WRITTEN QUESTION P-2148/01

by W. G. van Velzen (PPE-DE) to the Commission

(10 July 2001)

Subject: Implementation of the third-generation mobile telephony action plan

In connection with the UMTS Communication from the Commission(1) on The Introduction of Third Generation Mobile Communications in the European Union: State of Play and the Way Forward and following recent developments in this area, the following questions arise:

- In the press much has been written these past few months about the approval given by the German National Regulatory Authority for the sharing of infrastructure for UMTS networks. Can the Commission outline the situation as regards infrastructure sharing in the case of other national regulatory authoritiesMTEXT in the EU?

- In the meantime has the Commission held talks with the European Investment Bank (EIB) about a competition framework for extending loans to telecom operators and, if so, what form would such a framework take and what would be the nature and extent of such loans?

- Is Commissioner Liikanen prepared, in September or October 2001, to come before the Committee on Industry, External Trade, Research and Energy and provide more detailed information on the implementation of the 3 G Plan, as referred to in the conclusions of the Stockholm Summit?

(1) COM(2001) 141.

Answer given by Mr Liikanen on behalf of the Commission

(5 September 2001)

Following the adoption of the 3G Communication(1) in March 2001, the Commission raised the issue of network infrastructure sharing on several occasions when meeting the Member State administrations and regulators. The Member States in principle share the Commission's view that network sharing can offer potential economic benefits as well as facilitating an environmentally friendly implementation of networks.

When looking at network infrastructure sharing, Member States mainly consider two aspects, namely the compatibility of different schemes of network sharing with the applicable licensing conditions and their impact on competition.

As regards licensing conditions, this falls under the responsibility of the Member States. In its exchanges with Member States, the Commission has stressed the importance of avoiding a fragmented approach to network sharing rules.

From the exchanges between the Commission and Member States it has become clear that in a number of Member States, notably in Denmark, Germany, Netherlands and the United Kingdom, the regulators have looked into the matter and issued guidance as to what degrees of network infrastructure sharing would be compatible with the licensing conditions. In this context it is also worth noting that new technological developments may allow sharing of certain parts of the network equipment while preserving the independent control of network operations by operators. In other Member States, such as Sweden, the licensing conditions appear to set out directly the possibilities for network sharing and have been applied.

On competition aspects, no formal rulings have yet been made because competition authorities essentially look at the impact of network sharing on a case by case basis. In this context, it is important to note that, as far as the Commission is aware, with the exception of one case in Sweden no concrete sharing agreement proposals have been submitted to the national authorities so far. Equally, no such agreement has so far been formally notified to the Commission services dealing with competition aspects.

Requests for loans from telecommunications operators are, as is the case for other European Investment Bank (EIB) loan projects, submitted to the Commission for an opinion prior to decision by the Bank. In this context, the Commission is in ongoing discussions with the EIB on an agreed framework for loans to projects in the telecommunications sector. As regards the nature and scale of loans in this sector, the Bank granted loans of 2 126 million in 1999 and 2 211 million in 2000 to operators of both fixed and mobile networks in the Community. So far in 2001 the Commission has been consulted on loans in the sector worth an estimated 2 000 million, again covering projects for both fixed and mobile networks in the Community.

The Member of the Commission responsible for Enterprise and Information Society is, as are other Members of the Commission, willing to exchange views with the Parliamentary committees at their request. The Commission would be interested in discussing the follow-up of the above mentioned Communications with the Parliament's competent committee. September 2001 or October 2001 would seem to be a suitable time.

(1) Communication on the Introduction of Third Generation Mobile Communications in the European Union: State of Play and the Way Forward, COM(2001) 141 final.