Transcript EL speech in Parnu, 20.9.2002

EU policy for electronic communications:
what does it mean for Turkey?
Richard Harris, DG Information Society
IKV 2004
Ankara, 20th October 2004
Dick Harris - 20/10/2004 -
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Agenda
• The context
• From the 98 framework to the New
• Preparing for accession
• Monitoring the markets
• Technology neutrality and universal
service
• Harmonisation and implementation
• One current issue - broadband
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Context – 1980s telecommunications sector
•
Sea of technology
•
Monopoly no longer a viable model for telecommunications
•
US market opened by anti-trust decisions 1968 - 1983
•
UK market opened by legislation 1981 - 1984
•
European Court of Justice decisions 1982-1985
•
The electronic communications acquis rests on this
•
EU Green Paper on telecommunications policy 1987
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Context – 1990s telecommunications sector
•
Liberalisation of telecomms had already begun
•
The “Information Society” gained currency
•
GSM and Internet technology arrived
•
Remaining EU monopolies abolished 1st Jan 1998
•
GATS was made, including the telecomms annex
•
For C&EE telecomms the rate of change was huge
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Context – 2000 telecommunications and IT
•
Lisbon agenda - eEurope action plans
•
Third generation mobile technology arrived
•
The Internet bubble burst
•
2002 package, designed for an open market
•
10 new members joined the EU 1st May 2004
•
Slow progress in Turkey
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From the 1998 package to the New
•
1998 designed to open markets that were dominated by a
few privileged operators
•
2002 designed to consolidate a market where competition
had taken root
•
Regulation must be reduced where possible
•
Vital transitional provisions - Article 27 of Framework Dir
•
Technological neutrality - see later
•
Harmonisation measures - see later
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Article 27 of the Framework Directive
(transitional provisions)
•
Member States shall maintain existing
notifications for the purposes of LLUB and all
obligations under national law referred to in
Article 7 of Directive 2002/19/EC (Access
Directive) and in Article 16 of Directive
2002/22/EC (Universal Service Directive)
until such time as a relevant determination is
made by a national regulatory authority in
accordance with Article 16 of this Directive.
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Article 27 of the Framework Directive
(transitional provisions)
•
Article 7 of Directive 2002/19/EC (Access
Directive) deals with rights and obligations
between operators and refers back to specific
articles of the earlier interconnection, voice
telephony and leased lines directives.
•
Article 16 of Directive 2002/22/EC (Universal
Service Directive) deals with rights and
obligations between operators and end-users and
refers back to regulation of retail telephony
tariffs, carrier selection and leased lines under
the earlier directives.
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Preparing for accession
•
Abolition of monopolies in line with treaty
obligations or with GATS - whichever is sooner.
•
Implementation of market opening and of an
effective regulatory regime.
•
Full transposition and implementation of the
acquis before accession.
•
Promotion of knowledge based economy.
•
Use of EU aid programmes where needed.
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Monitoring the markets
•
Monitoring of regulatory aspects for 13
candidates is available as a multi-client
commercial service.
•
Monitoring of commercial aspects was done for
two years under a special contract for 13
candidate countries.
•
Monitoring for the present 8 candidate and
potential candidates will start soon under a
special contract.
•
Similar work is in hand under the MEDA
program and analogous possibilities exist for
other neighbouring countries and for Russia
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Telecommunications market
indicators
Fixed lines per 100 inhabitants in EUCCs
70
60
50
40
30
36,5
39,1
34,7
37,4
35,7
34,9
29,7
29,3
30,3
24,7
54,8
54,7
31,1
34,1
19,2
20,0
28,9
26,8
41,7
41,8
28,3
27,3
0
70,0
69,0
10
35,6
36,5
20
BG
CY
CZ
EE
HU
LV
LT
MT
PL
RO
SK
SI*
TR
06/2002
06/2003
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Telecommunications market
indicators
Digitalization rate of fixed networks in EUCCs
96%
100%
91%
84%
82%
93%
90%
83%
73%
80%
60%
40%
22%
20%
0%
BG
CY
CZ
EE
HU
12/2001
LV
06/2002
LT
MT
12/2002
PL
RO
SK
SI
TR*
06/2003
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Telecommunications market
indicators - 30/6/2003
Fixed-to-fixed (single transit) lnterconnection charge (€-cents)
?
3,0
2,5
2,0
EU average: 0,96
0,89
2,40
2,61
Not applicable
3,63
1,12
2,14
Not applicable
1,07
Not applicable
0,0
1,62
0,5
0,82
1,0
Not applicable
1,5
BG
CY
CZ
EE
HU
LV
LT
MT*
PL
RO
SK
SI
TR
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Telecommunications market
indicators - 30/6/2003
42%
42%
31%
38%
33%
33%
59%
76%
78%
78%
86%
Not applicable
93%
93%
33%
52%
46%
77%
No I/C charge
34%
48%
No I/C charge
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
No I/C charge
Comparison F-to-F I/C charge to local call price
BG
CY
CZ
EE
HU
LV
LT
MT
PL
RO
SK
SI
TR
local level
single transit
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Telecommunications market
indicators - 30/6/2003
Fixed-to-mobile lnterconnection charge (€-cents)
EU average: 17,45
20
15
19,48
3,08
11,59
18,53
15,21
13,31
16,80
16,04
17,95
9,64
Confidencial
22,16
Confidencial
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BG
CY
CZ
EE
HU
LV
LT
MT
PL
RO
SK
SI
TR
5
0
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Regular report - 2004
•
There is a certain level of alignment with the
acquis.
•
Full market liberalisation was achieved at the end
of 2003 in legal terms.
•
Further efforts are essential to complete the
regulatory framework and to implement and
enforce the rules in relation to the large powerful
companies.
•
The progress achieved in some markets, such as
mobile telephony or internet service provision,
could not be achieved in all telecommunication
services.
•
Turkey needs to take further steps in order to
achieve genuine competition in all
telecommunication markets.
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Technological neutrality
•
The 2002 regulatory framework applies regardless of
the technology involved.
•
This means that mobile operators can be regulated
just as heavily as fixed operators.
•
Another consequence of this is that radio technology
can be used for basic fixed access.
•
Where fixed penetration is low, this could be very
significant, especially for GSM operators and radio
based broad band services.
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Harmonisation measures
•
To discourage fragmentation in the EU market.
•
Two kinds of measure:
• Notification of certain decisions to Brussels.
• Groups, committees and consultation between NRAs.
•
Non EU countries not fully part of this.
•
Solution needed for prospective EU members and for
other countries that choose the EU regulatory
framework.
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Implementation issues
Commission as guardian of the Treaty
• Specific notification deadlines.
• Continuous review of the transposition and
implementation of the Directives by Member
States. Dialogue, complaints.
• Public hearings.
• Annual report in November.
• Infringement proceedings.
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Implementation issues
New Regulatory Framework of 2002
• Built on the foundations of the 1998 package
• Effective implementation of 1998 is a prerequisite for the NRF
• Transitional provisions in Article 27 of the
Framework directive, maintain key parts of
the 1998 package in force until reviews have
been made under Article 16
• Notified to EU candidate countries in July
2002
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Implementation issues
Framework Directive
• explicit impartiality of NRAs and
independence from operators
• attribution of NRA tasks between
different national bodies not always clear
• give the NRA the full range of powers
contemplated by the framework
• fix
a reasonable time limit for carrying
out the first market reviews
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Implementation issues
Authorisations directive
•
conditions attached to general authorisation clearly
defined in law
•
procedures for granting rights of use of radio
frequencies must respect the principles of
transparency, non-discrimination, etc.
•
no unnecessary limits may be imposed on the
number of rights of use
•
existing limitations on the number of rights of use
of frequencies must be reviewed
•
the NRA must make adjustments to balance
administrative costs and charges and publish a
yearly overview
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Implementation issues
Access directive
•
law should not predetermine the obligations on
SMP operators without regard to market conditions
•
law should not limit the NRA’s power to impose
particular obligations on SMP operators
•
NRA should be empowered to ensure that RIO’s
contain the minimum elements
•
NRA must be empowered to intervene on its own
initiative where necessary
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Implementation issues
Universal service directive
•
•
full range of US elements must be included
•
US requirements must be neutral with respect to
competition
•
•
Rights of end-users must be fully transposed
no operator may be excluded by law from having
US obligations
Obligations may not be imposed in a retail market
unless the NRA considers wholesale remedies
insufficient
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What does this mean for Turkey?
•
Turkish policy is being overtaken by events –
political courage is now required.
•
The need is to secure an orderly transition to a
fully liberalised regime quickly.
•
Without this, the wider economy will suffer.
•
Vital that the resources and energies of Turk
Telekom are harnessed more effectively.
•
EU rules apply in exactly the same way both to
state owned and to privately owned companies.
•
Privatisation is not a requirement of EU rules but
full liberalisation is required.
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What does this mean for Turkey?
Above all, remember:
•
That a liberalised telecommunications sector is
not an end in itself
•
It is the most important building block of the
Information Society
•
When EU ministers meet, they no longer discuss
liberalisation – it is history
•
They discuss spam, IPRs, eGovernment, security
and how to promote broadband access
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Broadband
•
Why is the EU involved in broadband?
•
What is it doing?
•
What progress is there?
•
Conclusions
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Why is the EU involved?
•
Concern about economic growth
•
Concern about competitiveness
•
Concern about exclusion
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What is the EU doing?
•
Liberalisation of telecommunications
• One framework – many situations
•
eEurope action plans – Lisbon
• Education
• Content
• Trust and confidence
•
National broadband strategies
• Common elements of strategies
• Supply side policies
• Demand side policies
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National broadband strategies
•
Supply side policies
•
•
•
•
•
Importance of competition
Extending coverage to under-served areas
Monitoring the market
Research and development
Demand side policies
•
•
•
•
Aggregation
Open and inter-operable services
Intellectual property
Trust and security
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What progress is there?
See the following five slides
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Broadband penetration rates – EU15
Broadband Penetration Rates
16%
Q1 2003
Q1 2004
14%
12%
% population
10%
8%
6%
4%
2%
0%
BE
DK
DE
EL
ES
FR
IE
IT
LU
NL
AT
PT
FI
SE
UK
EU15
Source: Commission services' estimates on the basis of data provided by
Informa Telecoms Group (Sweden, 2004 from ECTA)
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Broadband penetration in the New
Member States (January 2004)
Broadband penetration in the New member States (as of 1 January 2004)
7
Broadband lines per 100 population
6
5
4.3
4
3.5
3.0
3
2.0
2
1.4
1.2
1.0
1
0.3
0.2
0
CY
CZ
EE
HU
LT
Broadband penetration
LV
MT
PL
SI
SK
EU 15
Source: COCOM (Provisional data). Data for EE refer to July 2003. LV: No data
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Broadband take-up by technology in the
EU15 - July 2002 to January 2004
Figure 2 - Broadband take-up by technology in the EU 15
July 2002 - January 2004
25.000.000
Total broadband
Number of subscribers
20.000.000
15.000.000
DSL
10.000.000
5.000.000
Cable
Other technologies
0
July 02
January 03
July 03
January 04
Source: Commission Services
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Facility-based competition (January 2004)
Figure 4 - Facility-based competition
January 2004
70%
NL
60%
share of other technologies
AT
50%
FI
PT
SE
40%
BE
IE
30%
DK
UK
ES
LU
EL
20%
IT
FR
DE
10%
0%
0%
2%
4%
6%
8%
10%
12%
14%
penetration rate
Source: Com m ission services
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DSL and cable modem coverage in the
EU15 (December 2003)
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Conclusions
•
•
•
•
•
•
•
Growth of broadband has accelerated
Wide differences between countries
Most growth is in DSL and cable
Other technologies are in evidence
Competition stimulates growth
Only rural areas have low accessibility
Scope for increased take-up is high
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Thank you for your attention
[email protected]
For more information:
See - Europa web-site
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