2. TSM Proposal

TELECOM SINGLE MARKET –
CHALLENGES AND CONCERNS
DOMAGOJ MARIČIĆ, CROATIAN REGULATORY
AUTHORITY FOR NETWORK INDUSTRIES
(HAKOM)
September 29th, 2014
1.
Introduction & Content
Overview of the EC proposal of the TSM Regulation
A brief description of the EU Ordinary legislative procedure
Overview of the EU Parliament’s amendments to the TSM
proposal
Recapitulation of key challenges and concerns
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2. TSM Proposal - General
In September 2013 the EC submitted proposal of the TSM
Regulation to the Council and European Parliament (EP)
Planned date for the adoption – spring 2014 i.e. before the end
of the EP and EC mandate
Planned entry into force – July 2014 and July 2016
Aim - completion of a fully functioning Digital Single Market by
2015
Desired impacts - growth & jobs; better productivity; benefits
for citizens; a consolidation of telecoms sector
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3. TSM Proposal – Main elements
Single EU authorization
European inputs for high-speed broadband
Spectrum coordination and facilitating small cells for the wireless bb.
European virtual access products for the fixed bb.
Net neutrality and Harmonized end user’s rights
Roaming
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4. TSM Proposal – Single EU authorization
Regime applicable only to “European electronic communications
providers (EU operator)” while pure domestic providers stay
within current national regime
Wide notion of EU operator – undertaking established in EU
providing or intending to provide services directly or by means
of one or more subsidiaries (subsidiary – any form of control
e.g. more than half the voting rights, right to manage affairs,
right to nominate more than a half of board)
Concept of a home Member State (for EU operator) and host
Member States (for subsidiaries)
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5. TSM Proposal – Single EU authorization
Single notification to the home Member State
NRA of the home MS forwards information to the host MS and
to the BEREC
Shared authority of the home and the host MS
Benefits for EU operators – thresholds for USO costs and
administrative charges, EC veto power as regards regulatory
obligations
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6. TSM Proposal - European inputs, Spectrum coordination
Detailed regulatory principles
Relevant criteria to be taken in account for use of radio
spectrum
Harmonization of authorization timetables and durations by EC
implementing acts
Coordination of authorization procedures and conditions
("Article 7" procedure for spectrum authorization measures)
Access to radio local area networks
Deployment and operation of small-area wireless access points
Radio spectrum coordination among Member States
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7. TSM Proposal - European inputs, European virtual access
products
Common features for European virtual broadband access
products – recommended remedy
Quality across the Union, interoperability, end-user focus, cost effectiveness,
operational effectiveness, security & privacy
European assured service quality connectivity products (ASQ)
upon reasonable request
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8. TSM Proposal - Net neutrality and harmonized end users’
rights
Introduction of the “net neutrality” principle and allowed
exceptions
Full harmonization of end users’ rights
See separate presentations on these topics!
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9. TSM Proposal – Roaming
Free incoming roaming calls as of 1 July 2014
Operators may introduce optional regime “Roam like at home”
(RLAH)
Wholesale costs through bilateral or multilateral roaming
agreements (“Roaming alliances”)
Subject to reasonable use criteria
Exemption from roaming decoupling and retail caps
Outside RLAH offers - retail caps apply
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10. Ordinary legislative procedure
Joint adoption (co-decision) by the European Parliament (EP)
and the Council of a regulation, directive or decision on a
proposal (usually by the EC)
Stages: First
conciliation
reading,
possible
2nd
and
3rd,
reading
+
First reading – joint examination of a proposal in the EP
(committees) and Council (working groups)
No time limits for the 1st reading
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11. Ordinary legislative procedure
1st reading - EP adopts its position. If Council accepts the EP’s
position a proposal is adopted
1st reading - If Council does not approve the EP’s position, than
2nd reading
2nd reading - 3 (+1) months for the EP to approve, to reject or
to amend the Council’s position
2nd reading - 3 (+1) months for the Council to approve or
reject the EP’s amendment
3rd reading/Conciliation – conciliation committee (6 weeks),
agreement on a joint text (6 weeks), adoption of the text (6
weeks)
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12. Ordinary legislative procedure - TSM
Agreement on the 1st reading - the Council without
modifications adopts the text adopted by the EP in its position
at 1st reading
Agreement on the 2nd reading – the Council adopts position at
first reading which is negotiated with the EP; EP approves the
Council’s position
Agreement on the 2nd reading – the Council adopts position at
first reading, EP adopts negotiated position, and the Council
approves the EP’s position
To reach agreement - “trialogue” between Council, EP, EC
TSM – EP position (amendments) adopted. There has been no
agreement. The Council has not yet adopted its position in the
1st reading.
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13. EP’s amendments on the TSM Proposal
On 3 April 2014 EP (plenary) adopted its position at first
reading
Single EU authorization – deleted
Amendments to the Authorization Directive - notification requirement only if
MS explicitly wish to keep it, notification via harmonized template only to
BEREC
Spectrum coordination – supported with amendments
Virtual access product and ASQ product – deleted
Proposed - “Wholesale high-quality access products allowing the provision of
business communications services”
Harmonized end users’ rights and Net neutrality – see separate
presentations
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14. EP’s amendments on the TSM Proposal
Roaming – no roaming alliances, full RLAH as of 15 December
2015 subject to a “fair use clause”
Consumers must be in a position to confidently replicate the typical domestic
consumption pattern – BEREC guidelines + EC implementing acts
If there is no level playing field between operators – EC
legislative proposals by 30 June 2015. i.e. before abolition of
retail roaming charges
Need to change the duration or lower the level of maximum wholesale
charges or to provide for other arrangements to address wholesale market
problems including by a significant reduction of the mobile termination rates.
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15. Key challenges and concerns
TSM proposal overlaps with the framework review due for 2015
Aims of the telecom market consolidation and of the promoting
of the EU global competitiveness can’t be reconciled with the
aim of protection of the competition
Spectrum harmonization effectively means a transfer of
powers from Member States (subsidiarity, proportionality)
Abolition of roaming charges may lead to higher domestic
prices
Legal uncertainty of the TSM proposal
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Thank you for your attention
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11.1.2017.