Opinion of the Committee of the Regions on the "Sixth Report on the Implementation of the Telecommunications Regulatory Package"

(2002/C 19/01)

THE COMMITTEE OF THE REGIONS,

having regard to the Sixth Report on the Implementation of the Telecommunications Regulatory Package (COM(2000) 814 fin);

having regard to the decision of the Commission on 7 December 2000 to consult it, in accordance with the first paragraph of Article 265 of the Treaty establishing the European Community;

having regard to the decision taken by its Bureau on 13 June 2000 to instruct Commission 3 for Trans-European Networks, Transport and the Information Society to draw up the relevant opinion;

having regard to its Opinion on the Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions - Fifth Report on the Implementation of the Telecommunications Regulatory Package (COM(1999) 537 fin) and the Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions - Towards a New Framework for Electronic Communications Infrastructure and Associated Services - The 1999 Communications Review (COM(1999) 539 fin) (CdR 520/99 fin)(1);

having regard to its Opinion on the Proposal for a Directive of the European Parliament and of the Council on universal service and users' rights relating to electronic communications networks and services (COM(2000) 392 final - COD 2000/0183)(2) (CdR 274/2000 fin)(3);

having regard to the draft Opinion adopted by Commission 3 on 4 July 2001 (CdR 52/2001 rev.) (rapporteur: Mr Koivisto, FIN/PSE),

adopted the following opinion unanimously at its 40th plenary session of 19 and 20 September 2001 (meeting of 20 September).

The Committee of the Regions

1. Agrees with the assessment in the Commission's report on the success of the European Union's telecommunications regulatory policy and its importance, particularly with a view to curbing the increasing price differentials between Member States and regions.

2. Considers the drafting of annual reports on regulatory and telecommunication market developments as an effective way of influencing the behaviour of telecommunications companies.

3. Strongly supports Commission measures aimed at simplifying national licensing procedures.

4. Reiterates the view expressed in its previous opinions that the success of telecommunications regulatory policy cannot be reliably evaluated at national level, as regional differences in telecommunications provision are continually growing and diverging from national averages.

5. Hopes therefore that the next follow-up report will pay greater attention to regional market differences, and in particular to examining the implementation of the universal service obligation in the new regulatory framework, local competition and consumer interests.

6. Emphasises that, in accordance with their responsibility for the development of their area, local authorities must continue to be able to influence decisions on the siting of antennae and cables in line with general spatial-planning, environmental and public health-related objectives, and does not consider the problems encountered by telecommunications operators as an issue of the same importance to society as the above-mentioned objectives.

7. Like the Commission, considers it extremely important from the perspective of European competitiveness, for the pricing and penetration of leased internet lines and regional coverage to draw closer to US levels, and emphasises the importance of examining the role of the Structural Funds in regions where competition will not bring about improvements.

8. Notes that a major obstacle, particularly to the expansion of local competition, is that in spite of regulatory requirements for separate accounting, content and network service business interests are still too closely related, and points in this connection to the positive experience of increased competition in content services which has resulted from local authority investment in information networks.

9. Agrees with the importance of promoting competition in broadband ADSL services for achieving the objectives of the eEurope programme, but hopes that future reports will also examine the development of the geographical penetration of ADSL services from the perspective of the regulatory framework, as in many areas these services are still not available and they do not fall within the universal service obligation.

10. Stresses the need, in this field requiring innovative development, to strike the right balance between open competition and regulation so that achieving a dominant market position is also considered to be a valid objective of company product development.

11. Wishes to draw the Commission's attention to the new competition generated by various new alternative technologies on the market which has reduced the need for regulation, and therefore advocates a flexible approach so that the quantity of regulation can also be reduced in the future, as ultimately it is the consumer who must pay for the additional cost to companies of this regulation.

Brussels, 20 September 2001.

The President

of the Committee of the Regions

Jos Chabert

(1) OJ C 226, 8.8.2000, p. 56.

(2) OJ C 365 E, 19.12.2000, p. 238.

(3) OJ C 144, 16.5.2001, p. 60.