WRITTEN QUESTION E-4060/00

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(9 January 2001)

Subject: Delay in deregulation of the telecommunications market in Greece

The Greek Telecommunications Organisation (OTE) is under an obligation to begin deregulating the country's telecommunications market on 1 January 2001. However, it will not be feasible to open the market up significantly until mid-2001, as the OECD noted in a recent report. The basic obstacle is the OTE's lack of a pricing policy for leasing its infrastructure to companies providing telecommunications services. Moreover, Presidential Decree 437/95 assigned to OTE frequencies for every service, including those which, according to international criteria, should be used for UMTS third-generation mobile telephony. The legislation concerned is directly contrary to Community law (Directive 97/13/EC(1) on licences) and even to Greek law itself (Law 2246/94, as applicable to 31 December 2000, and the Law on telecommunications and related matters, which has been adopted and is to be published shortly in the Government Gazette).

1. What information does the Commission have concerning the benefits to Greek consumers to be derived from the deregulation of telecommunications at the prescribed time?

2. Has the Commission requested explanations from the Greek Government concerning the failure to meet the relevant deadlines and, if so, what clarification did the Greek authorities provide?

3. What measures will the Commission take to resolve the delay in deregulating telecommunications in Greece and what action will it take should Greece not meet the deadlines laid down?

(1) OJ L 117, 7.5.1997, p. 15.

Answer given by Mr Liikanen on behalf of the Commission

(12 March 2001)

1. Concerning the benefits to Greek consumers arising from the deregulation on 1 January 2001, the Commission has identified a number of benefits deriving from the liberalisation of the telecommunications markets, most recently in its sixth Report on the implementation of the telecommunications regulatory package(1), which was published in December 2000. The Commission has also stressed on many occasions that liberalisation of the telecommunications markets encourages economic development in the Member States and in particular that consumers will benefit from having the opportunity of using high-quality services at lower prices and having more choice in selecting these services, and that new technologies will be deployed more rapidly.

2. The Commission follows closely the implementation of the Community Directives in all Member States. In those cases where there is a failure either to transpose or to implement the Directives effectively, the Commission has consistently taken action against the Member States concerned. In the case of Greece, ten infringement proceedings were opened either for failure to communicate the national measures to transpose the Directives or for not implementing them correctly. Seven of these were closed upon notification of the measures transposing the Directives, while three are still pending. In particular, the Commission has formally requested the Greek authorities to submit their observations in regard to the implementation of the licensing(2) and interconnection(3) Directives and, as regards the specific matter raised by the Honourable Member of the pricing of leased infrastructure, the adoption of a cost accounting system as required by the leased lines Directive(4). In relation to UMTS, Decision No 128/1999/EC(5) requires Member States to take all actions necessary to allow the introduction of UMTS services by 1 January 2002 at the latest. In this regard, the Greek Government has informed the Commission that it is planning to launch a competition for granting UMTS licences by June 2001.

3. As full liberalisation took effect in January 2001, the Commission follows closely the developments in all segments of the Greek telecommunications market, and should a violation of Community law come to its attention, it is committed to using all tools provided by the EC Treaty to force Greece to comply with its obligations arising from Community law. In September 2000, the Commission held a bilateral meeting with the Greek authorities where it stressed that it has a Treaty obligation to open further proceedings against Greece in cases where Community law is not applied.

(1) Communication from the Commission to the Council, the Parliament, the Economic and Social Committee and the Committee of the Regions, COM(2000) 814 final.

(2) Directive 97/13 EC of the Parliament and of the Council of 10 April 1997 on a common framework for general authorizations and individual licences in the field of telecommunications services, OJ L 117, 7.5.1997.

(3) Directive 97/33/EC of the Parliament and of the Council of 30 June 1997 on interconnection in Telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP), OJ L 199, 26.7.1997.

(4) Council Directive 92/44/EEC of 5 June 1992 on the application of open network provision to leased lines, OJ L 165, 19.6.1992.

(5) Decision No 128/1999/EC of the Parliament and of the Council of 14 December 1998 on the coordinated introduction of a third-generation mobile and wireless communications system (UMTS) in the Community, OJ L 17, 22.1.1999.