WRITTEN QUESTION E-3636/00

by Erik Meijer (GUE/NGL) to the Commission

(22 November 2000)

Subject: Introducing the high-speed Internet: delays, resistance and incompetence

1. Is the Commission aware that the application of new technology for improving and speeding up the use of the Internet is running into delays as a result of the poor quality of broadband Internet supplied by cable companies for TV connections, the problems surrounding the allocation of frequencies for the wireless local loop and the opposition of telephone companies to the introduction of digital subscriber lines?

2. Can the Commission confirm that the failures, delays and obstacles referred to in question 1 are the result of conflicting interests of different companies with different owners which, although interdependent through the shared use of each other's exchanges, transmitters and cables, are unable to cooperate properly because the growth of one may mean the decline of another?

3. Does the Commission know whether these problems are peculiar to the Netherlands, or whether they are characteristic of what happens in other Member States, too?

4. What potential does the Commission see for intervening or mediating if free competition between companies proves incapable of finding a speedy solution to these problems

Source: The Dutch newspaper De Volkskrant, 26 October 2000.

Answer given by Mr Liikanen on behalf of the Commission

(18 January 2001)

The Commission is aware that the application of new technologies to provide users with better and faster Internet access and services can be delayed due to regulatory impediments. That is why the Commission has taken action to remove barriers to companies making investments to provide higher speed Internet services. The major recent initiative has been the regulation on local loop unbundling.

A deadline has been set by the new Regulation on unbundled access to the local loop (including both fully unbundled and shared access) as of 1 January 2001, hence permitting new entrants to use the network of the incumbent to roll-out digital subscriber line (DSL) technologies. The notified operators need to have a Reference Offer ready on that date to make the facilities available. The Commission intends to enforce the obligations in the Regulation and is already closely monitoring the situation in all Member States. Some Member States, including the Netherlands have already introduced full unbundled access ahead of this date. Bitstream access, (i.e. the provision of DSL services while using the equipment of the incumbent operator), is to be provided already under non-discriminatory terms. The Commission understands that operators in the Netherlands are discussing amongst themselves the problems in relation to the introduction of DSL services, either via full unbundled access to the local loop, via shared access or via bitstream access and the telecommunications regulatory authority has issued a consultation paper on collocation.

The newly proposed package of directives which have followed the regulatory Review is also an important step in promoting competition, choice and innovation in Internet access and services. The move towards a lighter authorisation scheme (to replace the existing licensing directive) and a pro-competitive regulatory framework for all networks will encourage investment in different types of technologies. In this context, Internet access via cable TV networks and via wireless local access are also important.

With respect to cable, Commission Directive 1999/64/EC of 23 June 1999 amending Directive 90/388/EEC in order to ensure that telecommunications networks and cable TV networks owned by a single operator legal entities(1) requires that telecommunications networks and cable TV networks owned by a single operator must be separate legal entities, thereby giving additional incentives to cable TV networks to compete and provide Internet services. Currently, cable TV networks upgrades are under way in the Netherlands, but the capacity of Internet access will be dependent on the number of users served.

Regarding fast Internet access via wireless local loop, (also known as fixed wireless access systems), the Commission encourages the award of fixed wireless access licences by Member States, but does not set any deadline. The licensing procedure will have to be in line with the Directive 97/13/EC of the Parliament and of the Council of 10 April 1997 on a common framework for general authorisations and individual licences in the field of telecommunications services(2) and with the provisions in the EC Treaty. It is understood that the start of the licensing procedure for fixed wireless access licences has been postponed by the Dutch government in order to take into account a legal challenge by two operators concerning possible preferential rights to part of the frequency spectrum.

The situation seems to be more satisfactory with respect to the development of backbone Internet capacity in Europe, as there appears to be considerable investment underway in this area. New interconnection and bandwidth exchanges are also opening, although regulatory delays may be occurring here too. These and related issues are treated in the Communication on the Organisation and Management of the Internet(3) that is available at:

http://europa.eu.int/ISPO/eif/InternetPoliciesSite/Organisation/COM(2000)202.doc

An overview of the situation concerning local access networks throughout the EU can be found in the sixth implementation report, Sixth Report on the Implementation of the Telecommunications Regulatory Package(4). It illustrates that each member state presents some peculiarities with regard to the exploitation of the different new technologies for high-speed Internet, but the basic concerns are broadly similar.

(1) OJ L 175, 10.7.1999.

(2) OJ L 117, 7.5.1997.

(3) COM(2000) 202 final.

(4) COM(2000) 814 final.