Single telecoms market vision to become reality

Date: 13/12/01

By Peter Chapman

THE European Commission has sealed victory in its battle to create a single EU telecoms market for the 21st century.

MEPs voted yesterday to accept a deal brokered by the Belgian Minister Rik Daems giving the Commission the power to veto decisions taken by national regulators which Brussels fears would create barriers to trade.

The agreement, which paves the way for slew of new laws, marks the end of a power struggle between member states and the Commission. Telecoms chief Erkki Liikanen hailed the agreement as "a major boost for Europe's future economic growth".

The deal also represents a victory for MEP Reino Paasilinna, who scrutinised the key framework directive and backed the Commission's position. "It is a great day because the package is implemented as we wanted," he said. New laws governing the whole communications sector will enter into force in 2003.

Liikanen said the Commission's right to veto national authorities would ensure a better deal for consumers: for example, it would mean cheaper bills for mobile phone users abroad.

"There are large differences in complex rules where consumers pay the cost," said Liikanen.

There were some setbacks for the Commission: it failed in its bid to extend its new right of veto to cover the way member states carve up the airwaves for mobile telecom firms.

But Liikanen said there would in future be more coordination between governments to avoid a repeat of the shambolic sell-off of licences for 3G mobile services.

"I don't want to create heart attacks in capitals, but next time proper consultation will take place," he added.

The key developments were welcomed by business.

John Dickie, manager of regulatory affairs for the European Competitive Telecommunications Association, said: "If we think of politics as the art of the possible, this was a great outcome."

Other aspects of the package agreed yesterday include:

• Satellite TV service providers to offer "fair access" to public service broadcasts.
• The removal of barriers which currently prevent TV content providers from selling their programmes to all digital TV subscribers.
• Moves to improve access by encouraging the use of compatible software technology for digital set-top boxes - although such standards will not be mandatory.

British Conservative MEP Malcolm Harbour, rapporteur for the proposals covering universal service, praised the role of Daems in achieving the breakthrough.

The European Commission has sealed victory in its battle to create a single EU telecoms market for the 21st century. MEPs voted on 12 December 2001 to accept a deal giving the Commission the power to veto decisions taken by national regulators which Brussels fears would create barriers to trade.

European Commission: Information Society: Telecom http://ec.europa.eu/information_society/topics/telecoms/index_en.htm

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