WRITTEN QUESTION E-0090/99

by Konstantinos Hatzidakis (PPE) to the Commission

(27 January 1999)

Subject: Continued non-compliance by Greece with rules governing the liberalisation of telecommunications in the European Union

Despite the fact that the beginning of the year is dedicated to the European Information Society, the OTE (Greek Telecommunications Company) is continuing to act illegally and obstruct the access of Greek users to the Internet and the Information Society. On the one hand it is obstructing the allocation of four-digit numbers for calling Internet service providers other than its own subsidiary, while on the other it is increasing the cost of urban calls by 38,4 %, imposing unjustified sharp price increases on the Greek public and putting basic Internet connection charges beyond the purse of the average consumer. In both cases fundamental provisions of Community law are being violated.

In the first case (refusal to allocate/delay in allocating call numbers), the provisions on occupying a dominant market position in Article 68 of the Treaty are being violated. In the second (increase in urban call charges) there is a clear violation of the provisions of Directive 95/62/EC(1) and Directive 98/10/EC(2) on the application of open network provision (ONP) to voice telephony, which provide that charges may be restructured only after cost controls, something which the OTE has never undertaken.

Unfortunately, despite the assurances and promises it has repeatedly given the Commission about the gradual compliance by Greece with European telecommunications legislation and practice, Greece is in fact turning a deaf ear and is continuing to fail to honour its commitments. As the Commission recently informed me, eleven major violations of Community law have already been noted, leading to the suspension of funding for the Greek Operational Programme for Telecommunications. Greece is still pursuing its tactic of non-compliance with Community legislation and allowing the OTE flagrantly to flout fundamental provisions of European legislation.

Will the Commission say what measures it intends to take to address the two cases of violations referred to above and say what measures the relevant Community authorities intend to take to protect Greek consumers from the consequences of these two cases?

Answer given by Mr Van Miert on behalf of the Commission

(26 February 1999)

Under Community law, problems related to a possible abuse by a dominant undertaking as set out in Article 86 of the EC Treaty may also be dealt with at national level.

In the case of the allocation of call numbers for Internet service providers (ISPs), the Commission was informed that the case was dealt with at national level by the national commission for telecommunications (EET). The EET has informed the Commission that it has imposed a fine of GDR 80 million on OTE (Greek telecommunications company) for its failure to provide the single access numbers to Internet service providers. As far as the Commission is aware two ISPs have not signed a contract with OTE relating to the granting of such a number.

As regards the increase of the rates for urban calls, there is under Community law a general obligation on Member States to allow their operator to rebalance their telephone tariffs, when these tariffs are out of line with the underlying costs. Directive 98/10/EC, however, requires Member States to ensure that the voice telephony service remains affordable.

The principle of cost-orientation does nevertheless not prevent costs being recouped in different ways for two services provided using partly the same infrastructure when this is justified by the nature of the respective services or the demand patterns. The relevant Greek authorities could therefore allow OTE to apply a lower tariff for Internet access, as far as the same rate would apply to all Internet service providers.

(1) OJ L 321, 30.12.1995, p. 6.

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