DG Information Society 1 Liberalisation and regulation in Electronic Communications in the EU 2nd...

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DG Information Society

Liberalisation and regulation in Electronic Communications in the EU

2nd ICT SummitIstanbul, 3-6 September 2002

Hans-Peter GebhardtDG Information Society

EUROPEAN COMMISSIONEUROPEAN COMMISSION

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1. The Benefits of Liberalisation 1. The Benefits of Liberalisation since 1998since 1998

Number of operators and consumer

choice

Rebalancing of (retail) tariffs

Market shares

Key market indicators:

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Almost 1600 operatorsAlmost 1600 operators

223388

475

195 244461

562

166

281

468

555

0

100

200

300

400

500

600

Local calls Long-distance calls International calls

EU operators actually offering public voice telephony

Aug. 1998 Aug. 1999 Aug. 2000 Aug. 2001

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Consumer choice in voice Consumer choice in voice telephonytelephony

8

14

6

12

10

14

0

5

10

15

Local calls Long-dist./Int'l calls

2 operators 3-5 operators More than 5 operators

Number of Member States where 100% of the population has a choice between:

Source: NRAs and European Commission

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Cost of international callsCost of international calls

EU weighted average cost of an international call1.3

3

1.1

3

1.0

2

0.8

1

1.8

4

1.5

7

1.4

3

1.1

8

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

1998 1999 2000 2001

€ /

PP

P

Business, excl. VAT

Residential, incl. VAT

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Local and long-distance call charges Local and long-distance call charges (3 min)(3 min)

Local call Long-distance call

13,33 13,04 13,51 14,55

72,69

57,91

45,5240,31

0

10

20

30

40

50

60

70

80

Aug. 1998 Aug. 1999 Aug. 2000 Aug. 2001

€-ce

nts

, V

AT

in

clu

ded

EU15 weighted average

Source: Teligen

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International Leased linesInternational Leased lines

Price trends 1998 - 2001

Average price variations, 2 Mb/s

0%

-12%

0%

-23%

-30%

0%

-33%-29%

-40%

-11%

-16%

-28%

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

1998 1999 2000 2001

% c

han

ge

sin

ce 1

998

2 Mb/s to near EU

2 Mb/s to far EU

2 Mb/s to USA

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Market shares (voice telephony)Market shares (voice telephony)

EU incumbent operators' averageEU incumbent operators' averagecall market shares call market shares (by revenue)(by revenue)

EU incumbent operators' averageEU incumbent operators' averagecall market shares call market shares (by revenue)(by revenue)

90%

80%

71%

50%

60%

70%

80%

90%

100%

Local calls Long-distance calls International calls

1997 1998 1999 2000

Source: NRAs and European Commission

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Market shares (mobile)Market shares (mobile)

EU average mobile operators' market share

0%

20%

40%

60%

80%

100%

1998 1999 2000 2001

Leading operator Competitors

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OutlookOutlook

Liberalisation successful, but:

Full and consistent application of current framework essential

Progress in local loop unbundling crucialLeased line prices and provisioning times

need to be brought down even further

More flexible regulatory environment in future

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2. The New EU Regulation2. The New EU Regulation

A successful legal framework will:

Attract investment, by- encouraging market entry- providing legal certainty - restraining firms with undue market power- keeping regulation to the minimum necessary

Promote choice and competitionSafeguard users interests, where market

forces do not

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Content Services - outside scope of new framework

(e.g. broadcast content, e-commerce services)

Electronic communications Electronic communications networks and services - Scopenetworks and services - Scope

Communications services (e.g. telephone, fax, e-mail)

Communications networks (fixed, mobile, satellite, cable TV, powerline systems, networks used for radio and television broadcasting)

and associated facilities (e.g. CAS)

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Players to be regulatedPlayers to be regulated

Undertakings with a dominant position in an identified market where competition is not effective

NRA designates such players as having SMP and imposes appropriate obligations

Commission can block NRA decisions regarding designation, or not, of undertakings with SMP

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Market entry proceduresMarket entry procedures

Market entry needs no prior permission

Conditions are set out in general authorisation, and are limited

Individual rights-of-use of frequencies and numbers assigned via individual authorisations

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National Regulatory AuthoritiesNational Regulatory Authorities

Rapid decision-making / dispute resolution

Systematic appeals mechanismsPower, clarity of address, resources,

skills

Effective implementation of regulation requires:

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Data Protection Directive

Unbundled local loopRegulation

Spectrum

Decision

(Art. 95)

The new packageThe new package

Liberalisation

Directive

(Art. 86) Framework

Directive

(Art. 95)

Authorisation Directive

Access & Interconnection Directive

Users’ Rights Directive

1.1.2001

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FOR MORE INFORMATION

On DG Information Society:

http://europa.eu.int/information_society/topics/telecoms/index_en.htm

On the new legislation:

http://europa.eu.int/information_society/topics/telecoms/regulatory/new_rf/index_en.htm

On the 7th Implementation Report:

http://europa.eu.int/information_society/topics/telecoms/implementation/annual_report/7report/index_en.htm

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