EN Official Journal of the European Union CE 33/59

(2004/C 33 E/055)

WRITTEN QUESTION P-0617/03

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

(25 February 2003)

Subject: Article in the Financial Times of 20 February 2003 on differences of opinion within the Commission on competition in the wholesale broadband internet market in the EU

With reference to an article appearing on the front page of the Financial Times of 20 February 2003, ‘Brussels chiefs clash over internet’:

— Could the Commission indicate what the situation has been since 1 January 2003 with regard to the significant dominance by incumbents (former monopolists) on the EU wholesale broadband internet market and with regard to local loop liberalisation?

— Is it correct that, as of 1 January 2003, only 4 % of the 187 million telephone lines in the EU were broadband and that most of this 4 % is in the hands of incumbents? Does the Commission have other data?

— When does the Commission expect to take decisions in connection with the probes it has launched into the market conduct of, inter alia, France Telecom (Wanadoo) and Deutsche Telekom?

— What differences exist within the Commission between the Competition DG and the Information Society DG with regard to analysing the market as referred to in the article in question, and could the Commission explain these differences?

Answer given by Mr Monti on behalf of the Commission

(4 April 2003)

1. The data provided in the Eighth report on the implementation of the telecommunications regulatory package (1) reflect the situation as of September 2002. At that time, alternative suppliers accounted for 22 % of all DSL connections, but only 4 % of retail DSL connections were provided through local loop unbundling (the difference between 22 % and 4 % corresponds to DSL resale services, whereby an alternative provider simply re-packages a service determined by the incumbent, and DSL lines served through wholesale bitstream access services). The most recent data made available to the Commission by the regulatory authorities of the Member States, and referring to the market situation as of 1 January 2003, indicates that there are 12,67 million broadband access connections in the EU (principally using telephone and T.V. cable modem connections). The market share of telecom incumbents for broadband access is now 60 %. As regards local loop unbundling, 1,27 million telephone lines have now been unbundled, representing an increase of 189 000 lines since 1 October 2002.

2. In the Commission's Eighth Report it was indeed reported that 4 % of the 187 million telephone lines in the EU were broadband lines. On the basis of the latest data available to the Commission, relating to 1 January 2003, this figure has now increased to 4,75 % (8,87 million lines). In addition to the provision of broadband services over telephone lines, high speed Internet can also be supplied over cable networks. Access to broadband services through cable networks account for around 2,6 million connections. It should be emphasised that the percentage of actual take-up of broadband services does not reflect the territorial coverage of broadband services. In fact, the large majority of EU households reside in areas where broadband services are now technically available.

3. The Commission has the intention to take a definitive position on the two cases mentioned before the Summer break.

4. The market analyses referred to (SMP Guidelines, Guidelines on Relevant Markets, Implementation Reports) are adopted as a formal position of the Commission. Before the Commission takes a decision, consultations between the services involved always take place. In relation to the situation in the markets in question, the most recent assessment adopted by the Commission was the Eighth Report, referred to above. The Commission has also adopted its position on the future analysis of these markets, under the new regulatory framework, in the Commission Recommendation on relevant product and services markets within the electronic communications sector (C (2003) 497, 11/02/2003). Regarding broadband services, in this Recommendation the Commission has reached the conclusion that, while the development of competing technological platforms was an objective of primary importance, in compliance with the principle of technological neutrality, under specific conditions ex-ante regulation of wholesale broadband access may be necessary to foster competition.

(1) COM(2002)695 final.