June correspondingly, highlighted the critical role that digital investments can have in competitiveness and economic recovery efforts and hence

in the development of Greece.It is imperative that all players in relevant sectors focus on capitalizing on innovations delivered by broadband networks, the consistent transition from traditional to new generation technologies, the opportunities of the internet economy, as well as investments in the spectrum for mobile applications and digital television.Additionally, Greece’s Postal Market is rapidly heading towards full liberalization in a few months’ time. Despite the recession, the companies of the sector keep updating their networks and developing new products and services that are related to digital communications.The Government and our Regulatory Authority, by combining forces or separately, always in communication with businesses and in full compliance with the European legislative framework, must act systematically and at the same pace. The aim is to correct possible distortions and develop the relevant markets to the benefit of the consumer and national economy.Pursuing harmonious synchronization calls for new generation networks development, modern service content promotion and citizens training in using and making the most of such services lead to economy’s growth.EETT must closely but discretely monitor both the State’s legislative initiatives (providing assistance in this regard) as well as the investment policies of businesses (without getting involved in them) so as to supervise, control and regulate the relevant markets, to the benefit of the user-consumer and the recovery of the national economy. •

The Government and our Regulatory Authority, by combining forces or separately, always in communication with businesses and in full compliance with the European legislative framework, must act systematically and at the same pace.

2 Message by EETT Vice-President

3 Approval of OTE’s Reference Offer for the VDSL and ADSL Wholesale Market

4 7th EETT International Conference. The Road to Recovery is Digital

6 VDSL in Europe

8 Main article by Mr. Roberto Viola, President of the Radio Spectrum Policy Group (RSPG)

10 The New Law for Electronic Communications strengthens EETT’s competences

12 11 Proposals for the Growth of the Greek Postal Market

14 EETT’s One-Day Conference on Postal Services

15 11th BEREC Plenary Meeting

16 EETT promotes the first broadband coverage map in Greece

A New Era in Communications A Driver for Competitiveness and Recovery

By Mr. Michalis Sakkas, EETT Vice-President

ME SSAGE BY EE T T V ICE-PRE SIDEN T2

Contents

EETT Newsletter – Quarterly Publication of the Hellenic Telecommunications & Post Commission (EETT)

Issue 33July 2012Pages: 16

Responsible for the current edition by power of law: Dr. Leonidas Kanellos, EETT President

Phone Number: +30 210 615 1000Fax: +30 210 610 5049URL: http://www.eett.grE-mail: [email protected]

Editor-in-Chief: EETT Public Relations Department

Design - Production:Imprint Advertising

The newsletter is distributed free of charge. The articles published herein are not binding for EETT.


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The specific Decision was the result of the procedure for determining and analysing the Wholesale Broadband Access (WBA) Market, as well as the

selection of the appropriate regulatory measures, in accordance with the European framework for Electronic Communications. It should be noted that prior to its approval, the Reference Offer was amended by EETT in accordance with the European Framework for the development of next generation networks and fair competition principles and with the aim of protecting the rights of consumers. Specifically, the Reference Offer sets out in detail the terms, conditions, quality indicators and procedure to be followed from now on by OTE in providing WBA to third party providers for competitive VDSL product development and retail operation, so as to ensure non-discriminatory treatment, transparency and equal access to the network infrastructure. Besides the existing ADSL technology services, the Offer sets forth the provision of four 30Mbps and 50Mbps VDSL technology services from Local Exchanges or cabinets correspondingly. With respect to the text submitted by OTE, a main amendment was introduced, concerning the obligation to implement a combined request for Wholesale Leased Lines (WLL) and Wholesale Broadband Access (WBA). Through the relevant procedure, subscribers are able to have broadband access, as well as telephony services from the operator of their choice and to be invoiced in a single bill.

importance in the present time point, in which OTE will be active in VDSL technology broadband access products, given that alternative operators do not have a corresponding competitive infrastructure. Therefore, the obligation to provide WBA, on non discriminatory terms, becomes very important for maintaining the existing level of competition on the market, whilst giving consumers the flexibility to continue to receive services from the operator of their choice. Particularly as regards the launching of VDSL products by OTE, the next and final step is the submission by OTE of the information required, enabling EETT to review and approve the prices/packages sold to consumers, provided that the conditions set forth in the regulatory framework are met. With the approval of OTE’s Reference Offer, the procedure launched by EETT in the beginning of 2011 for ensuring a level playing field in the market of fixed broadband networks, creating new investments, as well as a concerted shift to new electronic communication network infrastructures in Greece, will be finalized. •

OTE’s Reference Offer for providing wholesale broadband access was approved by EETT Plenary, thus completing, inter alia, on time, its regulatory intervention for competitive VDSL services in the Greek market.

Approval of OTE’s Reference Offer for the VDSL and ADSL Wholesale Market

The Procedure

March 2011: EETT imposes interim measures on OTE to eliminate any time advantage from an early retail launch .

December 2011: EETT approves the cost-oriented prices for VDSL wholesale services provided by OTE.

March 2012: The Spectrum Management Regulation and Power Infusion at Access Networks is published by EETT to avoid any downgrading of the quality of the access services provided to the end user as a result of crosstalk, i.e., electromagnetic interaction during the transmission of xDSL signals through the network.

May 2012: EETT approves OTE’s Reference Offer for the wholesale VDSL broadband access market.

July 2012: EETT officials meet with VDSL providers to discuss and agree upon the terms and conditions on the launch of VDSL products into the Greek market.

Additionally, the simultaneous activation of the two services, as well as minimum down-time in the case of changeover has been ensured. The latter is of particular importance during a possible changeover from services provided through Local Loop Unbundling (LLU) to services through WBA or WLL. In addition, operators are able to receive broadband traffic at a point of an existing physical co-location. The above regulations take on more


Looking forward to the future, the Conference focused on broadband investments and d ig i ta l economy growth p rospec t s to the bene f i t

of the Greek economy. More than 500 executives from the telecommunications and broadcasting media market, as well as representatives from the European Union, national regulators and international organizations highlighted the market’s potential. They also discussed the need to implement a National Broadband Strategy, in accordance with the “Digital Agenda 2020” so as to achieve “broadband coverage everywhere and for everyone”. The main issues discussed were the conditions and opportunities for investment in next generation access networks, the European experience and national regulatory strategies, the course of fixed and mobile broadband markets, digital television, as well as business prospects for spectrum utilisation. Special attention was attached to the session focusing upon the framework and the business models of the Internet economy, both internationally and domestically.Professor S . Simopoulos , former Minister for Infrastructure, Transport & Networks, delivered the welcome address. He stressed that investments in the sector of electronic communications and high technology are essential drivers for competitiveness, as well as economic and social prosperity in Greece. Furthermore, he mentioned that the State’s main concern is to ensure those conditions that will improve Greece’s investment environment. Specifically, he stated that the Ministry’s main goals were to promote broadband services

through a plan for a nationwide fibre optics network and rural networks in remote areas, utilize all possible funding sources to reinforce digital infrastructure and services to citizens, speed up the digital transition and make the most of the digital dividend.Dr. Leonidas Kanellos, EETT President and BEREC Incoming Chair 2013, stressed in his speech that the road to recovery is digital to a large extent. To this end, Greece needs a “National Broadband Strategy”, with the close cooperation of all bodies involved, based on advanced broadband infrastructures and innovative digital services, measurable goals and actions. Dr. Kanellos underlined that in order to achieve “Broadband coverage everywhere and for everyone” it is required that both fixed and mobile broadband networks are developed in conjunction. Moreover, he highlighted the need for a drastic cost reduction in developing new networks, via operators’ joint investments, synergies and infrastructure sharing. Additionally, he

suggested the mandatory inclusion of a fibre-optic cable study in the documents submitted for a building permit in order to gradually create “digitally mature” buildings. Moreover, he supported the need for outward looking and flexible investment schemes for the development of open access and combined services networks with benefits for the market and the economy. The former Secretary General for Telecommunicat ions and Post , Professor Socrates Katsikas, was the keynote speaker in the second session. He underlined that despite the unprecedented crisis that Greece is

With the main conclusion being that the “road to recovery is digital”, EETT’s 7th International Conference entitled “Digital Investments for Competitiveness and Recovery” was successfully held in Athens.

7th EETT International Conference

The Road to Recovery is Digital

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The road to recovery is digital to a large extent. To this end, Greece needs a “National Broadband Strategy” with the close cooperation of all bodies involved, based on advanced broadband infrastructures and innovative digital services, measurable goals and actions.

Professor Simos Simopoulos, former Minister for Infrastructure, Transport & Networks

Dr. Leonidas Kanellos, EETT President & BEREC Incoming Chair 2013


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Session 2: Professor S. Katsikas, former Secretary General for Telecommunications and Post, MITN at the podium. Left to right: Μ. Sakkas, EETT Vice-President, Ζ. Piperidis, Chief Operating Officer, OTE Group, F. Savvidis, Chief Executive Director, CYTA, G. Kavaklis, Chief Commercial Officer, Forthnet Group, Α. Kerastaris, CEO, hellas online, Gr. Anastasiadis, CEO, On Telecoms.

facing, the Telecommunications sector is still growing, albeit at a slower pace. This fact, in combination with the assumption that ICT can be a driver for growth and contribute decisively to Greece’s effort to recover, makes it imperative that the new government continues and completes those policies that aim towards this direction. Mr. Katsikas noted that in this effort the national regulator remains a valuable partner and advisor.For the seventh consecutive year, EETT’s International Conference proved that it has established itself as a valuable institution of the telecommunications sector, as it enables the State, the

Regulator and the market to exchange their views and share ideas and best practices in regulatory, technical and business matters. The findings formulated in the context of the Conference’s proceeding will be evaluated and used so as to foster fair and competitive growth of the Greek Electronic Communications market. •

Videos, presentations and additional material from EETT’s 7th International Conference are available at www.eett.gr.

Session 5: Dr. Κ. Delikostopoulos, EETT Vice-President, R. Viola, Chairman, European Radiospectrum Policy Group (RSPG), G. Mathios, CEO, Digea S.A., M. Giatzidis, Regulatory & Interconnection Senior Manager, Vodafone Hellas, Κ. Halkiotis, Access & Transmission Networks Principal Engineer, Cosmote Group and Th. Tombras, Senior Executive of the Regulatory Dept., WIND Hellas.

Session 3: Professor. Ι. Tzionas, EETT Member, W.-D. Grussmann, European Commission, J. Coutant, French Regulator (ARCEP), B. Dospinescu, Romanian Regulator (ANCOM) and E. Kajzinger, Hungarian Telecommunications and Media Regulator (NMHH).

EETT’s President suggested the mandatory inclusion of a fibre-optic cable study in the documents submitted for a building permit in order to gradually create “digitally mature” buildings.

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Session 4: Dr. N. Papaoulakis, EETT Member, P. Economides, Owner & President, FelixBNI, K. Papadimitrakopoulos, President, Hellenic Association of Mobile Apps Companies (HAMAC), I. Chantzos, Senior. Director of Government Affairs, Symantec, P. Ikkala, Senior. Director of Regulatory Strategy, Skype, A. Monokroussos, Managing Director, ORACLE Hellas, J. Jimenez Delgado, Director Public Programs & International Relations, Telefonica.



Theoretically speaking, the line connection speed starts out at 30 Mbit/s or Mbps and reaches 200 Mbps. In practice, the actual speed, which refers to

how fast someone can download files from the internet, is always lower than the line connection speed. This is due to losses in individual parts of the telecommunications network as a result of technical restrictions and/or network architecture.The main condition that must be observed to accomplish high VDSL speed is for the Internet Service Provider – ISP – to use fibre optics in the larger part of the network up to the end user. Ideally, the ISP should upgrade the existing copper cable network to a new fibre optic network known as FTTH (Fiber To The Home). It is easy to understand

VDSL in EuropeBy Mr. Nikolaos Kyknas, Specialist in Telecommunications Regulatory Issues, EETT

In the telecommunications vocabulary, VDSL is a new entry. What is VDSL compared to the ADSL we all know? The initials stand for Very-high-speed Digital Subscriber Line. In practical terms, it means internet connection at very high speed, which in some cases can be tenfold that of ADSL.

that the creation of such a network reaching every household would be a very costly investment and this is where the problems and compromises begin.

What is the state of play in the rest of Europe?Each European country is at a different stage with respect to the development of the VDSL network. The pioneering countries – such as Germany and Finland – have installed it as early as at the end of 2006, whilst in other countries this service is not yet available. The one thing that an ISP interested to invest in VDSL cannot easily estimate, is consumer demand. With speeds up to 100 Mbps, home users can watch multiple high definition television programmes, download music or other files, play internet games and

even talk on the phone at the same time. Specialists however believe that most households will not require such high speeds in the near future. For this reason, fibre optic networks are usually set up on a pilot basis in urban centres where population density is high and where the anticipated demand from consumers is likewise expected to be high. Nevertheless, there is the example of Telekom Austria, as well as some small companies in Great Britain (Fibrestream, Rutland Telecom) that make investments experimenting in rural areas, due to the negligible interest shown by major companies in operating in such small markets. Germany, however, which is considered as one of the most mature markets in Europe, is one of the countries to adopt a very ambitious broadband strategy aiming to connect 75% of the nation’s households at speeds of at least 50 Mbps by the end of 2014. Of course, Germany, as a telecommunications market, has certain particularities that give rise to different competition conditions. Nationwide, besides the predominant telecommunications operator, approximately 100 alternative operators operate on a local level, that – one after the other – offer competitive VDSL triple play packages, including fixed telephony, internet and television. At the same time, more than half of the households in Germany are connected to a cable television network, which in turn have also started to offer internet connection with speeds up to 100 Mbps, thus creating extremely stiff competition conditions, but also offering multiple choices to consumers. In Great Britain also, BT has already made an important investment in fibre optics, as of mid-2009. It started in the major urban centres and has already covered 25% of the country, aiming for 66% by the end of 2014. For this purpose, it is ready to spend more than 3 billion euros, whilst in order to speed up the process of setting up the network it has hired 520 new engineers. Along with BT in Great Britain, six more ISPs have joined the VDSL trend, one of which is a state “company” which is subsidized by the European Union. There


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is also a state subsidy for investments in fibre optics realised in Finland, despite the fact that there are seven more VDSL telecommunications operators already operating.

How many Mbps is my actual speed?As stated above, the final quality of the service offered to the consumer is not the same in each case and depends, inter alia, on the height of the investment made by the telecommunication operators. In most European countries, operators invest in a fibre optics network to the cabinet (i.e., the operator’s box in each neighbourhood), the result being that only the last few metres – from the cabinet to the consumer’s home – are being served by the existing copper network. Certain ISPs however, as is the case in Austria and Norway, choose to restrict the investment in the fibre optics network and offer VDSL from the Local Exchange (the building of each operator in the area). This means that the connection of all consumers with the Local Exchange (which may be a few kilometres away) is done over the traditional copper cables, resulting in lower quality and lower actual connection speed for the consumer. This solution has in practice been adopted by very few operators, as the comparative advantage of higher speed with respect to ADSL is lost if the consumer is located at a distance greater than 800 meters from the Local Exchange. •

With speeds up to 100 Mbps, home users can watch multiple high definition television programmes, download music or other files, play internet games and even talk on the phone at the same time. Specialists however believe that most households will not require such high speeds in the near future.

ELEC T RONIC C OMMUNIC AT IONS


Until a few years ago, spectrum management was an issue reserved to engineers . Now the percept ion i s profoundly changed, first

because it has been realized that without radio spectrum there is no modern civilization: airplanes cannot fly, trains cannot run and people cannot communicate. Second, because administrations have appreciated the economic value of spectrum, that is not only a way to cash some money, but also a primary means to reach ambitious goals of growth for Europe. The intelligent use of radio spectrum goes much beyond telecommunications and it is something that permeates our life and our society. But spectrum is also a scarce resource: there is not enough spectrum for every user and every service. The main problem for a policy maker is how much, for how long, to which services and to whom, he should give spectrum. Spectrum policy has hence become a dilemma of efficient allocation. In this context and in the European Union, the RSPG plays a fundamental role in facing these challenges and shaping the new policy.

RSPG and the New EU Spectrum Policyby Mr. Roberto Viola, President of the Radio Spectrum Policy Group (RSPG)

The Radio Spectrum Policy Group (RSPG) was created by a European Commission Decision in 2002 and was amended in December 2009. Comprising the national spectrum authorities of the 27 EU member states, the RSPG provides the Commission and other EU institutions with advice on high level policy matters in relation to spectrum. At the request of the Commission of the European Parliament and/or the Council or at its own initiative, the Group can adopt Reports and Opinions on key issues in spectrum matters.

In presenting spectrum policy, we should look at what is the ultimate goal of allocating spectrum. When thinking especially at telecoms and broadcasting, the ultimate goal is not to make money with the award of licenses, as sometimes the financial value of spectrum seems to imply, but to make sure that our broadband communicat ion sys tem works efficiently along the entire value chain and supports the whole economy. As in other sectors, taking in isolation the 27 economies of the EU, it is easy to find that none of them can compete in the global arena. If considered instead as a big broadband space, Europe would be absolutely competitive with other global economies. Europe is then fit to recoup the leadership in spectrum related technologies it used to have at the GSM time.Under Agcom chairmanship 2012-2013, RSPG intends to contribute to realize this objective. We have now a new tool fit for the purpose; the recently approved Radio Spectrum Policy Programme (RSPP). RSPG is committed to help turning it in practice with its new Work Programme for 2012 and beyond.

One of the high priorities is to find more spectrum for advanced applications, especially for broadband, as spectrum is needed for everything that is connected. Wireless is fundamental for cloud computing for example, for the Internet of Things and of people, for the way we make business and communicate. In this perspective, the RSPP has set an ambitious objective of making available 1.2 GHz of band for wireless broadband for 2015 and is working on analyzing the options and suggest a roadmap to reach it.RSPG intends also to examine the likely development of a number of categories of services (intelligent transport, smart energy grids and meters, safety and public protection, scientific research, etc.) to identify emerging spectrum needs, with the idea to also foster generic allocation and avoid stand-alone sector specific solutions.Probably for the future we need to make available more spectrum in innovative ways. So far spectrum management has meant an exclusive allocation to certain users: mobile operators, broadcasters, aeronautical people, military, etc., each concerned with the avoidance of any interference in the assigned band, considering it their own private property. Now, demand far exceeds the availability and policy makers should consider developments towards sharing of this scarce resource, making normal to tolerate to some extent each other’s interferences. No application uses all allocated spectrum in everywhere and for all the time, so there are ways of exploiting all dimensions of the spectrum utilization and creating more resources. RSPG already published a number of Opinions and Reports on this issue and intends to continue the work to create a favorable regulatory playing field that can really make sharing a new deal in spectrum policy.To enable spectrum sharing among heterogeneous sys tems and to in t roduce increas ing ly f lex ib le

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2012 as a candidate for wireless broadband, the 700 MHz. This band is really interesting because it is globally allocated to mobile and can allow worldwide economies of scale. The decision to allocate it to broadband as co-primary with the current use of broadcasting will enter into force after the next Conference in 2015. So it is fundamental for EU to open now the discussion on the future of the band and to make an appropriate decision in a coordinated manner as early as possible. In the preliminary debate held in RSPG we have started to discuss four possible scenarios on the 700 MHZ band:1) Allocated to broadcasting services2) Fully refarmed for mobile

broadband usage3) Shared use between broadcasting

and mobile services4) Used for fully converged mobile/

broadcasting servicesApart from the first scenario, that seems not very appealing, all the other require cooperation between users: there will be no evolution of broadband without a parallel evolution of broadcasting technology. This means for example moving from multi-frequency to single-frequency networks, from DVB-T1 transmission technology to T2, from MPEG2 to a much more efficient compression techniques, such as MPEG4 and HEVC, that will even allow super high definition TV. It is not yet clear how the fourth scenario of network convergence, DVB with LTE, will look like, but that will imply the convergence of policies as well. Although it cannot be predicted in details how market will evolve, it can be anticipated that efficient use of spectrum will be essential to foster innovation and growth. Harmonization of rules and utilization of best practices in spectrum allocation will highly benefit European citizens and the competitiveness of the European industry. •

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conditions of use, the issue of efficient interference management needs to be dealt as well. The work of the RSPG will identify principles and approaches for efficient interference management, also leveraging member states best practices and promoting improved receiver standards.Another major issue is the cross border coordination which poses another degree of challenge in spectrum policies. In EU, the RSPP states that as per 01/01/2013 the 800 MHz spectrum should be freed and released for 4G, the advanced broadband systems. There are however many cases where member states are not in position to comply with this provision, also due to problems of coordination within EU or with countries outside EU. In this matter, RSPG has already introduced a new possibility, a system of mutual help, a third party advice that we call “good offices” potentially helpful to limit the need for member states to ask derogation to that target date. This framework can be used in future also in the new band identified in the recent World Radio Conference

The intelligent use of radio spectrum goes much beyond telecommunications and it is something that permeates our life and our society. But spectrum is also a scarce resource: there is not enough spectrum for every user and every service. The main problem for a policy maker is how much, for how long, to which services and to whom, he should give spectrum. Spectrum policy has hence become a dilemma of efficient allocation. In this context and in the European Union, the RSPG plays a fundamental role in facing these challenges and shaping the new policy.


The New Law for Electronic Communications strengthens EETT’s competences

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The five basic pillars of the new Law are the following: a) It retains the existing model of ex ante regulation, based on market analysis ,

which has been proven the best way to promote competition, investments and innovat ion in Electronic Communications. EETT continues to possess all the means to foster competition set out in Law 3431/2006, which was already in effect, also taking into account the need for risky investments to generate an adequate return on capital . Additionally, functional separation is introduced as a new remedy of last resort, which could improve competition where problems and bottlenecks persist and where other non-discrimination remedies are not effective. Regulation in the sector, after the revision of the 2003 Recommendation on Relevant Markets can thus focus on wholesale markets, where the key bottlenecks for effective competition still remain. b) It introduces significant reforms in radiofrequency spectrum management and more flexibility for companies operating in wireless communications, with respect to the technology that they will choose and the services that

they will provide. These regulatory provisions will foster competition and radiofrequency spectrum users will be burdened to a smaller extent by unnecessary regulatory restrictions. This will encourage investment and enable operators to introduce new technologies in the radio spectrum bands where they hold rights of use, thus making it practical to deploy new technologies and increasing their uptake by consumers through more choices and lower prices. Moreover, the new Law gives EETT the competence to manage the radiofrequency spectrum destined for digital terrestrial broadcasting services. Also, the provisions, recently enacted as amendments to Law 3431/2006, remain in effect for more effective and faster licensing of antenna constructions, as the procedure followed until now had proven extremely time consuming. The new procedure sets an One-Stop Shop, while EETT is the service hub. Interested parties will address themselves exclusively to EETT, which within four months, will issue a construction license or will grant a certificate stating that the application was complete, following approval of other bodies involved. The System for

By Mr. Giorgos Kolyvas, Head of the Telecommunications Regulation Department, EETT

In April 2012, the new Law 4070/2012 was enacted, which transposes European Directives (2009/140/ΕC1 and 2009/136/ΕC) of the European Parliament and Council into Greek Law. The Directives pertain to the review of the European Union’s regulatory framework for Electronic Communications networks and services. The new legislative regulations included in the Law create a transparent and easy to use framework for communications and ensure better quality of services for consumers.

Electronic Submission of Application will play a central role in the One-Stop Shop process, which will accept and support their management by the competent bodies.c) It transposes to national law amendments introduced by European Directives in the market analysis process. Specifically, the current market review process helped create and strengthen the single Electronic Communications market at a European level, achieving a large degree of consistency, particularly with respect to market definition and analysis procedures. However, it has been noted that the corresponding level of consistency has not been reached with respect to regulatory obligations imposed by National Regulators to operators with Significant Market Power (SMP). The National Regulators, even though choosing from a common list of available regulatory obligations set forth in the regulatory framework, follow different approaches in the tactics deployed to tackle market failures. This makes things a lot more complicated and results in a higher cost of managing 27 different regulatory approaches. The European Commission ascertained that fragmentation of regulation and the inconsistencies in the National Regulators’ actions threaten not only the competitiveness of the market sector, but also greatly reduce the benefits for consumers from cross-border competition. The Commission attached great importance to the cont inued lack of an internal Electronic Communications market, and within this context, proceeded to: a) reform the regulatory framework so that it can request an amendment or even withdraw draft measures, in case that it finds them inadequately substantiated and b) establish the Body of European Regulators for Electronic Communications (BEREC). BEREC takes on an advisory role in the market analysis process, mainly at a technical level with respect to the consistency



of proposed regulations, before the European Commission reaches a Decision. This, in combination with the European Commission’s oversight of regulatory obligations imposed by National Regulators, is believed to bring about stronger cohesion to the European Electronic Communications market. d) It updates and strengthens consumer protection provisions through Universal Service revisions. The amendments introduced aim at ensuring better information with respect to terms of service, as well as transparency in charges. Additionally, EETT has the power to impose obligations on all operators (not only the designated Universal Service Provider) to provide disabled end-users equivalent access in certain Electronic Communications services, on a case by case basis. There are also provisions that ensure consumer access to emergency services and other social interest services, as

well as certain provisions that ensure access to disabled end-users. Updating and strengthening the users’ rights –including disabled end-users– and consumer protection provisions take into account technological and market developments thereby offering all users enhanced choice and legal certainty. Consumers will benefit by being better informed about prices and services. Increased use and easier access to communications services will lead to higher social participation for users with disabilities and/or special needs as well as the elderly. e) It updates and strengthens the current privacy and security provisions. These provisions will benefit consumers with higher quality and security of networks and services, as well as more information and transparency, so as to encourage the uptake of Information and Communication Technologies (ICT). •

Updating and strengthening the users’ rights –including disabled end-users– and consumer protection provisions take into account technological and market developments thereby offering all users enhanced choice and legal certainty.


The findings of the study were based on interviews with the sector ’s players (postal companies, major cl ients, public services), as well as on

the benchmarking of the Greek Postal Market against the corresponding European ones. In addition, the needs and parameters that form the appropriate conditions for the operation of postal services in Greece were also analysed. Moreover, trends and proposals were recorded on behalf of the users for the provision of new or upgraded services, particularly with respect to the dynamic development presented by e-commerce, both in Greece and the rest of Europe. While planning and carrying out the study, the most recent postal EU Directive was taken into account, as well as the recent postal law, which focuses on the complete liberalization of the postal market and assigns new competences to EETT, so as to ensure a sound competition environment, as well as to enhance the services offered to the consumer. The findings of the study, as reported by the consulting firm, DIADIKASIA SA, outline the anticipated benefits, the actions required and the conditions for their implementation by the involved bodies. As recession continues, companies are focusing on growth opportunities, cost reduction the provision of competitive or innovative products. Specifically, as derived from processing the answers, the main factor for the recovery of the postal market and the development of sound competition is the change of the VAT implementation framework for postal services with a restriction of VAT exemptions to single

11 Proposals for the Growth of the Greek Postal Market Recently, EETT presented eleven proposals for the competitive growth of the Greek Postal Market, following the completion of an analytical study on the needs and prospects of the sector. The study was conducted by a consultants’ firm and in view of the forthcoming liberalization of the postal sector.

All postal companies agreed that the reorganization of the postal code system and the development of their centralized administration, with the responsibility of EETT, as well as free access to the system by all interested parties constitute the most important factors for improving services to consumers, particularly those who use the internet for their purchases.

piece postal items within the Universal Service (US). The second important factor underlined by the companies was the initiatives taken by EETT and the implementation of actions for redefining the scope of services falling under US with respect also to the definition of the Individual Licenses. Through regulation, the content of US may be adapted according to users’ needs, distortions are avoided and investor interest in the postal market is increased. The regulation of postal companies’ access to the public postal network of the Universal Service Provider (USP) is considered to be the factor with the greatest impact on reducing cost, positive impact on consumers and large social and environmental benefits. Fair competition is fostered by increased capacity for commercial growth of postal companies through synergies with the USP, whilst at the same time USP’s commercial activity is strengthened.In order to enhance competitiveness and development in the sector, the companies proposed free access of privately owned Trucks to the centre of Athens, the creation of temporary parking places at central points in Athens and the possibility of issuing licenses for privately owned trucks over four tons. These are three issues which would substantially contribute to eliminate institutional restrictions, increasing investor interest and flexibility of postal companies in managing and utilizing their resources. All postal companies agreed that the reorganization of the postal code system and the development of their centralized administration, with the responsibility of EETT, as well as free access to the system by all interested parties, constitute the most important factors for improving services to consumers, particularly those who use the internet for their purchases.Two issues that the companies consider to be of utmost importance for promoting fair competition and synergies in the postal market, as well as improving postal services delivered to end users, are: a) the existence of an independent quality measurement mechanism for

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services delivered, under the supervision of EETT, through which they would be able to promote themselves to the market and b) the incorporation of provisions in the new EETT Regulatory framework for issues related to the control and tackling of contribution payment evasion. Moreover, the companies touched upon the issue of applying up to date customs procedures for all companies in the sector, separating the physical liberalization of dispatched items from customs clearance, accelerating the implementation of electronic customs (ICISnet), adopting the institution of the Authorised Economic Operator and making use of the recent law on the liberalization of professions, which also includes that of the customs agent. These actions will improve the speed and cost of customs clearance procedures for postal companies and, as a result, will increase their competitiveness.With respect to postal services users, it was stated that the balance struck between quality of service and cost of services and meeting the users’ needs, especially with regard to e-commerce packages, could well be what is needed to give a boost to postal market development. Also, users consider the existence of a Track and Trace system, the timely delivery within the predetermined time and a system for easy and inexpensive return of items,

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as the three most important factors for quality postal services. With respect to giving a boost to the postal market, they propose to the USP to improve the services delivered to its customers, maintaining its “friendly” prices and for private providers to offer services at reasonable prices retaining at the same time the high level of customer service.

In the context of its institutional role and based on its reinforced competences s temming from the new legal framework, EETT, in collaboration with the competent bodies and the market, will use the findings and proposals of the study, in order to form and promote beneficiary initiatives for the sector’s further development. •

11 Proposals for the Growth of the Greek Postal Market

1. New VAT application framework for postal services.

2. Redefinition of Universal Services’ (US) scope and of the mechanism for the US net cost sharing between providers.

3. Regulation of postal companies access to the Postal Network.

4. Free access of privately owned trucks to the centre of Athens.

5. Creation of temporary parking places for postal vehicles at central points of cities.

6. Possibility to issue licenses for trucks over 4tn.

7. Reorganization of the system and development of a centralized Postal Code (PC) management.

8. Tackling the contribution payment evasion by postal companies.

9. Establishment of quality measurement procedures for postal services.

10. Up to date, competitive and effective customs clearance procedures for all postal companies.

11. Balancing the quality of customer service with the cost of services and emphasizing on e-commerce.


P OS TAL SERVICE S14

Growth opportunities in the context of the market ’ s upcoming l iberal izat ion, changes arising from the new regulatory framework, market

developments, as well as consumers’ benefits were the key issues that were addressed and discussed during the Conference.Mr. Michal is Sakkas , EETT Vice-President for the Postal Services sector, in his welcome address, focused on the challenges brought about from market liberalization, particularly under the

the enactment of the new postal law and the increased competences of EETT set forth therein, with the purpose of the sector’s competitive development and the safeguarding of Universal Service (US). Commenting on the course of the postal market, during 2011, Dr. Kanellos invited the companies of the sector to reverse the climate, adopting a more flexible and “customer focused” approach, which attaches importance to technological and commercial innovation, adds value and addresses user needs.In his welcome address the former Minister of Infrastructure, Transport & Networks ((MITN), Mr. Makis Voridis, referred to the new postal law that transposes the European Directive into national legislation, which sets forth, inter alia, the abolishment of the existing Hellenic Post (ELTA) monopoly and the full liberalization of the postal market. According to Mr. Voridis, the enactment of the new law constitutes a successful example of timely and correct transposition of a European Directive into national legislation. The Ministry promptly commenced the drafting and consultation procedure for the draft law, with substantial involvement on behalf of stakeholders, that resulted in very important improvements. Moreover, the Law’s enactment took place prior to the deadline set in the Directive. The Chairman of the Postal Operations Council (POC) of the Universal Postal Union (UPU), Dr. Andreas Taprantzis, keynote speaker in the third session of the Conference, stressed that the liberalization of the postal sector will have a very positive effect on development, reinforcing the efforts of all postal providers for innovation and hoping to achieve cost savings, improvement of services’ quality as well as generate revenue.During the conference, distinguished speakers expressed their views, including L. Hindryckx, Vice-Chairman of the European Regulator Group for Postal Services (ERGP), high level officials from European regulators, representatives of the Greek and European postal services market, as well as the business world, and EETT executives. •

EETT’s one-day Conference entitled “Last Mile towards the Liberalization of the Postal Market: new facts, new initiatives, new products” was successfully held in Athens, on 25 April 2012.

EETT’s One-Day Conference on Postal Services

Mr. Makis Voridis, former Minister of Infrastructure, Transport & Networks

current economic conditions. Moreover, he highlighted the next stage of the secondary legislation’s preparation by EETT, in collaboration with the Ministry of Infrastructure, Transport and Networks (MITN), the Universal Service Provider (USP) and market companies.Next, the President of EETT and Incoming Chair of the Body of European Regulators for Electronic Communications (BEREC) for 2013, Dr. Leonidas Kanellos, underlined the critical point at which the postal market finds itself. He mentioned the importance of

From left: Professor P. Kottis, EETT Member, S. Dandolos, Business Operations General Manager, ELTA SA, M. Tomruk, Deputy General Manager Softaktif Yazılım Ve İletişim Hizm SA, Turkey, Dr. A. Triantafyllakis, Partner, Diadikasia SA, Professor S. Kapros University of the Aegean & Member of the Supply Chain Committee, A. Tsalta, Postal Services Expert, EETT

From left: Dr. C. Delikostopoulos, EETT Vice-President, L. Hindryckx, Chairman of the Council, Belgian Institute for Postal Services and Telecommunications & ERGP Vice-President, Β. Stoeva, Head of Postal Services Dept., Communications Regulation Commission, Bulgaria (CRC), Ch. Varsamis, Chairman & CEO, ELTA, G. Agoranos, General Manager, Speedex ΑΕ, Ch. Apostolou, Postal Services Director, EETT

Dr. Leonidas Kanellos, EETT President & BEREC Incoming Chair 2013

Mr. Michalis Sakkas, EETT Vice-President


IN T ERNAT IONAL REL AT IONS 15

International Roaming comprises an exceptionally current issue, in view of the adoption of the new European Regulation of 28 March 2012. The Regulation sets forth, inter alia, a

significant drop in wholesale and retail prices, the extension of the obligation to inform consumers from non-EU countries, as well as the implementation of a set of structural reforms, with the purpose of opening up the market and fostering competition. These also include access to the Internet via a mobile phone, directly from a local operator and therefore on the basis of the local price list and without roaming charges, the mandatory provision of wholesale services, on the basis of a reference offer and the consumer’s ability to opt for roaming services by a different operator. In this context, BEREC’s team of experts has undertaken the task to prepare guidelines for carrying out the provisions of the new Regulation, particularly with

11th BEREC Plenary MeetingThe 11th BEREC Plenary Meeting which took place on 24-25 May 2012, in Zagreb, Croatia, focused on Network Neutrality, as well as a series of other issues, such as International Roaming and the procedures for adopting Article 7/7a of the Framework Directive.

respect to opening up the market. Article 7/7a of the Framework Directive aims at ensuring compatibility of nat ional regulatory measures with European legislation. The new revised Regulatory Framework gives BEREC a central role in the relevant process. Specifically, it is called upon to formulate a reasoned opinion for each case in which the European Commis s ion expre s se s s e r ious reservations on the compatibility of the national regulatory decision with European Law. Almost a year after the new European Regulatory Framework on Electronic Communications entered into effect, BEREC has already been found to have collaborated successfully with the European Commission, as wel l as the involved Nat iona l Regulatory Authorities for the effective implementation of Article 7/7a.With respect to Network Neutrality, B E R E C a d o p t e d t h e r e s u l t s o f a n

extensive survey on traffic management or other practices which may restrict the open use of the Internet in Europe. The survey was conducted together with the European Commission and was based on a questionnaire that was answered by more than 400 European fixed and mobile telephony operators. According to the survey, the majority of the operators does not impose any type of restrictions to applications or services, but adopt practices such as blocking or throttling of peer-to-peer or VoIP traffic, which could have negative impact on users. In addition, at least 20% of the mobile Internet services users are subject to some type of restriction, with respect to using VoIP services.At the same time, three texts were approved for Public Consultation, which take a close look at Network Neutrality, particularly with respect to (a) the operation of competition, (b) IP interconnection and (c) ensuring quality of service.On the basis of these three tasks, BEREC draws three main conclusions with respect to Network Neutrality:• Competition is expected to discipline

operators and result in the improvement of service quality for consumers. A critical factor in achieving this is market transparency and consumers’ ability to switch service providers.

• Both NRAs and consumers should be able to effectively monitor the performance of the Internet access service, and of the applications used via that.

• The existing regulatory tools appear initially to be sufficient (even though they have not been fully tested yet) to tackle problems related with Network Neutrality in the event whereby competition and transparency are proven inadequate. The Regulatory Author i t ies a re ready to ac t i f necessary.

BEREC is committed to the open Internet and continues to closely monitor market developments and sets as its primary goal to ensure that Regulatory Authorities possess the necessary tools to respond fast and effectively to any demands. •

The new SPEBS edition offers improved and more user friendly applications for the evaluation, geographical mapping and comparison of quality features of

broadband ADSL and VDSL connections by the users themselves. The upgraded System offers the user the “ g l a sno s t ” (Tr an spa r ency ) t oo l that checks if the telecommunications operator applies selective settings in data package traffic (“Network Neutrality”), which stop users from

EETT promotes the first digital map for broadband coverage in GreeceFollowing the recent upgrade of the “System for the Performance Evaluation of Broadband Connection Services” (SPEBS), EETT invites users to contribute with their measurements to developing the first digital map of broadband coverage in Greece.

ELEC T RONIC C OMMUNIC AT IONS16ΠΛΗΡΩΜΕΝΟ

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the Institute of Communication and Computer Systems (ICCS) of the National Technical University of Athens (NTUA), the Greek Research &Technology Network (GRNET S.A.) and the international joint venture Measurement Lab (M-Lab). •

For more information, please visit http://broadbandtest.eett.gr/

fully utilizing the connection speed. An additional auxiliary program is M-Lab Notifier, which reminds and facilitates the frequent measurement of broadband connections, whilst it also assesses the connection quality over time. In addition, users can compare their actual speed to the maximum speed that their connection theoretically should support, depending on the distance to the closest Local Exchange. SPEBS was developed by EETT in collaboration with researchers of

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