WRITTEN QUESTION E-0742/01

by Giles Chichester (PPE-DE) to the Commission

(9 March 2001)

Subject: Unbundling the local loop

The 2000 Lisbon European Council called on the Member States, together with the Commission, to work towards introducing greater competition in local access networks before the end of 2000 and unbundling the local loop in order to help bring about a substantial reduction in the costs of using the Internet. Following the adoption of the Regulation on this matter in December 2000, does the Commission consider that the local loop is now fully unbundled in all Member States, and what cost reductions in Internet use have been achieved as a result?

Answer given by Mr Liikanen on behalf of the Commission

(7 June 2001)

Following the Lisbon European Council in March 2000, the Parliament, the Council and the Commission engaged in an intensive process of co-operation which resulted in the rapid adoption of the Regulation (EC) No 2887/2000 of the Parliament and the Council of 18 December 2000 on unbundled access to the local loop(1) This legislation was necessary to achieve competition in the local access network.

It is the task of the Commission to monitor the effective application of the Regulation in the Member States so as to ensure that it takes effect in a timely and efficient manner.

But first and foremost, the National Regulatory Authorities (NRAs) have a significant role in the implementation process. Their tasks and responsibilities are clearly listed in the Regulation and the effective application of the Regulation is a top priority in the Member States. In addition, the complexity of ensuring that the Regulation takes full effect should not be underestimated. The Commission recognises this complexity, which requires careful consideration of all issues by the NRAs, and, while monitoring the situation closely, the Commission does not expect its full effects to be immediate.

At the moment full unbundled access is being provided in eight Member States, with a total of approximately 376 000 lines now fully unbundled. In the other Member States, introduction of full unbundled access is imminent or at the trial stage. The most recent overview of the state of implementation of this regulation will be sent directly to the Honourable Member and to the secretariat general of the Parliament.

As a general principle it can be expected that the process of liberalisation gives rise to reduction in costs. The Commission has not yet received enough information about the tariff structures applied by the Member States in order to publish economic data reaching the necessary level of significance needed. The Commission is however closely following the implementation of Community laws in the Member States. As soon as the appropriate level of significance of the reduction in costs has been reached, this information will be made available. The development of competition in the telecommunications sector since 1 January 1998 has been no exception. The reduction in the cost of Internet access which has been seen in some Member States may be partly attributable to the adoption of the Regulation, but could also be related to other positive developments in the market, e.g. the determination of flat rate call origination tariffs in a number of Member States.

(1) OJ L 336, 30.12.2000.