Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions -  European electronic communications regulation and markets 2005 (11th Report) [SEC(2006)193]
Date: 2006-02-20
Institutions: European Commission
Subjects: information technology, regulation of telecommunications, report, single market, telecommunications, telecommunications industry, transmission network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.2.2006 
COM(2006)68 final 

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

EUROPEAN ELECTRONIC COMMUNICATIONS REGULATION AND 
MARKETS 2005 (11TH REPORT) 

[SEC(2006)193] 

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1. 

INTRODUCTION 

initiative1  stresses 

i2010 

The  Commission’s 
information  and 
communication technologies (ICTs) in achieving the growth and jobs objectives of the Lisbon 
strategy.  These  objectives  are  underpinned  by  a  European  electronic  communications 
regulatory  framework  designed  to  drive  competition  in  the  market,  bringing  investment  and 
innovation, with choice, quality and lower prices for the consumer. The Member States have 
made considerable progress in implementing the rules. There are, however, still gaps, and it is 
now a priority to get the regulation fully in place. 

the  crucial  role  of 

The  sector  has  always  been  defined  by  rapid  technological  and  market  change.  The  lines 
between  content,  services  and  applications  are  now  becoming  increasingly  blurred.  At  the 
same  time,  traditional  markets  are  maturing  and  competition  is  driving  players  to  invest  in 
new  technologies  to  deliver  innovative  services  based  on  convergence  between  broadband 
networks,  audiovisual  media  and  electronic  devices,  with  consumers  benefiting  from  higher 
data speeds and improved quality. 

This Communication highlights market, regulatory and consumer developments in the sector 
in 2005 and identifies the main implementation issues that still require attention. It is based on 
a  Commission  services’  working  document  adopted  in  parallel,  and  complements  recent 
Communications on spectrum policy and market reviews2. It supplements the Commission’s 
monitoring of progress by Member States towards the Lisbon strategy goals, presented in its 
Report to the Spring European Council3. 

The  regulatory  situation  described  here  is  that  at  1  December  2005.  Market  data,  unless 
otherwise indicated, cover the period up to 1 September 2005 (1 October 2005 in the case of 
broadband data). 

2. 

MAIN MARKET DEVELOPMENTS 

The  e-communications  services  sector  continues  to  represent  the  largest  segment  of  the 
overall ICT sector, accounting for 44.4% of the total value, up from 43% last year. The sector 
was  worth  €614  billion  in  2005,  €273  billion  of  which  derived  from  e-communications 
services. 

Overall  revenue  growth  continued  strong  at  estimated  levels  of  between  3.8%4  and  4.7%5. 
The  production  and  use  of  ICT  accounts  for  around  40%  of  productivity  growth  and  one 
quarter of overall growth in Europe. 

1 
2 
3 
4 
5 

COM(2005) 229. 
COM(2005) 411; COM(2006) 28. 
Time to Move up a Gear - The new partnership for growth and jobs; COM(2006) 30, 25 January 2006. 
EITO, 2005. 
IDATE. 

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Broadband take-up has grown rapidly to nearly 53 million lines, a rise of almost 20 million 
during  2005.  More  providers  are  in  the  market,  with  prices  falling  as  transmission  speeds 
increase.  New  entrants  now  have  market  share  of  almost  50%;  although  many  rely  on 
incumbents’  networks  to  provide  services,  there  is  a  significant  move  to  unbundled  local 
loops, with increased service quality and differentiation. 

In mobile, while take-up continues to increase, in particular in the new Member States, there 
are signs that the voice market is maturing. Revenues have, however, continued to grow at an 
estimated  5.9%6.  Prices  for  international  roaming  nonetheless  remain  high.  3G  voice  and 
content services are now rolling out, with around 15 million subscribers.  

Revenues in traditional voice services continue to decline gradually, but remain the largest 
source of revenue to players in the fixed market. Consumers continue to benefit from falling 
call prices as more players enter the market. Voice over IP (VoIP) is challenging further the 
market  position  of  entrenched  players.  It  remains  to  be  seen  to  what  extent  the  challenge  is 
compounded by services provided by internet software and search companies. 

Competition is driving fixed and mobile players to invest in new technologies to reduce costs 
and  position  themselves  in  a  converged  environment.  Operators  are  beginning  to  offer 
portfolios  of  services,  with  different  combinations  of  low-cost  voice  (including  mobile), 
internet  access  and  audiovisual  content  to  attract  and  retain  customers.  After  dipping 
significantly in 1999-2001, investment levels are recovering, with capital expenditure for the 
sector  as  a  whole  conservatively  estimated  to  exceed  €45  billion7  in  the  EU  in  2005,  an 
increase of approximately 6% compared to 2004 and the third annual increase running. While 
the investment-to-revenue ratio for incumbent operators is approaching its historical levels of 
15%, the ratio for the mobile sector as well as for cable operators is higher, pointing to strong 
future competition for new high-value added services. 

Despite the challenges to business models, the biggest operators have recorded larger profits 
for  the  year  to  mid-2005,  driven  primarily  by  cost  reduction  and  revenue  growth  in  some 
segments. In the mobile sector in particular, results for the first and second quarters indicate 
that  many  operators  managed  to  increase  their  profits  on  2004,  on  the  back  of  increased 
penetration and traffic flows and generally higher revenue per user. 

6 
7 

EITO, 2005. 
Based on data from ETNO, ECTA, ECCA, OECD and Infonetics Research. 

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Underpinned  by  increased  regulatory  certainty,  cross-border  investment,  in  terms  of  capital 
expenditure and acquisitions/mergers, is again becoming a key feature of the EU market for 
electronic communications. In 2005, M&A activity in particular increased significantly, and 
cross-border  transactions  -  driven  by  the  search  for  economies  of  scale  and  the 
implementation of pan-European strategies - can prudently be estimated at an overall value of 
more than € 70 billion, the highest level since 20008 (in the past, M&A activity has proved a 
good  indicator  for  the  overall  level  of  foreign  direct  investment9).  The  largest  European 
incumbent  players  had  non-domestic  EU  revenue  shares  of  on  average  15%  -  ranging  from 
5% to 27%10. Most of the larger players are present in other national markets and there has 
been a notable trend in investment in the new Member States by some of the more established 
players  as  well  as  by  pan-European  and  local  new  entrants.  More  players  are  developing 
activities in different countries and combinations of services. While significant levels of debt 
remain  in  some  cases,  this  contrasts  with  previous  cycles  of  acquisitions,  when  many 
operators became heavily burdened. Investments in telecommunications infrastructure occupy 
a prominent part in the cohesion policies in remote and rural areas and in a number of new 
Member States. 

Fixed broadband 

There was a significant increase in broadband take-up in 2005, with average EU penetration 
(lines  per  100  population)  reaching  11.5%  in  October,  compared  to  7.3%  in  October  2004 
(with average EU 15 penetration up from 8.4% to 13% over the same period). This equates to 
over 52 000 new broadband lines per day across the EU, up from 38 000 per day in 2004. 

8 
9 

10 

Based on data from Thomson Financial, Dealogic and UNCTAD. 
Foreign  direct  investment  (FDI)  is  a  broader  measure  than  simple  portfolio  investment  or  M&A 
transactions, and includes capital expenditure for physical assets, for instance. 
It  should  be  noted  that  smaller  incumbent  operators  are  often  even  more  diversified  across  the  EU. 
Moreover  the  largest  mobile  operator  (the  second  largest  company  ranked  by  foreign  assets  in  the 
world) has not been taken into account, to avoid distortions. 

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 60 000 000

 50 000 000

 40 000 000

 30 000 000

 20 000 000

 10 000 000

EU Total broadband fixed access lines

 52 624 403

 33 438 076

 19 394 275

 10 298 139

October 2002

October 2003

October 2004

October 2005

Source: Commission services based on COCOM data

Figures for July 2002 to July 2003 refer to EU15 only

There  are  now  almost  53  million  fixed  broadband  lines  in  the  EU.  Revenues  for  fixed  data 
services  have  increased  significantly,  by  an  estimated  8.3%11.  Although  this  figure  includes 
data services such as leased lines as well as broadband, this would suggest that the consumer 
is benefiting from lower broadband prices as volumes grow. 

11 

EITO, 2005. 

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EU Broadband penetration rate, 1 October 2005

January 05

24%

23%

20%

19%

18%

15%

15%

13%

12%

12%

11% 11% 11% 11%

11%

10%

9%

5% 6% 6%

5%

4%

4%

2%

2%

1%

25%

20%

15%

10%

5%

0%

EL PL SK CY LV HU IE CZ LT SI

IT ES PT MT EU DE EE AT LU FR UK BE SE FI DK NL

Source: Commission services based on COCOM data

However, growth has been uneven across the Member States, and 23 percentage points now 
separate the best from the worst in terms of penetration. Among the EU10, Estonia and Malta 
are performing well. 

A  comparison  of  broadband  performance  in  mid-2005  shows that, while the  EU  as  a whole 
lags  behind  some  other  OECD  countries,  the  five  best-performing  Member  States 
(Netherlands, Denmark, Finland, Sweden and Belgium) outstripped the United States (15%) 
and Japan (16%). 

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International broadband penetration rate, June-July 2005

October 05

25.5%

21.7%

22.0%

22.4%

18.7%

19.2%

18.2%

20.3%

17.1%

17.4%

16.4%

14.5%

10.6%

10.9%

30%

25%

20%

15%

10%

5%

0%

EU

Australia

US

Japan

Sweden Belgium Norway

Finland

Canada Switzerland Iceland Denmark

The
Netherlands

South Korea

Source: Commission services based on COCOM and OECD data

New entrants’ broadband market share has increased steadily, to 49.8% for the EU25. Market 
share in fact differs from country to country, ranging from 25% incumbent market share in the 
UK to 100% in Cyprus. 

Factors contributing to broadband rollout 

While  many  factors  contribute  to  broadband  take-up,  competition  is  one  of  the  most 
important.  The  extent  and  nature  of  competition  seems  to  vary  significantly  across  the  EU. 
For  example  the  countries  with  the  highest  penetration  (above  15%)  all  have  high  cable 
penetration but often also well-developed access regimes such as for ULL or bitstream. 

There  have  also  been  some  notable  successes  such  as  France,  the  United  Kingdom,  Austria 
and  Estonia,  where  a  combination  of  competing  infrastructure  and  effective  regulation  have 
stimulated competition and resulted in relatively high broadband penetration. 

Wholesale access to incumbent networks 

There has been a significant shift in the pattern of access to incumbents’ networks over the 
year. New entrants are gradually shifting from resale and bitstream access towards local loop 
unbundling in the provision of broadband services. The growing demand for new services and 
the  trend  towards  packages  of  services  (such  as  ‘triple  play’)  has  made  unbundling  a  more 
attractive option for new entrants. 

Perhaps the most striking feature is that the number of shared access lines has tripled over the 
year.  This  has  been  a  catalyst  for  broadband  growth  in  the  United  Kingdom,  France  and 
Denmark, where the number of shared access lines has increased dramatically following the 
reduction of unbundling fees by the NRAs. Many operators may have a preference for shared 
access because the unbundling process is easier and they can provide VoIP as an alternative to 
switched voice. 

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Mobile services 

Average  EU  penetration  of  mobile  services  reached  92.8%  in  October  2005,  with  faster 
growth in the EU10, of which three, the Czech Republic, Estonia and Lithuania, exceeded the 
notional  100%  mark  for  the  first  time.  There  are  now  79  2G  network  operators  in  the  EU, 
together with 214 service providers, up from 166 in 2004. Penetration tends to be highest in 
countries with a greater number of service providers. 

Mobile 2G subscribers and average penetration in EU25 & EU15, 1998 - 
2005

81%

86%

83%

92%

91%

75%

70%

52%

194

31%

115

18%

69

418

383

356

332

265

283

306

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

e
t
a
r
n
o
i
t
a
r
t
e
n
e
p
e
g
a
r
e
v
a
U
E

450

400

350

300

250

200

150

100

50

0

s
r
e
b
i
r
c
s
b
u
s

f
o
n
o

i
l
l
i

M

1998

1999

2000

2001

2002

2003

2004

2005

Subscribers EU15

Subscribers EU25

Penetration rate EU15

Penetration

Source: Commission services based on NRA data and EMC estimates
Source: Commission services based on NRA data and EMC estimates

By September 2005 there were around 15 million subscribers to 3G services in the EU, with 
most in Italy and the United Kingdom; 58 operators now offer commercial services, including 
internet  access,  content  services  including  news  and  sports  highlights,  video  telephony  and 
downloads. 

The market share of the leading mobile operators has continued to fall in nearly all Member 
States as competing network operators and service providers increase competitive pressure. 

The  main  component  of  revenues  for  mobile  operators  remains  voice  calls  and  rentals, 
although  a  significant  growth  area  is  data  services,  including  SMS.  Laptop  cards,  although 
currently accounting for no more than 2% of revenues, are a growing source of income. 

There  have  been  significant  reductions  in  prices  to  consumers  for  national  calls  in  the 
majority of Member States, in particular for low and medium users in Belgium, Luxembourg, 
the Netherlands, Poland, Portugal, Finland and Sweden. 

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Prices for international roaming remain high in most Member States, with in many cases high 
wholesale  tariffs  and  markups  at  retail  level.  A  website  launched  by  the  Commission  is 
providing a lead on consumer transparency in this area, while regulators are taking their own 
initiatives  at  national  level  under  the  aegis  of  the  European  Regulators’  Group.  The 
Commission plans to build on this initiative and will enhance and update this website in April 
to bring further transparency and thereby further competitive pressure. It will also continue to 
work closely with the national regulators on their related transparency measures. 

In terms of regulation, until the end of 2005 only one NRA, that in Finland, had analysed the 
relevant market in accordance with the regulatory framework, and has not found dominance 
in this market. 

More  progress  from  the  industry  is  needed  in  this  area.  The  Commission  is  watching 
developments  closely  and  will  consider  options  for  the  most  efficient  and  timely  pan-
European action. 

Billing  is  in  many  cases  also  a  concern  to  consumers,  in  particular  where  it  is  not  clear 
whether prices are calculated on a per minute or per second basis, and whether there is a call 
set-up charge. 

Prices for calls by users of fixed networks to mobile subscribers also remain high, at eight to 
ten  times  the  level  for  calls  to  other  fixed  network  subscribers.  However,  fixed  tariff 
structures  do  not  necessarily  reflect  downward  movement  in  the  mobile  termination  rate. 
Regulators  have  intervened  to  bring  termination  rates  down  further  in  2005;  they  fell  by 
around 40%12 between 2001, when regulators began addressing the issue seriously, and 2005. 
Most NRAs have set a period (‘glide path’) for bringing rates down to a cost-oriented level. 

Mobile  number  portability,  which  is  an  important  tool  for  stimulating  competition,  has 
doubled  during  the  year.  Overall,  25.1  million  numbers  have  been  retained  by  customers 
changing supplier in the EU. 

Fixed voice services 

Despite the fact that revenues in traditional fixed voice are falling at around 1.6% a year, this 
remains an attractive market for new entrants. Indeed it is still the largest source of revenue 
for fixed operators, with a value in 2005 of €85.8 billion. 

The influx of players into the market, after a slight dip between 2001 and 2003, has led to a 
further  fall  in  incumbents’  market  share.  However,  incumbents  retain  an  overwhelming 
presence, in particular as regards local access and calls. 

Currently,  only  8.3%  of  subscribers  can  be  accessed  directly  by  new  entrants  using  cable, 
unbundled  local  loops  or  other  technologies  such  as  wireless.  Competition  is  accordingly 
largely based on carrier selection and preselection imposed under the transitional provisions 
or  following  market  analysis.  Many  NRAs  have  also  imposed  wholesale  line  rental 
obligations to enable new entrants to provide a single billing service to their customers. 

12 

SMP operators. 

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The  rate  of  growth  of  subscribers  using  alternative  operators  has  begun  to  slow.  This  is 
possibly  the  result  of  win-back  campaigns  by  incumbent  operators  but  also,  in  a  market 
moving towards integrated bundles of services such as voice, internet access and audio-visual 
content, because the provision of voice alone via carrier preselection may not be a sufficiently 
attractive proposition. 

Market  dynamics  are  maintaining  the  pressure  on  NRAs  to  weigh  decisions  relating  to  the 
pricing of regulated access products very carefully, in order to ensure that entrants investing 
in  moving  closer  to  the  customer,  for  example  through  local  loop  unbundling,  are  suitably 
rewarded in the level of the price they pay. 

IP  telephony  services  (e.g.VoIP)  are  now  available  in  most  Member  States.  Although  they 
have  not  yet  had  a  dramatic  effect  on  traditional  fixed  voice  revenues,  the  potential  market 
entry  of  formidable  new  providers  of  VoIP  services  is  inducing  existing  players  to  respond 
with their own VoIP products or packages which include voice. 

The  Commission  supports  a  light  regulatory  touch  and  welcomes  the  fact  that  a  number  of 
NRAs  have  taken  a  forward-looking  stance,  which  reflects  the  Commission  approach,  on 
regulatory treatment of VoIP. The Commission has agreed with a number of NRAs that VoIP 
is  part  of  the  calls  market,  and  has  expressed  a  preference  for  light-touch  regulation. 
Regulation  of  VoIP  in  the  Member  States  has  accordingly  been  very  measured  so  far.  In 
practice there appear to be low barriers to market entry. 

3. 

REGULATORY ENVIRONMENT 

Some Member States have virtually completed the legislative and regulatory process ensuring 
implementation of the framework; the remainder have made substantial progress. 

Greece  adopted  primary  transposition  measures  only  in  January  2006,  and  the  adoption  of 
some  secondary  legislation  is  still  awaited  in  a  few  Member  States.  A  number  of  Member 
States have also not yet made a start on the notification of market reviews, which are a key 
aspect of the framework; there are also concerns relating to the length of time that can elapse 
in some cases between the start of a market review and its completion. 

NRA independence 

Independence of the NRA from commercial interests is in general ensured, although concerns 
remain  in  Cyprus,  Slovakia  and  Slovenia  as  regards  separation  of  ownership  and  regulatory 
functions,  and  this  issue  has  re-appeared  in  Belgium.  It  is  important  that  NRAs  should  be 
unencumbered in their day-to-day decision-making so as to be able to exercise their powers 
impartially and transparently. Questions in regard to NRA impartiality remain open in a small 
number of countries, and the Commission is examining these carefully. 

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NRA powers 

The Commission remains vigilant concerning possible limitations on NRA powers in Ireland, 
Malta and the Netherlands through directions issued by the ministry, where the latter has not 
been  notified  as  an  NRA.  There  are  also  concerns  relating  to  possible  limitations  on  the 
powers  of  NRAs  to  enforce  their  decisions,  due  to  limits  on  the  level  of  fines  that  can  be 
imposed.  In  Germany  the  power  of  the  regulator  to  impose  the  full  range  of  obligations  in 
relation to retail and wholesale markets is limited, and in Finland there is a similar limitation 
in particular in relation to the mobile termination market. 

Converged NRAs 

Most Member States have established converged regulators with powers covering the whole 
e-communications  sector  (although  not  necessarily  content).  Where  this  has  not  been  done, 
there is a risk of regulatory uncertainty in a converged environment encompassing traditional 
telecoms and broadcasting transmission. This is the case in particular in Belgium.  

Appeals 

The way Member States have implemented the obligation to put in place an effective appeal 
mechanism is a matter of increasing importance in view of the concerns indicated not only by 
operators  but  also  the  authorities  in  a  number  of  Member  States.  The  Commission  is 
considering the various issues involved, including the length of time taken for appeals to be 
settled and the fact that in a number of Member States the NRA’s decision is often suspended 
automatically  in  accordance  with  national  practice.  Following  Commission  infringement 
action, automatic suspension is being abolished in Poland. 

Economic regulation 

Where regulatory obligations are imposed following market analysis or under the transitional 
provisions, competition will be opened up only where these are implemented fully. Generally, 
the NRAs have been effective in ensuring that the necessary regulation is in place, and indeed 
reference unbundling offers for example are now available across the EU. 

The most striking issues, which the Commission is examining, relate to 

•  local loop unbundling, which does not appear to be working in practice in Estonia, Cyprus, 

Lithuania, Latvia, Malta, Poland, Slovenia and Slovakia; 

•  effective  interconnection,  which  continues  to  be  an  issue  in  Estonia,  Lithuania,  Malta, 

Poland, Slovakia and Slovenia; 

•  cost  accounting  systems  suitable 

for  ensuring  cost-oriented 

interconnection 

in 

Luxembourg, Malta, Poland and Slovakia. 

The Commission considers that the cost accounting systems put in place in a number of other 
Member States are still underdeveloped or lack transparency.  

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NRA involvement  

It  is  important  for  market  players  and  consumers  that  NRAs  conduct  well-ordered  public 
consultation  in  relation  to  regulatory  decisions.  In  a  number  of  Member  States  the 
consultation  process  does  not  provide  sufficient  feedback  to  market  players,  or  is  not 
transparent as regards the comments made. 

NRA involvement is key to ensuring that, as market players build out their infrastructure and 
move from one regulated product to another, thereby increasing their control over the quality 
of the product they offer to consumers, they are able to ‘migrate’ those consumers to the new 
infrastructure  without  unnecessary  hindrance.  This  involves  examining  both  pricing  and  the 
practical  processes.  Spain  and  Italy  have  addressed  the  issue  in  specific  regulation;  in  the 
United  Kingdom  the  NRA  has  appointed  a  ‘telecoms  adjudicator’  whose  main  role  is  to 
oversee migration to unbundling. 

Rights of way 

Separation  of  regulatory  and  ownership  functions  in  the  granting  of  rights  of  way  is 
increasingly  important,  given  the  trend  in  certain  Member  States  towards  local  authority 
participation in the rollout of broadband infrastructure. 

Implementation of EU rules relating to transparent and non-discriminatory granting of rights 
of way is a persistent concern in a number of Member States. The Commission is examining 
whether there is discrimination between market players in Cyprus and Greece, together with 
the degree of transparency of decisions by the relevant public authorities in those countries. 

4. 

THE CONSUMER INTEREST 

Universal service 

As regards designation of the universal service provider, Member States must ensure that the 
mechanism is efficient, objective, transparent and non-discriminatory, and that no undertaking 
is a priori excluded. 

The Commission has concerns in France, Hungary and Finland that players may be excluded 
a priori, and is examining similar issues in Belgium, Cyprus, Lithuania and Austria, together 
with the procedure followed in Poland and the Netherlands. It is concerned that in Portugal 
the incumbent has been designated until 2025 without a tender procedure. 

The Commission notes that all Member States that have made a designation have selected the 
fixed incumbent operator. 

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Special social needs 

The i2010 vision of an inclusive information society is encapsulated in the objectives set for 
NRAs in the framework and the service that people with special social needs can expect as 
part of the universal service. 

While  those  objectives  are  generally  well  transposed,  action  tends  to  be  encouraged  rather 
than mandated. As far as prices for users with disabilities are concerned, most Member States 
appear to make adequate provision. However, more could be done as regards practical access 
to services. 

Member States are active as regards users with low incomes. For example, the Austrian State 
finances special tariff schemes, and in Hungary a fund has been set up to assist low income 
subscribers. 

Consumer regulation 

Experience  has  shown  that  fixed  and  mobile  number  portability  and  carrier  selection  and 
preselection have increased competitive pressure. 

Number portability is now fully operational in most Member States, with the exception of the 
Czech  Republic,  Latvia,  Lithuania,  Malta,  Poland,  Slovakia  and  Slovenia.  Carrier  selection 
and preselection is now available throughout the EU, with the exception of Slovakia, although 
there  are  concerns  in  some  Member  States  that  the  associated  interconnection  costs  are 
hindering the development of the service. 

Directory services 

Users want ready access to a directory and enquiry service covering all subscribers who have 
not chosen to keep their number private. The increasing number of subscribers giving up their 
fixed line and using a mobile service only are likely to want the option of having their mobile 
number included in a directory. 

The  Commission  is  concerned  that  a  comprehensive  directory  and/or  enquiry  service  is  not 
provided  in  the  Czech  Republic,  Greece,  France,  Cyprus,  Latvia,  Malta,  Poland,  Portugal, 
Slovakia and the United Kingdom. 

The  high  costs  facing  competing  providers  of  enquiry  services  for  access  to  comprehensive 
data from operators is also an issue. The ECJ has held13 that such data should be provided on 
a cost-oriented basis. The Commission will examine cases coming to its attention. 

13 

Case C-109/03 KPN Telecom BV v OPTA [2004]. 

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112 European emergency number 

The  ability  of  citizens  travelling  within  the  Union  to  call  the  emergency  services  using  a 
single number is key. 

The number can now be used free of charge throughout the EU, from fixed or mobile phones. 
Many  Member  States  are  also  upgrading  the  organization  of  their  emergency  systems  to 
provide a better service to those calling the number. 

Finland for example has centralized emergency centres with a maximum response time of 90 
seconds.  In  the  Czech  Republic  the  emergency  operator  can  transfer  calls  depending  on  the 
language knowledge of the operators in different centres.  

In Spain the regions have dramatically improved the quality of their emergency response by 
ensuring that caller location data is available to the emergency services. The Commission is 
examining  whether  a  number  of  Member  States  are  in  compliance  with  the  requirements  of 
the Universal Service Directive in this respect. It is also monitoring the situation to ensure that 
citizens are informed adequately about 112, particularly that they can use it in other Member 
States when travelling. 

5. 

CONCLUSIONS 

The  framework  has  required  the  Member  States  to  make  substantial  changes  to  national 
legislation  and  practices.  While  this  Communication  shows  there  are  some  shortcomings  in 
implementation,  most  of  the  necessary  work  has  been  done.  The  evidence  suggests  that 
intensifying  competition  is  bringing  increased  consumer  benefits  and  that  the  outlook  for 
innovation  and  investment  within  Member  States  and  across  borders  is  positive.  The 
Framework notably assures the citizen that basic services are provided at an affordable price 
and that special social needs are catered for. 

A  review  of  the  current  framework  is  now  under  way  and,  although  it  is  a  statutory 
requirement that this commence during 2006, the level of progress in implementation of the 
current  framework  provides  a  good  basis  for  consumers,  market  players  and  all  major 
stakeholders  to  assess  the  need  for  reform,  particularly  in  the  light  of  future  technological, 
market and societal developments. 

EN 

14 

  EN