Study dents case for EU telecoms regulator

Date: 16/09/1999

By Peter Chapman

THE telecoms industry's hopes of fending off calls for a European regulator to police the sector have been boosted by the results of an independent study into the idea.

The report says there is little support for such a move among telecoms operators, who are arguing for less - not more - bureaucracy, and concludes that the Union should "more fully develop and encourage the institutions and regime already at hand".

These include the 'high-level' group set up by the Commission to discuss regulatory issues and the independent group of national regulatory authorities which already meets on an ad-hoc basis.

Consultancy firm Eurostrategies, which compiled the study, said a survey conducted as part of its research had shown the need for greater efforts to iron out the differences in regulatory approach between member states.

Those opposed to creating a fully-fledged European regulator claim the report's conclusions, coupled with the distinctly lukewarm tone of incoming Telecoms Commissioner Erkii Liikanen's comments on the subject, could signal an end to the idea - at least for the time being.

Former Industry Commissioner Martin Bangemann suggested earlier this year that a EU-wide body would be necessary to 'co-ordinate and monitor actions taken at a national level'. This, he said, would be linked to a less rigid regulatory environment and more reliance on Union competition rules to police the market.

A paper by Bangemann's officials suggested the new body be set up similarly to agencies which already exist in other sectors, such as the European Medicines Evaluation Agency. "A variety of solutions ranging from an independent European agency to a forum bringing together the national regulators and expertise can be envisaged," it added.

But the paper was never formally launched after the Commission's resignation in March, and Bangemann's successor hinted that he was not sold on the idea in his replies to written questions ahead of his confirmation hearing this month.

Liikanen added that the Union should look at "alternative ways and means within the existing regulatory framework to achieve a level regulatory playing field".

But previous moves to create an EU body to police the sector have failed in the face of opposition from national governments anxious not to lose their influence over the former state-run monopolies.

Adrian Whitchurch, British Telecom's EU regulatory affairs manager, said the new study underlined the strength of opposition in the industry to creating a new layer of bureaucracy at a time when firms were calling for less regulation.

This was echoed by Neil Gibbs of European Public Telecoms Networks Association (ETNO), who said: "There seems to be little case for renting a new building with a big brass plate on the door saying 'European regulator'."