The general growth in the electronic communications sector showed a trend towards stabilisation, with fixed data services and mobile services being the main drivers of progress. In more specific terms, the decline of traditional fixed telephony and the increased penetration of broadband and mobile communications are evident.
In mobile services, where the 2004 growth rate was in the order of 7% and in which there are more than 379 million subscribers in the 25 member-State European Union (EU 25), we have seen a drop in the market shares of the dominant operators, an increase in portability, the launching of the 3rd generation services (3G) and a reduction in call termination charges on mobile networks in several countries. The high international roaming charges continue to be of concern to the European Commission and this matter is being analysed in the European Regulators? Group (ERG). In this field the Commission is urging regulators to complete their analyses of the call termination charges on mobile networks and the wholesale international roaming supply markets as soon as possible.
With regard to broadband, there was steady growth throughout 2004, in spite of the fact that access competition is still weak in some countries. In the latter, the Commission plans to monitor the situation and intervene if necessary. Broadband penetration varies between member-States, being higher generally in those cases where there is infrastructure competition from cable and other networks and through unbundling of the local loop.
Concerning unbundling of the local loop, we have seen a growth of 110% (totally unbundled lines and shared lines), from 1.8 million in July 2003 to 3.8 million (considering only the 15 Member State EU).
In fixed voice services there was an increase in the estimated number of operators entering the market, and an acceptance of the portability of fixed numbers, in spite of the fact that in some Member States the incumbent?s market share is still high.
In relation to interconnection, the trend is towards a reduction in fixed communication charges, although this is happening more slowly. In the mobile sector, after the intervention of the national regulatory authorities (NRA) we have also seen a downward trend in charges.
Consumers continue to see increased benefits through lower prices, greater choice and innovative services as the result of the flexibility provided by competition and the liberalisation of the sector.
