With regard to the financing of universal service through funding or otherwise, only France has established such a mechanism. New entrants consider this form of financing an additional income tax and consequently as an obstacle to entry. In their view, universal service is a social matter which ought to be financed from the general budget of the State. Consumers are affected by the absence of transparency in the tariff offerings of new entrants, the slow procedures for complaints and repairs, or unfair clauses in contracts. The Member States should apply the existing framework more efficiently while making more use of the existing provisions of Community law on consumer protection.
Consumers are also concerned about the effects of the cost of leased lines in Europe.
The failure both of competition and of regulators to bring down what are perceived to be patently non-cost oriented tariffs works to the detriment of the provision of Internet and other services in Europe. In the great majority of Member States it has been decided to phase out the analog system operating in the frequency bands reserved for GSM and some have already completed this process. Better coordination with the application of the rules on competition 14. Liberalisation of the market has produced significant tariff reductions leading to convergence of call charges and actual costs. International tariffs in particular have been substantially reduced to the benefit of residential and business users.