Carlota Reyners Fontana - Cabinet EC VP Neelie Kroes

The context
 Telecoms sector can significantly contribute
to creating growth and jobs and is key lever
for EU competitiveness and innovation.
 But, sector is in bad shape and EU is lagging
behind compared to other regions.
 The Single Market is the crown jewel of
Europe but the telecoms market is excluded
 EU single market in electronic communications
= annual 0.9% GDP/€110 billion
 Urgent to act now
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Source: Cisco; IDC
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Europe lags behind other parts of the
world in broadband investment
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Europe is falling behind in mobile: from 3G
leader to 4G follower
US vs. Europe 4G Population Coverage
Source: Sanford C. Bernstein, based on company reports, Eurostat, US Census Bureau &
Bernstein Analysis
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European fixed broadband networks not fast
enough to keep up with our main competitors
Average Delivered Broadband Speed (Mbps)
Source: Sanford C. Bernstein, based on Bernstein Analysis and ITU
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It's not just about Telcos
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The vision
 To establish a borderless European
connectivity market for telecoms
companies, businesses and consumers.
 To promote the roll-out EU-scale networks
supporting a competitive digital single market,
and leading to a lessening of ex ante
regulatory pressure.
 Making Europe an attractive home for web
entrepreneurs, device makers, and all
international businesses.
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How and for what?
A serie of targeted regulatory measures directly
applicable with no need for transposition
 Main objectives:
To foster market integration and cross border
provision of services
Promote incentives to invest in NGA networks
End discrimination for business and end users
Ensure same high level of consumer protection
in the EU
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Adoption Timeline
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Telecom Single Market proposal
 Single EU authorisation
 European inputs for high-speed broadband
 Wireless: spectrum coordination, facilitation of small cells
 Fixed : standardised access products
 Measures to promote further regulatory
predictability and consistency across the EU
 Single consumer space
 Harmonised end users´rights and easier switching
 Open internet: net Neutrality
 Phasing out roaming
 BEREC
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Single EU authorisation
• Objective: To reduce red tape and obstacles for
operators intending to provide services in several
MS, particularly important for smaller ones.
• How: By setting up of a one-stop-shop at home
NRA for European providers only, while not
affecting competences of host NRAs for local
access regulation.
• Outcome: To overcome fragmentation and
reduce administrative burdens for entry in new
markets and provision of pan-European services.
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Wireless Broadband: Spectrum
• Objective: To ensure coordinated and timely
availability of new wireless technologies, boost
interoperability and ensure economies of scale.
• How: By establishing common principles for rights of
use of harmonised spectrum for WBB, synchronising
timing and duration of spectrum availability,
introducing European coordination mechanisms and
simplifying conditions for WiFI and small cells.
• Outcome: Mobile operators will be able to plan longterm and across several MS their business strategies
and investments and provide pan-European services.
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Fixed BB: Virtual access products (1)
• Objective: To enable the provision of high
quality and innovative pan-European services to
businesses (video-conferencing, e-health, B2B…)
• How: By harmonising fixed access products with
a high standard and ensuring the appropriate
connectivity in an all-IP environment.
• Outcome: Increased consistency of regulation
and of fixed access products across the EU
thereby promoting entry in new markets and
increased competition.
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Fixed BB: Virtual access products (2)
• Virtual access products: Definition of common
features of European virtual BB access products,
included in the range of SMP obligations:
 enhanced VULA
 Layer 3 bitstream
 Terminating segments of Leased Lines
• ASQ: Provision of European assured service
quality connectivity upon reasonable request.
• Detailed parameters in Annexes and
implementing measures by the Commission
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Address regulatory inconsistency
Objective: To promote investments in NGA
networks across the EU by providing a consistent
legal framework for ex ante regulation.
How: By enhancing Commission´s power on
remedies and by including in Framework the TSM
objectives (global competitiveness, investments
and innovation) and principles governing market
definition and SMP assessment.
Outcome: Greater regulatory predictability and
consistency across the EU.
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End users and consumers rights
protection
• Objective: To ensure a high level of consumer
protection in EU and help to stimulate demand.
• How: By introducing full harmonisation of rights
of end users, facilitating switching and improved
transparency, ending unjustified distinctions
between price of domestic and intra-EU calls and
by attributing governance powers to Commission.
• Outcome: A harmonised high-level of consumer
protection in Europe.
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Open internet: net neutrality
• Objective: To ensure a single set of rules which
provide open access to internet across the EU
and promote innovation.
• How: By prohibiting blocking or throttling of
services/applications, except in limited objective
circumstances (reasonable traffic management)
while allowing specialised services as long they
do not impair best efforts Internet.
• Outcome: Ensured open access to internet for
end-users while allowing operators to ensure
quality of service for specialised services.
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Phasing out roaming
• Objective: To provide the means to gradually
put an end to roaming surcharges in a reasonable
time, thereby overcoming artificial fragmentation.
• How: "Roam like at home", voluntary mechanism
to incentive operators to negotiate better
wholesale rates thereby enabling them to
profitably offer roaming services at domestic
prices in all EU. Exemption from decoupling.
• Outcome: Since July 2014, no charges for
incoming calls and at least one offer RLAH and
then gradually RLAH in all offers before July 201619
BEREC
• Objective: To improve the governance of BEREC
and strengthen it as the body of regulators
advising the Commission and implementing the
Framework.
• How: Through establishment of a permanent
(full-time, three-year - renewable, professional)
and independent Chair appointed by the BoR with
involvement of EP.
• Outcome: A stronger, professional and
independent group of regulators.
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What next? Legislative process
 The Commission is working closely with
Parliament and Telecom ministers.
 ITRE, IMCO and CULT committees have issued
their reports and JURI will on 16/12.
 Timetable: Amendments ITRE report 18/12
 Telecom Council on 5/12
 Interested stakeholders must contribute
to the debate.
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Thank you for your attention!
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