WRITTEN QUESTION P-2319/99

by Gunilla Carlsson (PPE-DE) to the Commission

(29 November 1999)

Subject: Liberalisation of the telecoms sector in Sweden

Sweden has far-reaching plans to introduce legislation forcing all public- and private-sector owners of mobile telephone networks to allow service providers access to their infrastructures, in which they have invested heavily and which they have developed in a competitive environment.

Does the Commission intend to allow such an infringement of the principle of competition on an equal footing to take place?

How does it plan to ensure that willingness to invest in mobile network capacity remains as high as it has been, in view of the major new requirements stemming from the introduction of UMTS?

What view does it take of regulating the distinction between network operators and service providers in this way?

Answer given by Mr Liikanen on behalf of the Commission

(13 December 1999)

The Commission is aware of the proposals in Sweden for legislation governing access by service providers to the networks of licensed mobile operators. However, it understands that the final scope and conditions of such legislation have yet to be determined.

The Commission recognises that regulation both at Community and Member State level should be kept to a minimum. As stated in the Commission's recent communication on the 1999 communications review (Towards a new framework for electronic communications infrastructure and associated services)(1), an unduly restrictive regulatory system risks acting as a brake on investment or may fail to stimulate sustainable investment. Much of the current regulatory framework addresses the need to create a competitive market, for example by requiring incumbent operators to meet all requests for access to and interconnection with its network. Once a competitive market is effectively established, many of these provisions should no longer be necessary and it would therefore be sufficient to rely mainly on the application of the competition rules of the EC Treaty.

The current Directive 97/33/EC of the Parliament and of the Council of 30 June 1997 on interconnection in Telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP)(2) provides in Article 4(2) that organisations authorised to provide public telecommunications networks and publicly available telecommunications services as set out in Annex I which have significant market power shall meet all reasonable requests for access to the network including access at points other than the network termination points offered to the majority of end users. Under this provision, Member States may regulate for fair and reasonable access to

the telecommunications networks (whether mobile or fixed) if this is necessary to ensure the overall competitiveness of the market and the development of innovative new services.

The national authorities, with their detailed knowledge of the situation in the telecommunications markets which they oversee, may therefore determine the precise conditions on which access to mobile networks should be required, provided that these are consistent with the principles enshrined in the EC Treaty, particularly the competition rules, and the regulatory framework established at Community level. These conditions would only be contrary to the competition rules if it could be shown that the relevant requirements would limit the ability of non-dominant network operators to compete, for example by preventing them from benefiting from the advantages of vertical integration of network and service provision. The Commission has encouraged the Member States to consult their national competition authorities on such measures.

The Commission recognises that the pricing of access is critical and should provide the necessary incentives in the medium and longer term for facility owners to undertake future infrastructure investment.

As regards the distinction between mobile network operators and service providers, Community law currently allows Member States to apply different licensing conditions. However, they should ensure that any distinction does not lead to market distortions.

(1) COM(1999) 539 final.

(2) OJ L 199, 26.7.1997.