New European regulatory framework for telecommunications - implications


With the entry into force on 19 December 2009 of the new European regulatory framework for telecommunications, the industry sees changes to several aspects of its operation, with the European Commission (EC) ensuring that the new legislation brings fundamental reforms. Member States of the European Union (EU) have until May 2011 to transpose the new rules into national law.

With regard to market regulation, the EC highlights the following reforms introduced by the new regulatory framework:

  • Greater independence of national regulatory authorities (NRAs), through the elimination of political interference in their day-to-day running and increased protection against the arbitrary replacement of their senior management;
  • New EC powers to supervise the regulatory measures (remedies) enacted by the NRAs (for example, on the conditions governing access to the network of a dominant player or on fixed or mobile termination rates) - the objective, according to the EC, is to avoid inconsistencies in regulation that could distort competition in the single telecommunications market;
  • Granting of additional powers to NRAs to impose functional separation on operators, i.e., to impose the separation of their communication networks from areas providing services, as a remedy of last resort;
  • Reaffirmation of the importance of next generation access networks - with basis in the new regulatory framework, the Commission intends to issue a recommendation in the first half of 2010 on regulating access to NGA networks, taking into account the results of public consultations conducted in 2008 and 2009.

Fom the perspective of citizens and consumers, the Commission highlights the measures set out below:

  • Introduction of the right of European consumers to switch fixed or mobile operator in 1 working day, keeping their old phone number (portability) and significantly reducing the average time currently available in Europe;
  • Provision of better information for consumers, particularly in contracts, which, among other things, must clearly specify the minimum levels of quality of service, as well as applicable compensation and restitution in the event that these levels are not met, the options available to the subscriber with respect to the inclusion of their data in telephone directories and the criteria to qualify for promotional offers;
  • Introduction of a new legal provision on Internet freedom, determining that any measures taken by Member States in order to restrict the use or access by end-users of services and applications via electronic communications networks must respect the rights and freedoms of individuals as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and the general principles of European law. Such measures can only be imposed where these are appropriate, proportionate and necessary in a democratic society, respecting the principle of presumption of innocence and the right to privacy. A fair and impartial prior hearing, including the right to be heard, must be guaranteed, subject to the need for proper conditions and legal mechanisms in cases which are duly substantiated as being urgent in accordance with the above-mentioned Convention. The right to timely and effective judicial review shall also be provided;
  • New guarantees of ''neutrality'' and openness of the Internet, embodied in the new powers granted to NRAs to establish minimum quality standards for network broadcasting services, in order to promote the neutrality and freedoms of the network for European citizens. In addition, consumers must be informed - before signing a contract - as to the nature of the service they are subscribing to, including respective traffic management techniques and their impact on quality of service and any other limitations (such as bandwidth ceilings or available connection speeds);
  • Mandatory notification in the event of personal privacy violations - the first law of its kind in Europe - which means that telecom operators will be obliged to inform the authorities and their customers about security breaches affecting personal data. This reform aims to encourage better protection of personal data by providers of electronic communications services, which in the case of Internet access service providers, gain the right to protect their business and customers through legal action against spammers;
  • Better access to emergency services, particularly by expanding the requirements of access from traditional telephony to new technologies, strengthening the requirement that operators provide information on the location of persons making emergency calls, as well as raising awareness of 112, the European Emergency number;
  • Helping to extend broadband access for all Europeans, through more efficient spectrum management and its effective availability for the delivery of broadband services in regions where it is too costly to build out fibre infrastructure, enabling Member States to extend the requirements of universal service beyond narrowband Internet access.

The Body of European Regulators for Electronic Communications (BEREC), the new Authority which is intended to help ensure fair competition and greater consistency in the regulation of telecommunications markets, will be established subsequent to the entry into force in January 2010 of the Regulation which establishes this body. BEREC's first meeting is scheduled for 28 January 2010 in Brussels.


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