Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on the review of the EU Regulatory Framework for electronic communications networks and services {SEC(2006) 816} {SEC(2006) 817}
Date: 2006-06-29
Institutions: European Commission
Subjects: competition law, drafting of EU law, information society, information technology, regulation of telecommunications, services contract, single market, telecommunications, transmission network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.6.2006 
COM(2006) 334 final 

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

on the Review of  
the EU Regulatory Framework for electronic communications networks and services  

{SEC(2006) 816} 
{SEC(2006) 817} 

EN 

   EN 

 
 
 
  
 
 
This  Communication  and  the  accompanying  Staff  Working  Document  launch  a  public 
consultation on the future of the regulatory framework for electronic communications, which 
will run until 27 October 2006. See 
http://ec.europa.eu./information_society/policy/ecomm/tomorrow/index_en.htm 

Comments, based on the template available at the above URL, should be sent by email to 

infso-2006review@ec.europa.eu 

Comments  will  be  published  unless  confidentiality  is  specifically  requested.  Please  give  the 
name  of  a  contact  person  in  your  organisation  for  any  questions  on  your  contribution. 
Normally a notification of receipt will be sent by email within 2 working days. In the absence 
of such a receipt, please contact: 

Policy Development Unit (B1) 
DG Information Society and Media 
B-1049 Brussels 
Belgium 
Tel + 32 2 296 8633 

Personal data gathered in the course of this consultation will be processed in accordance with the applicable 
legislation on data protection. See 
http://ec.europa.eu./information_society/policy/ecomm/info_centre/documentation/public_consult/privacy_state
ment/index_en.htm 

EN 

2 

   EN 

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

on the Review of  
the EU Regulatory Framework for electronic communications networks and services 

(Text with EEA relevance) 

1. 

SUMMARY 

This  Communication  reports  on  the  functioning  of  the  five  directives  of  the  regulatory 
framework  for  electronic  communications  networks  and  services,  as  required  by  these 
directives1.  This  Communication  also  launches  a  public  consultation  on  the  future  of  the 
electronic  communications  regulatory  framework  on  which  comments  are  requested  by 
27 October 2006. It explains how the framework has delivered on its objectives, and identifies 
areas  for  change.  The  proposed  changes  are  discussed  in  the  associated  Commission  Staff 
Working  Document.  In  keeping  with  the  principles  of  better  regulation,  the  opportunity  has 
been  taken  to  propose  reductions  in  administrative  burdens  and  the  repeal  of  outdated 
measures.  The  associated  Impact  Assessment  captures  the  broader  range  of  options 
considered prior to drawing the conclusions presented here. Taking account of the comments 
received,  the  Commission  will  draw  up  legislative  proposals  for  modification  of  the 
framework, to be presented to the European Parliament and the Council, duly accompanied by 
specific impact assessments. 

2. 

BACKGROUND 

Creating a single European information space with an open and competitive internal market is 
one  of  the  key  challenges  for  Europe2,  within  the  broader  strategy  for  growth  and  jobs. 
Electronic communications underpins the whole of the economy, and at EU level is supported 
by a regulatory framework that entered into force in 2003. The aims of the framework are to 
promote  competition,  consolidate  the  internal  market  for  electronic  communications  and 
benefit  consumers  and  users.  It  is  designed  to  take  account  of  convergence,  in  that  it  deals 
with  markets  and  not  technologies.  Markets  are  defined  according  to  competition  law 
principles, based on general demand and supply side considerations, and are independent of 
changes in the underlying technology. The framework provides for the progressive removal of 
regulation as and when competition becomes effective. The markets in which the Commission 
considers regulation may be justified, and the criteria used to identify such markets, are listed 
in  a  Commission  Recommendation3,  which  is  also  being  reviewed4.  This  overall  approach 
allows the framework to respond to changing technology and market conditions.  

1 

2 
3 

Directives  2002/19/EC,  2002/20/EC,  2002/21/EC,  2002/22/EC  (OJ  L  108,  24.4.2002,  p.  7)  and 
2002/58/EC (OJ L 201, 31.7.2002, p. 37). See also Annex I of Impact Assessment. 
COM(2005) 24, 2.2.2005. 
Commission  Recommendation  on  Relevant  Product  and  Service  Markets  within  the  electronic 
communications sector susceptible to ex ante regulation, C(2003) 497. 

EN 

3 

   EN 

 
 
                                                 
Given the special characteristics of mobile roaming in the Community, the Commission will 
propose  a  European  Parliament  and  Council  Regulation  to  address  this  specific  issue.  The 
revision of the Recommendation on relevant markets will take account of this. 

Regulatory  decisions  are  adopted  by  national  regulatory  authorities  (NRAs)  but  a  review 
mechanism at EU level (known as the ‘Article 7 procedure’) safeguards the internal market by 
helping  to  ensure  the  consistency  of  ex  ante  regulation  across  the  EU.  The  Commission 
reported on the functioning of this procedure in February 20065. 

In addition to the ‘economic’ regulation described above, the framework seeks to protect the 
consumer  by  laying  down  legal  obligations  in  the  areas  of  privacy  and  data  protection, 
universal service and user rights. The framework does not deal with content services, which 
are  subject  to  other  rules  at  EU  level,  but  it  does  give  NRAs  powers  to  deal  with 
uncompetitive  markets  in  situations  where  content  services  are  bundled  with  electronic 
communications services. 

3. 

ASSESSMENT OF THE FRAMEWORK - ACHIEVEMENT OF OBJECTIVES 

Market development 

Electronic  communications  continue  to  be  a  success  story  for  the  EU.  Since  markets  were 
fully  opened  up  to  competition  in  1998,  users  and  consumers  have  benefited  from  more 
choice, lower prices and innovative products and services. Mobile services have reached high 
penetration  levels;  broadband  communications  are  growing  rapidly.  Overall  growth  in 
revenue terms in the sector continues to be strong, outpacing the growth of the EU economy. 
In  2005  the  ICT  sector  was  valued  at  €614bn,  according  to  the  Commission’s  11th 
Implementation report which provides more information about these developments6. ICT also 
contributes macro-economically to productivity growth and increased competitiveness of the 
European economy as a whole, and thus is a factor in growth and job creation. 

Stakeholder consultation 
Responses to the Commission’s ‘Call for Input’7 were generally positive about the impact of 
the regulatory framework, although some felt it was too early to draw definitive conclusions. 
Consumers  and  industry  groups  supported  the  framework’s  approach,  albeit  with  criticisms 
concerning  its  implementation.  Several  stakeholders  considered  that,  even  if  certain  aspects 
needed  updating,  the  framework  brought  greater  regulatory  robustness.  Many  called  for  a 
simplification of the market review procedures and generally welcomed the new institutional 
arrangements for spectrum harmonisation8. 

New  entrants,  cable  operators,  ISPs  and  software  and  equipment  producers  noted  that  the 
framework  had  allowed  the  development  of  competition  and  innovation  across  Europe, 
facilitating  investment  and  broadband  penetration.  However,  the  majority  of  incumbents 

4 
5 
6 
7 

8 

Commission Staff Working Document on the Recommendation on relevant markets. 
COM(2006) 28, 6.2.2006.  
COM(2006) 68, 20.2.2006.  
The responses are available at 
http://ec.europa.eu/information_society/policy/ecomm/info_centre/documentation/public_consult/revie
w/index_en.htm. 
The  Radio  Spectrum  Decision  676/2002/EC  allows  for  technical  harmonisation  of  spectrum  usage 
conditions  (via  the  Radio  Spectrum  Committee);  strategic  advice  on  radio  spectrum  policy  via  the 
Radio Spectrum Policy Group. 

EN 

4 

   EN 

 
                                                                                                                                                         
 
considered  that  ex-ante  regulation  hindered  new  investment  and  should  be  phased  out  by 
2015. 

Innovation, investment and competition 

The available evidence indicates that European investment in this sector over recent years has 
been as high if not higher than in other world regions (€45bn in 2005)9. Both new entrants and 
incumbents,  in  response  to  competition,  are  investing  to  extend  and  upgrade  fixed  and 
wireless  network  infrastructure  in  order  to  provide  innovative  services.  Relative  to  their 
turnover,  new  entrants  are  investing  more  than  incumbents.  Investment  can  flourish  in  a 
variety of regulatory situations, but competition remains the main driving force. According to 
a  study  commissioned  by  the  Commission,  countries  that  have  applied  the  EU  regulatory 
framework in an effective and pro-competitive manner have attracted most investment10. 

The  correlation  between  investment  in  broadband  and  competition  in  infrastructure  has 
become  clear.  Countries  with  strong  competition  between  incumbents  and  cable  operators 
tend to have the highest broadband penetration11. 

In  this  sector,  the  investments  needed  for  network  modernisation  are  substantial,  but  the 
operational  savings  from  rationalisation  and  the  use  of  modern  technology  are  also 
considerable12. Some have called for regulatory forbearance to encourage investment in new 
network  infrastructure,  but  there  is  little  to  show  that  regulatory  ‘holidays’  generate  new 
investment, absent other factors like competition. 

The  regulatory  framework  indicates  that  newly  emerging  markets  should  not  be  subject  to 
inappropriate regulation13. The Commission regards as emerging markets those markets that 
are  so  new  and  fast-moving  that  it  is  premature  to  decide  whether  they  satisfy  the  three 
criteria for ex-ante regulation identified in its Recommendation14. Once markets become more 
mature  however,  if  they  fulfil  these  criteria,  the  framework  gives  regulators  considerable 
flexibility  to  reward  innovative  and  risky  investments15.  Indeed,  the  framework  explicitly 
recognises the need for regulators to allow adequate cost recovery on existing assets, and to 
properly  reward  innovation  and  new,  risky  investments  by  calling  on  NRAs  to  “take  into 
account…the  initial  investment  by  the  facility  owner,  bearing  in  mind  the  risks  involved  in 
making the investment”16. 

Summary 

9 
10 

11 
12 
13 
14 

15 
16 

See footnote 6.  
London Economics in association with PricewaterhouseCoopers, study for DG Information Society and 
Media  of  the  European  Commission  on  ‘An  assessment  of  the  Regulatory  Framework  for  Electronic 
Communications - Growth and Investment in the EU e-communications sector’ (to be published). 
See associated Commission Staff Working Document, section 2.  
ibid. 
Recital 27 Framework Directive. 
The 3 criteria are: a) the market is subject to high and non-transitory entry barriers; b) the market has 
characteristics such that it will not tend towards effective competition over time; c) competition law by 
itself  is  insufficient  to  deal  with  the  market  failure  (absent  ex  ante  regulation).  See  the  Commission 
Staff Working Document on the Recommendation on relevant markets. 
Article 12(2) Access Directive. 
ibid. 

EN 

5 

   EN 

 
                                                 
There is room for significant improvement in the way that spectrum is managed. Specifically, 
the Commission considers that more effective management of spectrum would release its full 
potential to contribute to offering innovative, diverse and affordable services to the European 
citizen  and  to  strengthen  the  competitiveness  of  European  ICT  industries.  In  other  respects, 
the Commission considers that the principles and flexible tools in the regulatory framework, 
when  applied  fully  and  effectively,  offer  the  most  appropriate  means  of  encouraging 
investment,  innovation  and  market  development.  There  is  nevertheless  room  for  the 
Commission  and  NRAs  to  provide  guidance  on  how  the  rules  should  be  applied,  so  as  to 
increase predictability for stakeholders. 

4. 

TECHNOLOGY AND MARKET EVOLUTION 

The challenge for this review is to ensure that the framework continues to serve the needs of 
the sector for the next decade.  

Over this period, the main technological trends are expected to be a migration to ‘all Internet 
Protocol  (IP)’  networks,  growing  use  of  wireless  communications  and  wireless  access 
platforms  (e.g.  3G,  WiFi,  WiMAX  and  satellite),  deployment  of  fibre  in  the  local  access 
network,  and  the  transition  to  digital  TV.  Far-reaching  impacts  on  existing  network 
architectures, services and consumer devices can be expected. Market players are facing new 
competitors  and  are  seeking  new  business  models  in  the  face  of  imminent  changes  to  the 
electronic communications market of today. 

All  of  this  will  lead  to  new  and  innovative  services  for  users,  with  the  current  ‘triple  play’ 
services  (voice,  internet  and  TV)  being  precursors  of  more  sophisticated  service  bundles  to 
come. Boundaries between electronic communications products and services will continue to 
blur; new forms of mobile and portable devices will appear with interactive and broadcasting 
features. Privacy and security will continue to be a concern for users. 

So  far,  the  framework  has  shown  itself  capable  of  addressing  new  technologies  like  Voice 
over  Internet  Protocol  (VoIP),  with  a  capacity  to  accommodate  further  technological  and 
market  evolutions.  However  the  provisions  governing  the  management  of  radio  resources, 
which are critical to innovative wireless products and services and are shared with many other 
sectors, need to be adapted, in order to avoid inappropriate regulation.  

5. 

CHANGES PROPOSED OVERALL 

The current regulatory framework has produced considerable benefits, but it needs attention in 
a number of areas in order to remain effective for the coming decade. The two main areas for 
change are: 

•  application to electronic communications of the Commission’s policy approach on 
spectrum management, as set out in the Communication of September 200517; 

•  reduction  of  the  procedural  burden  associated  with  the  reviews  of  markets 

susceptible to ex-ante regulation. 

17 

COM(2005) 411, 6.9.2005. 

EN 

6 

   EN 

 
                                                 
In addition to these two, the Communication identifies other changes that seek to: 

•  consolidate the single market,  

•  strengthen consumers and user interests,  

•  improve security and  

•  remove outdated provisions.  

This  Communication,  and  the  staff  working  paper  which  accompanies  it,  set  out  the 
Commission’s analysis and current ideas for change. These will be adjusted in the light of the 
public  consultation,  in  particular  those  which  deal  with  ways  of  strengthening  effective 
competition during the transition from monopoly to full competition.  

Many  of  the  proposals  entail  the  European  Parliament  and  the  Council  defining  regulatory 
objectives,  leaving  it  to  the  Commission  to  adopt  detailed  technical  measures  in  order  to 
implement those objectives. This allows ex ante regulation to be responsive to changes in the 
sector while respecting the objectives and principles defined by the legislator. 

5.1. 

Improved approach to managing spectrum for electronic communications  

Electronic  communications  services  share  spectrum  with  other  sectors  (aeronautical, 
maritime,  space,  security,  defence,  earth  observation,  etc).  This  calls  for  balancing  these 
spectrum interests and considering the European dimension. 

Rapid  technological  development  and  convergence  have  underlined  the  importance  of 
spectrum as a valuable resource, but spectrum management within the EU has not kept pace 
with such evolution. It is estimated that the total value of electronic communications services 
that  depend  on  use  of  the  radio  spectrum  in  the  EU  exceeds  €200  billion,  which  equates  to 
between 2% and 2.5% of the annual European GDP18. Maximising the social and economic 
potential  of  radio  spectrum  usage  is  essential  to  achieving  the  objectives  of  the  EU’s  i2010 
policy, and to support the renewed strategy for growth and jobs. In addition, improvements in 
the  current  system  of  spectrum  management  at  EU  level  will  allow  operators  to  exploit  the 
internal market more effectively. 

A new system for spectrum management is needed that permits different models of spectrum 
licensing  (the  traditional  administrative,  unlicensed  and  new  marked-based  approaches)  to 
coexist  so  as  to  promote  economic  and  technical  efficiency  in  the  use  of  this  valuable 
resource.  Based  on  common  EU  rules,  greater  flexibility  in  spectrum  management  could  be 
introduced  by  strengthening  the  use  of  general  authorisations  whenever  possible.  When  not 
possible,  owners  of  spectrum  usage  rights  should  not  be  unduly  constrained  but  subject  to 
certain  safeguards,  have  the  freedom  to  provide  any  type  of  electronic  communications 
service  (‘service  neutrality’)  using  any  technology  or  standard  under  common  conditions 
(‘technological neutrality’).  

Using  criteria  based  on  economic  efficiency,  selected  bands  agreed  at  EU  level  via  a 
committee procedure would become available for use under general authorisations, or subject 

18 

See  the  study  by  Analysys  et  al.  ‘Conditions  and  options  in  introducing  secondary  trading  of  radio 
spectrum in the European Community’ (2004), p. 12.  

EN 

7 

   EN 

 
                                                 
to secondary trading across the EU. Common authorisation conditions for the use of the radio 
spectrum would also be enacted with this procedure in appropriate cases (see 5.3.3).  

The administrative model will remain important especially where, on balance, legal certainty 
and interference management issues are priorities and where public interest objectives are at 
stake. 

5.2. 

Streamlining market reviews 

In February 2006, the Commission reported on its experience with the ‘Article 7’ procedure19 
and  concluded  that  the  procedure  represents  an  important  step  towards  the  creation  of  an 
internal  market  for  electronic  communications.  As  a  follow-up  to  that  report,  this 
Communication proposes to reduce the administrative burden of the market review procedure 
by simplifying the notification requirements for certain draft national measures, given that by 
the  time  such  changes  are  fully  implemented,  the  NRAs  will  have  considerably  more 
experience with the process.  

This  approach  accords  with  the  Commission’s  Better  Regulation  Programme  to  achieve  the 
same  policy  objectives  in  simpler  ways.  Regulators  would  still  need  to  conduct  market 
reviews  and  undertake  national  and  European  consultations,  but  for  certain  market  analyses 
and notifications the current level of detail would no longer be required. In a number of pre-
defined  categories  of  cases,  a  simplified  notification  procedure  would  be  introduced.  This 
would  allow  the  Commission  and  the  NRAs  to  focus  on  cases  where  substantial  problems 
may arise.  

In the short term, it is proposed to issue a revised version of the procedural Recommendation 
in order to initiate the simplified notification procedures from 2007, and in the longer term, to 
modify the framework to allow all procedural elements to be gathered together into a single 
Regulation. 

5.3. 

Consolidating the Internal Market 

To  attract  investment  and  reap  the  benefits  of  the  internal  market,  Europe  must  deliver  a 
consistent  regulatory  approach  in  the  25  Member  States.  A  unified  single  market  offers  EU 
suppliers a large home base for the development of innovative products, which is particularly 
important  in  areas  like  wireless  communications  where  economies  of  scale  count.  Although 
progress has been made, an internal European market for electronic communications and for 
radio equipment20 is not yet a reality, and further measures are proposed.  

5.3.1.  Remedies under the ‘Article 7’ procedure 

The  ‘Article  7’  procedure  has  enhanced  consistency  in  terms  of  market  definitions  and  the 
assessment of ‘significant market power’ by NRAs. However the Commission identified the 
need for greater consistency in the application of remedies21. 

19 
20 

21 

See footnote 5. 
The R&TTE Directive 1999/5/EC (OJ L 91 7.4.1999, p. 10) harmonises requirements on equipment but 
does not harmonise spectrum allocation. 
See footnote 5. 

EN 

8 

   EN 

 
                                                 
Many  comments  made  by  the  Commission  on  draft  measures  of  NRAs  have  related  to  the 
appropriateness of the remedies proposed. The Commission has voiced concerns in particular 
regarding  remedies  that  solved  only  part  of  the  competition  problem  identified22,  remedies 
that appeared to be inadequate23 and remedies that might have produced effective results too 
late24. To secure the benefits of the internal market, it is proposed to extend Commission veto 
powers to cover proposed remedies. 

5.3.2.  Appeals 

A major difficulty with implementation of the framework is the judicial practice of routinely 
suspending  regulatory  decisions,  despite  the  provisions  of  Article 4  of  the  Framework 
Directive. Courts vary widely in their treatment of interim relief. The proposal is to tackle the 
problem  of  routine  suspension  of  regulatory  decisions  by  some  national  courts  during  the 
appeal  period  by  laying  down  EU  level  criteria  for  granting  suspension  of  regulatory 
decisions. 

5.3.3.  Common  approach  to  the  authorisation  of  services  with  pan-European  or  internal 

market dimension 

Member  States  are  responsible  for  the  authorisation  of  electronic  communications  networks 
and  services.  The  conditions  that  apply  to  undertakings  –  including  the  rights  of  use  for 
numbers and radio frequencies – vary between the Member States, making it burdensome to 
introduce services with a pan-European or an internal market dimension. 

For such services, a Community procedure is proposed, in order to reach EU-level agreement 
on common usage conditions as well as on common approaches to authorisation, to allow for 
co-ordinated  deployment of services. This authorisation system would be  complementary to 
the  current  system  and  would  be  applied  in  specific  cases  (e.g.,  satellite  communication 
services). The Authorisation Directive would be amended to allow the Commission to adopt 
Decisions  with  the  assistance  of  a  committee,  while  monitoring  and  enforcement  of 
compliance with the authorisation conditions for such services would continue to be handled 
by Member States at national level. Once authorisations are harmonised through this common 
mechanism,  an  authorisation  granted  in  one  Member  State  would  be  sufficient  for  the  pan-
European deployment of services. 

5.3.4.  Other proposed changes 

Other changes designed to strengthen the internal market aim to: ensure that users can access 
information  society  services  provided  in  other  Member  States  (e.g.  freephone  numbers); 
strengthen  the  ability  of  NRAs  to  sanction  a  breach  of  regulatory  obligations;  extend  the 
scope of the technical implementing measures that the Commission can take, e.g. in areas like 
numbering;  introduce  a  mechanism  for  Commission  approval  of  measures  taken  by  NRAs 
under  Article 5(1)  of  the  Access  and  Interconnection  Directive;  require  ‘must  carry’ 

22 

23 

24 

As  in  a  case  where  mobile  termination  rates  were  only  regulated  for  calls  originating  on  mobile 
networks or abroad, but not for calls originating on fixed networks. 
e.g. where price regulation was not based on the most appropriate cost model or where choices of cost 
model and cost accounting rules were left to the undertakings concerned. 
e.g.  where  cost-oriented  mobile  termination  rates  based  on  an  LRIC  cost  model  were  left  to  private 
negotiations between operators first, before the regulator intervened in the context of dispute settlement. 

EN 

9 

   EN 

 
                                                 
obligations  to  be  reviewed  by  a  specific  deadline;  and  establish  a  procedure  to  facilitate 
agreement at EU level on common requirements on networks and services.  

5.4. 

Strengthening consumers’ and users’ rights 

A central goal of the regulatory framework is to deliver substantial consumer benefits. This is 
in  large  part  achieved  by  relying  on  enhanced  competition  to  provide  choice,  innovative 
services  and  value  for  money  to  consumers.  This  is  complemented  by  specific  consumer 
protection measures, including universal service obligations to safeguard users’ needs. 

Responses to the ‘Call for Input’ on the Review, together with contributions received on the 
Commission  consultation  on  the  scope  of  Universal  Service25,  suggest  a  need  for  a 
fundamental  reflection  on  the  role  and  concept  of  universal  service  in  the  21st  century,  and 
raise  questions  on  the  balance  between  sector  specific  and  horizontal  rules  for  protecting 
consumers, and the feasibility of a one-size-fits-all approach to universal service in a Union of 
25  Member  States.  For  these  reasons,  the  Commission  intends  to  publish  a  Green  Paper  on 
universal service in 2007, to launch a wide ranging debate. 

Irrespective  of  the  outcome  of  this  debate,  many  of  the  provisions  in  the  Universal  Service 
Directive  are  linked  to  traditional  telephone  services,  and  need  to  be  modernised.  Other 
proposed changes will improve the quality of tariff information available to consumers, allow 
third parties to take legal action against ‘spammers’, ensure that caller location information is 
available to the emergency services, and facilitate access to emergency services by disabled 
users. 

5.5. 

Improving Security 

Security is identified in i2010 as one the four challenges for the creation of a Single European 
Information  Space.  Modern  electronic  communications  networks  and  services  are  becoming 
essential  for  everyday  life,  in  business  and  at  home.  The  availability  of  communications 
services can be threatened by technical, organisational or human failure. The trend towards IP 
technology also means that networks are in general more open and vulnerable than in the past. 
The growth of spam, viruses, spyware and other forms of malware, which undermines users’ 
confidence in electronic communications, is partly due to that openness, and partly due to the 
lack  to  appropriate  security  measures.  The  Communication  on  a  strategy  for  a  secure 
Information  Society  (COM(2006)  251)  highlighted  the  need  to  ensure  the  right  balance 
between  technological  development,  self-regulation  and  regulatory  measures.  Specific 
regulatory measures are proposed in the context of this review. 

In  order  to  reinforce  the  trust  and  confidence  of  business  and  individual  users  in  electronic 
communications,  a  series  of  measures  is  proposed:  1)  to  impose  specific  requirements  on 
providers  of  electronic  communications  to  notify  certain  breaches  of  security  and  to  keep 
users  informed;  2)  to  authorise  competent  national  authorities  to  require  specific  security 
measures that implement Commission recommendations or decisions; and 3) to modernise the 
provisions on network integrity. 

25 

COM(2005) 203, 24.5. 2005.  

EN 

10 

   EN 

 
                                                 
5.6. 

Better regulation: removing outdated provisions 

It is proposed to withdraw the provisions on the minimum set of leased lines in the Universal 
Service  Directive,  since  there  are  other  provisions  that  allow  NRAs  to  address  problems  in 
this area. The Regulation on unbundled access to the local loop26 (ULL) is also due for repeal, 
since once all NRAs have completed their market analysis of the ULL market, the Regulation 
becomes unnecessary and can be withdrawn. 

Other candidates for removal include the provisions on the European Telephony Numbering 
Space (ETNS) in the Universal Service Directive, and various other obsolete articles detailed 
in the associated Working Document. 

6. 

CONCLUSION 

The current regulatory framework has produced considerable benefits but it needs attention in 
a number of areas in order to remain effective for the coming decade. The two main proposals 
are to implement the Commission’s policy approach on spectrum management, and to reduce 
the resources associated with the reviews of relevant markets by streamlining the procedures. 
Other changes proposed would strengthen the internal market, reinforce consumers’ interests, 
improve security and generally update the framework. 

The Staff Working Document describes these proposals in more detail. An evaluation of these 
changes as well as other options that were considered can be found in the associated Impact 
Assessment document.  

26 

OJ L 336, 30.12.2000, p. 4. 

EN 

11 

   EN