European Parliament resolution on European electronic communications regulation and markets 2004 (2005/2052(INI))
Date: 2005-12-01
Institutions: Committee on the Environment, Climate and Food Safety, European Parliament
Subjects: information technology, regulation of telecommunications, single market, telecommunications industry, transmission network

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13.
Considers that, whichever alternative solution is chosen, a transitional period should be envisaged to
enable all operators (carriers, shippers and other industry players) to adapt to the new regulatory framework;

14.
Calls upon the Commission, within its terms of reference and on the basis of undertakings under the
Code of Conduct for Liner Conferences to hold discussions with the other contracting parties before propos-
ing amendment or repeal of Regulation (EEC) No 4056/86; believes that those discussions should seek to
find the most appropriate method of adaptation for Member States (those than still have bilateral commit-
ments under the Code of Conduct) to the possible new legal status, with a view to avoiding any adverse
consequences;

International tramp vessel and cabotage services

Points out that the tramp sector remains overwhelmingly deregulated and operates on the basis of
15.
the rules of fair competition; supports the Commission proposal for these services to be brought within the
scope of Regulation (EC) No 1/2003;

16.
Considers it to be in the interests of legal certainty and clarity that the Commission should establish,
in a single process, guidelines as regards the compatibility of bulk pools and specialised trades with the rules
of competition, subject to the proviso, however, that it should not do so until the proposals have been
published and consultations held with the circles concerned;

17.
Points out that the cabotage services sector has already been deregulated pursuant to Regulation (EEC)
No 3577/92; takes the view that given that these services are carried out between ports in one and the same
Member State, intra-Community trade between the Member States is not affected (Articles 81 and 82 of the
Treaty) and consequently there is no need or legal obligation for this sector to be brought within the scope
of Regulation (EC) No 1/2003;

Purely technical agreements

18.
Calls upon the Commission not to continue with the proposal to abolish the arrangements contained
in Article 2 of Regulation (EEC) No 4056/86 governing the legality of technical agreements, since it believes
that retaining a purely legal framework governing technical agreements will contribute to legal certainty and
a better orientation for service providers;

Conflict of laws

19.
Calls upon the Commission not to continue with the proposal to repeal Article 9 of Regulation (EEC)
No 4056/86 which provides for negotiations to be held in the event of a conflict between Community law
and the law of third countries, especially in view of the Commission's intention to revise competition law
relating to maritime transport;

20.

Instructs its President to forward this resolution to the Council and the Commission.

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P6_TA(2005)0467

Electronic communications

European Parliament resolution on European electronic communications regulation and markets
2004 (2005/2052(INI))

The European Parliament,

— having regard to the communication from the Commission, entitled ‘European Electronic Communi-

cations Regulation and Markets 2004’ (COM(2004)0759),

— having regard to the Presidency Conclusions of the Brussels European Council of 22 and 23 March

2005,

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— having regard to the High-Level Group report of November 2004 on the Lisbon Strategy,

— having regard to its resolution of 18 November 2003 on the eighth report from the Commission on

the implementation of the telecommunications regulatory package (1),

— having regard to its resolution of 12 February 2003 on the full roll-out of third generation mobile

communications (2),

— having regard to Directive 2002/19/EC of the European Parliament and of the Council of 7 March
2002 on access to, and interconnection of, electronic communications networks and associated facil-
ities (Access Directive) (3),

— having regard to Directive 2002/20/EC of the European Parliament and of the Council of 7 March
2002 on the authorisation of electronic communications networks and services (Authorisation Direc-
tive) (4),

— having regard to Directive 2002/21/EC of the European Parliament and of the Council of 7 March
2002 on a common regulatory framework for electronic communications networks and services
(Framework Directive) (5),

— having regard to Directive 2002/22/EC of the European Parliament and of the Council of 7 March
2002 on universal service and users' rights relating to electronic communications networks and services
(Universal Service Directive) (6),

— having regard to the Presidency Conclusions of the Lisbon European Council of 23 and 24 March

2000,

— having regard to the Commission Decision of 29 July 2002 establishing the European Regulators

Group for Electronic Communications Networks and Services (7),

— having regard to Rule 45 of its Rules of Procedure,

— having regard to the report of the Committee on Industry, Research and Energy and the opinion of the

Committee on Legal Affairs (A6-0305/2005),

A. whereas the procedures for transposing and implementing Community law vary from one Member
State to the next, a situation which is jeopardising the completion of a genuine single market in elec-
tronic communications,

B. whereas the Commission plays a central role in the implementation and proper application of the

regulatory framework,

C. whereas the Commission may initiate infringement proceedings against Member States which fail to

apply the relevant legislation or do so incorrectly,

D. whereas, under the procedure described in Article 7 of the Framework Directive, the Commission

assesses the measures which national regulatory authorities (NRAs) plan to take,

E. whereas this provision serves as a flexible instrument enabling the regulator to intervene in the market

where free competition may be under threat,

F. whereas these aspects of regulation are valuable in enabling the regulator to intervene correctly in an
evolving market where recent technological innovation will make it possible to provide new services for
consumers,

(1) OJ C 87 E, 7.4.2004, p. 65.
(2) OJ C 43 E, 19.2.2004, p. 260.
(3) OJ L 108, 24.4.2002, p. 7.
(4) OJ L 108, 24.4.2002, p. 21.
(5) OJ L 108, 24.4.2002, p. 33.
(6) OJ L 108, 24.4.2002, p. 51.
(7) OJ L 200, 30.7.2002, p. 38.

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G. whereas this regulatory system makes it possible to adjust the application of remedies on the basis of
the principle of proportionality, and to scale down the regulatory burdens when competition trends in
the market justify doing so,

H. whereas NRAs decide quite independently to intervene in the markets and whereas the criterion on

which such intervention is based is that it should be proportionate to the objectives pursued,

I. whereas the procedure for appeals against NRA decisions is a lengthy one, and whereas in some

Member States such decisions are systematically suspended pending the outcome of the appeal,

J. whereas the delays in implementation and market analysis are a serious obstacle to the creation of a
single market in electronic communications, creating different operating conditions for companies in
the various Member States and uncertainties as regards the regulatory approach adopted during the
transitional period,

K. whereas a clear regulatory framework will create the conditions to encourage operators to make further
investments, and whereas this is vital to enable the European electronic communications industry to
play a leadership role in the international arena,

L. whereas by interpreting and applying infrastructure regulations for electronic communications the

Commission can make a substantial contribution to securing and promoting media pluralism,

M. whereas, despite the measures taken by NRAs to reduce excessively high roaming charges in the EU, the
rates for calls to or from abroad remain too high, and noting the existing risks of anti-competitive
agreements and abuse of dominant positions,

N. whereas a correctly regulated single market can safeguard fair service and price conditions for all con-

sumers, by providing them with the necessary transparency and security,

O. whereas the legal framework helps to determine the emergence and continuance of media pluralism,

P. whereas the Commission states in its White Paper on services of general interest (COM(2004)0374) that
the aim of creating an open and competitive internal market is compatible with that of developing
general interest services, and it is therefore essential to safeguard the fair price and service conditions
for consumers, such as will create a single telecommunications market covering the entire European
territory, so as to reduce the digital divide, a priority aim for the European Union,

1.
Shares the concerns expressed by the Commission in its abovementioned communication; fully sup-
ports the Commission in its role as a driving force for regulation, both as regards the correct interpretation
of the new rules and the need to ensure their uniform application in a manner consistent with the objec-
tives of electronic communications regulation, by means of timely and constant monitoring;

The institutional framework

2.
Stresses the need to open an institutional debate aimed at strengthening and clarifying both the Euro-
pean institutional model in the electronic communications sector and the relevant regulatory framework,
and at identifying the best ways of achieving this goal;

Commission

3.
Calls therefore for the Commission's role to be strengthened and stresses that it should play a central
role as the guardian of Community legislation, whereas the European Regulators Group (ERG) should con-
tinue to act as a consultative and advisory body for the Commission in accordance with Decision 2002/
627/EC, with the goal of consistent and coherent application of the regulatory framework under Article 7(2)
of the Framework Directive;

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4.
Fully supports the Commission's activities both in bringing proceedings against Member States failing
to comply and in analysing the notifications from NRAs pursuant to Article 7 of the Framework Directive;
calls on the Commission to remain vigilant so as to ensure that measures relating to national markets do
not jeopardise the completion of the single market in electronic communications;

ERG

5.
Stresses that the composition and functions of the ERG and the Independent Regulators Group (IRG)
overlap to a large extent and that it is therefore necessary to avoid any duplication of effort and unnecessary
use of limited administrative resources; with this in mind, recommends that agreement be reached on the
gradual merging of the ERG and IRG;

6.
Stresses the need for the ERG to confine itself to consultative activities, involving all parties concerned
as fully and as transparently as possible, and to pursuing activities specifically entrusted to it under the
regulatory framework;

Parliament

Calls on the Commission to submit to Parliament its annual report on progress in implementing the
7.
regulatory framework as soon as it is adopted, together with any other reports concerning the analysis of
the functioning of the electronic communications market, so that Parliament can be involved promptly in
the monitoring process;

8. Welcomes the rapid increase in broadband penetration; asks the Commission to inform the Parliament
of its activities in monitoring the development of the broadband sector and of the action taken in this
respect;

Member States and NRAs

Regrets the fact that some Member States have not yet fully transposed the regulatory framework or
9.
have not applied it properly, and calls on these Member States to comply immediately with Community law
on electronic communications;

Calls on the Member States to provide adequate support for the activities of NRAs, whose limited
10.
resources do not enable them to complete the tasks assigned to them quickly; calls also on the Member
States to introduce the measures needed to speed up the timescale for appeals procedures concerning NRA
decisions;

Urges the Member States to guarantee the total independence of NRAs and calls on the Commission

11.
to monitor the situation closely and keep Parliament informed;

Encourages the NRAs and the Commission to carry out better impact assessments and benchmarking

12.
concerning the obligations proposed and their efficiency and effectiveness for the markets;

13.
Calls on the Member States to comply with the principles of transparency and proportionality and
justify the administrative charges imposed on operators for authorisation of services, while respecting public
interest concerns; and calls on the Commission to carry out checks in this area without delay;

14.
Stresses the importance of adequate frequency allocation for public-interest services, open, transpar-
ent and non-discriminatory procedures, and the need for sufficient flexibility when allocating radio fre-
quencies and granting licences;

15.
Recommends that the Member States, the Commission and NRAs take account of the need for the
regulatory framework to attract and safeguard investment; stresses the need to encourage investments in
infrastructure, with particular reference to broadband, third generation mobile telephony and other emerg-
ing markets, while taking account of services of general economic interest;

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16.
Stresses the need to safeguard regulated services even though technology is changing, especially when
it comes to the access network; hence, considers it important to maintain the possibility to give alternative
operators access to the new infrastructure on fair and reasonable terms;

Thursday 1 December 2005

17.
Points out that regulatory intervention should focus on eliminating distortions that prevent fair com-
petition, taking into account in particular the need to encourage the development of emerging markets and
equal opportunities for market participants;

18.
Points out that the development of third generation mobile telephony is sometimes hampered by
national and local provisions as regards authorisations to establish infrastructures and strict criteria for the
granting of
licences; calls therefore on the competent authorities to remedy the situation and remove
obstacles to the full development of 3G communications;

19.
Calls on the Member States to ensure that the sites for installations intended to support the mobile
telephony network are selected with due regard for health and the environment and in accordance with
transparent urban planning procedures; calls on the Commission to monitor these activities and report on
them regularly to the European Parliament; stresses the need for information on radiation values to be made
public;

20. Welcomes the voluntary codes to protect users from unsolicited commercial communications and
calls for EU-wide transposition of the opt-in rules;

Stresses the importance of data privacy in relation to the growing number of requests for data
21.
retention, and notes the long-established cooperation by e-communications operators with law-enforcement
authorities within a clear legal framework and on a case-by-case basis; recognises that mandatory data-
retention obligations would be detrimental to civil liberties and give rise to significant costs for operators;
concludes that the introduction of any data-retention rules should be by way of codecision with the Euro-
pean Parliament;

Industry and consumers

Stresses that the information and communications technology (ICT) sector serves as an engine for the

22.
European economy, contributing significantly to growth and job creation;

Points out that European legislation on electronic communications seeks to promote competition

23.
among firms, while at the same time ensuring a high level of protection for consumers;

24.
Calls on the Commission to carry out and present to Parliament, with the aim of protecting users'
rights, studies on a regular basis, in which, as a minimum, the following parameters are analysed: trans-
parency of invoicing, contract guarantees and trends in prices and markets, for broadband and fixed and
mobile telephony;

25. Welcomes the increase in unbundled local loops, but stresses that there must be further development
in order to ensure competitive markets for customers;

26.
Calls on telecommunications services providers to take account of the interests of disabled users as
regards choice, price and benefits in terms of quality and accessibility of telecommunications services, and
calls on the regulatory authorities to consult disabled people's representatives when assessing service provi-
sion;

27.
Calls on 3G service providers to devise price-to-service ratios permitting broadband to be received by
as many people in as many places as possible, thus putting an end to geographical borders for broadband;

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28.
Stresses that it is vital for operators to adopt transparent pricing practices and for consumers to be
fully and clearly informed about the services offered and the prices charged, particularly as regards costs;
concerning international roaming services, is carefully following the recent procedures of the Commission
as regards the rules on abuse of dominant position (Article 82 of the Treaty) and the Statement of Objec-
tions; calls on the Commission and the Member States to analyse which structural changes are needed in
order to ensure adequate and transparent roaming charges; furthermore, urges the Council to instruct the
Commission to draw up an action plan and timetable that will enable consumers to benefit from inter-
national roaming at the best possible cost and as soon as possible, throughout European territory, with
continuity of service;

29.
Calls again on the Commission and NRAs to strive to ensure that further progress is made with
regard to number portability, both for fixed and mobile telephony, and charges for call termination on
networks;

30.
Points out that a functioning mobile number portability system is vital to healthy competition
between mobile operators and stresses, therefore, that the charges for transferring numbers should be set
at a low level, or at zero, in all Member States, and that the time required for transferring numbers should
be shortened in some Member States;

Calls on the Commission to take action to lower the charges for termination of mobile-phone con-

31.
tracts, which remain high in many Member States and should be linked to the costs incurred;

32.
Points out that in its White Paper on services of general interest the Commission stated that the goal
of creating an open and competitive internal market was compatible with that of developing accessible,
high-quality and affordable general interest services and regulatory intervention should therefore take both
into account;

Awaits the conclusions of the study into the ways in which Member States interpret the general

33.
interest objectives when imposing must-carry obligations;

34. Welcomes the Commission's initiative on transparency in the international roaming sector, which
will provide consumers with useful information on retail tariffs applied by different mobile telephony oper-
ators in the various EU countries, and calls, in particular, on service providers to reduce roaming charges, so
that economic and social cooperation between the Member States is not restricted by high charges; calls on
the Commission to develop new initiatives in order to reduce the high costs of cross-border mobile tele-
phone traffic, so that a real internal market for consumers with affordable roaming charges for mobile
telephony can soon be realised;

Points out that all European citizens must have access to the services of the information society, and
35.
that this means using consumer-friendly regulation to reduce the digital gap, particularly for disabled and
older people; takes the view that supporting an open European standard to establish interoperability in
services, transmission platforms and terminals will make a vital contribution to achieving that aim;

36.
Calls on the Commission to investigate how to proceed in order to develop the different national
markets in this sector into an internal market without borders and with common legislation and regu-
lations, allowing operators to act and compete in a single market;

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37.
Instructs its President to forward this resolution to the Council, the Commission, the governments
and parliaments of the Member States, the European Regulators Group and the relevant national regulatory
authorities.