WRITTEN QUESTION E-0217/01

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(5 February 2001)

Subject: Moves by the Greek Telecommunications Organisation (OTE) to hinder the process of the deregulation of the market

In accordance with Commission Decision 97/607/EC(1) the Greek Government was obliged to undertake the full deregulation of the telecommunications market in Greece by 31 December 2000. However, free competition has only been secured in very few sectors of this market, and there is abundant evidence to suggest that the OTE is being obstructive, a point which is made in the 6th Report on the Implementation of Deregulation of Telecommunications.

Specifically, as regards the obligation to provide free access to local telecommunications networks to private individuals (unblocking access to the local loop), in accordance with Regulation (EC) 2887/2000(2), this has not been possible, owing to the refusal by the OTE to cooperate constructively and to honour its commitments. Furthermore, it has so far refused to provide collocation, which is indispensable both for unblocking the local loop and for interconnection.

As far as the national numbering system is concerned, the OTE is openly dragging its feet, so that a delay of many months is to be expected in this sector too. Finally Presidential Decree 181/99, implementing Directive 98/10/EC(3) provides for a minimum period of time of two months before the charges set by the providers of voice telephony services for their subscribers may be changed, but through a subsequent amendment to a law relating to EVDAP (Athens water supply and sewage company), an amendment which is concerned exclusively with the OTE and is based on its status as a monopoly which it enjoyed until 31.12.2000, the OTE is seeking to impose non-refundable charges in this sector twenty (20) days after publication.

Giving that Commission Decision 97/607/EC was issued with the purpose of preparing the OTE for deregulation, but that the latter seems neither to have made the necessary changes or to have any intention of doing so, will the Commission say:

1. Is it aware of all the above and, if so, what explanations has the Greek Government given it?

2. What action and/or sanctions does it intend to take in view of the OTE's failure to meet its obligations under EU law?

(1) OJ L 245, 9.9.1997, p. 6.

(2) OJ L 336, 30.12.2000, p. 4.

(3) OJ L 101, 1.4.1998, p. 24.

Answer given by Mr Liikanen on behalf of the Commission

(9 April 2001)

1. The Commission is aware of a number of developments in Greece following full liberalisation from 1 January 2001, in particular in relation to unbundling of the local loop, the adoption of the national numbering plan, and tariffs.

Unbundling of the local loop is one of the measures identified by the Heads of State and Government in Lisbon in March 2000 as being crucial in ensuring greater competition in the access network, and in this context the Commission is following the implementation of Regulation (EC) No 2887/2000 of the Parliament and of the Council of 18 December 2000 on unbundled access to the local loop, in all Member States very closely. That instrument, by virtue of having been adopted in the form of a regulation, is directly applicable to all Member States. Rights and obligations arising under the Regulation are therefore capable of being enforced directly through national regulatory authorities or before national courts. As regards implementation of the Regulation in Greece, the Commission understands that, so far, interest in obtaining access has been expressed by two companies. The incumbent operator claims to have

started investigating their requests. No formal request has been made. The Greek Telecommunications Organization (OTE) submitted a draft Reference Unbundling Offer to the national regulatory authority (EETT), as required under the Regulation, in January 2001. With regard to collocation and related pricing issues, the Commission has drawn attention, most particularly in the 6th Implementation Report(1), to the crucial need for regulators to follow developments closely. The Commission will bring infringement proceedings in the event of failure to enforce rights and obligations at national level.

The Commission also drew attention in the 6th Implementation Report to the lack of a National Numbering Plan (NNP) in Greece. In December 2000, Greece adopted Law 2867/2000, which transferred the power to the EETT, to adopt a numbering plan. The Commission is informed that, on 29 January 2001, EETT adopted the NNP, which was published in Official Gazette 127B of 8 February 2001. The EETT's Decision concerning the management and allocation of numbers was published in Official Gazette 159B on 16 February 2001. The Commission will of course follow the application of the NNP in practice.

In relation to tariffs, Presidential Decree (PD) 181/1999 has been notified to the Commission as the national measure transposing Directive 98/10/EC of the Parliament and of the Council of 26 February 1998 on the application of open network provision (ONP) to voice telephony and on universal service for telecommunications in a competitive environment. Article 17 paragraph 5 of the Directive provides that tariff changes shall be implemented only after an appropriate public notice period, set by the national regulatory authority, has been observed. Article 16 paragraph 5 of the PD transposing that Article provides that changes in tariffs should be applied following a two-month notification period. The Commission has not been informed of an amendment of the PD. The Commission will of course bring infringement proceedings if the requirements of the Directive are not fulfilled in practice.

2. It is in the first instance the responsibility of the national regulatory authority to ensure that OTE fulfils its obligations under the national measures transposing the directives making up the telecommunications regulatory package or, in the case of the unbundling of the local loop, under the directly applicable provisions set out in the Regulation. The Commission will, as indicated above, bring infringement proceedings in all cases where such obligations are not enforced in practice.

In addition, on the basis of its competition powers, the Commission carefully monitors the conditions of unbundling and the deployment of high speed broadband services, in particular in the framework of a sector enquiry launched in July 2000 across the Community.

(1) COM(2000) 814 final.