Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Report on the outcome of the Review of the EU regulatory framework for electronic communications networks and services in accordance with Directive 2002/21/EC and summary of the 2007 reform proposals
Date: 2007-11-13
Institutions: European Commission
Subjects: competition law, consumer protection, electronic mail, regulation of telecommunications, report, single market, telecommunications, transmission network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.11.2007 
COM(2007) 696 final 

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

Report on the outcome of the Review of the EU regulatory framework  
for electronic communications networks and services 
in accordance with Directive 2002/21/EC 
and  
Summary of the 2007 Reform Proposals 

EN 

   EN 

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

Report on the outcome of the Review of the EU regulatory framework  
for electronic communications networks and services 
in accordance with Directive 2002/21/EC 
and  
Summary of the 2007 Reform Proposals 

(Text with EEA relevance) 

1. 

INTRODUCTION 

Electronic communications networks and services underpin the economic and social fabric of 
the  European  Union.  The  widespread  availability  of  affordable  and  secure  broadband 
communications  networks  is  a  key  condition  for  realising  the  growth  and  job-creation 
potential of the European Union — an objective that lies at the heart of the renewed Lisbon 
strategy.  As  part  of  this  strategy,  the  i2010  initiative  launched  by  the  Commission  in  June 
20051 promotes an open and competitive digital economy and calls for the creation of a Single 
European Information Space. The main instrument envisaged for this is the reform of the EU 
regulatory framework for electronic communications. 

This  reform  will  be  an  important  pillar  of  the  Review  of  the  Single  Market  as  electronic 
communications have the capacity to make key contributions to market integration by: 

– 

– 

– 

– 

delivering more results for citizens and small business; 

taking better advantage of globalisation; 

opening new frontiers of knowledge and innovation; 

encompassing a strong social and environmental dimension. 

This  Communication  reports  on  the  results  of  Commission’s  Review  of  the  regulatory 
framework  for  electronic  communications  under  Article  25  of  Directive  2002/21/EC2,  and 
explains the main policy changes proposed by the Commission (hereinafter the 2007 Reform 
Proposals).  Further  details  can  be  found  in  the  Commission’s  legislative  proposals3  and 
associated Impact Assessment4. 

1 
2 
3 
4 

COM(2005) 229. 
OJ L 108, 24.4.2002, p. 33. 
COM(2007) 697; COM(2007) 698; COM(2007) 699. 
SEC(2007) 1472. 

EN 

2 

   EN 

 
 
                                                 
2. 

OBJECTIVES OF THE REVIEW AND CONSULTATION PROCESS 

2.1. 

Background and objectives of the Review 

The EU regulatory framework for telecommunications was created in the 1990s to open up to 
competition  national  markets,  which  until  then  had  been  dominated  by  state-owned 
monopolies.  This  process  culminated  in  the  liberalisation  of  national  markets  in  1998.  A 
further  step  was  taken  in  2002  with  the  adoption  of  the  current  set  of  rules,  which  take 
account  of  the  convergence  of  technologies  and  apply  to  all  forms  of  ‘electronic 
communications’.  The  regulatory  model  under  the  2002  framework  essentially  relies  on 
implementation  of  a  common  set  of  EU  rules  by  different  national  regulatory  authorities 
(NRAs)  to  which  responsibility  for  overseeing  markets  has  been  entrusted.  The  2002 
framework  also  introduced  the  competition  law  concept  of  dominance  as  the  threshold  for 
‘ex-ante’  regulation,  to  ensure  that  regulation  is  imposed  only  on  firms  with  significant 
market power.  

In 2006 and 2007, the Commission has reviewed the functioning of the EU framework against 
its main objectives, which are to promote competition, to consolidate the internal market and 
to promote the interests of the citizen. In the light of technological and market developments, 
especially improved competition in some areas, but also continued dominance by one or a few 
operators  on  a  number  of  key  markets  as  well  as  a  continued  lack  of  a  single  market  for 
electronic  communications  and  increasing  divergence  of  regulatory  approaches  in  the 
enlarged EU, a substantial reform of the regulatory framework is considered necessary by the 
Commission. The 2007 Reform Proposals of the Commission can be grouped under the three 
pillars of better regulation, completing the single market and connecting with citizens. 

i) Better regulation for competitive electronic communications 

With its 2007 Reform Proposals, the Commission first of all wants to simplify and 
improve  the  quality  of  the  regulatory  environment,  by  reducing  ex-ante  regulation 
where market developments allow and by simplifying the market review procedure. 
In addition, better regulation of radio spectrum — by simplifying access to and use 
of this scarce resource and moving to a more market-oriented allocation of spectrum 
— will improve competition in wireless services and release the economic potential 
of spectrum. 

ii) Completing the single market in electronic communications 

Under  the  present  set  of  rules,  NRAs  exercise  considerable  discretion  in 
implementing  the  regulatory  framework  but  their  perspective  has  remained  largely 
confined to national borders, despite the efforts made to improve coordination via the 
European  Regulators  Group  (ERG),  a  forum  bringing  together  national  regulators. 
This has led to regulatory inconsistency and distortions of competition, hindering the 
development  of  a  single  European  market  in  which  undertakings  can  operate 
seamlessly across borders and where private and business consumers can profit from 
the availability of comparable communications services independently of geographic 
location.  The  Commission  therefore  proposes  the  establishment  of  an  independent 
European  Electronic  Communications  Market  Authority,  which  will  build  on  the 
combined expertise of NRAs and improve the existing coordination mechanisms. At 
the same time, it is proposed to strengthen the independence and enforcement powers 
of national authorities. This will ensure consistent implementation of (de-)regulation 

EN 

3 

   EN 

 
across the EU, under the supervision of the Commission, and a level playing field for 
operators in the single market. 

iii) Connecting with citizens 

In  a  rapidly  changing  market  environment,  new  measures  are  needed  in  order  to 
preserve and enhance consumer protection and user rights and ensure that consumers 
can reap the full benefits of a dynamic and increasingly borderless communications 
market.  The  Commission  proposals  aim  in  particular  to  strengthen  security  and 
privacy,  to  make  number  portability  speedier  and  more  efficient,  and  to  promote  a 
high  quality  of  service  and  unobstructed  access  to  digital  and  online  content.  The 
reform proposals will also ensure that users with disabilities, elderly users and people 
with special needs have better access to electronic communications services. 

2.2. 

Consultation process 

The consultation was in two phases: Phase I, which started at the end of 2005, was a ‘call for 
input’,  which  resulted  in  around  160  written  submissions5.  These  views  were  taken  into 
account in the preparation of the Commission Communication of June 2006 on the Review6, 
the  accompanying  Staff  Working  document  and  the  Impact  Assessment.  With  these 
documents,  the  Commission  launched  Phase  II  of  the  consultation,  which  ran  until  October 
2006 and included a public workshop.  

A  total  of  224  responses  were  received,  from  inside  and  outside  the  EU7.  52  industry 
associations,  12  trade  associations  and  worker’s  unions,  and  15  user  associations  submitted 
written comments, as did 18 EU Member States and the ERG, which comprises the 27 NRAs. 
The  Commission  followed  up  the  ERG  submission  with  a  regulatory  dialogue  between 
November 2006 and February 2007 to explore options for reducing regulatory inconsistencies 
and obstacles to the single market in a spirit of better regulation8. 

3. 

BETTER REGULATION FOR COMPETITIVE ELECTRONIC COMMUNICATIONS 

3.1. 

Ex-ante regulation refocused on remaining market competition problems 

Background and objectives 

Over  the  last  decade,  the  EU  rules  have  been  quite  successful  in  opening  up  national 
telecommunications  markets  to  competition,  stimulating  investment  and  innovation  by  both 
new entrants and incumbents, and increasing choice for business and private consumers9. In 

5

6 
7

8 

9 

http://ec.europa.eu/information_society/policy/ecomm/info_centre/documentation/public_cons

ult/review/index_en.htm. 
COM(2006) 334. 

http://ec.europa.eu/information_society/policy/ecomm/info_centre/documentation/public_cons

ult/review_2/index_en.htm. 
Commissioner Reding’s letter to the ERG of 30.11.2006, the ERG response and the joint statement of 
Commissioner Reding and Chairman Viola of 27.2.2007 can be found at: 
http://erg.eu.int/whatsnew/index_en.htm. 
Further evidence and quantitative data can be found in the associated Impact Assessment.  

EN 

4 

   EN 

 
                                                 
 
 
 
the June 2006 Communication, the Commission concluded that the  overall  principles  of the 
EU Framework were well-balanced and supported new investment. 

The  EU  framework  provides  a  mechanism  whereby  the  markets  that  may  warrant  ex-ante 
regulation  are  identified  in  a  Commission  Recommendation10.  This  Recommendation  is  an 
important  starting  point  for  NRAs  to  analyse  markets  in  order  to  determine  whether  they 
warrant  ex-ante  regulation.  NRAs  must  notify  the  results  of  their  market  analyses  to  the 
Commission.  The  regulatory  framework  requires  ex-ante  obligations  to  be  removed  once 
competition in a market becomes effective. 

Incumbent  operators  remain  dominant  on  many  markets,  in  particular  in  the  area  of  fixed 
telephony  (average  market  share  of  incumbents:  65.8%11)  and  in  most  countries  also  in 
broadband (market shares of incumbents mostly over 55% and often over 65%12). In mobile 
markets,  the  number  of  operators  has  —  with  some  exceptions  —  remained  static,  but  the 
trend is towards consolidation.  

Based on experience  with  this system over the last four years (with over 600 notifications), 
the Commission suggested in June 2006 simplifying the notification procedures and removing 
most retail markets from the list, on the grounds that effective wholesale regulation would be 
sufficient to protect retail users. 

Forms of separation between the access network and the services offered by operators were 
discussed  in  the  Impact  Assessment  of  June  2006.  Since  then,  the  impact  of  functional 
separation in the UK has become clearer, and the imposition of similar measures is also being 
considered  in  Italy,  Sweden  and  Poland.  Competition  problems  usually  stem  from  the 
presence of enduring bottlenecks in the access network characterised by the dominance of the 
vertically  integrated  incumbent  network  operator  and  the  persistent  difficulty  to  apply  non-
discrimination remedies in an effective manner. 

The  transition  to  "Next  Generation  Access  Networks"  might  reinforce  the  importance  of 
economies of scale and scope, thereby diminishing the degree of infrastructure replicability. 
However,  assessment  also  needs  to  be  given  to  the  impact  of  behavioural  or  structural 
remedies on new investments by both incumbents and new entrants and on consumer welfare 
before such remedies are implemented. 

Results of the public consultation 

New entrants as well as Member States and NRAs supported the Commission’s view that, in 
general,  the  current  EU  framework  promotes  competition  and  investment,  and  rejected  the 
call by some incumbent operators for ‘regulatory holidays’. There was a broad consensus that 
the use of new technology does not in itself imply a new market, and that the market-based 
approach  of  the  framework  allows  investment  risks  to  be  taken  into  account.  NRAs  in 
particular  called  for  adding  functional  separation  to  the  ‘toolbox’  of  possible  remedies  to 
address persistent competition problems. 

10 

11 

12 

Commission  Recommendation  on  relevant  product  and  service  markets  within  the  electronic 
communications sector susceptible to ex-ante regulation in accordance with Directive 2002/21EC (OJ L 
114, 8.5.2003, p. 45). 
Commission, 12th Report: European Electronic Communications Regulation and Markets 2006, Annex 
2, p. 13. Figures in terms of retail revenue for all types of calls, EU-25 as of December 2005. 
Ibid. Annex 2, p. 66. EU-25 Figures as of October 2006, resale included. 

EN 

5 

   EN 

 
                                                 
Proposals  for  streamlining  notification  procedures  received  broad  support  from  the  majority 
of stakeholders.  

The proposed reduction of the number of markets in the Recommendation was welcomed by 
incumbent operators, while new entrants and consumers as well as a number of NRAs were 
more cautious. 

Some  incumbents  and  some  NRAs  suggested  that  the  Commission  should  give  regulatory 
guidance on the issue of sub-national geographic markets. 

Policy Proposals — Refocused regulation on remaining market competition problems 

1. A first substantial deregulation of the sector is now possible  

The  Commission  has  revised  its  Recommendation  on  relevant  markets  to  phase  out  ex-ante 
regulation. The list of markets is reduced from 18 to 7 markets. 

The Commission will intensify its oversight of markets where competition is not yet effective 
and  will  monitor  carefully  those  markets  that  are  crucial  for  Europe’s  competitiveness,  in 
particular markets associated with the delivery of broadband access.  

2. Market review procedures can be rationalised and simplified 

The  legislative  proposals  would  allow  for  the  notification  requirements  in  the  system  of 
market reviews to be simplified. 

3. Introduction of functional separation as a remedy for NRAs to tackle persistent 
competition problems 

The legislative proposals provide NRAs with the additional remedy of functional separation, 
i.e.  forced  separation  of  activities  without  divestiture  of  assets,  as  an  exceptional  remedy 
subject to Commission oversight.  

4. Commission guidance 

The Commission will enhance legal certainty for stakeholders by issuing, by summer 2008, 
guidance on the application of the regulatory framework to aspects of new fibre investment in 
the local access network. The Commission will also examine the possibility of issuing 
guidance in other areas, in particular on sub-national geographic differentiation. 

3.2. 

Spectrum management in Europe - The case for reform 

Background and objectives 

The rapid development of wireless technology and the increasing demand for bandwidth, in 
particular  for  mobile  and  nomadic  use,  have  drastically  raised  the  importance  of  access  to 
radio spectrum for the economy and society as a whole. It is estimated that the total value of 
services  dependent  on  radio  spectrum  in  the  EU  is  around  € 250  billion13.  The  European 

13 

See  the  Commission  Communication  “Reaping  the  full  benefits  of  the  digital  dividend  in  Europe:  a 
common approach to the use of the spectrum released by the digital switchover” - COM(2007) 700. 

EN 

6 

   EN 

 
 
                                                 
Council  has  concluded14 
innovation  and 
immediate  priorities 
competitiveness  include  the  development  of  spectrum  allocation  models  meeting  all 
objectives, the fast promotion of advanced mobile services, and a coordinated approach to the 
use of spectrum capacity that is becoming available as a result of digital switch-over. 

fostering 

that 

for 

Moreover, the European Parliament has emphasised the need for efficient use of spectrum by 
all stakeholders, and has identified the need for EU harmonisation of spectrum combined with 
the removal of over-prescriptive regulatory constraints. The European Parliament also stated 
that social, cultural and political considerations must be taken into account in line with Article 
151(4) of the Treaty15. 

In this fast-evolving environment, the current spectrum management system, where decisions 
on the use of spectrum are predominantly taken by public administrations and often constrain 
the  technology  and  service  that  can  be  deployed,  has  reached  its  limits.  Whereas  national 
borders  are  increasingly  irrelevant  in  determining  optimal  radio  spectrum  use,  the 
fragmentation  of  approach  inherent  in  the  current  spectrum  management  system  results  in 
increased  costs  and  lost  market  opportunities  for  spectrum  users,  and  slows  the  take-up  of 
innovative applications and services. If it remains unchanged, it will constrain the growth and 
innovation potential of wireless systems in Europe, particularly in the context of the ongoing 
switch from analogue to digital television, which will free up a large number of frequencies in 
the  most  valuable  part  of  the  radio  spectrum  for  new  uses,  both  in  broadcasting,  such  as 
mobile TV, and for other applications, such as wireless broadband. 

Access  to  broadband  communications  can  have  a  significant  impact  on  the  competitiveness 
and  cohesion  of  the  European  Union16  in  terms  of  productivity  gains  and  social  impacts. 
Wireless  access  is  one  of  the  most  promising  means  to  bridge  the  "broadband  gap"  and 
overcome the "digital divide", especially in remote and rural areas17. 

The general principles of the EU strategy for a forward-looking spectrum policy were outlined 
by the Commission in a number of Communications18, and endorsed by Member States and 
most stakeholder groups19. Accordingly, the Commission proposed in its Communication of 
June 2006 a reform of spectrum management to: 

–  remove  unnecessary  restrictions  on  spectrum  use  by  strengthening  the  principles  of 
technological  neutrality  (freedom  to  use  any  technology  in  a  spectrum  band)  and  service 
neutrality (freedom to use spectrum for any electronic communications service); 

–  improve access to spectrum by allowing more unlicensed use of spectrum and the transfer 

of exclusive usage rights in agreed bands (secondary trading);  

14 
15 

16 

17 

18 
19 

Brussels European Council, 14-15 December 2006, Presidency Conclusions 16879/1/06 rev. 1. 
Resolution (P6_TA-PROV(2007)0041) available at:  
http://ec.europa.eu/information_society/policy/radio_spectrum/docs/ep_dr_res_spectrum_14_02.pdf. 
Broadband is the basic infrastructure of the knowledge economy and has significantly contributed to the 
economic impact of ICT, driving half of the productivity gains in modern economies in the past decade. 
On average, in EU-25, broadband was available to more than 90% of urban population, but was limited 
to 71% of rural population (Commission, estimates, January 2007). 
COM(2005) 411, COM(2005) 400, COM(2005) 461. 
See  notably  Opinions  of  RSPG  on  the  Digital  Dividend,  on  Spectrum  Trading  and  on  the  Wireless 
Access Policy for Electronic Communications Services (WAPECS); texts available at 
http://rspg.ec.europa.eu.  

EN 

7 

   EN 

 
                                                 
 
–  set  up  a  more  efficient  and  coordinated  system  for  the  authorisation  of  wireless  systems 

with a pan-European potential or with a substantial cross-border dimension. 

Results of the public consultation 

On  the  principle  of  service  neutrality,  the  public  consultation  revealed  a  broad  agreement 
among stakeholders, especially mobile operators and the wireless industry. In contrast, some 
broadcasters  and  operators  of  terrestrial  TV  distributions  networks  expressed  concerns 
regarding the impact that this could have on existing rights. 

The principle of technology neutrality was also viewed favourably by most respondents. The 
progressive  removal  of  technical  restrictions  was  welcomed.  The  issue  of  interference 
management was a concern for many, especially in the context of unlicensed spectrum, while 
some respondents indicated that technical solutions to address the problem were imminent. 

The public consultation revealed growing support for secondary trading. Most Member States, 
industry  associations  and  companies  were  in  favour,  although  prevention  of  spectrum 
hoarding  was  seen  to  be  necessary.  The  opposing  view  was  expressed  mainly  by  terrestrial 
broadcasters and some Member States concerned that trading would affect broadcasting. 

Policy Proposal - Spectrum 

5. Simplify access to spectrum and remove unnecessary restrictions on spectrum use 

The  Commission’s  legislative  proposals  strengthen  the  principles  of  technology  and  service 
neutrality,  and  create  a  mechanism  to  designate  certain  bands  where,  across  the  EU,  rights 
acquired to use spectrum are allowed to be traded (secondary trading). Regulatory provisions 
to  encourage  licence-free  spectrum  use  and  to  reinforce  the  coordination  of  conditions  for 
spectrum authorisations are also proposed. 

The proposals take into account the policy objective to achieve economies of scale, but also 
the need to avoid harmful interference and the achievement of general interest objectives such 
as social and regional cohesion, ensuring safety of life, avoiding inefficient spectrum use, and 
promoting cultural and linguistic diversity and media pluralism. 

4. 

THE SINGLE MARKET FOR ELECTRONIC COMMUNICATIONS 

4.1. 

Background and objectives 

In  recent  years,  technological  and  market  developments  have  increased  the  potential  for 
deploying electronic communications services beyond the geographical frontiers of individual 
Member  States.  Already  today  there  is  a  business  interest  in  providing  satellite  personal 
communication  systems  and  mobile  communications  on  board  aircraft  and  ships  beyond 
national borders. In addition, important services such as mobile broadband and voice over IP 
require coherent regulatory conditions in order to realise their full potential across the single 
market.  

However, in spite of competitive pressure from other economic regions, Europe does not yet 
have a single market for electronic communications networks or services. Implementation of 
the EU rules via 27 separate national regulatory systems has resulted in two major drawbacks: 

EN 

8 

   EN 

 
the  artificial  segmentation  of  markets  on  a  national  basis  and  a  fundamental  lack  of 
consistency in the way the EU rules are applied. 

In  order  to  address  this  lack  of  a  single  market,  the  Commission  outlined  a  number  of 
proposals in its 2006 consultation documents, namely to: 

i) 

ii) 

iii) 

improve  efficiency  and  consistency  of  regulation  in  the  EU  by  strengthening  the 
Commission’s oversight of remedies imposed by NRAs; 

improve  the  efficiency  and  speed  of  enforcement  mechanisms  by  strengthening  the 
independence and effective powers of national authorities; 

establish a simpler procedure for the selection and authorisation of operators for the 
provision of cross-Community services; 

iv) 

reinforce institutionally the cooperation between NRAs and the Commission. 

4.2. 

Results of the public consultation 

Many stakeholders had major concerns about the differences that exist in the way the current 
framework is implemented at national level and which prevent the full benefits of the internal 
market  from  being  achieved.  Some  called  for  more  regulation  at  EU  level.  Industry  in 
particular, but consumer associations as well, deplored the continued lack of a single market 
and  a  level  playing  field  for  businesses  and  users  in  the  electronic  communications  sector. 
Furthermore,  the  limitations  of  the  ERG  —  which,  despite  some  efforts  made  in  2006  and 
2007,  allows  only  for  loose  coordination  among  regulators  —  were  mentioned  by 
stakeholders.  While  Member  States  had  reservations  about  “ceding  powers”  to  the 
Commission,  several  industry  groups  (new  entrants,  but  also  some  incumbents)  either 
favoured  an  institutional  reform  of  the  ERG  and/or  asked  for  a  stronger  role  for  the 
Commission  in  order  to  avoid  a  “lowest  common  denominator”  approach,  seen  by  some  as 
inherent in a regulatory mechanism that essentially relies on consensus among 27 NRAs. 

In addition, a number of views reflected the fact that the current approach for selecting and 
authorising operators is not compatible with exploitation of the economies of scale needed for 
the development of new services. In particular, for cross-Community services and those with 
the potential to become such, there is a case for establishing a single unified system for the 
authorisation of rights of use for spectrum and numbers.  

With  respect  to  enforcement  mechanisms,  the  vast  majority  of  Member  States  and  the  new 
entrants  association  agreed  with  the  proposal  to  strengthen  the  enforcement  powers  of 
national  authorities,  while  incumbents  and  the  mobile  operators  association  disagreed  with 
this proposal.  

Policy Proposals — Internal Market 

6. Strengthen the independence and enforcement powers of national authorities 

This will improve the effective and speedy implementation of the regulatory framework. 

EN 

9 

   EN 

 
7. Complete the single market by establishing an independent European Electronic 
Communications Market Authority  

It  is  proposed  to  establish  an  independent  European  Electronic  Communications  Market 
Authority, bringing together the NRAs currently meeting within the ERG. It would advise the 
Commission,  have  a  clear  mandate  to  act  in  furtherance  of  the  single  market,  and  be 
accountable to the European Parliament. The new Authority would thus replace today’s loose 
cooperation among NRAs inside the ERG by a more efficient, more authoritative and more 
accountable system. 

The new Authority would: 

•  reinforce the coherence and consistency of the application of the EU rules in the internal 
market  by  making  better  use  of  the  combined  expertise  of  national  regulators  in  the 
Community system; 

•  assist  the  Commission  in  other  fields  related  to  electronic  communications  such  as  the 
analysis of trans-national markets and the selection of undertaking(s) for the provision of 
cross-border services; 

•  serve as an entry point for firms seeking to acquire rights of use for spectrum and numbers 

to provide cross-border services in the EU; 

•  take  over  the  functions  of  the  European  Network  and  Information  Security  Agency 
(ENISA)  and  act  as  a  centre  of  expertise  at  European  level  on  network  and  information 
security issues. 

8. Strengthen the Commission’s oversight on remedies in order to improve consistency 

The legislative proposals extend the Commission’s power under the market review procedure 
to  oversee  remedies  proposed  by  NRAs,  in  close  cooperation  with  the  new  European 
Authority, with a view to contributing to a more consistent, efficient and speedy application 
of remedies across the EU. 

9. More technical harmonisation in a number of key areas 

In  order  to  reduce  divergence  in  the  implementation  of  the  regulatory  framework,  it  is 
proposed that the Commission, drawing upon the expertise of the Authority, should be able to 
adopt 
in  areas  such  as  costing  methodologies, 
implementation  of  number  portability,  consumer  protection,  and  accessibility  to  electronic 
communication services and equipment for end-users with disabilities. 

technical  harmonisation  measures 

5. 

CONNECTING WITH CITIZENS 

5.1. 

Users’ rights and consumer protection 

Background and objectives 

The combined effects of technological change and enhanced competition have started to give 
citizens  more  choice  as  well  as  better  and  cheaper  services.  However,  more  can  be  done  to 
ensure  that  consumers  can  reap  the  full  benefits  of  a  truly  single  market  for  electronic 
communications.  

EN 

10 

   EN 

 
In  its  Communication  of  June  2006  the  Commission  identified  four  main  areas  for  change, 
namely: 

–   

Transparency and publication of information for users; 

–   

Improved accessibility for users with disabilities; 

–   

Emergency services and access to 112; and 

–   

Basic connectivity and quality of services (‘net neutrality’). 

In addition, long-term issues such as the concept and scope of universal service, which have 
already  been  identified  by  the  Commission20,  will  be  addressed  in  a  Commission 
Communication to be published in 2008. 

Results of the public consultation 

While  consumers  and  associations  of  users  with  disabilities  welcomed  the  Commission 
proposals in all areas, many operators argued that mandatory measures can negatively affect 
their  ability  to  innovate,  and  preferred  to  rely  on  self-regulation.  Equipment  manufacturers 
and  software  companies  were  supportive  of  strengthened  harmonisation  at  EU  level.  A 
majority of the Member States that submitted comments supported the proposals in the areas 
of eAccessibility, transparency of information and quality of service. The ERG also supported 
the proposals in the areas of transparency of information, caller location and eAccessibility. 

Policy proposals — Consumer protection  

10. Update and strengthen the general provisions of the framework in the area of 
consumer protection  

The legislative proposals include: 

•  Improving the transparency of information from service providers to consumers, including 

information on supply conditions and on tariffs. 

•  Setting  a  time  limit  of  one  working  day  for  ‘porting’  (transferring)  a  telephone  number 

following a change of fixed or mobile operator. 

•  Enhancing  the  implementation  of  ‘112’  emergency  services  in  the  EU,  in  particular  by 

ensuring more efficient access to caller location information. 

•  Enabling  NRAs  to  impose  minimum  requirements  for  the  quality  of  services  based  on 

standards drawn up at Community level. 

11. Update and strengthen provisions in the area of eAccessibility and the rights of users 
with disabilities 

The legislative proposals include 

•  Facilitating access by users with disabilities to 112 emergency services. 

20 

See the two Communications on the Review of the scope of universal service - COM(2005) 203 and 
COM(2006) 163. 

EN 

11 

   EN 

 
                                                 
•  Strengthening  the  existing  provisions  to  ensure  that  users  with  disabilities,  elderly  users 
and  people  with  special  needs  are  not  prevented  from  using  and  accessing 
eCommunications services. 

5.2. 

Privacy and security 

Background and objectives 

One of the central goals of the regulatory framework is to promote the interests of EU citizens 
by, among other things, ensuring a high level of protection of personal data and privacy and 
ensuring  that  the  integrity  and  security  of  public  communications  networks  are  maintained. 
The growing number of new electronic threats in recent years such as viruses, spam, spyware 
and phishing has further increased the importance of these objectives.  

The  June  2006  consultation  documents  outlined  a  number  of  proposals  to  strengthen  the 
existing security-related provisions of the regulatory framework. These changes are designed 
to strengthen the resilience of current networks and systems, complementing other legislation 
that  criminalises  certain  activities21,  and  to  enhance  the  security  of  personal  data  in  the 
electronic communications sector. 

Results of the public consultation 

The results of the public consultation showed that Member States are cautiously supportive of 
the  Commission  proposals.  On  the  other  hand,  several  operators  and  service  providers  are 
concerned about potential cost implications. Consumer organisations are in favour, while Data 
Protection Authorities want the Commission to go further in its proposals.  

Policy proposal — Privacy and security 

12. Strengthen the security of networks and services and user privacy  

The Commission’s legislative proposals address a range of issues, including 

•  Ensuring that consumers are informed if their personal data have been compromised as a 

result of a breach of network security; 

•  Giving operators and NRAs more responsibility with respect to the security and integrity 

of all electronic communications networks and services; 

•  Strengthening  implementation  and  enforcement  powers  for  competent  authorities,  in 

particular in the fight against ‘spam’; 

•  Clarifying  the  application  of  the  EU  rules  to  data  collection  and  identification  devices 

using public electronic communications networks. 

Achieving these objectives will be facilitated by incorporating ENISA into the new Electronic 
Communications Market Authority. 

21 

Council  Framework  Decision  2005/222/JHA  on  attacks  against  information  systems  (OJ  L  69, 
16.3.2005, p. 67). 

EN 

12 

   EN 

 
                                                 
6. 

CONCLUSION 

With  the  2007  Reform  of  the  EU  regulatory  framework,  the  Commission  proposes  to  adapt 
the present set of rules to technological and market developments. 

In  line  with  its  commitment  to  better  regulation,  the  Commission  is  prepared  to  take  a  first 
major step towards de-regulation of the sector by reducing the number of markets that warrant 
ex-ante  regulation  from  18  to  7.  At  the  same  time,  the  Commission  intends  to  enhance 
competition  in  the  remaining  bottlenecks,  by  for  example  introducing  the  new  remedy  of 
functional separation. 

The Commission also proposes making a decisive step towards a single European market for 
electronic  communications  to  ensure  that  businesses  and  consumers  can  provide  and  use 
electronic communications in a seamless manner across borders. The limitations of managing 
Europe’s  electronic  communications  via  27  separate  national  regulatory  systems  are 
becoming increasingly apparent and are hurting Europe’s competitiveness. The Commission 
therefore  proposes  completing  the  single  market  in  regulatory  terms  by  establishing  an 
independent  European  Electronic  Communications  Market  Authority,  which,  together  with 
the Commission, will help level the regulatory playing field in Europe and enhance Europe’s 
ability to deal with network information and security issues. 

In addition, the Commission considers it essential to strengthen citizens' rights, for example 
by  ensuring  that,  as  markets  offer  increasing  choice,  consumers  are  better  informed  about 
supply conditions and tariffs and can more easily switch providers. 

With its 2007 Reform Proposals, the Commission is also tackling the area it sees as the key 
weakness  of  the  EU  framework  in  looking  to  the  future,  namely  the  management  of  radio 
spectrum,  by  proposing  reforms  to  enhance  innovation  and  investment  in  wireless 
technologies. 

Electronic  communications  provide  the  foundations  for  the  EU  economy  as  a  whole.  A 
functioning  single  market  is  Europe’s  best  asset  in  its  quest  for  global  competitiveness. 
Europe  has  no  time  to  lose.  This  is  why  the  Commission  believes  that  the  2007  Reform 
Proposals should become law before the end of 2009.  

EN 

13 

   EN