WRITTEN QUESTION No. 509/99 by Kirsi PIHA Telecom markets in Estonia
Date: 1999-03-08
Institutions: European Parliament, PIHA
Subjects: Estonia, application of EU law, association agreement (EU), domestic market, exclusive distribution agreement, free competition, monopoly, telecommunications













EUR-Lex - 91999E0509 - EN






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91999E0509

WRITTEN QUESTION No. 509/99 by Kirsi PIHA Telecom markets in Estonia  


Official Journal C 348 , 03/12/1999 P. 0089 





WRITTEN QUESTION E-0509/99by Kirsi Piha (PPE) to the Commission(8 March 1999)Subject: Telecom markets in EstoniaThe Estonian Government and AS Eesti Telefon have concluded an exclusive concession agreement granting the latter full monopoly to supply basic telecommunications services in Estonia until 30 December 2000.Having regard to the Europe Agreement concluded with Estonia, in particular Articles 63 and 65 and the Joint Declaration of the Parties:1. Has Estonia been under an obligation to ensure free competition on its telecommunications market since 1 January 1998, and does the Commission commend Estonia's performance in this respect?2. Since 1 January 1998, has Estonia been under an obligation not to enter into or keep in force any agreements whose purpose and effect is to restrict competition on the telecommunications market, and how does the Commission rate Estonia's performance in this respect?3. Is Estonia under an obligation to ensure independent functioning of the regulatory body supervising AS Eesti Telefon, and does the Commission commend Estonia's performance in this respect?Answer given by Mr van den Broek on behalf of the Commission(13 April 1999)Article 65 of the Europe agreement (EA) establishing an association between the Communities and Member States of the one part, and the Republic of Estonia of the other part, provides for the association council to ensure that the principles of Article 90 of the EC Treaty in relation to public undertakings and undertakings to which special or exclusive rights have been granted are upheld as from 1 January 1998.By virtue of joint declaration 6 annexed to the EA, the concession agreement between the Estonian government and the Estonian telephony company is compatible with the provisions of the EA (Article 65) on condition that leased lines are made available on request, within reasonable time periods, for corporate networks and closed user groups for their use, comprising voice telephony and data services as from 1 January 1998, and that the regulatory functions are entrusted to an independent body as from 1 January 1998.The Estonian government has recently adopted the draft telecommunication law, which will introduce the regulatory framework in the sector and in particular will establish an independent regulatory body. Even though it appeared later than planned, this draft appears to be in compliance with Community legislation in this area. The Commission expects a prompt adoption of the law once the recently elected Estonian Parliament starts its activities.There is no reason to believe that Estonia does not fulfil its obligations under Article 63 of the EA. It does not seem likely that the creation of a new regulatory body could be hastened by making use of Article 65 of the EA. Nevertheless, in the context of the negotiations towards Estonia's membership of the Community and the pre-accession strategy, the Commission will closely monitor progress by Estonia in this area.