Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - Third report on the implementation of the telecommunications regulatory package
Date: 1998-02-18
Institutions: European Commission
Subjects: liberalisation of the market, national implementing measure, telecommunications, telephone, trade licence

COMMISSION OF THE EUROPEAN COMMUNITJES 

Brussels,  18.02.1998 
COM(1998)80final 

CQMMUNICATION FROM THE COMMISSION 

TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 

Third  report 
on the implementation of the telecommunications  regulatory  package 

Communication from the Commission to the Council, the European  Parliament, the 
Economic and Social Committee and the Committee of the Regions 

Third report on the implementation  of the telecommunications regulatory  package 

1.  State of play 

Since  1 January  1998, telecommunications  markets have been fully  liberalised  in most 
of  the  European  Union.  This  marks  the  culmination  of  a  ten-year  process  of  gradual 
market  opening,  set  in  train  at  European  level  by  the  Commission's  1987  Green  Paper1 
and based on extensive consultation and a broad measure of support from  consumers and 
the industry.  The process was given added  impetus by the entry  into force  of the  WTO 
agreement on basic telecommunications  services on 5 February  1998. 

Telecommunications  are  at  the  heart  of  the  Information  Society,  which  promises 
extensive opportunities  for  European business and a significant  contribution  to  improved 
living  standards  for  the  European  citizen.  The  opening  of  EU  telecommunications 
markets, with  a current value of  141 billion  ECU  and  growing  annually  at 8.2%,  is 
clearly of the greatest importance in terms both of overall growth and employment  within 
the European economy and of increased international trade. 

the  combined  use  of 

The  Community  telecommunications  regulatory  package  aims  at  market  opening  based 
on 
to  break  down  monopolies; 
liberalisation  measures 
harmonisation  measures providing common rules and procedures  in the markets opened 
to competition; the establishment of national regulatory  authorities; and the active  use 
of competition  rules to ensure fair competitive  behaviour. 

Since  the  liberalisation  process  began,  there  have  been  continuous  improvements  in 
levels  and  quality  of  services,  with  corresponding  falls  in  prices.  Despite  significant 
tariff  rebalancing  in  some  Member  States  in  recent  years,  prices  have  in  overall  terms 
declined  in some countries of the Union by up to 40 % since  1990. Liberalisation  is also 
the driver of,  and driven  by, an unprecedented  take-up of new services and  technologies. 
Europe has already  seen enormous growth  in three areas: mobile communications,  with 
more than 45 million users throughout the Union today; the use of fax, which has grown 
dramatically  during  the  nineties;  and  now  the  Internet,  potentially  the  single  most 
important development in telecommunications  for decades and stimulated  in particular by 
the rapidly increasing penetration rate of personal computers in the EU market. 

In  expectation  of  full  liberalisation  on  1  January  1998,  new  players,  licensed  or 
authorised  under  procedures  established  pursuant  to  the  Community  directives,  have 
undertaken  large-scale  investment  in terms  of  finance  and  human  resources  in  most  of 
the  Member  States.  A  large  number  of  providers  of  voice  telephony  are  already 

1  Green  Paper  on  the  development  of  the  Common  Market  for  telecommunications  services  and 

equipment, COM(87) 290 

operating  in  the  market  in  competition  with  the  former  monopolies.  In  addition,  many 
hundreds of players are offering  data and Internet services. 

Given  the  importance  of  this  process,  the  Commission  has  placed  the  highest  priority 
on  the  full  implementation  of  the  telecommunications  regulatory  package  by  all 
Member States. 

The Commission's broad assessment of implementation, as at January  1998, is that: 

• 

the  transposition  measures  laid  down  in the regulatory  package  are very  largely  in 
place in most Member States; 

•  emphasis  will  now  need  to  be  put  on  effective  application  of  the  national  rules  to 
ensure  market  entry  in  all  market  sectors  (in  the  already-liberalised  sectors  in  the 
derogation countries); and 

•  economic  indicators  will  need  to be  gathered  to  measure  the  market  effects  of the 

new environment. 

This Communication  builds on two previous  Communications  adopted  on 29 May  and 8 
October  19972,  in  which  the  Commission  reported  to  the  Council  and  European 
Parliament  on  progress  by  Member  States  in  preparing  for  the  1  January  1998 
deadline,  and  set  out  its approach  to carrying  forward  the  implementation  exercise  after 
full  liberalisation. 

The Communication  is based on: 

I. 

the  findings  which  have  already  resulted  in  the  Commission  having  to  take  out 
infringement  proceedings 
to  communicate  national 
in  respect  of  failure 
measures  or deficiencies  found  in transposing  the  directives  under  the  regulatory 
package  or  in  applying  the  national  measures  concerned.  There  are  currently 
thirty-five  proceedings  under  way3;  it  is  likely  that  a  number  of  these  will  be 
closed  as  a  result  of  the  measures  communicated  recently.  The  Commission 
intends  to  open  a  fresh  round  of  infringement  proceedings  before  the  end  of 
March on the basis of the information  gathered during this exercise; 

II. 

a  round  of  intensive  bilateral  meetings  with  the  Member  States,  begun  on  11 
December  1997, the purpose of which was 

- 

to examine the state of progress  in transposition  and the conformity  of the 
measures adopted with the Community  package, and 

- 

to review the national authorisation  schemes  implemented; 

III. 

a questionnaire on the state of the national telecommunications  markets  forwarded 
to the national regulators. 

2  COM(97) 236; COM(97) 504 

3  12 concern  the  liberalisation  and 23 the harmonisation  directives 

2.  Transposition 

2.1 Principle 

The Commission,  in line with the case law of the Court of Justice, distinguishes  between 
the  process  of  transposition  of  the  directives  and  the  effective  application  of  the 
transposed  rules.  Transposition  means  the  incorporation  into  national  law  of  the 
obligations  set out in the directives concerned  in order to achieve the objectives  pursued. 
The Court has consistently  stated 4 in this regard that each Member State must  implement 
directives  in  a  manner  which  fully  meets  the  requirement  of  legal  certainty  and  must 
consequently  transpose  their  terms  into  national 
law  as  binding  provisions;  the 
transposition  of  a  directive  into  domestic  law  does  not  necessarily  require  that  its 
provisions  be  incorporated  formally  and  verbatim  in  express,  specific  legislation;  a 
general  legal context may, depending  on the content  of the directive, be adequate  for  the 
purpose,  provided  that  it does  indeed  guarantee  the  full  application  of  the  directive  in a 
sufficiently  clear  and  precise  manner.  The  Commission's  view  as  far  as  the  current 
exercise  is  concerned  is  that  only  correct  transposition  provides  full  certainty  to 
market  players,  particularly  new  entrants,  as  to  their  substantive  rights  and  their 
rights of recourse to the regulator. 

The  obligations  set  out  in  the  directives  impinge  on  different  areas  of  the  law  in 
different  Member  States;  although  most 
framework 
telecommunications  law  with  accompanying  secondary  provisions,  each  has  also  had  to 
rely  to  a  greater  or  lesser  extent  on  other  branches  of  the  law  such  as  those  relating  to 
administrative  procedure,  legal  remedies,  contract,  planning  and  local  government, 
consumer  protection,  and,  in certain  cases, the  national  constitution.  In many  cases  also, 
the directives deliberately  offer  options which the Member States are free to act on. 

chose 

adopt 

to 

a 

National transposition measures must of course incorporate correctly the objectives  of the 
directives,  that  is,  they  must  be  in  conformity  with  them.  In  some  instances,  Member 
States  have  introduced  regulation  which  goes  beyond  that  provided  for.  The 
Commission  will examine such regulation  and, where  it creates barriers to the  realisation 
of  the  Single  Market  and  accordingly  contradicts  the  objectives  of  the  directive 
concerned, will take action on the basis that it constitutes incorrect  transposition. 

Full  transposition  in  conformity  with  the  directives  is, however,  not  necessarily  enough 
to  ensure  that  the  objectives  in  view  are  actually  achieved.  This  requires  the  effective 
application of the measures in question; this is considered  in section 3. 

2.2 Assessment  of transposition 

The status and general level of transposition of the directives is as follows: 

a) Liberalisation directives 

The  liberalisation  directives,  which  removed  exclusive  rights  and  most  special  rights  in 
the  telecommunications  services  and  equipment  markets.  were  adopted  between  May 

4See,  forexample,judgementof2  December  1986, Case 239/85, ECR  1986, pp 3645-3661; judgement of 

9 April  1987, Case 363/85, ECR  1987 p  1740-1745 

1988  and  March  1996.  The  last  deadline  for  notification  under  the  liberalisation 
directives  was  1 July  1997.  In November  1997, the  Commission  initiated  infringement 
procedures against those Member States which had not notified the relevant  transposition 
measures.  Several  Member  States  (Belgium,  Greece,  Ireland,  Luxembourg,  Portugal) 
have  still  not  notified  specific  provisions,  despite  the  fact  that  they  are  not,  or  are  no 
longer,  covered  by  derogations.  However,  even  if  not  fully  transposed,  clear  and 
unconditional  provisions of these Directives have direct effect,  and certain of the Member 
States concerned (Belgium, Ireland) have granted provisional  authorisations based on this 
In  order  to  understand  the  situation  in  the  various 
direct  effect  of  Community  law. 
Member  States it is therefore  important to look at the same time both at transposition  and 
application. A more detailed assessment is set out in Annex I. 

b) Harmonisation  directives 

Two  major  directives,  on  interconnection  and  licensing,  were  adopted  during  1997.  In 
addition,  the  ONP  Framework  and  Leased  Lines  Directives  were  amended.  The 
Terminals  Directive,  as supplemented  as regards  earth  satellite terminal equipment,  is in 
the process both of consolidation and fundamental  revision. The directives on  frequencies 
have been  in force  for  a number of years, and it  is not  envisaged  to amend them.  For all 
of  these  directives,  the  verification  of  transposition  was  carried  out  on  the  basis  of 
those articles laying down the essential principles which the respective directives  are 
designed  to achieve. As regards the Voice Telephony  Directive, which will be  amended 
by  a  directive  on  which  conciliation  was  concluded  on  10  December  1997,  the 
verification  concentrated  in particular on those articles setting  out principles  which 
are carried over into the new directive. 

The  Commission's  broad  assessment  of  the  state  of  transposition  of  the 
harmonisation  directives is as follows: 

The  level  of  transposition  is  generally  very  good,  bearing  in  mind  the  fact  that  the 
Licensing  and  Interconnection  Directives  in  particular  were  required  to  be 
transposed  for  31  December  1997.  Where  legislative  delays  have  occurred,  the  drafts 
forwarded  to the Commission show in the majority  of cases that there will be  substantial 
transposition  once they  are  adopted.  There are few  cases  giving rise to major  concern 
arising from non-conformity  of transposed measures with the directives. 

Framework  Directive:  Provisions  on national  regulatory  authorities have been  adopted 
in all the Member States. 

Leased lines: Of the four findings  of partial transposition, three relate to  non-conformity 
with various specific principles  (Greece, Luxembourg, Portugal), while one, the result of 
delay in bringing forward  the necessary legislation  (Belgium), should  be made  good  by 
the adoption of two forthcoming decrees. 

Voice  telephony:  Only  one  Member  State  has  not  notified  measures  (Greece).  Of  the 
four  cases  of  partial  transposition,  two  arise  from  non-conformity  with  various  specific 
principles  (Spain,  Portugal),  one  (Luxembourg)  from  legislative  delays  coupled  with 
concern  over  specific  principles,  and  one,  the  result  of  delay  in  bringing  forward 
legislation (Belgium), should be remedied by the adoption of a forthcoming  decree. 

Licensing:  Three cases of non-transposition  are the result of legislative delays (Greece, 
although  a  derogation  for  certain  principles  has  been  requested;  Spain,  where  the 
forthcoming  Act  should  transpose  the  main  provisions;  and  Ireland,  where  the  current 
draft  Regulations provide for  substantial  transposition). Three of the five  cases of partial 
transposition are also the result ofdelay  in bringing forward  legislation  (Belgium, where 
draft  secondary  legislation  is  at  an  advanced  stage;  Luxembourg,  where  secondary 
legislation remains  to  be  adopted;  and  The Netherlands,  where  substantial  transposition 
should  be  achieved  by  the  forthcoming  Act). There  is  concern  in  one  country  (France) 
over  a  specific  licence  condition  coupled  with  delay  in  introducing  legislation  on 
procedures,  although  secondary  legislation  is in preparation  to remedy the latter,  and  in 
another  (Italy)  concerning  specific  licence  conditions.  In  one  country  (Austria)  there  is 
concern over certain procedural  aspects. 

Interconnection:  The two cases of non-transposition  are the result of legislative  delays 
(Greece,  where  secondary  legislation  is  under  way;  and  Portugal,  where  secondary 
legislation  is due to be adopted shortly). Four cases of partial transposition  are the result 
of delays  inadopting  legislation (Spain, where the forthcoming  Act should transpose the 
main  provisions;  Italy?iwhere  amendment  of  the  framework  is  under  consideration  and 
secondary  legislation  is  at  an  advanced  stage;  The  Netherlands;  where  the  forthcoming 
Act  should  bring  substantial  transposition;  and  Sweden,  where  the  forthcoming 
amendment  of  the  Act  should  bring  substantial  transposition).  Two  cases  of  partial 
transposition  are  the  result  of  legislative  delays  coupled  with  concern  over  specific 
principles  in two Member States (Belgium, where amendments to the Law and secondary 
legislation  are  under  consideration;  and  Luxembourg,  where  secondary  legislation 
remains to be adopted). In one (France) there is concern over specific  principles. 

Terminals:  The directive is substantially transposed in all Member States. 

Satellite  terminals:  The  three  cases  of  non-transposition  are  the  result  of  legislative 
delays  (Belgium,  where  a  decree  is  at  an  advanced  stage,  Greece,  where  a  presidential 
decree is under draft; and Ireland, where draft regulations are in preparation). 

Frequencies: The directives are substantially transposed in all Member States. 

A more detailed assessment is set out in Annex II. 

The Commission  draws attention to the fact  that  certain  Member  States had not  fulfilled 
by the due date the obligation under the Interconnection Directive to notify  the manner in 
which  certain  information  is  to  be  published  and  the  names  of  drganisations  with 
significant  market power under the Directive. The Commission is required to publish this 
information  in the Official  Journal of the European Communities. 

The focus  of future  communications  will shift  away from  transposition  towards  effective 
application  and  fuller  reporting  of  the  opening  of  national  markets,  on  the  basis  of  a 
wider  range  of  indicators  and  more  extensive  data  from  the  national  regulatory 
authorities, as indicated below. 

3.  Effective  application 

3.1 Principle 

The major task of the Commission following  the formal transposition of the  liberalisation 
and harmonisation directives is to ensure the effective  application  of the national rules 
adopted pursuant to the directives in the package. 

a) Liberalisation  directives 

In  line  with  the  aim  of  the  liberalisation  directives,  nearly  all  Member  States  have 
effectively  authorised new market entrants in the various telecommunications  markets. In 
assessing  whether  the  Member  States  have  effectively  implemented  this  objective,  it  is 
necessary  to  look  into  a  number  of  concrete  indicators  of  compliance,  given  that  these 
measures  have  been  transposed  in  different  ways  in  each  Member  State.  For  example, 
licensing conditions vary widely from  Member State to Member  State, and will affect  the 
burden and the time necessary to enter the market. 

b) Harmonisation  directives 

The  deadline  for  transposition  of  the  two  most  important  harmonisation  directives, 
Licensing  and  Interconnection,  expired  on  31  December  1997,  as  did  that  for  the 
amendment  to  the  Framework  and  Leased  Lines  Directives.  Moreover,  the  new  Voice 
Telephony  (Adaptation)  Directive  has  had  an  impact  on  the  transposition  of  the  Voice 
Telephony  Directive  for  which the deadline  for  transposition  was 31 December  1996. In 
these  circumstances,  a systematic  verification  of the  correct  and  effective  application  of 
the  national  measures  adopted  pursuant  to  these  directives  and  reported  on  in  this 
Communication  will  be  carried  out  in  the  light  of  their  implementation  in  the  coming 
months. 

3.2 Assessment  of effective application 

In the light of the above, it is useful,  in assessing effective  application, to examine on the 
one  hand  the  liberalisation  process  and  on  the  other  the  accompanying  regulatory 
framework. 

Liberalisation 

In  the  wake  of  the  implementation  of  full  competition  on  1 January  1998  in  the  ten 
Member  States without a derogation, all but one of the ten have granted authorisations to 
new market  players  for  the provision  of voice telephony  and  public  telecommunications 
networks.  This  was  the  last  step  of  phased  liberalisation  initiated  with  the  adoption  of 
Directive 90/388/EEC on 28 June  1990. 

This Directive  liberalised  the markets for voice and data services, i.e. all  services  other 
than  voice  telephony,  telex,  provision  of  directories,  mobile  and  satellite  services. 
These  services  are  now  fully  open  to  competition  in the  Community.  However,  in  two 
out of fifteen  Member  States, certain restrictions  continue to be applied  on the  provision 
(Portugal  and  Greece).  The  Commission  will  address  these 
of  "call-back"  services 
remaining restrictions as a priority. 

The next phase concerned the liberalisation  of satellite services in  1994, under  Directive 
94/46/EC.  The  relevant  services  are  also  widely  open.  Four  Member  States  (France, 
Germany, Netherlands and UK) and Switzerland have entered into an agreement to apply 
a  one-stop  shopping  procedure  for  the  granting  of  VSAT5  and  SNG6  authorisations. 
However a small number of Member States are still completing the regulatory  framework 
necessary  in order to allow for  the authorisation  and  operation  of  satellite  services. Two 
Member  States  (Ireland  and  Luxembourg)  have  already  adopted  some  legal  provisions, 
but  must  still  set  out  the  authorisation  procedures,  including  determination  of  level  of 
fees.  One  Member  State  (Greece)  has notified  a draft  licensing  procedure,  which  should 
soon  be  adopted.  Furthermore  the  situation  remains  unclear  in  a  number  of  Member 
States with regard  to the measures taken to allow by-passing  of the national  signatory  of 
international  satellite organisations such as Intelsat or Eutelsat. 

In  order  to  give  full  effect  to  the  liberalisation  of  services  other  than  voice  telephony, 
Commission Directive 95/51/EC required Member States to lift  restrictions on the use of 
cable  television  networks  to  provide  such  services,  including  for  example  Internet 
access.  To  date,  all  but  two  Member  States  have  taken  the  necessary  measures.  This 
Directive has already had dramatic effects  in Member  States such as the Netherlands  and 
Belgium  where  cabie  networks  are  used 
the  commercial  provision  of 
telecommunications  services. One Member State (Greece) is drafting  legislation to repeal 
the exclusive  rights recently  granted  to the  incumbent  operator  for  the provision  of CA-
TV  network  infrastructure.  In another  Member  State  (Luxembourg), the  measures  taken 
do  not  seem  sufficient  to  give  legal  certainty  to  cable  operators  wanting  to  provide 
liberalised  services.  A  factor  preventing  Directive  95/51/EC from  yielding  the  intended 
is  the  simultaneous  operation  of  telecommunications  and  cable  television 
effects 
networks  by  the  same  undertaking. 
In  December  1997,  the  Commission  therefore 
adopted  the  draft  of  an  amendment  of  Directive  95/51/EC  in  order  to  ensure  that  in 
certain circumstances Member States impose legal separation of these activities. 

for 

Directive  96/19/EC  requires  in  parallel  the  lifting  of  restrictions  on  the  use  and 
establishment  of other  alternative  infrastructure.  Although  some Member  States  were 
given deferment  periods regarding this obligation, these  had expired  by  1 October  1997. 
By that date, the Commission found that Portugal, Greece and Luxembourg had not taken 
to  use  or  establish  alternative 
the  necessary  measures  to  allow  new  entrants 
infrastructures.  Formal  proceedings  were  initiated  in  November  1997  and  will  be 
continued  until  these  measures  are  in  place.  Moreover,  in  Spain,  the  current  operators 
the  effective 
have  challenged 
implementation of this obligation. 

the  first  such  authorisation 

in  Court,  delaying 

The  opening  of  the  mobile  and  personal  communications  market  is  the  aim  of 
Directive  96/2/EC  (Mobile  Directive).  Portugal  and  Ireland  were  granted  an  additional 
implementation  period  until  1  January  1999  for  the  lifting  of  restrictions  on  direct 
interconnection  of  mobile  networks  with  mobile  networks  and  PSTN  in  other  Member 
States.  Two  Member  States  without  any  deferment  period  for  the  lifting  of  such 
restrictions  (Italy and Greece) have still to implement  in practice  this right of the mobile 

5  Very Small Aperture Terminal  (small earth  stations for  one- or two-way private  communications) 

6  Satellite News Gathering (using transportable earth  stations) 

8 

operators.  Measures  have  been  adopted  by  Italy.  As  for  Greece,  the  Commission  has 
opened  an  infringement  procedure.  Finally,  five  Member  States  (Belgium,  Spain, 
Ireland, Italy and The Netherlands)  are still in the process of granting  one or more DCS 
1800  licences,  which  should  have  been  done  by  1 January  1998.  The  Commission 
will  initiate  infringement  procedures  if  DCS  1800  licences  are  not  granted  within 
reasonable  periods. 

Regulatoryframework 

Member  States  have  implemented  divergent  authorisation  procedures  for  voice 
telephony  and  public  telecommunications  networks  going  from  light  procedures  in 
certain  Member  States  (no  authorisation  required  except  to  apply  for  numbers  and/or 
frequencies)  to  full  and  more  lengthy  licensing  procedures.  However,  to  date  in  all  but 
one  of  the  Member  States  without  derogation,  new  operators  have  been  authorised  to 
provide voice telephony  or public telecommunications  networks  in competition  with  the 
incumbent.  The number of authorisations  granted  varies between Member  States, which 
is  partly  to  be  explained  by  the  different 
liberalisation  dates  and  the  size  and 
opportunities  of  each  national  telecommunications  market.  As  at  15 January  1998,  the 
UK  has  already  granted  more  than  30  voice  telephony  licences,  whereas  Germany  has 
granted  13 national  voice telephony  licences and 6 national public network  infrastructure 
authorisations.  France  has  issued  4 public  network  authorisations  and  4 voice  telephony 
authorisations,  and  further  applications  are  still  being  processed.  Amongst  the  larger 
Member  States, the situation  in Italy where no additional  operator has been authorised  to 
date  gives  cause  for  concern.  It  should  be  noted  that  Spain,  which  was  granted  an 
additional  implementation  period,  has  already  granted  a  second  nation-wide  licence  and 
is  in  the  process  of  granting  a  further  licence.  Of  the  smaller  Member  States,  Belgium 
and  Austria,  which  were  late  in  transposing  the  directives,  have  nevertheless  already 
granted  a number  of  public  infrastructure  and  voice  telephony  licences,  although  in  the 
case of Belgium  these  are only provisional.  In The Netherlands  there are at present  two 
national  voice  telephony  licences  and  two  national  public  infrastructure  operators  with 
rights  of  way,  in  addition  to  the  incumbent  operator.  This  situation  is  likely  to  change 
with the projected  adoption of the new Telecommunications Act in March 1998. 

At this initial  stage of liberalisation,  all but two (Italy  and France) of the Member  States 
without  additional  implementation  periods  do  not  consider  that  the  provision  of 
universal  service  by  the  former  monopoly  constitutes  an  unfair  burden  within  the 
meaning of the Interconnection Directive, and have not yet activated schemes to share the 
burden  of  universal  service  provision.  The  Commission  is  therefore  examining  the 
justifications  provided  by  these  two  Member  States.  Only  one  of  the  Member  States 
without  an  additional  implementation  period  (France)  has  notified  a  plan  to  phase  out 
tariff  imbalances  and  approved  the  implementation  of  access  deficit  charges  by  its 
operator  for  a transitional  period.  Italy  has  stated  that  tariffs  are  still  not  balanced,  but 
has  not  provided  a  precise  timetable.  The  Commission  is  monitoring  whether  other 
operators  are  implementing  hidden  access  deficit  charges  and  will, where  required,  take 
action. 

The  incumbent  operators  of  all  Member  States  without  derogations  have  published 
standard  interconnection  terms  and  conditions.  The  extent  of  services  provided  as 
well  as  the  level  of  charges  vary  from  one  operator  to  another.  The  Commission  has 
adopted  a Recommendation  on  Interconnection  Pricing  setting  out  'best  practice  prices' 

for  interconnection  at  three  different  levels.  Annex  III  shows  the  level  of  prices  in  the 
Member  States, together with the percentage  deviation  from  best practice. As at  January 
1998,  respectively  five  and  six  Member  States  were  within  the  recommended  price 
ranges  depending  on  the  level  of  call  termination  considered.  In  two  Member  States 
(Austria,  Italy),  the  prices  proposed  by  the  operator  are  still  subject  to  approval  by  the 
that  a  reference 
regulator.  Member  States  with  derogations  must  also  ensure 
interconnection  offer  is  published  covering  interconnection  for  already  liberalised 
services (eg mobile and cross-border  interconnection). 

The  Commission's  first  conclusions  on  the  application  of  the  rules  in  place  in  the 
Member States are as follows: 

The  state  of  liberalisation  achieved  in  January  1998  is  encouraging.  Considerable 
progress  has  been  made  since  last  September,  when  the  last  assessment  was  made. 
Although  the Commission has already had to deal with a number of informal  complaints 
relating  either  to  transposition  measures  or  their  application  (such  as  long  delays  in 
granting  authorisations,  disproportionate  burdens  imposed,  discouraging  licensing  fees, 
etc.)  or  to  the  behaviour  of  incumbent  operators  (interconnection  fees  leading  to  anti-
competitive  price  squeezes,  non-publication  or  incomplete  publication  of  a  reference 
interconnection  offer,  denial  of the right  to  negotiate  interconnection,  predatory  pricing, 
imposition  of  unreasonable  fees  on  customers  choosing  another  operator,  etc.),  there  is 
evidence that the national regulators now established  in the Member  States are  assuming 
their  responsibilities  for  enforcing  the  provisions  of  the  framework  as  laid  down  in  the 
directives. 

In order to ensure a level playing  field  in the single market, the Commission  will  pursue 
its  monitoring  of  the  implementation  of  the  regulatory  framework  at  national  level, 
relating  inter  alia  to  the  licensing  process,  the  level  of  licence  fees,  the  terms  and 
conditions  of  interconnection,  the  implementation  of  an  appropriate  cost-accounting 
system  as  well  as  the  structure  of  the  incumbents'  retail  tariffs  structure  in  order  to 
prevent predatory pricing, price squeezes, cross-subsidies, etc. Particular attention will be 
given to the level of competition in the local loop and to national measures taken to  foster 
competition in this market. 

4. - Monitoring progress in opening national telecommunications  markets 

The above assessment  is naturally  structured  around the legislation  in question, the  focus 
being on the practical  outcome of the measures taken  by the Member  States to  transpose 
the  Community  principles  laid  down.  It  is  also  important,  however,  to  observe  the  real 
effects  of these measures  on markets, taking  into account  that there will  be other  factors 
which haVe a bearing on how they evolve. 

Two  meetings  of  the  High  Level  Committee  of  National  Regulators  were  held  during 
1997,  devoted  principally  to  subjects  relating  to  the  real  effects  of  the  new  national 
frameworks.  In  particular,  the  regulators  were  asked  to  comment  on  a  series  of 
indicators which subsequently  formed the basis of a questionnaire which they were asked 
to  complete  with  data  on  the  state  of  their  respective  national  telecommunications 
markets. 

10 

The data provided  by National  Regulatory  Authorities  is set out in Annex III as a means 
of 

-  observing  the  openness  of  the  market,  inter  alia  arising  from  the impact  of  the 
liberalisation and harmonisation  measures already transposed into national law; 

-  establishing a 'base line' by which progress in opening markets as from  the date of 

full  liberalisation can be  judged. 

As far  as the  impact  of  the  Community  directives  is concerned,  the  data  is presented  to 
take account of the fact that: 

-  On the one hand, liberalisation opens markets to competition, the presence of which 
is indicated  by the number of operators, their  market shares, the percentage  of the 
national  territory/population with a choice of operators, the level of tariffs, and so 
on. 

-  On the other, the number  of operators  is influenced  by the regulatory  framework 
relating  inter  alia  to  the  licensing  process,  the  level  of  licence  fees,  the  terms  of 
interconnection, and so on. 

This  first  presentation  of  data  is  based  on  indicators  which  are  relatively  narrow,  and 
attempts to mobilise data which the National  Regulatory  Authorities could reasonably  be 
expected to have available at this early stage in the opening of markets. It is intended  to 
supplement  these in subsequent  communications  to take account of the evolution  of 
markets. 

It should be clear in this context that Annex III is not to be read as a comparison  between 
Member  States whose markets are not comparable  by virtue  of differences  for  example 
in the date laid down for full  liberalisation. 

5.  Future  reporting 

The  Commission  will  continue  to  monitor  closely  the  status  of  implementation  and  the 
evolution  of the telecommunications  market  in the  Community.  A  further  report  will  be 
issued in the middle of this year. 

As  far  as  the  1999  review  of  Community  telecommunications  legislation  is  concerned, 
the results of the ongoing monitoring exercise will be used in arriving at proposals for the 
revision of the package. 

11 

12 

ANNEXI  :  STATE OF IMPLEMENTATION OF LIBERALISATION DIRECTIVES  (15.01.98) 

Directive 90/388 
measures to liberalise non 
public voice 
measures to liberalise 
provision of resale of leased 
lines capacity 
measures to liberalise v.a.s. 
(calling card, internet, call 
back) 
number of authorisations-5 

- level of fees  published 
- an initial fee is to be paid 
- an annual fee is to be paid 

Directive 94/46 
measures to liberalise satellite 
services 
measures taken to allow 
bypassing national  signatory 
Intelsat/Eutelsat 
maximum  legal duration of 
authorisation  procedure : 
- VSAT 
-SNG 
- others 
fees (excluding  frequencies): 
-  published 
-an  initial fee to be paid 
- an annual fee is to be paid 
number of authorisations 
gran ted 3; 
-VSAT 
-SNG 
- others 

EL 

• 

• 

=> 

• 

95 

Y 
Y 

• 

• 

N 
N 

O 

N 
Y 
Y 
1 

B 

V 

S 

S 

• 

DK 

V 

s 

V 

V 

D 

V 

s 

s 

s 

123 
n.a. 
N 
N 

n.a. 
n.a.2 
N 
N 

>1100 
Y 
Y 
Y 

V 

V 

Y 
Y 

4w 
4w 
4w 

Y 
Y 
Y 
335 

177 
158 
0 

• 

• 

N 
N 

n.a.l 

n.a. 
N 
N 

13 
129 
13 

• 

• 

Y 
Y 

6w 
2w 
6w 

Y 
N 
Y 
50 

3 

E 

V 

• 

V 

V 

F 

V 

s 

s 

• 

>100 
Y 
Y 
Y 

n.a. 
n.a. 
N 
N 

• 

• 

Y 
N 

4m 
4m 
4m 

N/Y 
Y 
Y 
11 

• 

S 

Y 
Y 

6w 
2w 
4m 

Y 
Y 
Y 

41 
40 

H*L 

V 

V 

V 

s 

>40 

Y 
N 

• 

• 

Y 
N 

O 

N 

0 
2 
0 

I 

y/ 

• 

V 

S 

>350 
Y 
Y 
Y 

• 

• 

Y 
N 

3m 

3m 

Y 
Y 
Y 

46 
77 

L 

• 

• 

• 

• 

N 

• 

• 

N 

0 
0 
2 

P 

• 

• 

• 

• 

84 
Y 
Y 
Y 

• 

• 

Y 
N 

6w 
6w 
6w 

Y 
Y 
Y 
7 

A 

s 

V 

s 

V 

130 

=> 
Y 
N 

• 

V 

Y 
N 

6m 
6m 
6m 

=> 
Y 
N 

8 

NL 

V 

• 

s 

V 

>50 
Y 
Y 
Y 

• 

• 

Y 
Y 

6w 
2w 
3m 

Y 
Y 
N 

30 
40 

FIN. 

;  S- 

j  UK ' 

• 

V 

s 

s 

32 
Y 

S 

S 

Y 
Y 

Y 
Y 
Y 

• 

V 

• 

V 

n.a. 
n.a.2 
N 
N 

• 

• 

Y 
Y 

n.a.1 

n.a. 
N 
N 
n.a. 

• 

V 

S 

s 

n.a. 
n.a. 
N 
N 

S 

• 

Y 
Y 

6w 
2w 

Y 
Y 
Y 

17 
74 
90 

Directive 95/51 
measures to liberalise 
provision of telecom services 
using Cable TV networks 
introduction  of 
- accounting  separation 
- structural  separation 
nb of authorisations  granted3: 

B 
Y 

Y 

N 
3 

DK 
Y 

Y 

Y 
N 
n.a. 

D 
• 

Y 

Y 
Y 

.  EL 
O 

=* 

N 
N 
O 

E 
Y 

Y 

Y 
24 

F 
• 

Y 

Y 
N 

m* 

Y 

'•  i 
Y 

< 

Y 

0 

Y 

Y 
N 
0 

L 
• 

• 

NL 
• 

Y 

n.a. 

0 

n.a. 
Y 
>125 

A 
Y 

Y 

Y 
Y 
10 

•

-

:

*

.' 

; 

'

- * & .

•< 

Y 

V 

Y 
N 
0 

Y 

Y 

Y 
N 
200 

:*  > 
Y 

UK 
Y 

Y 

Y 

N 
N 

Y 
N 
141 

' 
. 

:  •>%;;4--:  '. 
•"£&: 

.  .. 

'-;<' 
~?t* 

' 

- 

• -: 

••". 

; , , ^ s/ 

*fv- J£y-~" *' 

•«  £-.;. 
Y 

:•..'• ifolk"'-
Y 

•  D 
Y 

&4Ess*!-% 
&;wb  -. 
• 

§ ?.• -.~i'M"4, 

%My> 
Y 

> 

> 

'••*" 

ii 

= 5 = 5 =^ T: =T: 

t .-.JF  :•: 
Y 

r.'JSKR^M f ^ /f  r':r|£"'» 
Y 

Y 

Y 

*<-:>«..;•"<.'# a^-*vcH<  ;>v-~™->  •*  ^,-,3S»P^ 
p ^ ^ ^ l ^ pj  ' 

Y 

Y 

Y 

=> 

Y 

Y 

Y 

Y 

Y 

Y 

Y 

Y 

Y 

fe^^S 
P 
Y 

Y 

J C ^ ' s i t i*  S ^ ^ W sl  SJ^JAUV'V 
UK 
FIN 
Y 
Y 

••  S. 
Y 

Y 

Y 

Y 

Directive 96/2 
notification of measures to 
liberalise provision of mobile 
and personal  communication 
services 
Direct interconnection  of 
mobile networks with  mobile 
and PSTN in other MSs 
Measures taken to ensure 
effective competition  : 
- exclusion of GSM operators 
- mandatory roaming / GSM 
to DCS  1800 operators 
- others 
nb of DCS  1800 licences 
granted3 

Y 

Y 

Y 

o 

Y 

Y 

D 
1.1.99 

Y 

Y 

Y 

Y 

D 
1.1.99 

Y 

Y 

Y 

Y 
N 

Y 
0 

N 
Y 

4 

Y 
Y 

Y 
2 

N 

1 

N 
=> 

N 
0 

Y 
N 

3 

Y 
N 

N 
0 

N 
Y 

0 

N 
N 

N 
2 

Y 
Y 

0 

Y 
Y 

N 
1 

N 
N 

N 
1 

N 
N 

N 
N 

12 

4 

Y 
N 

2 

Directive 96/19 
Measures to liberalise: 
• 
•  public infrastructure 

alternative  infrastructure 

•  voice telephony 

• 

Nb of authorisations  granted3 
excluding the incumbents) 
•  public infrastructure* 
- national coverage 
- non national  coverage 
voice telephony 
- national  coverage 
- non national  coverage 
Maximum legal duration  of 
procedure: 
•  public  infrastructure4 
•  voice telephony 
Fees: initial /annual 
published 
•  public  infrastructure4 
• 
voice telephony 
measures notified  to  liberalise 
provision of directories 
Availability of numbers by 
1.7.97: 
-fixed 
- mobile 
number portability  in place 
duct/facility sharing  imposed 
Funding mechanism  for USO 
- cost to be shared 

DK 
Y 

Y 
Y 

Y 

n.a. 

3 
2 
1 
5 
4 
1 
n.a.1 

Y 

D 
Y 

Y 
Y 

Y 

64 
6 
58 
45 
13 
32 
Y 

6w 
6w 
Y 

n.a 
Y/n.a 
Y 

Y/N 
Y/N 
Y 

Y 
Y 
N 
Y/Y 
n.a. 
n.a. 

Y 
Y 
Y 
Y/Y 
Y 
n.a. 

B 
Y 

Y 
Y 

Y 

9 

3 

Y 

4m 
4m 
Y 

Y/Y 
Y/Y 
Y 

Y 
Y 
N 
N/Y 
Y 
n.a. 
until 
1.1.00 

EL 
D 

E 
D 

=> 
D 
1.1.01 

D 
1.1.01 

0 

D 

O/D 

O 
D 

D 

D 
D 

O 

D 

• 
N 
N 
D 
D 
1.1.01 

Y 
D 
1.12. 
98 
D 
1.12. 
98 

10 
1 
9 
10 
1 
9 
Y 

4m 
4m 
Y 

Y/Y 
Y/Y 
Y 

Y 
Y 
N 
Y/Y 

=> 
D 
1.12. 
98 

F 
Y 

Y 
Y 

Y 

18 
4 
14 
12 
4 
8 
O 

4m 
6w 
Y 

Y/Y 
Y/Y 
Y 

Y 
Y 
Y 
N/Y 
Y 
Y 

IRL 
D 

Y 
D 
1.1.00 

D 
1.1.00 

3 

D 

=>/D 

=> 
D 

=> 

Y 

Y 
Y 
N 
N 
D 
D 
1.1.00 

I 
Y 

Y 
Y 

Y 

0 

0 

Y 

4/8m 
4/8m 

=> 

Y/Y 
Y/Y 
Y 

Y 
Y 
N 
N/Y 

=> 
=> 

L 
D 

NL 
Y 

• 
D 
1.7.98 

D 
1.7.98 

0 

D 

=> 

4m 
6w 

O 

Y/Y 
Y/Y 
Y 

O 
• 
N 
N/Y 
n.a. 
n.a. 

Y 
• 

Y 

3 
2 
1 
7 
2 
5 
Y 

3m 
2m 
Y 

Y/Y 
Y/Y 
Y 

Y 
Y 
N 
Y/Y 

=* 
n.a. 

A 
• 

Y 
Y 

Y 

7 

7 

Y 

6w 
6w 

=> 

N/N 
Y/N 
Y 

Y 
Y 
N 
Y 
Y 
n.a. 

P 
D 

FIN 
Y 

• 
D 
1.1.00 

D 
1.1.00 

Y 
Y 

Y 

0 

D 

• 

lm 
lm 

• 

• 
D 
Y 

Y 
Y 
N 

D 
D 
1.1.00 

12 
6 
6 
32 
17 
15 
n.a.1 

Y 

n.a. 
Y/Y 
Y 

Y 
Y 
Y 
Y/Y 
n.a. 
n.a. 

S 
Y 

Y 
Y 

Y 

31 
7 
24-
22 
13 
9 
Y 

4m 
Y 

Y/Y 
Y/Y 
Y 

• 

Y 
Y 
N 
N 
n.a. 
n.a. 

UK 
Y 

Y 
Y 

Y 

173 
32 
141 
173 
32 
141 
Y 

5,5 m 
5,5m 
Y 

Y/Y 
Y/Y 
Y 

Y 
Y 
Y 
.N 
n.a. 
n.a. 

yryM^M^MMiM 
Tariff  rebalancing 
- achieved by 1.1.98 
- plans for phasing out 
- access deficit charge 

Cost accounting system 
suitable for pricing i/c in place 

Methodology 
Reference  Interconnection 
Offer published 
•  n.  points of IC available: 

-Local 
- Transit 
-International 
• 
tariffs  published: 
•  differentiation  between 

service and  infrastructure 
providers 
advanced services offered 

• 

"\W", 

5ftfc'. 

Mil 

.  r  • 

IRL 

N 
N 
N 

• 

Y 
Y 

75 
15 
1 
Y 
Y 

Y 

Y 
n.a. 
N 

Y 

Y 
Y 

Y 

Y 
n.a. 
N 

Y 

Y 
Y 

38 

Y 
N 

Y 

D 
1.1.01 

D 
1.12. 
98 

o 

O 
O 

10 

O 

• 

O 
• 

50 

Y 

=> 

N 
Y 
Y 
1.1.01 
Y 

Y 
Y 

1000 
48 
0 
• 
Y 

Y 

Y 

I 

N 
N 

• 

Y 
• 

D 
1.1.00 

• 

Y 
Y 

Y 

Yb 

,:  L 

NL 

»-•  -  7< >  •  "•  .*r 
.  A 

-  **••-• 

D 
1.7.98 

N 

Y 
n.a. 
N 

D 
1.1.00 

Y 
n.a. 
N 

Y 
n.a. 

• 

O 
O 

o 
Y 

=> 

• 

Y 
Y 

Y 
'Y 

600 
20 
2 
Y 

N 

Y 

8 

4 
Y 

N 

Y 

• 

O 
O 

O 

Y 

Y 
Y 

26 

Y 

Y 

Y 
Y 

Y 

N 

Y 
n.a. 
N 

Y 

Y5 
Y 

Y 

Y 

Y 

S  = substantially transposed  / available 

n.a. = not applicable 

•  = partially transposed / some provisions in place 

0  = not transposed / not available 

=> = draft measures notified 

Y:Yes 

N:No 

D  = deferment granted 

3 These figures were given by the Member States and do not distinguish between nation/non-national authorisation and the difference  in the national licensing schemes. 
2 No authorisation required. However, applicants need to pay for frequencies and numbers. 
1 No authorisation required. However, applicants need to apply for frequencies and numbers. 
4 Here "public infrastructure"  includes both "alternative infrastructure"  and the underlying  infrastructure  for the provision of voice telephony. 
5 LRIC method already in place. 
6 Not yet approved by the NRA. 

:r 

J»  ! 

,  '  -

-

.  *  >• 

?*-•  -

"•*".y 

''Mi 

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<  5 
£ 

''  -  .'  * ' 

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i£*?r  K. 

. 
k 

,*"' 

4 

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v 

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17 

Method  ofassessment 

The Commission has, in arriving at its directive-by-directive  assessment of transposition 
for each Member State, taken account of the key principles  laid down in each directive, 
and limited itself to the following three categories: 

principles -of.-itto 
;; 
aiiows 
territory  of tbte 
particularly 
telecommun 
infringement 
transposition or: 

means that it is considered that the major provisions and 
m  concerned  are  transposed,  and  therefore  the  legislation 
the 
memam objecnves pursuedby me Diiw 
tes. - This  is  necessary  for  a  proper  assessment  of  the 
in  force,  bom  at Commuriity  and natior^  level,  in  the 
Ilie  Cormriissicii  nonetheless reserves  the  right  to  bring 
where  a  siibsequent  examination  shows  that  proper 

means that it is considered mat important principles have not 
tnmsposition of importantprmciples is not m wnfor^^^  with 
the package. Where d i^ measures have been exammed in the context of this exercise, 
these  are  referred  to,  and  a  brief  assessment  of  their  conformity  given.  The 
Commission will bring proceedings where there is  substantial  delay in adopting the 
necessary measures; 

"Not  transposed" means  that no  transposition  measures have  been  notified  to  the 
Commission, or those notified  do not transpose the principles of the directive. Draft 
measures are treated as above. The Commission will bring proceedings  for failure to 
cornmunicate measures, or where there is delay as referred to above. 

18 

OVÉRVIEW OF TRANSPOSITIÔN 0F 

ANNEX  II 

Directive 

B 

DK 

D 

EL 

E 

F 

IRL 

I 

L 

NL 

A 

Harmonisation 

Framework 
90/387/EEC, 
as amended  by  97/51/EC 
Leased  lines 
92/44/EEC, 
as amended  by  97/51/EC 
Voice  Telephony 
95/62/EEC 
Licensing 
97/13/EC 
Interconnection 
97/33/EC 
Terminals 
91/263/EEC 

Terminals 

Frequency 
allocation 

Satellite 
93/97/EEC 
GSM 
87/372/EEC 
ERMES 
90/544/EEC 

DECT 
91/287/EEC 

/ 

• 

• 

• 

• 

y 

X 

s 

y 

s 

• 

• 

• 

S 

S 

s 

s 
y 

V 

• 

/ 

• 

• 

• 

/ 

y 

s 

s 

/ 

• 

• 

• 

X 

X 

X 

s 

X 

s 

Y' 

• 

• 

• 

• 

X 

• 

y 

s 

s 

s 

s 

/ 

• 

• 

• 

• 

/ 

/ 

• 

• 

• 

• 

• 

• 

X 

• 

• 

X 

• 

• 

• 

• 

• 

• 

• 

• 

• 

/ 

/ 

/ 

/ 

/ 

• 

• 

• 

• 

• 

• 

S 

• 

• 

• 

• 

S 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

y 

• 

s 

s 

s 

/ 

p 

• 

• 

• 

• 

x 

• 

• 

• 

• 

• 

FIN 

S 

UK 

• 

• 

• 

• 

• 

• 

• 

• 

S 

s 

• 

• 

• 

• 

• 

• 

• 

/ 

• 

• 

• 

/ 

• 

• 

• 

• 

/ 

S 

• 

• 

Legend :  /  Substantially  transposed,  * Partially  transposed,  X  Not  transposed. 

OVERVTEW OF TRANSPOSITION OF HARMONISATION DIRECTTVES:  B E L G I UM 

The  new  regulatory framework for  telecommunications  was  adopted  in  December 
1997  (Law  amending  the  Loi  du  21  Mars  1991 portant  reforme de certaines 
entreprises publiques economiques  /  Wet betreffende  de  hervorming  van  sommige 
economische  overheidsbedrijven).  Secondary  legislation  has  been  passed  in  recent 
months and drafts are in the process of being adopted to complete the  framework. 

• 

Framework Directive: The Belgian NRA (Institut Belge des services postaux et des 
telecommunications  I  Belgisch  Instituut  voor  postdiensten  en  telecommunicatie, 
IBPT/BIPT)  has  been  operational  for  some  years.  The  new  Law  has  enhanced  its 
competences,  while  leaving  licensing  powers  to  the  Minister.  Given  the  fact  that 
responsibility both for the State shareholding in the former incumbent operator and for 
overall management of the regulatory body are vested in one and the same Ministry, 
the Commission will monitor the effective  application of the requirement of structural 
separation between regulatory functions  and activities associated with ownership  and 
control set out by the Directive. 

Leased  lines:  General  provisions  are  set  out  by  the  new  Law,  but  substantial 
transposition will only be achieved by forthcoming secondary legislation. Outstanding 
issues relate mainly to cost accounting obligations, procedures to allow restrictions to 
access, and availability of information. 

Voice  telephony:  A  number  of  principles  are  transposed  by  the  new  Law,  but 
substantial transposition will only be achieved by forthcoming  secondary  legislation. 
Outstanding issues are cost accounting obligations and regulation on special access. 

Licensing:  The  directive  is  partially  transposed  by  the  new  Law,  which  requires 
supplementing  by  secondary  legislation.  Drafts  are  in  preparation  conceming 
conditions  and procedures  for  general  authorisation  and  individual  licences,  and  in 
some cases are at an advanced stage. Deficiencies in the Law or in the draft legislation 
examined by the Commission relate mainly to conditions and procedural aspects. 

• 

Interconnection: The directive is partially transposed by the new Law and secondary 
legislation  , with gaps concerning the principle of non discrimination, powers of the 
NRA concerning  dispute resolution,  and provisions  on cost  accounting.  In  addition, 
excessive obligations are imposed as regards cost orientation. Secondary legislation is 
in preparation to fill in some of these gaps, and amendments to the Law are also under 
consideration. 

Terminals/ Satellite earth station equipment: The Directive on terminal equipment 
was  substantially  transposed  by  Royal  decree  in  November  1996.  A  draft  decree 
concerning satellite earth station equipment is at an advanced stage and its adoption is 
announced for the first semester of 1998. 

Frequencies:  The  three  Directives  have  been  substantially  transposed  by  Royal 
Decrees adopted in 1991 and 1992. 

20 

OVERV1EW OF TRANSPOSITION OF HARMONISATION DIRECTTVES:  D E N M A RK 

•  The Telecommunications Law (Lov om visse forhold pa telekommunikationsomradei) 
as  amended  in  1996  and  1997,  together  with  the  1996  Law  on  the  obligation  to 
provide 
forbrugerforhold indenfor telesektoren) and other specific laws and executive orders, 
provide the regulatory  framework. 

forsyningspligt  og  visse 

telecommunications 

(Lov  om 

services 

•  Framework Directive: The independence of the regulatory authority (Telestyrelsen) 
from the  former  incumbent  is established  and its operational  powers defined  by the 
1996 Laws. 

•  Leased 

lines:  The  directive  has  been  substantially 

the 
Telecommunications  Law and a series of laws and executive orders adopted in 1996 
and 1997. 

transposed  by 

•  Voice  Telephony:  The  1996  Law on the obligation  to provide  telecommunications 
services, together with executive orders adopted in  1996 and  1997, in particular that 
on interconnection agreements, substantially transpose the provisions of this Directive 

•  Licensing: The directive is substantially transposed and a system of class licences is 
laid down, whereby authorisations are required only where frequencies. are to be used. 
The  NRA  lays  down  detailed  rules  for  radio  equipment  and  the  use  of  frequency 
bands. 

Interconnection: The directive is substantially transposed by the specific  legislation 
adopted in 1996  and 1997 on interconnection agreements. 

Terminals/  Satellite  earth  station  equipment:  These  directives  are  substantially 
transposed  by  the  Laws  of  1992  respectively  on  telecommunications  terminal 
equipment  and on  radiocommunications, a  1995 executive order on satellite earth 
station equipment, and a  1997 executive order on the construction and use of certain 
radio stations. 

Frequencies:  Current  national  legislation  ensuring  substantial  transposition  is  the 
1997 Law on radiocommunications and assignment of radio frequencies and the 1997 
executive order on the construction and use of certain radio stations. Telestyrelsen has 
also published the Danish Frequency Allocation Table. 

21 

OVERVIEW OF TRANSPOSITION OF HARMONISATTON DIRECTTVES:  G E R M A NY 

1.  Germany 

has 

adopted 

a 

telecommunications 

framework 

law, 

the 

Telekommunikationsgesetz (TKG), which entered into force on 1  August  1996. This 
is  supplemented  by  a  series  of  enabling  regulations.  In  addition,  more  general 
provisions under the Constitution and under the law of competition, administrative 
procedure and contract apply. 

2.  Framework  Directive:  A  Regulatory  Authority  established  under  the  TKG,  the 
functions of which are separate from those of the former incumbent, began operation 
on 1 January 1998. 

•  Leased  Lines:  The Directive has been  substantially  transposed  in particular  by the 

TKG and the regulations on consumer protection (Telekommunikations-Kundenschutz-
verordnung), universal  service  Telekommunikations-Universaldienstleistungsverord-
nung), and tariffs (Telekommunikations-Entgeltregulierungsverordnung). 

•  Voice Telephony: The Directive has been substantially transposed in particular by the 
TKG  and  the  regulations  on  consumer  protection,  network  access  (Netzzugangs-
verordnung),  and tariffs. 

•  Licensing: The Directive has been substantially transposed in particular by the TKG 

and the regulations on licence fees (Telekommunikations-Lizenzgebuhrenverordnung) 
and frequency fees (Frequenzgebuhrenverordnung,  Frequenznutzungsbeitragsverord-
nung). 

•  Interconnection: The Directive has been substantially transposed in particular by the 
TKG  and  the regulations  on  network  access, data  protection,  universal  service  and 
tariffs. 

•  Terminals/  Satellite  earth  station  equipment:  The  Directives  have  been 
substantially  transposed  in  particular  by  the  TKG  and  the  regulation  on  approvals 
(Telekommunikations-Zulassungsverordnung). 

•  Frequencies: The Directives  on GSM, ERMES  and DECT have been  substantially 
transposed by a regulation on frequency allocation (Frequenzzuteilungsverordnung). 

22 

3. 

• 

A review of the existing regulatory framework (the Telecommunications Framework 
Law n.  2246/94)  has been  started  and the new Framework  Law is  expected  to be 
adopted before Summer 1998. 

Framework  Directive:  An  independent  Regulatory  Authority  (EET  - National 
Telecommunications  Commission)  was established by the framework law of  1994, 
becoming operational in the following years. 

Leased lines: The Directive has been partially transposed by Presidential Decree n. 
40/96. Main outstanding issues are NRA powers, tariff principles and cost-accounting. 
New secondary legislation is being prepared. 

Voice telephony: The Greek authorities have not communicated measures transposing 
this Directive. 

Licensing: Greece has requested a deferment  for implementation pursuant to Article 
24 of the Directive. The remaining  provisions of the Directive are not transposed. 

• 

Interconnection: The Directive has not been transposed into national law. Concerns 
relate  to  the  obligation  to publish  a reference  interconnection  offer  for  mobile and 
cross-border  interconnection,  and  essential  obligations  concerning  tariff  principles, 
cost-accounting and numbering. Secondary legislation is under way. 

Terminals/ Satellite earth station equipment: At present there is no transposition of 
the satellite Directive, although  assurances have been given that secondary legislation 
will be soon adopted by Presidential Decree. In relation to the terminals Directive, this 
has  been  substantially  transposed  by  a  Presidential  Decree  adopted  in  1995  («. 
424/95). 

• 

Frequencies:  The Directives concerning frequencies in the GSM, DECT and ERMES 
bands  are  substantially  transposed  by  a  1994 Ministerial  Decision (n.  58980/8-3-
1994). 

23 

OVERVIEW OF TRANSPOSITION OF HARMONISATION DIRECTIVES:  S P A IN 

The Bill for a Ley general de Telecomunicaciones (Telecommunications Act) is now 
being discussed by the Parliament and is expected to be adopted before  Easter. The 
current framework is based  on the  Law  of  1987, which  has been  amended  several 
times since  1992, the latest amendments being made by the Decree law (June 1996) 
and subsequent Act (April 1997) on Telecommunications liberalisation. 

• 

Framework Directive: The regulatory functions are divided between the Minister for 
Development  (Fomento)  and  the  Commission  for  the  Telecommunications  Market 
(Comision  del Mercado  de las Telecomunicaciones);  the latter has been  operational 
since 3 February 1997. Both are independent from the operators. 

• 

Leased lines: This Directive has been substantially transposed by a Royal Decree of 
1995, subject to the need to make good minor deficiencies. 

Voice telephony: Although transposition was improved by the adoption in December 
1997  of  the  Regulation  on  voice  telephony  and  bearer  services,  there  are  still 
deficiencies  concerning  a number of principles, including publication  and  access to 
information, compensation to users, special network access, provisions on tariffs, and 
publicity and elements of the cost accounting system. 

Licensing: Transposition of the main provisions of this Directive will be ensured once 
the new Act on Telecommunications is passed, although complete incorporation will 
require the adoption of secondary legislation. 

Interconnection: The situation is similar to that relating to the Licensing Directive, 
although  some  provisions  on  interconnection  are  already  in  place  concerning  the 
obligation to provide interconnection, tariff principles and some powers granted to the 
NRA. The national Numbering Plan was adopted in November 1997. 

Terminals/ Satellite earth station equipment: A Royal Decree adopted in July 1996 
substantially transposes both Directives. 

Frequencies:  Substantial  transposition  of the  GSM, ERMES and DECT Directives 
was ensured by the Frequencies National Framework adopted in July 1996. 

24 

•  The  regulatory  framework  is  based  on 

the  Loi  de  reglementation  des 

telecommunications (Telecommunications Act) of July 1996, together with secondary 
implementing legislation. 

•  Framework  Directive:  The  regulatory  functions  are  divided  between  the Minister 
responsible  for  Telecommunications  and  the  Telecommunications  Regulatory 
Authority  (Autorite de  regulation des  telecommunications);  the  latter  has  been 
operational since 1 January 1997. Both are independent from the operators. 

•  Leased lines: The Directive was substantially transposed by a Decree of 1993, subject 

to the need to make good minor deficiencies. 

• 

• 

Voice telephony: Substantial transposition has been ensured mainly by the latest Act 
and by France Telecom's "cahier des charges" adopted in December 1996. 

Licensing: National measures concerning this Directive were laid down in the Act and 
the subsequent Decree on standard clauses, both adopted in 1996. There are, however, 
no provisions in place laying down administrative procedures for granting individual 
licences.  Assurances  have  been  given  that  further  secondary  legislation  will  be 
adopted  by  May  1998. As to  conformity  with  Community  law, the  Commission  is 
concerned  about  the  licensing  condition  requiring financial contribution  to  research 
and training in the telecommunications sector. 

•  Interconnection:  The provisions  of the Act were supplemented  by two Decrees on 
interconnection  and universal  service financing, which were adopted respectively  in 
March  and May  1997. In  some cases national  provisions  impose obligations  on all 
organisations irrespective of their market power. There is also concern in relation to 
the sufficiency  of the NRA's powers. Furthermore, the Commission has concerns in 
relation to the contribution to universal service in 1997 and whether the burden on the 
organisation entrusted with the provision of universal service obligations is unfair. 

•  Terminals/  Satellite  earth  station  equipment:  Two  Decrees  adopted  in  February 

1992 and April 1995 transpose substantially both Directives. 

Frequencies:  Substantial  transposition  of the  GSM, ERMES  and DECT  Directives 
was ensured by the Frequencies National Table adopted in December 1996. 

25 

OVERVTEW OF TRANSPOSITION OF HARMONISATION DIRECTIVES:  I R E L A ND 

•  The  regulatory  framework  is  laid  down  in  the  Postal  and  Telecommunications 
Services  Act,  1983,  as  amended,  and  the  Telecommunications  (Miscellaneous 
Provisions) Act, 1996, and a number of statutory instruments. 

•  Framework  Directive:  An  independent  NRA  (Director  of  Telecommunications 
Regulation)  was  created  in  December  1996  under  the  Telecommunications 
(Miscellaneous Provisions) Act, and has been operational since July 1997. 

•  Leased  Lines:  The  Directive  is  substantially  transposed  through  the  European 
Communities (Application of Open Network Provisions to Leased Lines) Regulations. 
New  secondary  legislation  is  being  prepared  to  complete  minor  aspects  of  the 
transposition (draft European Communities (Leased Lines) Regulations). 

•  Voice  Telephony:  The  Directive  is  substantially  transposed  through  the  European 
Communities  (Application  of  Open  Network  Provision  to  Voice  Telephony) 
Regulations, adopted in October 1997. 

•  Licensing: The Directive remains to be transposed on the basis of the adoption of the 

draft European Communities (Telecommunications Licences) Regulations. 

•  Interconnection:  The  Directive  is  substantially  transposed  through  the  European 
Communities  (Interconnection  in  Telecommunications)  Regulations,  adopted  in 
January 1998. 

•  Terminals/  Satellite  earth  station  equipment:  The  Terminal  Directive 

is 
substantially  transposed  through  the  European  Communities  (Telecommunications 
Terminal  Equipment)  Regulations.  No  transposition  has  been  carried  out  for  the 
Satellite Directive, although draft regulations are in preparation. 

•  Frequencies:  The  GSM  Directive  is  substantially  transposed  by  the  European 
Communities (Co-ordinated introduction of public pan-European cellular digital land-
based  mobile  communications-  GSM)  Regulations.  The  ERMES  Directive  is 
substantially  transposed  by  the  European  Communities  (Pan-European  land-based 
public  radio  paging  service  -  ERMES)  Regulations.  The  DECT  Directive  is 
substantially  transposed  by  the  European  Communities  (Digital  European  Cordless 
Telecommunications - DECT) Regulations. 

26 

OVERVTEW OF TRANSPOSITION OF HARMONISATION DIRECTTVES:  I T A LV 

•  A new regulatory framework has been in place since September  1997  (Regolamento 
per  I'attuazione  di  direttive  comunitarie nel  settore  delle  telecomunicazioni  -
Regulation for the implementation of Community Directives), the object of which is to 
transpose  the  main  contents  of  the  EC  package.  In  November  1997  a  ministerial 
decree was also adopted setting out licensing procedures (Disposizioni per il rilascio 
delle licenze individuali nel settore delle telecomunicazioni). 

•  A number of secondary measures are in preparation on licence fees, universal service 
financing  scheme, interconnection  agreements  (drafts  at  an advanced  stage in some 
cases). 

•  Framework Directive: An independent regulatory authority was established in 1997 

(Autorita per le Garanzie nelle Comunicazioni),  although it is not yet operational. A 
President has been appointed. In the meantime, the Ministry is empowered to continue 
to act as regulator. 

•  Leased  lines:  Substantial  transposition  has  been  achieved  by  national  measures 
adopted in 1994,  supplemented by the new Regulation. Legislative changes are under 
consideration in order to complete minor aspects of the transposition. 

•  Voice telephony: Transposition of the Directive has been substantially completed by 
the new Regulation. Minor  inconsistencies identified in the transposition measure will 
be dealt with by forthcoming legislation. 

•  Licensing:  National  measures  concerning  this  Directive  are  laid  down  by  the new 
Regulation,  as  supplemented  by  the  decree  adopted  in  November  1997.  As  to 
conformity with Community law,  the Commission has concerns relating to licensing 
conditions, in particular requiring financial contribution to research and development 
in the telecommunications sector and a bank bond. A draft  decree concerning licences 
fees is in preparation. 

•  Interconnection:  The  Directive  is  partially  transposed  by  the  Regulation.  The 
Commission's  concerns  relate  to  the  lack  of  implementing  measures  on  universal 
service contributions, interconnection and numbering and to the fact that the principle 
of  non  discrimination  is  not  imposed  sufficiently  widely.  Amendments  to  the 
Regulation  are  being  considered  to  remove  inconsistencies,  while  draft  secondary 
implementing legislation is at an advanced stage. 

•  Terminals/  Satellite  earth  station  equipment:  Both  Directives  were  substantially 

transposed by legislative decree in November 1996. 

•  Frequencies: The Directives have been substantially transposed by three Ministerial 

Decrees. 

27 

OVERVIEW OF TRANSPOSmON OF HARMON1SATION DIRECTIVES: LUXEMBOURG 

•  The regulatory  framework  is set out in the  1997 Telecommunications  Act  (Loi du  21 
mars  1997 sur les telecommunications).  Some secondary legislation has recently been 
adopted; other drafts  are in preparation. 

the 

regulator, 

•  Framework  Directive:  The 

Institut  Luxembourgeois 

des 
Telecommunications  was  created  through  the  Act,  and  became  operational  in  the 
summer  of  1997. Given  the  fact  that  responsibility  for  the  State  shareholding  in  the 
former incumbent  and control and supervision of ILT are vested  in the same Ministry 
i(the  Ministry  of  Communications),  the  Commission  will  monitor  the  effective 
application  of  the  requirement  of  structural  separation  between  regulatory  functions 
and activities associated with ownership and control set out by the Directive. 

•  Leased  Lines:  The  Directive  is  partially  transposed  by  the  Act  and  secondary 
legislation  recently  adopted  (Reglement grand-ducal fixant les  conditions  du cahier 
des  charges  pour 
fixes  de 
I'etablissement  et  Vexploitation  de 
telecommunications et de services de telephonie, and Reglement grand-ducal fixant les 
conditions  du  cahier  des  charges pour  I'etablissement et  Vexploitation de  reseaux 
fixes  de telecommunications). Concern exists mainly in relation to cost-orientation  and 
transparency  of  tariffs,  the  appropriateness  of  the  accounting  system,  and  lack  of 
certain powers for ILT. 

reseaux 

•  Voice  telephony:  The  Directive  is  partially  transposed  by  the  Act  and  secondary 
legislation  adopted  recently  {Reglement grand-ducal fixant les  conditions du  cahier 
fixes  de 
des  charges  pour 
telecommunications et  de  services  de  telephonie).  Concern  exists  mainly  on  cost-
orientation  and  transparency  of tariffs,  the  appropriateness  of  the  accounting  system, 
and lack of certain powers for ILT. Some secondary legislation remains to be adopted. 

I'etablissement  et 

I'exploitation  de 

reseaux 

»  Licensing:  The  Directive  is  partially  transposed  through  the  Act  and  secondary 

legislation recently adopted. Some secondary legislation remains to be adopted. 

»  Interconnection:  The  Directive  is  partially  transposed  by  the  Act  and  secondary 
legislation  adopted  recently.  Some  of  the  transposing  measures  appear  not  to  be  in 
conformity  with the requirements  of the Directive, in particular  as regards the powers 
of the Regulator. Some secondary legislation remains to be adopted. 

•  Terminals/  Satellite  earth  station  equipment:  The  Directives  are  substantially 
transposed  through  a Reglement grand-ducal  relatif  aux equipements terminaux de 
telecommunications et aux equipements de stations terrestres de communications par 
satellite,  incluant la reconnaissance mutuelle de leur conformite. 

>  Frequencies:  The  three  Directives  are  substantially  transposed  through  Ministerial 
Decisions on allocation of frequency bands and channels for the respective service. 

28 

OVERVIEW OF TRANSPOSITION OF HARMON1SATION DIRECTCVES: 
THE NETHERLANDS 

In  1996 legislation was passed to liberalise voice telephony as from 1 July  1997. A 
review of the existing regulatory framework (Wet op telecommunicatievoorzieningen -
Telecommunications Act  1988, as amended several times) was started in 1997: a new 
Telecommunications Act (Telecommunicatiewet),  the object  of which is to transpose 
the  main  contents  of  the  EC package, has  been  submitted  to  the Parliament  and  is 
expected to be adopted by March. 

• 

Secondary  legislation  is  also  in  the  pipeline,  the  adoption  of  which  should  follow 
swiftly the entry into force of the new Act. 

•  Framework  Directive: An independent  Regulatory Authority  (Onafhankelijke post-
en telecommunicatie autoriteit, OPTA) was created in 1997 and is now operational. 

•  Leased  lines:  The  Directive  has  been  substantially  transposed  by  secondary 

legislation (Besluit algemene richtlijnen telecommunicatie). The latter will be replaced 
by  new  legislation  which  is  being  prepared  for  the  purpose  of  completing  minor 
aspects of the transposition. 

•  Voice  telephony:  Transposition  is  substantially  ensured  by  secondary  legislation 
(Besluit  algemene  richtlijnen  telecommunicatie). Implementation  of  the  cost 
accounting system is expected to be completed by May  1998. Other minor problems 
will be solved by new legislation. 

•  Licensing:  A  framework  for 

the  existing 
Telecommunications Act, as amended in 1996, by which the Directive is only partially 
transposed.  Transposition  should  be  substantially  completed  by  the  forthcoming 
Telecommunications Act, in conjunction with other general regulations (Algemene wet 
bestuursrecht). 

in  place  under 

licensing 

is 

•  Interconnection: Some provisions on interconnection  are already in place under the 
current Telecommunications Act. The Directive should be substantially transposed by 
the  new  Telecommunications  Act,  in  conjunction  with  other  general  regulations 
(Algemene wet bestuursrecht). 

•  Terminals/  Satellite  earth  station  equipment: National  transposition  measures  for 

the two Directives were notified in December 1997. 

•  Frequencies:  The  Directives  have  been  substantially  transposed  by  Ministerial 

Orders. 

29 

•  Austria adopted in July 1997 a Telecommunications Law - Telekommunikationsgesetz 
(TKG) which entered into force on 1  August 1997. The Law constitutes a  framework 
which  has  been  supplemented  by  a number of  secondary  ordinances,  in  particular 
relating to interconnection, tariffs and numbering. 

4.  Framework Directive: An independent Regulatory Authority (Telekom Control) is 

established under the Law and began operations on 1 November 1997. 

5.  Leased lines: The Directive has been substantially transposed by the Law. 

6.  Voice telephony: The Directive has been substantially transposed by the Law and 
secondary  legislation,  in particular  the  1996 ordinance  on tariffs  (Telekom-Tarif-
gestaltungsverordnung)  and  the  1997  ordinance  on  numbering  (Numerierungs-
verordnung). 

7.  Licensing:  The  Directive  has  been  partially  transposed  into  national  legislation; 
concerns remain in relation to certain procedures for the granting of licences. 

8. 

Interconnection: The Directive is substantially transposed on the basis of the Law 
and the ordinance on interconnection (Zusammenschaltungsverordnung).  There are 
some minor concems regarding number portability, which will be fully achieved in 
a few years, and the NRA power. 

9.  Terminals/ Satellite  earth  station  equipment: In relation to terminals, the Law 

and  a  specific  ordinance  (Konformitdtsbewertungsverordnung)  substantially 
transpose  the  Directive.  New  secondary  legislation  is  being  drafted.  Concerning 
satellite earth station equipment, the Law extends the key provisions of the Terminal 
Equipment Directive to these systems. 

10.  Frequencies:  Core frequencies have  been  reserved  for  the  GSM,  ERMES  and 

DECT systems under the Frequenzwidmungsverordnung. New frequency plans are 
being drafted. 

30 

OVERVIEW OF TRANSPOSITION OF HARMONISATION DIRECTIVES:  PORTTJGAL 

•  The  regulatory framework is  set  out  in  the  Lei  que define as  bases gerais a que 

obedece  o  estabelecimento,  gestao e exploracao  de redes de  telecomunicacoes  e a 
prestaqao de  servicos de  telecomunicagoes  (Telecommunications  Act)  adopted  in 
August 1997, together with secondary legislation transposing Community law. 

•  Framework  Directive:  The 

independent  Portuguese  NRA 

(Instituto  das 

Comunicacoes de Portugal, ICP) began operation in November 1989. 

•  Leased  lines: National  measures,  laid  down  mainly in  a Decree-law  of  July  1994, 
transpose  this  Directive  partially.  Main  gaps  relate  to  information  to  be  published, 
NRA  powers  on  refusal,  interruption  or  limitation  of  supply,  tariffs  and  cost 
accounting. 

•  Voice telephony: Despite the adoption in September 1997 of the Decree-law on voice 
telephony, there are still gaps concerning publication of tariffs; verification, publicity 
and aspects of the cost accounting system; the numbering plan; and NRA powers. 

•  Licensing: This Directive was substantially transposed by a Decree-law of December 

1997, subject to the need to make good minor deficiencies. 

•  Interconnection:  No  legislation  aimed  at  transposing  this  Directive  has  been 
communicated.  Assurances have been  given  that  secondary  legislation  will be soon 
adopted. 

•  Terminals/  Satellite  earth  station  equipment:  Two  Decree-laws  adopted  in  June 

1993 and August 1996 transpose substantially both Directives. 

•  Frequencies: Substantial transposition of these Directives was carried out in February 

1994 by a decision of ICP's Board of Directors. 

31 

The  Telecommunications  Act  1987 was revised  in  1997 in  order  to  reflect  market 
developments  and  to  adapt  Finnish  legislation  further  to  EU  harmomsation 
requirements. The new law, the Telecommunications Market Act (Telemarkkinalaki-
Telemarknadslagen) was adopted on 30 April  1997 and entered into force on  1 June 
1997. The Act is supplemented by secondary legislation on specific matters. 

• 

Framework Directive: The regulatory functions  are divided between the Ministry of 
Transport  and  Communications  (Liikenneministerid-Trafikministeriet)  and 
Telecommunications  Admimstration  Centre 
(TAC)  (Telehallintokeskuksen-
Telefbrvaltningscentralen).  Independence of the regulatory  function  is enhanced  by 
the revision of the allocation of tasks between the Ministry and the TAC which took 
place in 1997, and under formal guidelines from the Ministry. 

the 

•  Leased  Lines:  The  Directive 

the 
Telecommunications  Market  Act  and  other  primary  legislation,  and  a  complex  of 
secondary legislation. 

substantially 

transposed 

through 

is 

•  Voice  Telephony:  The  Directive  is  similarly  substantially  transposed  through  the 
Telecommunications  Market  Act  and  other  primary  legislation,  and  a  complex  of 
secondary legislation. 

•  Licensing/Interconnection:  The  Directives  are  substantially  transposed  through  a 
complex of primary and secondary legislation and the licences issued under the Act. A 
licence is needed only for constructing mobile networks. 

•  Terminals/  Satellite  earth  station  equipment:  The  Terminal  Directive  is 
substantially  transposed  through  the Telecommunications  Act, the Radio  Act  and a 
regulation  issued  by  the Teleeommunications  Admimstration  Centre.  The  Satellite 
Directive is substantially transposed through the legislation on terminals, together with 
a  regulation  on  the  conformity  assessment  and  markings  of  telecommunications 
terminal equipment and satellite earth station equipment. 

•  Frequencies:  The  GSM  Directive  is  substantially  transposed  through  the  national 
frequency  allocation table, and a decision regarding moving frequencies from NMT to 
GSM.  The  ERMES  and  DECT  Directives  are  substantially  transposed  through  the 
national frequency allocation table. 

32 

•  The  Telecommunications  Act  1993  (Telelagen)  was  amended  in  1997 to  take  into 
account  experience  of  the  liberalised  environment  and  new  EC  harmomsation 
requirements,  and  some new  secondary  legislation  was  adopted.  The  amended  Act 
entered into force on 1 July 1997. 

•  Framework  Directive:  The  Swedish  telecommunications  is  supervised  by  an 
independent  regulatory  authority,  the Post-  and  Telecommunications  Agency (Post-
och Telestyrelsen)  (PTS).  Ownership  of  the  former  incumbent,  Telia,  was  in  1997 
passed  from  the Ministry of Communications to the Ministry of Industry, to  further 
mark the independence of the regulatory authority. 

•  Leased lines: The Directive is substantially transposed through a complex of primary 
and  secondary  legislation,  and  licence  conditions.  Primary  legislation  is  being 
amended to complete minor aspects of the transposition. 

•  Voice  telephony:  The  Directive  is  substantially  transposed  through  a  complex  of 
primary  and  secondary  legislation,  licence  conditions,  and  other  measures  adopted 
under the Act. 

•  Licensing: The Directive is substantially  transposed  through  a complex  of primary, 

secondary legislation and licence conditions. 

•  Interconnection: The Directive is partially transposed through a complex of primary, 
secondary  legislation,  and licence conditions. Concem relates mainly to the lack of 
provisions  on the publication  of the reference  interconnection  offer  and  the NRA's 
powers  in  relation  thereto.  Outstanding  problems  appear  to  be  dealt  with  by 
forthcoming legislation and licence conditions. 

•  Terminals/  Satellite  earth  station  equipment:  The  Directives  are  substantially 
transposed  by  the  Telecommunications  Terminal  Equipment  Act  1992,  the 
Telecommunications Terminal Equipment Order, and Regulations issued by the NRA. 

•  Frequencies: The GSM, ERMES and DECT Directives are substantially transposed 
through  a  complex  of  secondary  legislation  and  the  national frequency allocation 
table. 

33 

OVERVIEW OF TRANSPOSTTION OF HARMONISATION DIRECTrVES: 
UMTEDKINGDOM 

•  The 

telecommunications 

regulatory 

framework  was 

reformed 

by 

the 

Telecommunications Acts 1981 and 1984. 

•  Three  new  Statutory  Instruments  were  issued  in  December  1997,  to  bring  UK 
legislation  into  line with  the requirements  of  the Framework  Directive,  the Leased 
Lines  Directive,  the  Licensing  Directive  and  the  Interconnection  Directive.  The 
Statutory  Instruments  amended  in particular  the  1984 Act, the Wireless  Telegraphy 
Act of 1949, and certain licence conditions. 

• 

Framework Directive: The regulatory functions  are divided between the Department 
of Trade and Industry (DTI) and the Director General of Telecommunications (DGT), 
who heads the Office of Telecommunications (OFTEL), which are independent of the 
operator. 

• 

Leased lines: The Telecommunications (Open Network Provision and Leased Lines) 
Regulations substantially transpose the Directive. 

•  Voice  telephony:  The  Telecommunications 

(Voice  Telephony)  Regulations 

substantially transpose the directive. 

•  Licensing:  The  Telecommunications  (Licensing)  Regulations,  together  with  a 
complex  of  other  measures,  substantially -transpose the  directive, notwithstanding  a 
minor deficiency regarding procedural time-limits. 

•  Interconnection:  The  Telecommunications 

(Interconnection)  Regulations 

substantially transpose the directive. 

•  Terminals/  Satellite  earth  station  equipment:  The  Directives  are  substantially 
transposed  through  the  Telecommunications  Terminal  Equipment  Regulations  1992 
and  the  Telecommunications  Terminal  Equipment  (Amendment  and  Extension) 
Regulations 1994. 

• 

Frequencies  The GSM Directive, the ERMES Directive and the DECT Directive are 
substantially transposed through the national table of radio frequency allocation. 

34 

35 

NATIONAL TEMCOMMWNIC ATIONS MARKETS 

The following  tables present a selection of economic indicators providing a picture of the public 
(fixed  and  mobile)  voice  telephony  and  public  network  infrastructure  markets  in  the  Member 
States. 

The following  criteria have been used to identify  the number of operators in each of the markets 
selected: 
• 

in  countries  where  a  licensing  or  declaration  regime  is  in  place,  the  number  of  operators  is 
shown  according  to  the  number  of  general  authorisations  or  individual  licences  granted 
(including  requests  for  blocks  of  numbers)  or  to  the  numbers  of  undertakings  subject  to 
declaration  procedures.  In  such  cases, the  figures  relate  to the potential  competitionm  each 
sub-market,  rather  than  to  the  current  level  of  competition,  since  it  does  not  necessarily 
follow that all operators have actually entered the market; 
in those countries where no such declaration/licensing system exists, the number  of operators 
reflects the totality of undertakings actually operating in the relevant  sub-market. 

• 

Explanatory  notes 
Telecoms  services  market  value:  includes  revenues  for  fixed  and  mobile  telephone  services, 
switched data, leased-line and CATV  services. 
Incumbent:  means  telecommunications  organisations  granted  special  and  exclusive  rights  by 
Member  States  (Commission  Directive  90/388/EEC  of  28  June  1990)  or  public  operator(s) 
which enjoyed  a defacto  monopoly  before  liberalisation.  In the  case  of mobile  telephony,  the 
word ' incumbent' may refer to the subsidiary of the incumbent in the voice telephony market. 

Public (fixed/mobile)  voice telephony operators/service providers: operators which manage their 
own/third  party  (wire  or  wireless)  telecommunications  transmission  network  to  provide 
(fixed/mobile) voice telephony services  to the public at large. 

their  own 

operators  which  manage 

(wire  or  wireless) 
Public  network  operator: 
telecommunication transmission network to provide telecommunications services to the public at 
large (voice and non voice) or to provide network services. Network services (i.e. conveyance of 
calls,  messages  and  signals  over  a  telecommunication  network,  including  any  necessary 
switching)  may  be  network  interconnection  services,  which  are  provided  to  other  network 
operators to enable calls and associated  functions  to be passed between interconnected  networks, 
or  basic  retail  network  services  which  are  provided  to  other  customers  such  as  end  users  or 
service providers. 

Market  shares  for  fixed/mobile  voice  telephony  are  indicated  in  term,  respectively,  of  retail 
revenue (or operating income) and subscribers. 

Percentage  of  consumers  with  choice  of  operators:  percentage  of  national  territory/population 
covered by two or more network operators/service providers. 

Incumbent's  voice  telephony  prices  for  3  or  10 minute  local/long-distance  calls  made  at  peak 
hours by residential users. Values include value added tax, without taking volume discounts into 
account. 

Incumbent's  analogue  leased  line  prices:  connection  and  rental  charges  (exclusive  of  value 
added tax) for ordinary-quality  national analogue leased lines (M.1040 CCITT coefficient  1.00). 
Connection charges are for 2-wire circuits and represent the charge for both ends. 

36 

Incumbent's  digital  leased  line  prices:  connection  and  rental  charges  for  national  high  speed 
(2Mbit/s) leased national  lines circuits, exclusive of  value added tax. 

Average time for granting individual licences: from the date of individual  licence application 

Long-distance/international  carrier  selection  in  place:  this  includes  both  call-by-call  selection 
and carrier pre-selection (default  carrier determined by the subscribers  and call-by-call  override 
selection). 

NRA  arbitrations:  number  of  NRA  interventions  to  resolve  disputes  during  interconnection 
agreement negotiations. 

Interconnection charges per minute (in Ecu/100) for call termination on fixed network, are based 
on  a  3  minute  call  duration  at  peak  rate  as  set  out  in  the  Commission  Recommendation  on 
Interconnection  in  a  liberalised  telecommunications  market.  Deviation  from  "best  current 
practice" interconnection  charges (identified  by the above-mentioned  Recommendation)  for  call 
termination on fixed network, based on a 3 minute call duration at peak rate: 
- local level: between 0,6 and  1,0 Ecu/100 per minute; 
- single transit (metropolitan level): between 0,9 and  1,8 Ecu/100; 
- double transit (national level/more than 200 km.): between  1,5 and 2,6 Ecu/100. 
Positive deviation is from the upper limit of the range. 
Exchange  rate  to  ECU  at  September  1997  is  applied  (for  consistency  with  the  "best  current 
practice"). 

Sources: National Regulatory Authorities, except when explicitly  indicated. 
Other sources are: 
-  European Ecoriomy,  Annual Economic Report for  199T\  European  Commission for  per 
capita  GDP  at  current  market  prices  (PPS  (purchasing  power  standard):  theoretical  prices 
expressed in equal standard purchasing power for each Member State) 

-  "European Information  Technology Observatory  199T'  for 

telecommunications  services 

market value/growth 

All figures relate to  January  1998, except for market shares; "1997 mobile market share", if not 
explicitly indicated, refers to the third quarter of  1997. 

The following  exchange rates to ECU are applied (average at January  1998): 

B: 40,78 
L: 40,78 

DK: 7,53 
NL: 2,23 

D: 1,98 
A: 13,9 

EL: 312 
P: 202,23 

E: 167,32 
FIN: 5,99 

F: 6,61 
S: 8,72 

IRL: 0.77 
U K: 0.67 

I: 1940,65 

37 

BELGIUM 

TELECOMMUNICATIONS MARKET 

pef capita 1997 GDP at current market prices (PPS) 
telecoms services market value (1997; MECU) 
per capita telecoms expenditure (1997; ECU) 
telecoms services market value growth  1998/97 
cellular mobile subscribers per 100 inhabitants (1997) 
telephone lines per 100 inhabitants (1996) 

112,3 
4080 
399 
9,8 % 
9^ 
46,7 

(EU100) 

(EU average: 376) 
(EUaverage: 8,2) 
(EU average:  13) 

sssssssxsnsnssnsassssssssxssssssssssssss:^ 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE PROVIDERS 
(according to the licences granted) 

Public fixed 
voice 
telephony 
Public 
mobile voice 
telephony 

local/ 
long distance/ 
international1 
" 
analogue 

GSM 900 

•incumbent: 

Belgacom S.A.  (50,l%state-owned) 
1997 market share: 100% 

• alternative operators:  3 
incumbent: 
• incumbent: 

Belgacom Mobile  (75%  Belgacom SA) 
Belgacom Mobile 
market share: 

•1995:100% 

DCS 1800 
_

_

———J——— 

• alternative operators: 
no licences granted 
„
_

^ — ^

^

^

^_ 

_

1  (Mobistar) 

— — ^ — — — ^ ^ — — — ^ —r r l,1 | n^ „r l T r |-n r- ^ _r—J 

• 1996:85% 
1997 market share: 30% 

.1997:70% 

PUBLIC NETWORK OPERATORS 
(according to the licences granted) 

local loop/ trunk / 
crossborder connections1 

9 licensee operators + Belgacom 
(3 CATVcompanies; 3(+Belgacom) fixed voice telephony licensee operators) 

%  OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER  SELECTION 

Public fixed voice telephony 

carrier selection  in place 

number portability in place 

• long distance: yes 

• international: yes 

no 

local/long-distance/ international calls 

• territory: 0% 

• population: 0% 

Public mobile voice telephony 

analogue 

GSM 900 

• territory: 0% 

• population: 0% 

• territory: approx.  100% 

• population: approx. 100% 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony  (ECU/100) 

bi-monthly  rental 

3311 

local calls 

• 3 minutes:  14,8 

•  10 minutes:  49,4 

long-distance calls 

• 3 minutes:  53,2 

•  10 minutes:  178 

National leased-lines (ECU) 

analogue 

digital 

• connection: 1146 

•  monthly rental 50 km: 267 

•  monthly rental  250 km: 944 

, 

• connection: 2280 

•  monthly rental 50 km: 2790 

•  monthly rental  250 km: 5492 

38 

Incumbent's retail prices (cont) 

International leased-lines (ECU) 

analogue 

digital 

• connection: 774 

•  nearest EU: 956 

• connection: 2281 

•  nearest EU: 11930 

.  furthest  EU:  1251 

•  furthest  EU:  24492 

Average time for delivery leased lines 
(analogue/2Mbit/s)  by the incumbent 

•  national:  1 month 

•  international:  1  month 

LICENCE  FEES 
(according to the relevant draft legislation2) 

Public fixed voice telephony licence fees (ECU) 

services 

•  up-front:  8582 

infrastructure  (public network) 

•  up-front:  12261 

Public mobile telephone services licence fees 

•  annual fees: 7356 

•  annual fees: 8852 

analogue 

GSM 900 

no fees 

•  up-front:  220,693 MECU 
•  annual frequency  fees: 24522 ECU per channel 

•  annual fees: 245000 ECU 

DCS  1800 

196,171 MECU 

Average time for granting individual licences 

120 days 

Individual  licence applications pending/refused 

• pending:  0 

•refused:  2 (non  validfiles) 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA arbitration  in place 

2 

2 (some new 1/C agreements are being negotiated) 

none 

none 

Access deficit  charge to be paid to the incumbent 

none 

Universal service contribution  in place 

none 

Interconnection  charges 

fixed-fixed 

local level 

networks  I/C 
charges3 
mobile-fixed 

networks I/C 

charges 

single transit  (metropolitan) 

double transit (national) 

local level 

single transit  (metropolitan) 

double transit (national) 

% difference  between fixed-fixed and  mobile-fixed 
I/C charges 

ECU/lOOpermin. 

deviation  from  "best current practice" 

1,14 

2,15 

3,02 

U4 

2,15 

3,02 

+14,0% 

+19,4% 

+16,1% 

+14,0% 

+19,4% 

+16,1% 

local level/single/double  transit: none 

1  The  licence  system  (for  both  services  and  infrastructures)  does  not  differentiate  between  local,  national  and 

international  licences. 

2 Reproduced by a temporary "Circulaire  Ministenel". 
3 In  local  currency  (BEF):  (l)  local  level: 0,457 per min.; (2) single transit:  0,86  per  min.; (3) double transit:  1,207 

per min. 

39 

DENMARK 

TELECOMMUNICATIONS  MARKET 

per capita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1996) 

telephone lines per  100 inhabitants (1996) 

115,5 

2625 

498 

8,6 % 

25 

61,6 

- (EU.100) 

(EUaverage:  376) 

(EUaverage:  8,2) 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE  PROVIDERS1 

Public fixed 

local2 

• incumbent: 

Tele Danmark 

(52% state-owned) 

voice 
telephony 
(according to the 

interconnection 
agreements) 

• alternative operators: 

market share: 

•1995:100% 
(1 CATV) (2 companies are not operating) 

.1996:100% 

.1997:95% 

5 
1997 market share: 5% 

long distance3 

• incumbent: 

Tele Danmark 
market share: 

• 1995: 100% 

• 1996: 99% 

• 1997: 94% 

. 

• alternative operators: 

(2 companies are not  operating) 

4 
1997 market share: 6% 

international 

incumbent: 

Tele Danmark 

market share: 

.1995:100% 

• 1996: 98% 

.1997:90% 

• alternative operators: 

4 

(all companies operating) 

1997 total alternative operators market share:  10% 

Public mobile 

analogue 

incumbent: 

Tele Danmark Mobile 

(100% Tele Danmark  subsidiary) 

voice telephony 

• incumbent: 

Tele Danmark  Mobile 

(according to 

GSM 900 

market share: 

• 1995:  50% 

.1996:50% 

.1997:50% 

the licences 

granted) 

. alternative operators: 

2 

Sonofon  market share (1997):  50% 

(Debitel is a service provider  not yet  operating) 

DCS  1800 

3 operators + Tele Danmark Mobile 

PUBLIC NETWORK OPERATORS1 
(according to the market situation) 

local loop4 
trunk connections 

Tele Danmark + 4 operators 

(1 CATV) (2 companies are not operating) 

Tele Danmark + 2 operators 

crossborder connections 

Tele Danmark + 3 operators 

40 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER SELECTION 

Public fixed voice telephony 
carrier selection in place 
number portability in place 
local calls 
long-distance calls 
international calls 

Public mobile voice telephony 
analogue 
GSM 900 

• long-distance: yes 
no 
• territory: 100% 
• territory: 100% 
• territory: 100% 

• international: yes 

• population: 100% 
• population: 100% 
• population: 100% 

• territory: 0% 
• territory: 100% 

• population: 0% 
• population: 100% 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony5 (ECU/100) 
bi-monthly rental 
local calls 
long-distance calls 

2297 
•  3 minutes:  15,1 
•  3 minutes:  23,5 

National leased-lines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 690 
• connection: 4143 

International leased-lines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 863 
• connection: 5178 

Average time for delivery leased lines 
(anaiogue/2Mbit/s) by the incumbent6 

•  10 minutes:  46,6 
•  10 minutes:  74,6 

• monthly rental 50 km: 175 
• monthly rental 50 km: 1940 

• monthly rental 250 km:  293 
• monthly rental 250 km: 3123 

• nearest EU: 1726 
• nearest EU: 30540 

• national: 28 days 

• furthest EU: 5809 
• furthest EU: 88299 

• international: 90 days 

—

—— 

— — - —- 

' 

' 

•

^ —— 

^

^

^

—

—

_

^

^

^— 

LICENCE FEES 

Public fixed voice telephony licence fees (ECU) 
services/infrastructure  (public network) 
annual numbering fees 

Public mobile telephone services licence fees (ECU) 
analogue 
GSM 900 
DCS 1800 
annual numbering fees (GSM900 and DCS 1800) 

up-front/annual  fees: none 
0,23 ECU per 8 digit number + code fee (unknown) 

-

not available 
• annual fees: 752 per duplex channel 
• annual fees: 488 per duplex channel 
0,23 ECU per 8 digit number + code fee (unknown) 

Average time for granting individual licences 

0 days 

Individual licence applications pending/refused 

• pending: none 

• refused: none 

41 

PUBLIC NETWORK  INTERCONNECTION 

•-

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA arbitration 

Access deficit charge to be paid to the incumbent 

Universal service contribution in place 

3 

9 

2 

3 

none 

none 

Interconnection charges 

ECU/lOOpermin. 

deviation  from "best current practice" 

fixed-fixed 
networks I/C7 
charges 

mobile-fixed 

networks I/C 

local level 

single transit  (metropolitan) 

double transit (national) 

local level 

single transit  (metropolitan) 

charges 

double transit (national) 

% difference  between fixed-fixed and  mobile-fixed 
I/C charges 

0,98 

1,82 

2,22 

0,98 

1,82 

2,22 

none 

+1,1% 

none 

none 

+1,1% 

none 

local level/single/double transit: none 

1 Providers of (fixed)  telecommunications  networks and services are not required to obtain  individual  licences, and 
do  not  need  to  notify  or  await  any  authorisation  from'the  NRA  before  launching  operations.  Public  voice 
telephony operators must apply to the NRA for number allocation; once it is obtained, they can provide local/long 
distance  and  international  voice  telephony  services.  For  the  time  being,  about  20  operators  have  been  awarded 
numbers,  but  only  5 have  an  interconnection  agreement  in  place  (and  2  of  them  offer  only  international  voice 
telephony). A separate licence is required for establishing and operating public mobile communications networks. 

2 Long distance voice service operators allowed to provide local voice services are included. 
3 International  voice service operators allowed to provide long distance voice services are included. 
4 Trunk operators allowed to provide local loop are included 
5 Tariffs  are calculated as an average of the various local  tariffs. 
6  1995 average. 
7 In local currency  (DKK/100): (l) local  level: 7,3 per min.; (2) single transit:  13,6 per min.; (3) double transit:  16,6 

per min. 

42 

GERMANY 

TELECOMMUNICATIONS  MARKET 

per capita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1997) 

telephone lines per  100 inhabitants (1996) 

108,8 

36502 

445 

5,9% 

9,9 

55,1 

(EU100) 

(EU average: 376) 

(EU average: 8,2) 

(EU average: 13) 

Public fixed 
voice 
telephony 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE  PROVIDERS 
(according to the licences granted) 

local1 

• incumbent:  Deutsche Telekom AG  (74% state-owned) 

1997 market share: 100% 

• alternative operators: 43 

• incumbent:  Deutsche Telekom 

1997 market share: 100% 

• alternative operators: 
incumbent: 

Deutsche Telecom 

13 

long 
distance 

international 

• alternative operators: 

1997 market share: 100% 
13 

Public 

analogue 

• incumbent:  T-Mobil 

(100% Deutsche  Telekom  subsidiary) 

mobile voice  GSM 900 

• incumbent:  T-Mobil 

telephony 

market share2 

-1995:48% 

.1996:50% 

.1997:52% 

• alternative operators:  1  (Mannesmann  Mobilfunk) 
1997 market share2: 48% 
2  (E-Plus Mobilfunk  and E2  Mobilfunk) 

DCS  1800 

E-Plus Mobilfunk  1997 market share:  100% 

PUBLIC NETWORK  OPERATORS 
(according to the licences granted) 

local loop3 

trunk connections 

Deutsche  Telekom  +  57 network  operators  (23  (+D.T.) of  which  also  have  local 
voice licences) 

Deutsche Telekom + 6 network operators (4 (+D.T.) of which also have long 
distance voice  licences) 

crossborder connections 

Deutsche Telekom + 6 network  operators 

43 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER  SELECTION 

Public fixed voice telephony 

carrier selection  in place 

number portability  in place 

• long-distance: yes 

• international: yes 

yes 

local long-distance/international 

•territory:  not available 

• population: not available 

Public mobile voice telephony 

analogue 

• territory: 0% 

.population: 0% 

GSM900/DCS  1800 

~ 

.territory: approx.  100% 

.population: approx.  100% 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony  (ECU/100) 

bi-monthly rental 

2488 

local calls 

•  3 minutes:  12,1 

long-distance  calls 

•  3 minutes:  91 

National  leased-lines (ECU) 

•  10 minutes:  42,5 

•  10 minutes:  303 

analogue (3,1 kHz) 

• connection: 445 

• monthly rental 50 km: 369 

• monthly rental  250 km: 546 

digital  (2Mbit/s) 

• connection: 4047 

• monthly rental 50 km: 2590 

''  • monthly rental  250 km: 3991 

International  leased-lines (ECU) 

analogue (3,1 kHz) 

• connection: 506 

• nearest EU: 1260 

digital (2Mbit/s) 

• connection:  1451 

• nearest EU:  16066 

• furthest  EU:  1497 

• furthest  EU: 20194 

Average time for delivery leased lines 
(ana!ogue/2Mbit/s)  by the incumbent 

• national analogue: 3 months 

• international: not available 

• national digital:  6 months 

LICENCE FEES 

Public fixed voice telephony  licence fees (ECU) 

services up front  fees 

infrastructure  (public network) up front  fees 

• local:  1012 

• local:  1012 

•national:  1517600 

• national: 5362093 

Public mobile telephone services licence fees (ECU) 

analogue/GSM 900/ DCS  1800 up-front  fees 

.7588 

.national: 2530000 

Average time for granting individual  licences 

not available 

Individual  licence applications pending/refused 

• pending: not available 

* refused:  not available 

44 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA arbitration 

3 

22 

not available 

4 

Access deficit  charge to be paid to the incumbent 

none 

Universal service contribution 

none 

Interconnection  charges 

fixed-fixed 

local level 

networks I/C 
charges4 

single transit 

regio50 

regio200 

double transit (national) 

ECU/100 per min. 

deviation  from  "best current practice" 

1,00 

1,71 

2,16 

2,61 

none 

none 

+20% 

+0,4% 

mobile-fixed  networks I/C charges 

local level/ single/double transit 

not available 

1 Long distance voice service operators that provide local voice services are included. 
2 Source: Mobile Communications guide io west European cellular subscribers, Nov. 1997 andSept.  1996. 
3 Trunk operators that provide local loop are included. 
4  In  local  currency  (DM/100): (l) City:  1,97  per min.; (2) Regio50: 3,36  per min.;  (3) Regio200: 4,25  per  min.; (4) 

National: 5,14 per min. 

45 

6REECE 

DEROGATIONS GRANTED FOR FULL  LIBERALISATION 

public  fixed  voice telephony:  1.1.2001 

public  infrastructure:  1.1.2001 

TELECOMMUNICATIONS  MARKET 

per capita  1997 GDP at current market prices (PPS) 
telecoms  services market  value  (1997; MECU) 
per capita telecoms  expenditure  (1997; ECU) 
telecoms  services market  value growth  1998/97 
cellular mobile  subscribers  per  100 inhabitants  (1997) 
telephone  lines per  100 inhabitants  (1996) 

6jM> 
2243 
212 
8,8 % 
7^3 
57 

(EU100) 

(EUaverage:  376) 
(EU  average:  8,2) 
(EU average:  13) 

PUBLIC VOICE  TELEPHONY  OPERATORS/SERVICE  PROVIDERS 
(according  to the  licences  granted) 

local/ 
longdistance/ 
international 
analogue 
GSM  900 

fixed 

Public 
voice 
telephony 

Public 
mobile voice 
telephony 

•  incumbent:  OTE  (82%  state-owned) 
1997 market  share:  100% 

•  alternative  operators: 
no  licences  granted 
•  incumbent: 
none 
•  alternative  operators: 

0 

(derogation  granted) 

2 

o  Panafon  1997 market  share:  57% 
o  Telestet  1997 market  share: 4 3% 

DCS  1800 

Cosmote 

(70%  OTE) 

local loop/ trunk/ crossborder  connections 

OTE  (derogation  granted) 

PUBLIC  NETWORK  OPERATORS 

%  OF  CONSUMERS  WITH  CHOICE  OF OPERATORS/CARRIER  SELECTION 

Public  fixed  voice  telephony  (derogation  granted) 
carrier  selection  in place 
number portability  in place 
local/long  distance/international  calls 

•  long-distance:  no 
no 
territory/population:  0% 

•  international: no 

Public  mobile voice  telephony 
analogue 
GSM  900 

no  licences 
• territory:  approx.  70% of road network 

• population:  approx.  90% 

46 

^ — ^— 

- ~ — —— 

— — — ~ — —~ 

" 

' 

— ^= 

I 

- ^ = ^^ 

I II 

• 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony (ECU/100) 

bi-monthly rental 

657 

local calls 

•  3 minutes: 4,17 

•  10 minutes:  4,17 

long-distance calls  •  3 minutes: not available 

•  10 minutes:  not available 

National  leased-lines (ECU) 

analogue (3,1 kHz)  •  connection: 577 

•  monthly rental 50 km: 351 

•  monthly rental  250 km: 633 

digital (2Mbit/s) 

•  connection: 2385 

•  monthly rental 50 km: 3367 

•  monthly rental  250 km: 5993 

International  leased-lines (ECU) 

analogue (3,1 kHz)  •  connection: 641 

•  nearest EU:  1474 

•  furthest  EU:  1474 

digital (2Mbit/s) 

•  connection:  1122 

•  nearest EU: 28846 

•  furthest  EU:  28846 

Average time for delivery leased lines 

•  analogue (national/ international): 2-3 months 

(analogue/2Mbit/s)  by the incumbent 

•  digital (national/international):  10 months 

Public fixed voice telephony  licence fees (ECU) 

services/ 

annual OTE fees:  [3,205 MECU + 0,025%(annual turnover-1,602 MECU)] 

LICENCE FEES 

infrastructure  (public network) 

Public mobile telephone services licence fees (ECU) 

analogue 

GSM 900 

DCS  1800 

^  no licences granted 

•  up-front  fees:  116 MECU 

•  annual fees: [1,603 MECU + 0,02%(annual turnover-320510 ECU)] 

•  up-front:  45,8 MECU 

•  annual fees1:  335220 

Average time for granting individual licences 

6 months 

Individual licence applications pending/refused 

•  pending: none 

•  refused:  none 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA arbitration 

2  (under negotiation) 

0 

1 

1 

Access deficit  charge to be paid to the incumbent  not yet decided 

Universal service contribution  in place 

not yet decided 

Interconnection  charges 

fixed-fixed  networks I/C charges 

mobile-fixed  networks I/C charges 

not yet decided 

under negotiation 

Figure for  1996 subject to annual revision. 

47 

SPAIN 

DEROGATIONS GRANTED FOR FULL  LIBERALISATION 

•  public infrastructure  for voice telephony:  1.12.1998 

public fixed voice telephony:  1.12.1998 

TELECOMMUNICATIONS  MARKET 

per capita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

76^9 

10585 

269 

8,6 % 

cellular mobile subscribers per  100 inhabitants (1997) 

11 

telephone lines per  100 inhabitants (1996) 

40,75 

(EU100) 

(EUaverage:  376) 

(EU average: 8,2) 

(EU average: 13) 

fixed 

Public 
voice 
telephony 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE  PROVIDERS 
(according to the licences granted) 

local/regional1 

• incumbent: 

Telef6nica  de Espafia S.A. (0.1%  state-owned) 
market share (1997):  100% 

long distance/ 
international 

• alternative operators: 

10 

(Retevision + 9 CATV operators) 
(companies not yet  operating) 

• incumbent: 

Telefonica  de Espafia  S.A 

1997 market share:  100% 

• alternative operators 

10 

(Retevision + 9 CATV operators) 

(CA TV operators, not yet  operating) 

Public 

analogue 

incumbent: 

Telefonica  Moviles  (100% Telefonica de Espafia  subsidiary) 

mobile voice 
telephony 

GSM 900 

• incumbent: 

Telef6nica  Moviles 
market share: 

.1995:  100% 

• alternative operators: 

1  (Airtel) 

DCS  1800 

no licences granted 

.1996:  61% 
1997 market share: 36% 

.1997:  64% 

PUBLIC NETWORK  OPERATORS 
(according to the licences granted) 

local loop 

Telef6nica  de Espafia + 9 CATV operators + Retevision 

(alternative operators not yet  operating) 

trunk/ crossborder 

Telefonica  de Espafia + 9 CATV operators + Retevision 

connections 

(CA TV operators are not yet  operating) 

48 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER  SELECTION 

Public fixed voice telephony 

carrier selection  in place 

• long-distance: yes 

• international: yes 

number portability  in place 

no 

local calls/ long-distance/ international calls 

territory/population: major  Spanish cities 

Public mobile voice telephony 

analogue 

GSM 900 

.territory: 0% 

.territory: 65% 

.population: 0% 

• population: 93% 

Public fixed voice telephony (ECU/100) 

INCUMBENT'S RETAIL PRICES 

1722 

bi-monthly rental 
local calls2 
long-distance calls  •  3 minutes:  102,7 

3 minutes: 7,9 

•  10 minutes:  19,8 

10 minutes:  308,2 

National leased-lines (ECU) 

analogue (3,1 kHz)  • connection: 659 

monthly rental 50 km: 471 

• monthly rental  250 km: 794 

digital (2Mbit/s) 

connection: 6574 

monthly rental 50 km: 3852 

• monthly rental  250 km: 7765 

International leased-lines (ECU) 

analogue (3,1 kHz) 

connection: 448 

nearest EU: 867 

digital (2Mbit/s) 

connection: 2988 

• nearest EU: 21291 

furthestEU:  1256 

furthestEU:  27079 

Average time for delivery leased lines 

national:  15days 

international: 40 days 

(analogue/2Mbit/s)  by the incumbent 

LICENCE FEES 

Public fixed voice telephony  licence fees 

services/ infrastructure  (public network) 

> up-front  fees: not available  • annual fees:  l/oo of annual turnover 

Public mobile telephone services licence fees (ECU) 

analogue 

GSM 900 

annual frequencies  fees: 8,307 MECU 

> annual fees:  l°/oo of annual turnover 

' annual frequencies  fees: 2,636 MECU 

• annual fees:  l%o of annual turnover 

Average time for granting individual  licences 

2,5 months 

Number of individual licence applications  pending/refused 

• pending:  5  (satellite) 

• refused:  none 

49 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA arbitration 

(under negotiation) 

2 

1 

1 

none 

Access deficit  charge to be paid to the incumbent 

not yet decided 

Universal service contribution  in place 

not yet decided 

ECU/lOOpermin. 
1,51 

deviation from "best current practice" 
+51% 

Interconnection  charges 

fixed-fixed 

networks I/C 
charges4 
mobile-fixed 

local level3 
single transit  (metropolitan) 

double transit (interprovine.) 

1,51 

4,22 

local level 

not available 

single transit  (metropolitan) 

networks  I/C 
charges5 
% difference  between fixed-fixed and mobile-fixed  I/C charges 

double transit (interprovinc.) 

13,2 

not available 

none 

+62% 

-

-

+408% 

double transit:+213% 

1 Long distance voice service operators allowed to provide local voice services are included. 
2 Interprovincial calls. Lower tariffs  are available for provincial calls. 
3 The lowest I/C charge covers  interconnection  at a local or a tandem exchange. Thus the "local" rate is the same as 

the "single transit" rate. 

4 Reference  interconnection  offer  is not yet approved  by the NRA; maximum  I/C tariffs  are established  by  "Orden 
del  Ministerio  de  Fomento"  of  18  March  1997.  No  difference  between  local  level  and  single  transit:  both 
correspond to the denomination  of "metropolitan" interconnection  charges. I/C charges in local currency  (Pts): (l) 
local level: not provided; (2) metropolitan: 2,5 per min.; (3) provincial: 4,25 per min; (4) interprovincial: 7 per min. 
Until full  liberalisation  on  1  December  1998, this offer  is only valid for a limited number of  authorised operators. 
5 Tariffs  are being negotiated.  In  local  currency  (Pts): (l) local  level: not provided; (2) metropolitan:  not  provided.; 

(3) provincial: 9,5 per min; (4) interprovincial: 22 per min. 

50 

FRANCE 

TELECOMMUNICATIONS  MARKET 

per capita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1997) 

telephone  lines per  100 inhabitants (1996) 

105,9 

24093 

4U 

7,4 % 

10,1 

57,2 

(EU100) 

(EUaverage:  376) 

(EU average: 8,2) 

(EU average: 13) 

Public fixed 
voice 
telephony 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE  PROVIDERS 
(according to the licences granted) 

local1 

• incumbent: 

France Telecom  (75% state-owned) 
1997 market share: 100% 

• alternative operators: 12 

long 
distance 

• incumbent: 

France Telecom 
1997 market share: 100% 

• alternative operators: 

4 

international1 

• incumbent: 

France Telecom 

market share: 

• 1996: 100% 

• 1997: not available 

• alternative operators: 

4 

Public 
mobile voice 
telephony 

analogue 

• incumbent: 

France Telecom  Mobile  (100% France Telecom  subsidiary) 
1997 market share: 36% 

• alternative operators: 

1  (Societe Franchise de Radiocommunications (SFR)) 

GSM 900 

• incumbent: France Telecom  Mobile (FTM) 

1997 market share: 64% 

• alternative operators: 

o national:  1  (SFR) 

o local: 2  (FTM and SRR) 

DCS  1800 

• national: 
• local 

1 licence (Bouygues Telecom) 
2 licences (FTM and  SFR) 

digital mobile market share 
(GSM900+DCS1800) 

• France Telecom  Mobile: 53% 

• SFR:  38% 
• Bouygues: 9% 

PUBLIC NETWORK  OPERATORS 
(according to the licences granted) 

local loop2 
trunk connections 
crossborder connections2 

France Telecom +14 (12 of which also have voice telephony licences) 

France Telecom + 5 (4 of which  also have voice telephony licences) 

France Telecom +6 (4 of which  also have voice telephony licences) 

51 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER  SELECTION 

Public fixed voice telephony 

carrier selection  in place 

number portability  in place 

local calls/ long-distance 

international  calls 

Public mobile voice telephony 

analogue/GSM 900 

DCS  1800 

• long-distance: yes 

• international: yes 

yes 

• territory:  0% 

• households: 0% 

.territory: not available 

.households: not available 

.territory: 85% 

.territory: 47% 

.population: 98% 

.population:  82% 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony  (ECU/100) 

bi-monthly rental 

2056 

local calls 

•  3 minutes:  11,2 

•  10 minutes:  25,7 

long-distance calls 

•  3 minutes:  51,7 

.  10 minutes:  172,4 

National leased-lines (ECU) 

analogue (3,1 kHz) 

• connection: 605 

digital  (2Mbit/s) 

• connection: 9072 

• monthly rental3 50 km: 485 
• monthly rental 50 km: 2283 

• monthly rental  250 km: 697 

• monthly rental  250 km: 4702 

International  leased-lines (ECU) 

• 

analogue (3,1 kHz) 

• connection: 340 

• nearest EU: 624 

• furthest  EU: 760 

digital (2Mbit/s) 

• connection: 3629 

• nearest EU: 11914 

• furthest  EU:  14138 

Average time for delivery leased lines 
(analogue/2Mbit/s)  by the incumbent 

• national: not available 

• international: 3 months 

LICENCE FEES 

Public fixed/mobile  voice telephony  licence fees (ECU) 

services 

oper. with significant  market power 

• local: 30241 

• national: 453618 

(annual  fees) 

other operators 

• local:  15120 

• national: 226810 

infrastructure 

oper. with significant  market power 

• local: 30241 

• national:  1,068 MECU 

(annual  fees) 

other operators 

administrative 

fixed 

services 

• local:  15120 

• local: 7560 

• national: 529221 

• national:  113400 

fees 

telephony 

mobile 

telephony 

infrastructure 

• local: 7560 

• national: 264610 

services 

• local: not available 

• national: not available 

infrastructure 

• local:  15121 

.national: 529221 

Average time for granting individual  licences 

• pending: 24. 

* refused:  not available 

Individual  licence applications  pending/refused 

• not available 

• not available 

52 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection  agreements 

fixed-mobile/fixed-fixed/mobile-mobile 

NRA  arbitration 

not available 

not available 

Access deficit  charge to be paid to the incumbent 
+ universal service contribution  in place 

• 0,27 ECU/100 per min. for fixed operators 

• 0.15 ECU/100 per min. for mobile operators 

ECU/lOOpermin. 

deviation  from  "best current practice" 

Interconnection  charges 

fixed-fixed 

local level 

networks I/C 
charges4 

single transit  (metropolitan) 

double transit (national) 

mobile-fixed 

local  level/single/double 

0,71 

1,73 

2,55 

0,71 

transit  (metropolitan) 

networks I/C 
charges5 
% difference  between fixed-fixed and mobile-fixed  I/C charges 

transit (national) 

1,73 

2,55 

none 

none 

none 

none 

none 

none 

local /single/ double transit: none 

1 Long distance voice service operators allowed to provide local/international voice services are included. 
2 Four trunk operators allowed to provide local loop are included. 
3 Tariffs  for 250 km distance from the border. 
4  In  local  currency  (FF/100):  (l)  local  level:  4,69  per  min.;  (2)  single  transit:  11,40  per  min.;  (3) double  transit 

(>200km):  16,77 per min. 

5 Source: Reference  interconnection catalogue, France Telecom, 1997. 

53 

IRELAND 

DEROGATIONS GRANTED FOR FULL LIBERALISATION 

public infrastructure  for voice telephony: 1.1.2000 

public fixed voice telephony: 1.1.2000 

TELECOMMUNICATIONS MARKET 

per capita  1997 GDP at current market prices (PPS) 
telecoms services market value (1997; MECU) 
per capita telecoms expenditure (1997; ECU) 
telecoms services market value growth  1998/97 
cellular mobile subscribers per 100 inhabitants (1997) 
telephone lines per 100 inhabitants (1996) 

103,9 
1585 
438 
9,5 % 
11,3 
38,4 

(EU100) 

(EUaverage: 376) 
(EU average: 8,2) 
(EU average:  13) 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE PROVIDERS 

Public  fixed 
voice 
telephony 

local/ 
longdistance/ 
international 
analogue 

Public 
mobile voice  GSM 900 
telephony 

^ 
DCS 1800 

• incumbent: 

Telecom Eireann (80% state-owned) 
market share:  1997:  100% 

• alternative operators:  none 
incumbent: 
Eircell 
• incumbent:  Eircell 

(derogation granted) 
(100% Telecom Eireann subsidiary) 

market share:  -1996:100% 

• alternative operators:  1  (Esat Digifone) 
no licences granted 

•19971:72% 
1997 market share1 28% 

local loop/ trunk/ 
crossborder connections 

PUBLIC NETWORK OPERATORS 

Telecom Eireann  (derogation granted) 

——— 

——— 

———^ 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER SELECTION 

Public fixed voice telephony (derogation granted) 
carrier selection in place 
number portability in place 
local/long distance/international calls 

• long-distance:  no 
no 
territory/population: 0% 

• international: no 

Public mobile voice telephony 
analogue 
GSM 900 

0% 
•territory:  approx.  100% 

•population: approx. 100% 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony (ECU/100) 

2916 
bi-monthly rental 
local calls 
•  3 minutes:  14,9 
long-distance calls  •  3 minutes:  58,2 

•  10 minutes:  45,7 
10 minutes: 194 

54 

National leased-lines (ECU) 

analogue (3,1 kHz) 

• connection: 389 

digital (2Mbit/s) 

• connection: 6480 

International  leased-lines (ECU) 

Incumbent's retail prices (cont.) 

• monthly rental 50 km: 427 

• monthly rental  250 km:  772 

• monthly rental 50 km: 3200 

• monthly rental  250 km: 5965 

analogue (3,1 kHz) 

• connection: 389 

• nearest EU:  1685 

digital  (2Mbit/s) 

• connection: 6480 

• nearest EU: 23976 

• furthest  EU: 2916 

• furthest  EU:  28512 

Average time for delivery leased lines 
(analogue/2Mbit/s)  by the incumbent 

• national:  not available 

• international: not available 

LICENCE  FEES 

Public fixed voice telephony  licence fees 

services/ infrastructure  (public network) 

not yet decided 

Public mobile telephone services licence fees (ECU) 

analogue 

GSM 900 

DCS  1800 

no  fees 
• annual spectrum  fees2:  o first two years:  12961 
• up front:  1,944  MECU 

o after the second year: 25920 
• annual spectrum  fees2: 25920 (after  the second year) 

• spectrum  access  charge  (up-front):  the  applicants  are  free  to  offer  any  figure  up  to  and 
including an amount of  12,96 MECU 

Average time for granting individual  licences 

not available 

Individual licence applications  pending/refused 

• pending: not available 

•refused:  not available 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA  arbitration 

2 

none 

none  (1 I/C agreement is being  negotiated) 

none 

Access deficit  charge to be paid to the incumbent 

not yet decided 

Universal service contribution  in place 

not yet decided 

Interconnection  charges 

fixed-fixed 

local level 

networks  I/C 
charges3 
mobile- fixed 

networks  I/C 

charges 

single transit  (metropolitan) 

double transit (national) 

local level 

single transit  (metropolitan) 

double transit (national) 

ECU/100 per min. 

deviation  from  "best current practice" 

7 

13,3 

16,6 

7 

13,3 

16,6 

+600% 

+638% 

+537% 

+600% 

+638% 

+537% 

% difference  between fixed-fixed and mobile-fixed  I/C charges 

local level/single/double transit: none 

1 Source: Mobile Communications guide to west European cellular subscribers, Nov. 1997. 
2 Per paired 200kHz channel 
3 Charges  for  cross-border  call termination. Tariffs  proposed  by the operator,  but not yet  approved  by the  national 
regulatory  authority.  In local currency (IR£/100): (l) local level: 5,22  per min.; (2) single transit: 9,84  per min.; (3) 
double transit:  12,27 per min. 

55 

ITALY 

TELECOMMUNICATIONS  MARKET 

per capita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1997) 

telephone  lines per  100 inhabitants (1996) 

103,2 

18884 

329 

7,1 % 

16,2 

42,68 

(EU100) 

(EUaverage:  376) 

(EU average: 8,2) 

(EU average: 13) 

PUBLIC VOICE TELEPHONY  OPERATORS/SERVICE  PROVIDERS 
(according to the licences granted) 

Public  fixed 

local/ 

• incumbent: 

Telecom  Italia 

(9,45% state-owned) 

voice 

longdistance/ 

1997 market share: 100% 

telephony 

international 

•alternative operators:  0  (no licences granted) 

Public 

analogue 

incumbent: 

Telecom  Italia Mobile  (60,34% Telecom Italia) 

mobile voice 

• incumbent: 

Telecom  Italia Mobile 

telephony 

GSM 900 

market share: 

• 1995:90% 

• 1996:  74% 

•1997:71% 

• alternative operators: 

1  (Omnitel  P.I.) 

1997 market share: 29% 

DCS  1800 

no licences granted 

PUBLIC NETWORK  OPERATORS 
(according to the licences granted) 

Telecom  Italia + 0 alternative operators  (no licences granted) 

local loop/trunk/ 
crossborder  connections 

1 

~-~—— 

""^^^~~~~~^"^^^~i 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER  SELECTION 

Public fixed voice telephony 

local/longdistance/international 

carrier selection  in place 

•territory:  0% 

• national: no 

• population: 0% 

• international: no 

number portability  in place 

no 

Public mobile voice telephony 

analogue 

GSM 900 

• territory: 0% 

• territory:  72% 

• population: 0% 

•population: 96% 

56 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony (ECU/100) 

bi-monthly rental 

1892 

local calls 

•  3 minutes: 7,8 

•  10 minutes:  23,6 

long-distance calls 

•  3 minutes:  70,7 

•  10 minutes:  217,3 

National leased-lines (ECU) 

analogue (3,1 kHz) 

• connection:  104 

• monthly rental 50 km: 475 

• monthly rental  250 km: 667 

digital  (2Mbit/s) 

• connection: 309 

• monthly rental 50 km: 7224 

• monthly rental  250 km:  11295 

International  leased-lines (ECU) 

analogue  (3,1 kHz) 

• connection:  104 

• nearest EU:  1594 

digital  (2Mbit/s) 

• connection: 309 

• nearest EU: 32441 

• furthest  EU:  1867 

• furthest  EU: 36797 

Average time for delivery leased  lines 
(analogue/2Mbit/s)  by the incumbent 

• national: 89% in 20 days or within 

the terms accorded with the clients 

• international:  not available 

Public fixed voice telephony  licence fees (ECU) 

LICENCE FEES 
(according to the draft legislation) 

services 

up-front 

annual 

infrastructure 

up-front 

(public network) 

annual 

services + 

up-front 

infrastructure 

annual 

numbering  fees 

local 

10306 

10306 

10306 

25766 

15459 

regional 

national 

20612 

25766 

20612 

51530 

25766 

51530 

61835 

61835 

103058 

56682 

10306 
• subscriber's  number: 0,01 ECU/sub.  • operator's prefix1:  from  103058 to 25766 

61835 

25766 

Public  mobile telephone services licence fees (ECU) 

analogue 

GSM 900 

DCS  1800 

annual fees: 3,5% of annual turnover 

• up-front:  not available 

• annual fees: 3,5% of annual turnover 

same fees as for fixed voice telephony, unless differently  stated in the bidding  procedures 

Average time for granting individual  licences 

not available 

Individual  licence applications  pending/refused 

• pending: 5 
• refused:  none 

57 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA  arbitration 

2 

0 

1 

2 

Access deficit  charge to be paid to the incumbent 

not yet decided 

Universal service contribution  in place 

not yet decided 

Interconnection  charges 

ECU/100 per min. 

deviation  from  "best current practice" 

fixed-fixed 

networks  I/C 
charges3 
mobile- fixed 

local level2 
single transit  (metropolitan) 

1,54 

2,52 

double transit (national) 

not provided 

local level 

single transit  (metropolitan) 

networks  I/C 
charges4 
% difference  between fixed-fixed and  mobile-fixed 
I/C charges 

double transit (national) 

4,12 

4,12 

4,12 

• local level:+167% 

• single transit: +63% 

+54% 

+40% 

-

+312% 

+ 129% 

+58% 

1 Depending on the type of access code. 
2 Available only from  1.9.1998 
3 Source: Reference lnterconnection  Offer, Telecom ltalia,  1997. Latest tariffs  proposed by the operator, but not yet 
approved  by the  national  regulatory  authority.  In  local  currency  (LIT): (l)  local  level  (only  from  1.9.1998): 29,6 
per min.; (2) single transit: 48,4 per min.; (3) double transit: not provided. 

4 In local currency  (LIT): local/single/double transit: 80 per min. 

58 

LUXEMB0UR6 

DEROGATIONS GRANTED FOR FULL LIBERALISATION 

public infrastructure  for voice telephony: 1.7.1998 

•  public fixed voice telephony:  1.7.1998 

per capita  1997 GDP at current market prices (PPS) 

163,5 

(EU100) 

TELECOMMUNICATIONS MARKET 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1997) 

telephone lines per  100 inhabitants (1996) 

211 

505 

9,9% 

15,1 

58,3 

(EUaverage:  376) 

(EU average: 8,2) 

(EU average: 13) 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE PROVTDERS 

Public fixed 
voice 

telephony 

local/ 
long distance1/ 
international 

Public 

analogue 

mobile voice 

telephony 

GSM 900 

• incumbent: 

Luxembourg  P&T  (100% state-owned) 

1997 market share:  100% 

• alternative operators:  none  (derogation granted) 

none 
• incumbent: 

(service no longerprovided  by P&T) 

Luxembourg  P&T 

1997 market share:  100% 

' alternative operators:  1 (Millicon) 

DCS  1800 

Luxembourg  P&T+Millicon 

PUBLIC NETWORK OPERATORS 

local loop/tmnk/ 

Luxembourg  P&T 

(derogation granted) 

crossborder  connections 

%  OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER  SELECTION 

Public fixed voice telephony 

carrier selection in place 

number portability in place 

no 

no 

local/long distance/international calls 

territory/population:  0% 

Public mobile voice telephony 

analogue 

service no longer provided  (byP&T) 

GSM 900/DCS  1800 

territory/population: 0% (alternative operator not yet  operating) 

59 

INCUMBENT'S RETATL PRICES 

Public fixed voice telephony (ECU/100) 
bi-monthly rental 
local/long distance calls  •  3 minutes: 12,3 

2707 

National leased-lines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 123 
• connection: 2943 

International leased-lines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 123 
• connection: 2943 

•  lOminutes: 36,9 

monthly rental 50 km: 184 
• monthly rental 50 km: 5100 

• monthly rental 250 km:184 
monthly rental 250 km: 5100 

• nearestEU:294 
nearest EU: 9809 

furthest EU: 846 
• furthest EU:  24521 

Average time for delivery leased lines 
(analogue/2Mbit/s)  by the incumbent 

national: 10 (for analogue) 20 (for digital) working days 
international: 20 (analogue/digital) working days 

LTCENCEFEES 

Public fixed voice telephony licence fees 
services/infrastracture 

not yet decided 

Public mobile telephone services licence fees (ECU). 

GSM 900/DCS 1800 

• up-front:  1,839 MECU  . 
. annual spectrum usage: 12261 per channel 

.annual fees: 735644 

Average time for granting individual licences 

not available 

Individual licence applications pending/refused  • pending: none 

• refused: none 

PUBLIC NETWORK INTERCONNECTION 

| 

Interconnection agreements 

fixed-mobile/ fixed-fixed/ mobile-mobile 

0  (1 I/C agreement is being negotiated) 

NRA arbitration 

not available 

Access deficit charge to be paid to the incumbent  not yet decided 

Universal service contribution in place 

not yet decided 

Interconnection charges 
fixed-fixed/ mobile -fixed networks I/C charges 

under negotiation 

Luxembourg does not have a local network. 

60 

THE NETHERLANDS 

TELECOMMUNICATIONS MARKET 

percapita  1997 GDP at current market prices (PPS) 
telecoms services market value (1997; MECU) 
per capita telecoms expenditure (1997; ECU) 
telecoms services market value growth 1998/97 
cellular mobile subscribers per 100 inhabitants (1997) 
telephone lines per 100 inhabitants( 1996) 

104,9 
7089 
454 
6,7% 
9,9 
52,3 

(EU.100) 

(EU average: 376) 
(EU average: 8,2) 
(EU average:  13) 

— ' 

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lmJ 

Publicfixed 
voice 
telephony 

PUBLIC VOlCE TELEPHONY OFERATORS/SERVICE PROVTDERS 
(according to the licences granted) 

local1 

•incumbent: 

PTT Telecom (KPN)  (44% state-owned) 
1997 market share: 100% 

•alternative operators: 

3  (not yet operating)  + 125 CATV (5 ofwhich 
have I/C agreements in place) 

long 
distance 

• incumbent: 

PTT Telecom 
1997 market share: 100% 

international 

• alternative operators:  2 
•incumbent: 

PTT Telecom 

Public 
mobile voice 
telephony 

analogue 

GSM900 

DCS 1800 

market share:  • 1996:100% 

• 1997: <100% 

• alternative operators:  2 
incumbent: 
•incumbent: 

PTT Telecom 
PTT Telecom 
1997 market share: 60% 

• alternative operators: 
no licences granted 

1  (Libertel) 

1997 market share: 40% 

PUBLIC NETWORK OPERATORS 
(according to the licences granted) 

local loop2 

trunk/ crossborder connections 

PTT Telecom + 3 + 125 CATVfi ofwhich have I/C agreements in place) 
(all the network operators have been granted voice telephony licences) 
PTT Telecom + 2 (voice telephony licensee operators) 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER SELECTION 

Public fixed voice telephony 
carrier selection in place 
number portability in place 
local/long-distance/internationalcalls 

Public mobile voice telephony 
analogue 
GSM 900 

• long-distance: yes 
no 
• territory: not available 

^ 
• international: yes 

• population: not available 

•territory: 0% 
•territory: approx. 100% 

•population: 0% 
•population: approx. 100% 

* 

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.  , 

„ ,M M MM 

| 

61 

INCUMBENT'SRETAILPRICES 

Public fixed voice telephony (ECU/100) 
bi-monthly rental 
local calls 
long-distance calls 

•  3 minutes: 13,2 
•  3 minutes:  31,4 

2442 

lOminutes:  33,7 
•  lOminutes:  94,3 

National leased-Iines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 105 
• connection: 2244 

International leased-lines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 105 
• connection: 2244 

Average time for delivery leased lines 
(analogue/2Mbit/s)  by the incumbent 

• monthly rental 50 km: 125 
• monthly rental 50 km: 2199 

• monthly rental  250 km: 283 
• monthly rental  250 km: 3775 

• nearest EU: 507 
• nearest EU: 9170 

furthest EU: 664 
• furthest EU: 11895 

• national: within 3 months 

• international: within 3 months 

LICENCE FEES 

Public fixed voice telephony licence fees (ECU) 

services 

infrastructure 

(public network) 

local/regional 

long distance 

• up-front:  135 

• up-front:  90 

• up-front:  0 

Public mobile telephone services licence fees (ECU) 

analogue 

GSM 900/DCS 1800 

annual fees:  10100 

annual fees:  112212 

• annual fees: 281 

• annual fees: 224 

• annual fees:  112212 

Average time for granting individual licences 

less than 6 weeks (90%) 

Individual licence applications pending/refused 

• pending: approx. 30 

• refused:  not available 

PUBLIC NETWORK INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA  arbitration 

3 

8 (19 I/C agreements in negotiation) 

not available 

2 

Access deficit  charge to be paid to the incumbent 

not yet decided 

Universal service contribution in place 

not yet decided 

Interconnection  charges 

ECU/100 per min. 

deviation from "best current practice" 

fixed-fixed 

networks I/C 

charges 

mobile-fixed 
networks I/C charges 

local level 

single transit  (metropolitan) 

double transit (national) 

0,95 

1,27 

1,63 

local/ single/ double transit 

not available 

none 

none 

hone 

-

1 Long distance voice service operators allowed to provide local voice services are included. 
2 Trunk operators allowed to provide local loop are included. 

62 

AUSTRIA 

/::v:.^r;^:j:^ 

per capita  1997 GDP at current market prices (PPS) 
telecoms services market value (1997; MECU) 
per capita telecoms expenditure (1997; ECU) 
telecoms services market value growth 1998/97 
cellular mobile subscribers per 100 inhabitants (1997) 
telephone lines per 100 inhabitants (1996) 

110,4 
3190 
393 
9,5 % 
14,3 
48,5 

(EU100) 

(EU average: 376) 
(EU average: 8,2) 
(EU average: 13) 

PUBUC VOICE TELEPHONY OPERATORS/SERVICE PROVIDERS 
(according to the  licences granted) 

local1 

• incumbent: 

fixed 

. Post und  Telekom Austria (PTA) AG  (100% state-owned) 
1997 market share: 100% 

long distance/ 
international 

•  alternative operators:  7 
incumbent: 

(not yet operating) 

Post und  Telekom Austria (PTA) AG 
1997  market share: 100% 

Public 
voice 
telephony 

analogue 

Public 
mobile voice  GSM 900 
telephony 

DCS 1800 

• alternative operators:  5 
incumbent:  MobilKom Austria  (75% 
.incumbent:  MobilKom Austria 

(not yet operating) 

PTA) 

market share:  •  1995: 

• alternative operators: 
1  (Max.Mobil) 
1  (Connect Austria, not yet operating) 

100%  •  1996: 

96,8% 
1997  market share: 25% 

•  1997:  75% 

PUBLIC NETWORK OPERATORS 
the  licences granted) 

(according to 

local loop2 

PTA+ 7  licensee operators (notyet operating) 
(5 operators  are 
only voice telephony licence.  1  operator  has  been granted only infrastructure licence) 

publicly-owned utilities  companies.  1 operator  has been  granted 

100% 

trunk/crossborder 
connections 

PTA +  4 licensee operators 

63 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRTER SELECTION 

Public fixed voice telephony 

carrier selection in place 

number portability in place 

• long-distance: no 

• international: no 

no 

local/ long-distance/ international calls 

territory/ population: 0% 

Public mobile voice telephony 

analogue 

GSM 900 

• territory: 0% 

• population: 0% 

• territory: approx. 30% 

• population: 90% 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony3 (ECU/100) 
bi-monthly rental 

6938 

local calls 

•  3 minutes: 25 

•  10 minutes:  83 

long-distance calls 

•  3 minutes: 96 

•  10 minutes: 321 

National leased-lines (ECU) 

analogue (3,1 kHz) 

• connection: 108 

• monthly rental 50 km: 327 

• monthly rental  250 km: 578 

digital (2Mbit/s) 

• connection: 1438 

• monthly rental 50 km: 3055 

• monthly rental  250 km: 5572 

International leased-lines (ECU) 

analogue (3,1 kHz) 

• connection: 108 

• nearest EU: 899 

digital (2Mbit/s) 

• connection: 1438 

• nearest EU: 11383 

• furthest EU: 1677 

• furthest EU:  19770 

Average time for delivery leased lines 
(analogue/2Mbit/s) by the incumbent 

• national: 3 to 4 months 

• international: not available 

SZ=SBBBagBBI—BOBSSSSSSSSBESSSSSSSSSSB^ 

LICENCEFEES 

Public fixed voice telephony licence fees4 (ECU) 
.up-front:  5033 
services/ 

infrastructure (public network) 

.annualfees:  0 

• numbering fees: not yet decided 

Public mobile telephone services licence fees4 
analogue 

«up-front:  5033 ECU 

• annual fees per channel:  71,8 ECU 

GSM900 

.up-front:  287,570 MECU 

• annual fees per channel:  575 ECU 

• numbering fees: not yet decided 

DCS 1800 

• up-front:  194,110 MECU 

• annual fees per channel:  575 ECU 

Average time for granting individual licences 

4 weeks 

Individual licence applications pending/refused 

.pending:  5 

.refused: none 

64 

Interconnection agreements 
fixed-mobile 
fixed-fixed 
mobile-mobile 

NRA arbitration 

PUBLIC NETWORKINTERCONNECTION 

(2 new I/C agreements are being negotiated) 
(3 new I/C agreements are being negotiated) 

2 
0 
not available 

Access deficit charge to be paid to the incumbent  not yet decided 

Universal service contribution in place 

none 

Interconnection charges 
fixed-fixed 
networks 
I/C charges7 
mobile-fixed 
networks I/C 
charges8 
% difference between fixed-fixed  and mobile-fixed 
I/C charges 

local level6 
single transit (metropolitan) 
double transit (national) 
local level6 
single transit (metropolitan) 
double transit (national) 

ECU/lOOpermin. 
3,26 
3,26 
3,99 
07 

deviation from "best current practice' 
+226% 
+81,0% 
+53,5% 
+710% 

8,1 
10,02 

+350% 
+288% 

local level/single transit: +147% 
double transit:+151% 

1 Long distance voice service operators allowed to  provide local voice services are included. 
2 Trunk operators allowed to provide local loop are included. 
3 Tariffs for  "standard" package. Lower tariffs are available for "minimum" package. 
4 All the licensee operators have to contribute to the operational cost of the NRA (proportionally  to their annual 
turnover and to the total turnover of the national telecommunications market). The amount is not yet decided. 

5 Unless PTA' s market share falls under 80%, it cannot claim financial service funding. 
6 There are no offer  for  I/C points at local level. The lowest I/C charge covers interconnection  at a local or a 

tandem exchange. Thus the "local" rate is the same as the "single transit" rate. 

7 Proposed tariffs, noy yet approved by the NRA and still under negotiation. In local currency (ATS): (l) local level: 

not provided; (2) single transit: 0,45 per min.; (3) double transit: 0,55 per min. 

8 In local currency (ATS): (l) local level: not provided; (2) single transit:  1,12 per min.; (3) double transit:  1,39 per 

min. 

65 

PORTUGAL 

DEROGATIONS GRANTED FOR FULL LIBERALISATION 

public infrastructure  for voice telephony:  1.1.2000 

public fixed voice telephony:  1.1.2000 

TELECOMMUNICATIONS  MARKET 

per capita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1997) 

telephone lines per  100 inhabitants (1996) 

69,4 

2550 

258 

11,1 % 

11,5 

37,14 

(EU.100) 

(EU average: 376) 

(EU average: 8,2) 

(EU average:  13) 

Public  fixed 
voice 
telephony 
Public 
mobile voice 

telephony 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE PROVIDERS 

local/ 
long distance/ 
international 
analogue 

• incumbent: 

Portugal Telecom  (25% state-owned) 
1997 market share: 100% 

. alternative operators:  0 (derogation) 
incumbent: 

Telecomunicacoes M6veis Nacionais (TMN) 
(100% Portugal  Telecom subsidiary) 

GSM 900 

• incumbent: 

TMN 
market'share1:  • 1995:47% 

• 1996:  45% 

• 1997:  50% 

• alternative operators:  2 

Telecel  1997 market share1: 50% 

(one licensee company not yet  operating) 

DCS  1800 

1  (company  not yet  operating) 

local loop/trunk/ crossborder connections 

Portugal Telecom 

(derogation granted) 

PUBLIC NETWORK OPERATORS 

%  OF CONSUMERS WITH CHOICE  OF OPERATORS/CARRIER  SELECTION 

Public fixed voice telephony (derogation granted) 

carrier selection in place 

number portability in place 

no 

no 

local/long distance/international  calls 

territory/population:  0% 

Public mobile voice telephony 

analogue 

GSM 900 

• territory: 0% 

• population: 0% 

• territory:  approx. 90% 

• population: approx. 99% 

INCUMBENT'S RETATL PRICES 

Public fixed voice telephony (ECU/100) 

bi-monthly rental 

2136 

local calls 
long-distance calls2 

•  3 minutes: 6,7 

•  10 minutes:  26,7 

•  3 minutes:  100 

•  10 minutes:  320,4 

66 

Incumbent's retail prices (cont.) 

• connection3: 4945 

National leased-lines (ECU) 
analogue (3,1 kHz)  connection3:208 
digital (2Mbit/s) 
International leased-lines (ECU) 
analogue (3,1 kHz) • connection: 183 
• connection: 3653 
digital (2Mbit/s) 
Average time for delivery leased lines 
(ana!ogue/2Mbit/s)  by the incumbent 

ft 

! 

monthly rental 50 km: 330 
• monthly rental 50 km: 4500 

• monthly rental  250 km: 1063 
• monthly rental  250 km: 13648 

nearestEU: 1623 
nearest EU: 23332 
national/international:  from 4 to 7 days 

furthestEU:2363 
.furthestEU:  35177 

\ 

LICENCEFEES 

1 

Public voice telephony licence fees 
services/  infrastructure (public network) 
Public mobile telephone services licence fees (ECU) 
analogue 
GSM 900/DCS 1800 
Average time for granting individual licences 
Individual licence applications pending/refused 

not yet decided 

' 

• renewal fees: 2472 
43 working days 
.pending:  3 

no specific fees in addition to GSM 900 fees (for TMN) 
.up-front:  4945 

• annual fees: 24724 

.refused:  none 

— —— 

— — . — —w m m m m m i— • — —— 

— — — — I — — — — — — — —— .— — —— — —— — — ^ — — — —I 

PUBLIC NETWORK INTERCONNECTION 

Interconnection  agreements 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA  arbitrations 

1 (1 I/C agreement is being negotiated) 

1 (1 I/C agreement is being negotiated) 

not avail. 

1 

Access deficit charge to be paid to the incumbent 

included in the overall charges 

Universal service contribution in place 

included in the overall charges 

Interconnection  charges 

fixed-fixed 

networks  I/C 
charges4 

mobile-fixed 

local level 

single transit  (metropolitan) 

double transit (national) 

local level 

single transit  (metropolitan) 

networks I/C 
charges5 
% difference  between fixed-fixed  and  mobile-fixed 
I/C charges 

double transit (national) 

ECU/100 per min. 
1,25 

deviation from "best current practice" 
+25% 

2,5 

18,75 

1,25 

2,5 

18,75 

+39% 

+621% 

+25% 

+39% 

+621% 

• local level/single/double transit: none 

1 Source: Mobile Communications guide to westEuropean cellular subscribers, Nov.  1997 andSept.  1996. 
2 Tariffs  for interurban 2nd grade call. Lower tariffs  are available for regional  1* grade call, urban areas of Lisbon 

and Oporto. 

3 National circuit connecting different groups of networks. 
4 Charges for cross-border call termination not yet approved by the NRA. In local currency (PTE): (l) local level: 

6,99 per min.; (2) single transit: 15 per min. (regional 1st grade call, urban areas of Lisbon and Oporto); (3) double 
transit:  107,15 per min. (interurban 2nd grade call). Values referring  to  1997 and are still undergoing discussion 
for 1998. 

5 In local currency (PTE): double transit:  112,5 per min. (interurban 2nd grade call). Values referring  to  1997 and 

still undergoing discussion for 1998. 

67 

FINLAND 

SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSBSSSSSSSSSSaSSSSSSSSSSSSSSSSSSSSSSIBSSSSSSSSSSSSBSSSSSSCSSSSSSSSSS^ 

TELECOMMUNICATIONS MARKET 

percapita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1997) 

telephone lines per  100 inhabitants (1996) 

94,2 

1795 

350 

6,9 % 

40 

52,8 

(EU100) 

(EU average: 376) 

(EU average: 8,2) 

(EU average: 13) 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE PROVTDERS1 

fixed 

Public 

local2 

I-^SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSgSSSSSSSSSB^ 

voice 

telephony 

• incumbents3: 

(according 

to the 

notifications) 

o 46 local incumbents (Finnet  Group) 

(100% private owned) 

market share: 

.1995:78% 

.1996:68%  • 1997: not avail. 

o Telecom Finland 

(100% state-owned) 

market share: 

.1995:32% 

.1996:32% 

.1997:  not avail. 

• alternative operators: 

15 

(almost all companies are operating) 

1996 market share: approx. 0% 

long distance 

• incumbent: 

Telecom Finland 

market share: 

• 1995:  41%  •  • 1996: 42%  • 1997: not avail. 

• alternative operators:'  17 

(almost all companies are  operating) 

1996 total alternative operators market share: 58% 

(Finnet subsidiary: 55%; Telia Finland: 4,7%) 

international 

.incumbent: 

Telecom Finland 

market share: 

.1995:75% 

.1996:69%  • 1997: not avail. 

• alternative operators: 

15 

1996 total alternative operators market share:  31% 

(Finnet subsidiary: 24%;  Telia Finland: 9%>) 

Public 

analogue 

incumbent: 

Telecom Finland 

mobile voice 

• incumbent: 

Telecom Finland 

telephony 

GSM900 

market share:  .1995:67% 

.1996:68% 

.1997:66% 

(according to 

• alternative operators: 

1 

(Finnet subsidiary) 

the licences 

pSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSBSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS^ 

1997 market share: 34% 

granted) 

DCS  1800 

25 licences granted 

PUBLIC NETWORK OPERATORS 
(according to the notifications1) 

(only 2 companies are yet  operating) 

local loop4 

Telecom Finland + Finnet  Group (46 operators) + 5 other operators 

(almost all companies are operating) 

trunk connections 

Telecom Finland + 2 Finnet subsidiaries + 4 other operators 

crossborder connections5 

(almost all companies are operating) 

Telecom Finland + 1  Finnet subsidiary + 7 other operators 
(almost all companies are operating) 

68 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRIER SELECTION 

Public fixed voice telephony 
carrier selection in place 
number portability in place 
local calls 
long-distance calls 
international calls 

Public mobile voice telephony 
analogue 
GSM 900 
DCS 1800 

• long-distance:  yes (since 1994) 
in some areas since June 1997 
• territory: 100% 
• territory: 100% 
• territory: 100% 

• international:  yes (since 1994) 

• population: 100% 
• population: 100% 
• population: 100% 

• territory: 0% 
• territory: 100% 
• territory: Helsinki area 

• population:  0% 
• population: 100% 
• population: approx. 10% 

INCUMBENT'S RETATL PRICES (Telecom Finland) 

Public fixed voice telephony (ECU/100) 

bi-monthly rental  2438 
local calls 
•  3 minutes:  11,8 
long-distance calls  •  3 minutes:  18,5 

National leased-Iines (ECU) 

lOminutes:  20,7 
•  lOminutes:  61,8 

analogue (3,1 kHz) • connection: 768 
• connection: 4174 
digital (2Mbit/s) 

• monthly rental 50 km: 174 
monthly rental 50 km: 870 

>monthry rental  250 km:  524 
• monthly rental  250 km: 2497 

International leased-lines (ECU) 

analogue (3,1 kHz)  connection: 668 
connection: 2588 
digital (2Mbit/s) 

• nearest EU: 523 
• nearest EU: 8314 

• furthestEU:  1370 
.furthestEU:  23433 

Average  time  for  delivery  leased  lines 
(analogue/2Mbit/s)  by the incumbent 

national: not available 

• international:  6 weeks 

LICENCE FEES 

Public fixed voice telephony licence fees (ECU) 
services 

• up-front/annual/renewal: none 
• numbering fees: 

o for subscriber number6: 0,4 ECU/sub. 
o for operator's prefix: from 3673 to 91827 

infrastructure  (public network)  none 

Public mobile telephone services licence fees (ECU) 
analogue/ GSM 900 
DCS 1800 

• up-front fees: none  • annual spectrum fees7: 1262 (per frequency band/25kHz) 
• up-front fees: none  • annual spectrum fees7: 947 (per frequency band/25kHz) 

Average time for granting individual licences 

about 3 months 

Individual licence applications pending/refused 

• pending:  none 

• refused: none 

69 

PUBLIC NETWORK INTERCONNECTION 

Interconnection agreements 
fixed-mobile 
fixed-fixed 
mobile-mobile 

NRA arbitration 

2 
approx. 70 
1 

4/5 times during the negotiation (not for the final agreement) 

Access deficit charge to be paid to the incumbent 

none 

Universal service contribution in place 

none 

Interconnection charges 
fixed-fixed 
networks I/C 
charges9 
mobile-fixed 
networks I/C 
charges 
% difference  between fixed-fixed  and  mobile-fixed 
I/C charges 

local level8 
single transit (metropolitan) 
double transit (national) 
local level8 
single transit (metropolitan) 
double transit (national) 

ECU/100 per min. 
1,81 
1,81 
4,20 
1,81 
1,81 
4,20 

deviation from "best current practice" 
+ 0,81% 
+ 0,5% 
+ 61,5% 
+ 0,81% 
+0,5% 
+ 61,5% 

local level/single/double transit: none 

1 According to the national licence regime, a notification is requested for providing fixed voice telephony services 
or network services in a public telecommunications network. Only the provision of telecommunications network 
services  in  a public  mobile  wireless  network  is  subject  to  an  individual  licensing  requirement.  The  national 
licence/notification regime does not make any distinction between local/long distance and international. 

2 Some long distance voice service operators allowed to provide local voice services are included. 
3  Finnet  group  consists  of  46  regional  privately  owned  telephone  company  and  their  subsidiary  and  affiliated 
companies. The  great part  of them are  limited  compames  or  cooperatives, but  there  are  also  some economic 
associations  and organisations owned by  cities. Until  1994 each  local telephony  company  had  a  well-defined 
although limited monopoly within its geographical region and Telecom Finland  functions  were to interconnect 
the local telephone compames, in order to provide long-distance and international services, and to provide local 
telephony (where there were no other local telephone compames). 

4 Three trunk operators allowed to provide local loop are included. 
5 Six trunk/local loop operators allowed to provide crossborder connections are included. 
6 Depending on the type of access code. 
7 For 6th billing year or later and for national spectrum usage. Lower annual spectrum usage fees are requested for 

the first 5 years of activity and for restricted right of use area. 

8 The lowest I/C charge covers interconnection at local or a single exchange. Thus the "local " rate is the same as 

the "single transit". 

9 In local currency (FIM/100): (l) local level: 10,7 per min.; (2) single transit: 10,7 per min.; (3) double transit: 24,7 

permin. 

70 

SWEDEN 

TELECOMMUNICATIONS MARKET 

- - - - - - - - - S - — S s = s s s s s e s s s B = s s s s s s s s s ^^ 
per capita  1997 GDP at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1996) 

telephone lines per  100 inhabitants (1996) 

97,3 

4667 

523 

7,4% 

28 

7JU 

(EU.100) 

(EUaverage:  376) 

(EU average: 8,2) 

Public  fixed 
voice 

telephony 
(according 

to the 

notifications 
or licences 

granted) 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE PROVIDERS1 

local2 

•incumbent: 

Telia  (100% state-owned) 
market share: 

• 1995: 100% 

• 1996: 98%  • 1997:  not avail. 

long 

distance 

• alternative operators: 

13  licences  +  9  notifications 
1996 total alternative operators3 market share: 2% 

• incumbent: 

Telia 

• alternative operators: 

market share: 

• 1995: 94% 
13 licences + 9 notifications 

• 1996: 88%  • 1997: not avail. 

1996 total alternative operators market share: 12% 

(Tele2:11%) 

international2 

• incumbent: 

Telia 
market share: 

• 1995: 76% 

• 1996: 73%  • 1997: not avail. 

• alternative operators: 

13 licences + 9  notifications 

1996 total alternative operators market share: 27% 

. 

(Tele2: 22%) 

Public 

analogue 

incumbent: 

Telia Mobitel 

(100% Telia's  subsidiary) 

mobile voice 

• incumbent: 

Telia 

telephony 

GSM 900 

market share 

• 1995:46% 

• 1996:52% 

• 1997: not avail. 

(according 

to the 

licences 

granted) 

• alternative operators: 

2 licences 

1996 market share: 

oComviq:30% 

o Europolitan  17% 

DCS  1800 

4 

(only 1 company operating) 

PUBLIC NETWORK OPERATORS1 

local loop/ trunk/ crossborder  connections 
(according to the notifications or licences 
granted) 

7 licensee operators + 24 notifications  + Telia 
(5  licensee operators  (+Telia) and  5 notified  operators  also  offer 
voice telephony services) 

71 

% OF CONSUMERS WITH CHOICE OF OPERATORS/CARRTER SELECTION 

Public fixed voice telephony 
carrier selection in place 
number portability in place 
local calls 
long-distance calls 
international calls 

Public mobile voice telephony 
analogue 
GSM 900 

• long-distance: yes 
no 
• territory: approx. 0% 
• territory: 100% 
• territory: 100% 

• international: yes 

• population: approx. 0% 
• population: 100% 
• population: 100% 

• territory: 0% 
• territory: not available 

• population: 0% 
• population: not available 

INCUMBINT'S RETATL PRICES 

• connection: 1860  • monthly rental 50 km: 82 
• connection: 8136  • monthly rental 50 km: 1220 

2410 
•  3 minutes: 8,7 
•  3 minutes:  21,8 

Public fixed voice telephony (ECU/100) 
bi-monthly rental 
local calls 
long-distance calls 
National leased-lines4 (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 
International leased-lines4 (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 581 
• connection: 581 

Average time for delivery leased lines 
(analogue/2Mbit/s)  by the incumbent 

•  lOminutes:  27,5 
•  lOminutes:  61,9 

• nearest EU: 416 
• nearest EU: 4943 

* national: 6 weeks 

LICENCE FEES 

• monthly rental  250 km: 504 
monthly rental  250 km: 4446 

J 

• furthestEU:1835 
.furthestEU:  21342 

international: not available 

Public fixed voice telephony licence fees (ECU) 
»licences fees: 
services/ 
• notifications: 
infrastructure  (public network) 

up-front: 11470 
up-front: none 

annual fees: 0,9°/oo of  turnover5 
annual fees6: 115 or 573 

Public mobile telephone services licence fees (ECU) 
analogue/ GSM 900/ 
DCS 1800 

• up-front:  11470 
* annual spectrum fees: 17,21/base station 

• annual fees: 0,9°/oo of  turnover5 

Average time for granting individual licences 

not available 

Individual licence applications pending/refused 

• pending:  1 

• refused: none7 

72 

PUBLIC NETWORK INTERCONNECTION 

Interconnection agreements 
fixed-mobile 
fixed-fixed 
mobile-mobile 

NRA arbitration 

15 
20 
not available 

5 

Access deficit charge to be paid to the incumbent 

none 

Universal service contribution in place 

none 

Interconnection charges 
fixed-fixed 
networks I/C 
charges8 
mobile-fixed 
networks I/C 
charges 
% difference between fixed-fixed  and mobile-fixed 
I/C charges 

local level 
single transit (metropolitan) 
double transit (national) 
local level 
single transit (metropolitan) 
double transit (national) 

ECU/100 per min. 
1,14 
1,75 
2,38 

1,14 
1,75 
2,38 

deviation from "best current practice" 
+14% 
none 
none 
+14% 
none 
none 

local level/single/double transit: none 

1  According  to  the  national  regime,  a  notification  is  requested 
for  providing  (within  a  publicly  available 
telecommunications network): fixed telephony, mobile services,  network capacity (including leased lines), or any 
other telecommunications  service which requires allocation of capacity from numbering plan for telephony. An 
individual  licences  is requested  for  providing  fixed  telephony,  mobile  services,  network  capacity  (including 
leased  lines)  if  the  activity  is  considered  to  be  of  a  "considerable  scope"  ("for  maintaining  efficient 
telecommunications  and competition  in the  Swedish market") with regard to the area  covered, the number of 
users,  or  other  comparable  factors.  The  national  licence/notification 
regime  does  not  make  any  distinction 
between local/long distance and international. 

2 Long distance voice service operators allowed to provide local/international voice services are included. 
3 The main operators are Tele2, TeleNordia and Europolitan. 
4 Source: Tarifica 1997. 
5 With a minimum of 5735 ECU. 
6 Depending if  total turnover is over or under 344000 ECU. 
7 Two licences recalled at companies request. 
8 In local currency (SEK/100): (l) local level: 9,6 per min.; (2) single transit:  14,9 per min.; (3) double transit: 40,6 

per min. 

73 

UNITED KINGDOM 

TELECXJMMUMCATIONS MARKET 

percapita  1997 GDP' at current market prices (PPS) 

telecoms services market value (1997; MECU) 

per capita telecoms expenditure (1997; ECU) 

telecoms services market value growth  1998/97 

cellular mobile subscribers per  100 inhabitants (1997) 

telephone lines per  100 inhabitants (1996) 

99,5 

20633 

350 

7,2 % 

14,1 

52,3 

(EU.100) 

(EUaverage:  376) 

(EU average: 8,2) 

(EU average:  13) 

p s s i s s s s s s s s s s s s s s s s s s s s s s g s s s s s s s s s s s s s a B s s s^ 

PUBLIC VOICE TELEPHONY OPERATORS/SERVICE PRO VIDERS 
(according to the licences granted) 

Publicfixed 

local1 

«incumbent: 

British Telecom (BT)  (100% private owned) (+ Kingston) 

voice 

telephony 

BT market share: 

.1994/5:94% 

.1995/6:  92% 

.1997:  89% 

• altemative operators: 

oCATV2:  140 
o others: 32 licences (9 companies operating) 

.  total altemative operators market share (1997):  11% 

long 

distance 

• incumbent:  British Telecom 

market share: 

• 1994/5:84% 

• 1995/6:81% 

•  1997:78% 

• altemative operators: 

32  licences (9 companies operating) 

1997 market share: 

o C&WC (Mercury):  10% 

international3 

incumbent: 

British Telecom 

o others: 12% 

K 

I 

I 

I 

market share: 

• 1994/5: 71% 

• 1995/6:69,6% 

• 1997: 58% 

• altemative operators: 

63  licerices  (about 10 companies  operating) 

1997 market share: 

o C&WC (Mercury): 14% 

o WorldCom: 9% 

o others: 19% 

Public 

analogue 

• incumbent:  Cellnet (60% BT) 

mobile voice 

* altemative operators:  1 (Vodafone) 

telephony 

GSM900 

• incumbent:  Cellnet 

• altemative operators:  1 (Vodafone) 

DCS  1800 

2 operators  Orange + one2one (50% C& WC) 

© Vodafone 

total mobile 
market share4  © Cellnet 
o Orange 

o one2one 

• 1995:  46% 

• 1996: 43% 

• 1997: 38% 

.1995:44% 

.1996:42% 

.1997:36% 

• 1997: 14 % 

» 1997: 12 %  » 

74 

I 

localloop5 

trunk connections 
crossborder connections3 

PUBLIC NETWORKOPERATORS 
(according to the licences granted) 

(included  140 cable franchise licences  which are  divided 

172 licences + BT 
between 8 company operating) 
32 licences + BT (companies operating: BT+9) 
63 licences + BT (companies operating: BT+about 10) 

% OF CONSUMERS WTTHCHOICE OF OPERATORS/CARRIER SELECTION 

Public fixed voice telephony 
carrier selection in place 
number portability in place 
localcalls 
long-distance/intemational calls 

Public mobile voice telephony 
analogue/ GSM 900 
DCS 1800 

• long-distance: yes 
yes 
•territory:  notavailable 
«territory: 100% 

• intemational: yes 

• households6: 46% 
« households: 100% 

• territory: not available 
• territory: not available 

• population: 98% 
• population:  more than 90% 

^ — —- 

' • ' "• 

' 

• • — — —• 

— ^ — ! ! • ! • • • •• 

— L —— 

II 

••  I 

.1  I 

! 

! 

I 

I 

I 

II  • • • • •• 

! 

• 

. 

• • -• 

. 

INCUMBENT'S RETAIL PRICES 

Public fixed voice telephony (ECU/100) 
bi-monthly rental 
local calls 
long-distance calls 

2663 
•  3 minutes: 18 
•  3 minutes:  36 

National Ieased-lines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 1801 
• connection: 13855 

International leased-lines (ECU) 
analogue (3,1 kHz) 
digital (2Mbit/s) 

• connection: 1365 
• connection:  24542 

Average time for delivery leased lines 
(analogue/2Mbit/s)  by the incumbent 

•  10 minutes:  60 
•  10 minutes:  118,6 

• monthly rental 50 km: 334 
• monthly rental 50 km: 1984 

• monthly rental  250 km: 650 
• monthly rental  250 km: 5737 

• nearest EU7: not available 
• nearest EU7: not available 

• furthest EU:  1660 
• furthest EU:  not available 

• national: 23,5 working days 

• international: 15,3 working days 

LICENCE FEES 

Public fixed voice telephony licence fees (ECU) 
services/ 
infrastructure 
(public network) 

local/regional 
long distance 
intemational 

•up-front:  18763 
• up-front: 60043 
•up-front:  10507 

•annualfees:  15011 
•annualfees8:30021 
•annual fees: 12008 

Public mobile telephone services licence fees (ECU) 
analogue/GSM 900/DCS 1800 

•up-front: 55540 

Average time for granting individual licences 

approx. 6 weeks 

• renewal fees: 52537 

Individual licence applications pending/refused 

•pending: 60 

•refused:  8 since 1991 

75 

PUBLIC NETWORK  INTERCONNECTION 

Interconnection agreements9 

fixed-mobile 

fixed-fixed 

mobile-mobile 

NRA  arbitration 

24 

200 

8 

7 

Access deficit  charge to be paid to the incumbent 

none 

Universal service contribution in place 

none 

Interconnection  charges 

fixed-fixed 

local level 

networks I/C 
charges10 
mobile-fixed 

networks I/C 

charges 

single transit  (metropolitan) 

double transit (national) 

local level 

single transit  (metropolitan) 

double transit (national) 

ECU/100 per min. 

deviation from "best current practice" 

0,64 

0,91 

1,74 

0,64 

0,91 

1,74 

none 

none 

none 

none 

none 

none 

% difference  between fixed-fixed  and mobile-fixed  I/C charges 

local /single/ double transit: none 

1 Long distance voice service operators allowed to provide-local voice services are included. 
2 The 140 individual licences are held between 8 Multiple System Operators. 
3 Intemational Facilities Licences. 
4 Total mobile voice telephony market share (analogue, GSM 900, DCS 1800). 
5 Trunk operators allowed to provide local loop are included 
6ITC broadband homes passed divided by 1991 Census GB household (+2% for Northern Ireland). 
7 Tariffs to Ireland are distance dependent. 
8 But not more than 0,08% of turnover. 
9 Oftel estimates 
10 In local currency  (£/100): (l) local  level:  0,434 per min.; (2) single transit: 0,618 per min.; (3) double transit 

(>200km): 1,177 per min. 

76 

ISSN 0254-1475 

C0M(98) 80 final 

DOCUMENTS 

EN 

15  16  17  10 

Catalogue number  :  CB-CO-98-101-EN-C 

ISBN 92-78-31262-2 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg