WRITTEN QUESTION E-2095/00

by Camilo Nogueira Román (Verts/ALE) to the Commission

(30 June 2000)

Subject: Award of multimedia mobile telephony (UMTS) licences by the Member States

In view of the differences in proceeds from the award of multimedia mobile telephony licences in different countries, e.g. only ESP 87 000 million ( 520 million) was obtained in Spain, while the United Kingdom auction procedure brought in ESP 6,3 billion ( 37 863 million) and France expects to take in ESP 3,28 billion ( 19 232 million) using a concession price, does the Commission intend to make provision for an EU procedure to coordinate rules on the award of licences for UMTS-type services, taking due account of the far-reaching budgetary implications of the different systems, which in this particular case were extremely prejudicial to Spain's public finances and potential public investments?

Answer given by Mr Liikanen on behalf of the Commission

(27 September 2000)

The Commission is following closely developments in the Member States concerning the licensing of third generation mobile networks (i.e. UMTS-type services).

Under existing Community legislation, the licensing process must follow the principles of objectivity, non-discrimination, proportionality and transparency, and should ensure optimal use of spectrum as scarce resource, and foster the development of innovative services and competition.

Within these boundaries there is a large margin of discretion for Member States to determine what procedures to follow in attributing licences. Auctions are one approach and so-called beauty contests are another. Both are in principle compatible with Community law, provided they are well designed and conducted and ensure objectivity and transparency.

In view of the number of Member States that have already awarded licences for third generation mobile networks, it would not be feasible to introduce a co-ordinated procedure for the award of such licences. However, the Commission will continue to monitor the process closely.

The proposed new regulatory framework for electronic communications networks and services, published by the Commission on 12 July 2000(1), does address the issue of coordination on spectrum issues. The new framework emphasises the need for effective management of radio spectrum by Member States. Spectrum is becoming a scarce resource, and the need for its effective management has been stressed repeatedly by interested parties in the various public consultations that have been carried out by the Commission over the last 18 months.

The provisions of the proposed spectrum decision(2) will allow the Commission to identify best practices and to examine how these can be applied throughout the Community.

The proposed authorisations directive(3) allows for harmonisation of such aspects as charges, fees, procedures or conditions concerning general authorisation or the granting of rights of use, where divergences between national situations create barriers to the internal market.

The European Council has called for the new regulatory framework to be adopted by the Parliament and Council in 2001.

(1) COM(2000) 393 final.

(2) COM(2000) 407 final.

(3) COM(2000) 386 final.