EU Telecoms Reform package 2007 Comments/ questions
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1 EU Telecoms Reform package 2007 Comments/ questions Knud Erik Skouby center for Communication, Media and Information technologies / CIT
2 The "Telecoms Reform Package main points New consumer rights, e.g. switch telecoms operators within 1 day; transparent and comparable price information; call freephone numbers from abroad; a more effective single European emergency number 112. More security in using communication networks, 7 regulated markets instead of 18 Functional separation A "New Deal" for radio spectrum A European Authority
3 Reason for introduction of regulation market failure Strong reasons Natural monopoly Public goods Weaker reasons Monopoly Dominance substitution
4 Highlights in European Telecom Liberalisation 1987: Green book on Telecommunications Cookbook for the liberalization process Overall ambition: Create a European market 1998: Year of liberalisation Each national market liberalized based on the same regulatory framework 1999: Review The process declared a success 2002: Overhaul -> 2003 Regulatory Reform Package 2006: Review of the Reform Package 2007 Reform Package
5 EU TELECOM GREENBOOK (1987): Acceptance of continued monopoly for incumbents on the on the network infrastructure Acceptance of continued monopoly for incumbents on certain services, primarily voice telephony Free competition on all other services to be offered as retailing, wholesale or reselling Compulsory standards for the network infrastructure and services Rules for access to networks, ONP (Open Network Provision); i.e., demands on incumbents to open the networks for other service providers Free competition on delivery of equipment provided that it is technically approved Separation of the tele-administrations regulatory tasks and their operative tasks (service provision) Regulation of the operative tasks especially of cross subsidization Regulation of possible abuse of dominant positions in service provision Full implementation of the general EU trade policy on the telecom area with respect to trade in telecom services with outside partners
6 EU Liberalization: Success Status after January, 1998: 1999 Review Fast Growing Market 160 bn 191 bn More Choice 218 > 600 Some Prices Down % Incumbents Still Dominate 96 % 91 % Telecom Services Market Network Operators -40 % Local Incumbents Market Share International
7 Problem: Incumbents Dominance
8 Solutions New consumer rights, e.g. switch telecoms operators within 1 day; transparent and comparable price information; call freephone numbers from abroad; a more effective single European emergency number 112. More security in using communication networks, 7 regulated markets instead of 18 Functional separation A "New Deal" for radio spectrum A European Authority
9 Investments in the Danish Telecommarket 44% 7,7% % 19,4% % 2,1% % -26,7% % -30,5% % 22,2% % 31,1% % 11,2% % 28,8% % 53,8% % -1,9% TDC ratio% Growth % Total Other TDC
10 OECD Broadband subscribers per 100 inhabitants, by technology, December 2005 Success? Denmark Switzerland Finland Norway Canada Sweden Belgium Japan United States United Kingdom France Luxembourg Austria Australia Germany Italy Spain Portugal New Zealand Ireland Czech Republic Hungary Slovak Republic Poland Mexico Turkey Greece Iceland Korea Netherlands Source: OECD DSL Cable Other OECD average
11 Solutions to BB penetration? New consumer rights, e.g. switch telecoms operators within 1 day; transparent and comparable price information; call freephone numbers from abroad; a more effective single European emergency number 112. More security in using communication networks, 7 regulated markets instead of 18 Functional separation A "New Deal" for radio spectrum A European Authority
12 Problem Relative Cost for 2.5 Gbps-connections - per km 12,0 10 different routes 11,0 10,0 9,0 8,0 7,0 6,0 Series1 5,0 4,0 3,0 2,0 1,0 0,0 Route 1 Route 2 Route 3 Route 4 Route 5 Route 6 Route 7 Route 8 Route 9 Route 10 Average Source: SERENATE
13 Relative Cost of Connectivity Compared with Number of Suppliers - GÉANT Tender Data (2004) Relative costs Trend Line 10 5 Number of suppliers Source: SERENATE
14 Solutions New consumer rights, e.g. switch telecoms operators within 1 day; transparent and comparable price information; call freephone numbers from abroad; a more effective single European emergency number 112. More security in using communication networks, 7 regulated markets instead of 18 Functional separation? A "New Deal" for radio spectrum A European Authority
15 Conclusions The specific measures looks convincing & needed Will the general measures work/ are they adequate? Functional separation A "New Deal" for radio spectrum A European Authority
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