Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Progress Report on the single European electronic communications market 2007 (13th Report) {SEC(2008) 356}
Date: 2008-03-19
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, 19.3.2008 
COM(2008) 153 final 

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

PROGRESS REPORT ON THE SINGLE EUROPEAN ELECTRONIC 
COMMUNICATIONS MARKET 2007 (13th REPORT) 

{SEC(2008) 356} 

EN 

   EN 

 
 
 
  
1. INTRODUCTION 

This Communication reports on developments in the electronic communications sector during 
20071.  

The  EU  regulatory  framework  is  designed  to  benefit  users  and  consumers  by  ensuring  that 
competition and an increasingly integrated European market drive investment in innovative, 
attractive  and  affordable  services.  Its  ultimate  aim  is  to  phase  out  ex  ante  economic 
regulation, provided that competition is sufficiently developed. 

This approach has been successful. However, there is considerable scope for further benefits 
to  flow  from  a  reinforced  single  market,  strengthened  competition  and  a  reduction  in  the 
regulatory burden.  

The Commission has accordingly issued a revised Recommendation on relevant markets2 and 
proposals3  to  amend  the  Directives  making  up  the  EU  regulatory  framework.  These  aim  in 
particular  to  consolidate  the  internal  market  through  more  consistent  national  regulation; 
reinforced  consumer  protection  and  users’  rights;  more  effective  spectrum  management  and 
implementation. 

2. MARKET DEVELOPMENTS 

The  telecoms  sector  is  the  biggest  single  component  of  the  ICT  sector,  representing  almost 
44% of its total value4. Likely to show growth of 1.9%5 for 2007, it continues to be key to the 
European  economy,  contributing  around  12%  of  labour  productivity  growth6.  Estimated 
revenues are €293 billion, up from €289 billion in 20064. Fixed voice continues to decline in 
terms  of  revenues,  while  mobile  continues  to  grow  and  fixed  broadband  continues  to  show 
strong growth. 

In 2007 consumers again benefited from lower prices in particular for mobile voice services. 
These  gains  were  supplemented  by  the  increased  availability  of  offerings  such  as  mobile 
broadband and higher-speed fixed services, in particular over fibre. Most EU markets exhibit 
increasing  volumes  and  falling  prices,  suggesting  that  the  average  European  consumer  of 
electronic communications services was better off in 2007 than the year before. 

In areas where the market has failed to deliver lower prices and better value, the Commission 
has  remained  vigilant.  In  2007  the  Roaming  Regulation7  tackled  high  prices  for  EU  voice 
roaming services. Pessimistic industry predictions failed to materialise. The Commission will 
continue to monitor developments in prices for roamed SMS and data services and will report 
to Council and Parliament in 2008. 

1 

2 
3 
4 
5 
6 
7 

Unless otherwise indicated the situation is that at 31 December 2007 and market data that at 1 October 
2007. 
Commission Recommendation 2007/879/EC. 
COM(2007)697-699. 
European Information Technology Observatory (EITO) 2007 . 
EITO Update 2007. 
Estimate based on EU KLEMS. 
Regulation (EC) No 717/2007. 

EN 

2 

   EN 

 
                                                 
Investment 

In 2007 aggregate investment in the sector in terms of capital expenditure is estimated to have 
exceeded € 50 billion, an increase over 2006 and the fifth consecutive year of increased year-
on-year investment.  

Fixed incumbents invested approximately 13.5%  of  their  revenues in 2007, similar to 2006. 
This  percentage  was  again  higher  for  alternative  operators:  for  instance,  leading  alternative 
operators in France and Italy invested approximately 30% of their revenues. Total new entrant 
investment is estimated at 25% of the overall figure. 

Financial outlook 

After  trailing  for  some  years,  since  2005  the  electronic  communications  sector  has  now 
caught  up  with  overall  market  performance.  Many  financial  analysts  now  rate  the  sector  as 
‘outperforming’ on the basis of characteristics such as continued strong cash-flow from fixed 
and broadband activities, coupled with debt reduction over the past years and high dividend 
yields. 

Relative Sector Performance since 2003 

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70%

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Mobile 

2003

2004

2005

Timeline 

2006

2007

Dow Jones Euro Stoxx Telecoms (SXKE)

DJ Euro Stoxx 50

Mobile revenues,  up from €133  billion in 20064 to an estimated €137 billion, grew at 3.8% 
compared to 4.1% the previous year5. 

Penetration continued to rise, to a notional 111.8 % of the population compared to 103.2 % 
the previous year. 

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3 

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Mobile subscribers  penetration in EU (2G and 3G)

84.6%

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Oct. 2004

Oct. 2005

Oct. 2006

Oct. 2007 

EU subscribers
Source: Commission services based on NRA data and EMC

EU penetration rate

The  rate  of  growth  in  revenues  reflects  the  increasing  competition  and  falling  retail  prices, 
coupled  with  saturation  in  most  countries  and  falling  termination  rates.  While  prices  in  the 
low-usage basket8 fell by around 10%, those in the medium and high-usage baskets decreased 
by nearly 14%. 

The relative market shares of the leading operators, main competitors and newer entrants in 
each Member State have not changed significantly since 2004. 

Simple average across all mobile operators covered
 Medium usage basket, 2002 OECD basket methodology

36.3

33.0

29.4

25.2

2004

2005

2006

2007

38

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32

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OECD methodology – see Commission staff working paper. 

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Mobile data services 

SMS  continues  to  be  an  important  revenue  source,  accounting  for  around  14%  of  total 
revenues  in  2007,  with  other  data  services  showing  significant  growth  and  accounting  for 
around 7% of revenue compared to 5% in 2006. 

3G  took  off  in  2007.  Eighty-six  operators  are  currently  offering  3G  on  a  commercial  basis 
across all Member States, up from 70 last year. 3G penetration rose from 11% at the end of 
2006  to  an  estimated  20%  at  the  end  of  20079,  representing  over  88  million  subscriptions. 
Data cards for mobile broadband are becoming an important source of revenue (in particular 
in Austria).  

Mobile termination rates (MTRs) 

Downward  pressure  on  MTRs  through  regulatory  intervention  continues,  although  a  lack  of 
consistency  of  approach  is  a  hindrance  to  the  single  market.  The  average  dropped  below 
10 cents for  the first  time this year, to  9.67 cents, a fall  of 12% compared to  October 2006. 
There  are,  however,  major  differences  between the  MTRs  in  different Member  States,  from 
1.93 cents in Cyprus to 22.37 cents in Estonia, and the average MTR is 8.7 times higher than 
the average fixed termination rate. 

Interconnection charges for call termination on mobile networks 
(national average on the basis of subscribers)
EU average Oct. 2007: 9.67 €-cents

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BE BG CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK

October 2006

October 2007

EU average (Oct. 07)

Mobile number portability 

The  number  of  ported  mobile  numbers  increased  over  the  past  year  by  7.1  million.  As  at 
October  2007,  46  million  (8.31%)  subscribers  had  ported  their  number.  In  Italy  alone,  over 
14 million  customers  have  ported  their  numbers.  This  amounts  to  15.96%  of  total  mobile 
numbers.  Finland  has  the  highest  percentage  of  ported  numbers  (68.18%)  followed  by 
Denmark  (42.06%)  and  then  Spain  (27.3%).  Overall,  however,  performance  remains  very 
patchy,  with  negligible  porting  in  a  number  of  Member  States,  and  the  potential  impact  on 
competition is clearly not being exploited fully. Consequently the Commission has proposed 
to reduce to one working day the time allowed for operators to execute number portability.  

9 

IDATE - PAC Consultants – Coe-Rexecode November 2007. 

EN 

5 

   EN 

 
 
 
 
                                                 
Cumulative mobile ported numbers as a % of total mobile numbers 
and wholesale price of mobile number portability, October 2007

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% number ported (Oct. 2006)

% number ported (oct. 2007)

Wholesale price per number ported (Oct. 07)

Roaming 

The Roaming Regulation came into force on 30 June 2007 and has been implemented in all 
Member States,  with only minor difficulties  arising.  Consumers  are  now  making  significant 
savings of around 60% on roaming calls. The Commission is now examining the functioning 
of the Regulation, in particular whether it should be extended beyond June 2010 and whether 
there is a need to regulate prices for roaming SMS and data downloads. 

Fixed voice 

Fixed voice revenues continue to decline at around 5%4, as in 2006. Revenues are estimated at 
€ 794  billion.  Falling  traffic  volumes  can  be  attributed  to  the  continuing  switch  to  IP  and 
mobile services.  

Fixed  incumbents’  market  shares  (by  retail  revenues  and  volume  of  traffic)  have  almost 
stabilised,  except  those  for  international  calls,  which  have  continued  to  decline.  In  some 
countries fixed incumbents have strengthened their position, however, and the market is still 
very concentrated. There has nonetheless been an increase in the number of direct access lines 
provided by new  entrants,  and fixed number portability remains an  important contributor to 
competition. 

EN 

6 

   EN 

 
 
 
 
 
 
 
 
EU incumbents' average market share on the voice telephony market 
(based on revenues)

69.1%

66.0%

58.9%

80%

70%

60%

50%

40%

66.3%

62.5%

57.0%

65.4%

61.2%

53.8%

Dec 2004

Dec 2005

Dec 2006

National calls

Calls to Mobile

International calls

Bundled services 

Along with platform convergence there is a continued trend towards bundled services, where 
operators offer a mix of fixed voice, broadband, TV and mobile at a flat rate. It is however 
essential  that  alternative  operators  have  access  to  the  necessary  wholesale  inputs  to  enable 
them  to  offer  competing  services  and  that  users’  freedom  to  switch  operator  is  not  unduly 
restricted.  An  EU  survey10  showed  that  29%  of  households  have  subscribed  to  at  least  one 
bundled service, up from 18% the previous year. 

VoIP 

Although use of VoIP is growing in several Member States, for example representing 14% of 
overall fixed traffic in France, 6.3% in Austria and 5.6% in Slovenia, divergent approaches by 
national  regulatory  authorities  (NRAs)  could  frustrate  the  potential  of  this  technology. 
Divergence is evident on issues such as treatment as a traditional voice service, numbering, 
number  portability,  interconnection,  quality  of  service,  and  provision  of  caller  location 
information  to  emergency  authorities.  The  European  Regulators’  Group  (ERG)  recently 
issued  a  Common  Position  on  a  number  of  these  issues11  which  goes  some  way  towards  a 
more consistent approach. 

Broadband 

Revenues from fixed data, primarily broadband, continue to grow strongly. Overall this sector 
generated an estimated €62 billion, up from €58.5 billion in 20064. 

The  number  of  fixed  broadband  access  lines  was  more  than  99  million  at  1  January  2008, 
compared to 80 million in January 2007. 

EU average penetration rose from 16.3% in January 2007 to 20.0% in January 2008. 

10 
11 

e-Communications Household Survey (Nov.-Dec. 2007). 
ERG (07) 56 rev 2. 

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7 

   EN 

 
                                                 
EU Broadband penetration rate (January 2008)

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D a t a  f o r E s t o nia , F ra nc e , Lit hua nia , t he  N e t he rla nds  a nd A us t ria  a s  o f  O c t o be r 2 0 0 7

The gap between Member States with the highest and lowest penetration increased from 27.4 
percentage points in January 2007 to 28.0 in January 2008. 

There are also significant differences between broadband availability in urban and rural areas. 
For example, DSL coverage in rural areas is 71.3% compared to 89.3% at national level (94% 
urban-only  coverage).  For  cable  the  difference  is  even  greater,  with  only  7.4%  coverage  in 
rural areas compared to 35.6% at national level. The gap between DSL and cable coverage in 
rural  areas  and  the  national  average  is  particularly  significant  in  Slovakia,  Italy,  Latvia  and 
Germany12. 

The  Commission’s  reform  proposals  will  help  address  this  divide  by  facilitating  the  use  of 
parts  of  the  spectrum  which  will  become  available  following  digital  switchover  to  increase 
broadband access in rural areas by means of wireless solutions. 

International comparison 

In July 2007 Denmark and the Netherlands had the highest penetration rates in the world, and 
a number of other EU Member States were among the international leaders. Even though also 
the  US  and  South  Korea  improved  their  performance  in  2007,  there  are  now  eight  EU 
countries with stronger broadband penetration rates than the US. 

12 

IDATE ‘Broadband Coverage in Europe’ 2007 (data as at 31 December 2006). 

EN 

8 

   EN 

 
 
                                                 
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International broadband penetration rates - top 25 performers 
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EU growth has been highest in Finland, Germany, Sweden, Ireland and Cyprus. Whereas for 
Finland and Sweden the growth figure follows on from an already advanced position, for the 
three other counties this represents a ‘catching-up’. 

Penetration rate and speed of progress in January 2008

NL

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FR

EU27

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2

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6

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8

Increase in penetration rate January 2007 - January 2008 (percentage points)

Data for Estonia, France, Lithuania, the Netherlands and Austria as of October 2007

Broadband platforms 

DSL  is  still  by  far  the  predominant  broadband  access  technology  in  the  EU,  accounting  for 
around  80%  of  all  lines.  However,  the  relative  position  of  DSL  lines  compared  with  other 
technologies evolved, with growth of 22.4% in 2007 compared to 34.5% in 2006. At the same 
time,  alternative  technologies,  mainly  cable  but  also  fibre  to  the  home  (FTTH),  wireless 
access  (WLL)  and  mobile,  are  beginning  to  provide  the  potential  for  significant  platform 
competition. 

EN 

9 

   EN 

 
 
 
 
 
 
 
 
 
Growth  in  cable  broadband  was  21.7%  from  January  2007,  and  was  particularly  robust  in 
Germany, Poland, the United Kingdom, Spain, Hungary and Belgium. In Sweden, Lithuania 
and  Estonia,  the  Member  States  with  the  highest  ratio  of  fibre  access  lines,  FTTH  has 
increased its market share compared to the end of 2006; WLL constitutes an important means 
of  access  in  the  Czech  Republic,  Ireland  and  Slovakia,  the  latter  experiencing  significant 
growth during 2007. 

Competition 

While the incumbents’ broadband market share appears to be declining (to 46.3% in January 
2008 from 46.8% in January 2007 on average), much of the competition is still based on the 
resale of incumbent lines. For example, in the United Kingdom the incumbent’s market share 
excluding  resale  lines  is  25.8%,  but  nearly  doubles  if  resale  lines  are  taken  into  account.  In 
Germany  this  difference  is  18.0  points  and  in  Luxembourg  10.8  points.  The  incumbent’s 
market share ranges from 17.2% in Romania to 88.0% in Cyprus.  

Despite relying to a considerable extent on resale to supply broadband to their customers, new 
entrants are moving away from simple service-based competition. Wholesale unbundled local 
loops, which now represent 12.8% of PSTN lines in the EU, have grown over the year (full 
unbundling by 54.2%, shared access by 33.8%), while bitstream grew by 10.5%. The fact that 
there are now 23.5 million unbundled lines, compared to 11.6 million resold and 6.0 million 
bitstream lines, suggests that new entrants are climbing the investment ladder. 

3. REGULATORY ENVIRONMENT 

Institutional framework 

NRA powers and resources 

The  Commission  is  examining  concerns  regarding  a  lack  of  effective  NRA  enforcement 
powers,  particularly  as  regards  the  maximum  financial  penalties  that  can  be  imposed 
(Bulgaria, Estonia, Austria) or doubts as to the ability of the NRA to intervene in access and 
interconnection issues (Poland, Sweden). 

While  NRA  effectiveness  has  been  strengthened  in  a  number  of  countries  (Italy,  Ireland, 
Hungary,  Sweden,  Netherlands),  the  Commission  is  examining  continuing  concerns  as  to 
resource constraints in Bulgaria, Greece, Luxembourg, Poland and Slovakia. 

The NRAs in the small Member States in particular can find it difficult to muster the expertise 
and resources needed to conduct market reviews and monitor implementation of remedies in 
increasingly complex markets. 

Independence 

NRA independence is a prerequisite for regulatory certainty. Measures to underpin the NRA’s 
independence  have  been  taken  or  are  planned  in  Latvia  and  Hungary.  However,  concerns 
persist in Bulgaria and Luxembourg, and in particular in Poland in relation to the rules for the 
removal  of  the  head  of  the  NRA.  The  Commission  has  therefore  included  provisions  to 
strengthen the independence of the NRAs in its proposals for revision of the framework. 

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Appeals 

Lengthy  and  systematic  appeals  against  NRA  decisions  continue  to  hamper  effective 
implementation,  despite  efforts  in  a  number  of  Member  States  to  streamline  the  process 
(Germany, Greece, Ireland, Malta, Poland, and Sweden). The Commission’s reform proposals 
in this area should diminish the incentives for systematic appeals as a means of delaying the 
implementation of regulatory decisions. 

Implementation of regulatory measures 

Market reviews 

The first round of market reviews is now substantially completed in all Member States, with 
the  exception  of  Bulgaria  and  Romania.  While  the  Commission  has  accordingly  closed 
infringement proceedings against eleven Member States, the markets in those countries have 
clearly  not  benefited  from  the  targeted  regulation  applied  in  Member  States  where  reviews 
were carried out on time. 

In those Member States where the first round of market analysis was completed in a timely 
manner  and  appropriate  regulation  at  wholesale  level  imposed,  this  has  enabled  them  to 
deregulate  some  retail  markets.  Future  market  reviews  by  NRAs,  taking  account  of  the 
Commission's  revised  Recommendation  on  relevant  markets,  are  likely  to  lead  to  further 
deregulation of retail markets. 

Implementation of remedies 

As regards the imposition and enforcement of regulatory remedies, the situation is varied. In a 
number of Member States final measures have yet to be adopted (e.g. Hungary, Poland) and 
the  delay  between  completion  of  the  market  analysis  and  the  imposition  of  definitive 
obligations is an issue of particular concern e.g. in Germany, Estonia, Ireland, Luxembourg. 

Even where definitive obligations have been imposed, in many cases the level of detail is not 
sufficient to guarantee a solid basis for investment and market entry. Launch of commercial 
operations is often delayed until key details are clarified through appeal or individual dispute 
resolution procedures. 

Moreover, the pricing conditions in reference offers for specific regulated products may still 
not provide an incentive for alternative operators to launch competing services (e.g. Lithuania, 
Luxembourg, Malta, Poland, Slovakia, and Sweden). Alternatively, difficulties in the process 
of  delivering  wholesale  products  (including  non-price  discrimination  compared  with  the 
significant  market  power  (SMP)  operator’s  own  retail  arm,  problems  with  service  level 
agreements,  collocation,  migration  between  products  or  portability)  may  delay 
implementation and undermine the competitiveness of alternative retail offers. 

One  of  the  areas  where  a  lack  of  consistency  in  the  implementation  of  remedies  is  most 
apparent  is  in  cost-orientation  and  cost-accounting  methodologies.  The  move  towards  cost-
orientation can also be subject to very different time frames and involve different degrees of 
asymmetry, not necessarily justified by different national market conditions. 

These differences act as an extra burden on operators seeking to offer pan-European services, 
and  impede  the  completion  of  an  internal  market  for  electronic  communications  services. 

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Lack of NRA enforcement powers or unwillingness to exercise them can be a further reason 
why remedies are still not implemented in practice. 

These  shortcomings  have  convinced  the  Commission  of  the  need  for  it  to  have  a  ‘say’  on 
remedies  and  of  the  need  for  enhanced  enforcement  powers  for  NRAs,  both  of  which  have 
been included in the Commission’s reform proposals. 

The difficulties experienced by NRAs in ensuring the timely and effective application of non-
discrimination across regulated markets has led a number of them (e.g. Italy, Poland, Sweden) 
to  consider  the  introduction  of  the  functional  separation  of  the  fixed  incumbent’s  local 
network access services from its other retail and wholesale business units in order to ensure 
equality of access to wholesale inputs for the incumbent’s retail arm and alternative operators 
alike.  In  Ireland  the  incumbent  has  itself  proposed  a  form  of  structural  separation.  These 
developments  highlight  the  need  to  find  a  mechanism  to  ensure  consistency  of  approach 
across Member States. 

Spectrum management 

2007  saw  further  progress  towards  a  single  market  for  wireless  communications,  through  a 
number of harmonisation measures at EU level for the use of spectrum without the need for 
individual rights of use (Short Range Devices, RFID, and R-LAN). The trend towards greater 
use  of  market-based  approaches to spectrum  management has also continued. The proposed 
changes to the regulatory framework are expected to consolidate this trend as required by the 
pace  of  new  technologies,  changing  demands  for  services  and  the  growing  globalisation  of 
markets. 

There  is  also  a  move  in  some  Member  States  towards  making  spectrum  authorisations 
technology and service neutral, in line with the proposals made by the Commission in relation 
to the repeal of the GSM  Directive and in the proposed amendments to the framework. For 
example, the Swedish and United Kingdom regulators have announced their intention to make 
at  least  part  of  the  spectrum  released  by  the  switch  to  digital  broadcasting  technology  and 
service neutral, and a number of Member States have begun a process which would lead to the 
use for 3G services of spectrum in the 900MHz band, up to now reserved for GSM services13. 
Malta, Denmark and Finland are also preparing a major spectrum management reform. 

While  Commission  spectrum  harmonisation  decisions  taken  in  accordance  with  the  Radio 
Spectrum Decision 676/2002/EC during the period 2004 to 2007 have been implemented in 
most  Member  States,  a  significant  effort  is  needed  to  complete  the  process.  A  further 
difficulty  is  that  the  EU  spectrum  harmonisation  legislation  is  duplicated  in  non-binding 
intergovernmental agreements in the CEPT. 

The Commission followed up its Decision 2007/98/EC harmonising the use of spectrum for 
the implementation of systems providing mobile satellite services (MSS) with a proposal in 
August 2007 for a European Parliament and Council Decision to create a legal basis for the 
pan-European  selection  and  authorisation  of  MSS  operators.  Coordinated  action  at  pan-
European level is also under way to facilitate mobile communications on aircraft. 

13 

A proposal for an EU Decision is pending. 

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Further harmonised procedures are clearly needed at Community level in order to ensure that 
spectrum required for the provision of pan-European services can be licensed in a coordinated 
and  timely  manner.  The  Commission  has  therefore  proposed  a  role  for  a  new  body,  the 
European  Electronic  Communications  Market  Authority,  in  facilitating  the  process  of 
licensing pan-European services. 

4. CONSUMER INTEREST 

NRAs  have  increasingly  focused  on  consumer  issues,  possibly  reflecting  the  intensifying 
competitive  activity  associated  with  converging  markets,  the  bundling  of  different  service 
offerings and corresponding efforts by operators to win and retain customers. 

Tariff transparency 

Price  transparency  remains  a  concern,  although  a  growing  number  of  regulators  are 
developing  web-based  price  comparison  tools  to  help  consumers  decide  which  service 
provider offers the service best for their needs. 

Several Member States have also introduced measures to reinforce transparency for premium 
rate and other services using non-geographic numbers, where hidden costs and lack of pricing 
information often give rise to concern. 

The  Commission  welcomes  these  developments,  which  are  in  line  with  the  proposed 
amendments to the framework. 

Universal service 

Germany  and  Luxembourg  remain  the  only  Member  States  where  universal  service  is 
provided under normal market conditions. A number of other Member States, however, have 
chosen  to  exclude  individual  elements  from  the  designation  (e.g.  directories  and  directory 
enquiry services in Italy and Estonia and the latter services in Ireland and Austria). The Czech 
Republic no longer includes access at a fixed location as a designated element, and Sweden 
and Finland are considering mobile solutions. Romania limits the service to the provision of 
‘tele-centres’ to provide access in rural areas. 

Users with disabilities and special needs continue to face numerous limitations on their access 
to services which are essential for social and economic life. While the framework encourages 
Member States to take measures to facilitate access to the services enjoyed by the majority of 
users, the measures taken and the results achieved vary greatly across the EU. 

Number portability 

Number portability is now available for mobile and fixed users in all Member States except 
Bulgaria  and  Romania.  A  number  of  Member  States  have  acted  to  facilitate  number 
portability for VoIP and mobile virtual network operator (MVNO) services, but the rules vary 
widely, depending on the classification and use of relevant numbers. The time taken to port 
numbers (as well as cost) is critical in enabling competition. While some improvements have 
been  made  (e.g.  France,  Spain,  United  Kingdom),  delays  are  still  hampering  competition  in 
many  Member  States,  which  is  why  the  Commission  has  proposed  a  legal  requirement  for 
porting to take place within one working day.  

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112 

The European emergency number 112 can be used to call emergency services free of charge 
from fixed and from mobile phones throughout the EU except in Bulgaria. 

The provision of caller location information to the emergency services remains problematic. 
The  Commission  has  decided  to  refer  six  Member  States  (Italy,  Netherlands,  Lithuania, 
Slovakia,  Latvia  and  Poland)  to  the  Court  of  Justice,  and  opened  a  proceeding  against 
Romania,  for  failing  to  ensure  the  provision  of  caller  location  information  for  112  calls  on 
mobile networks. 

The quality of the response to emergency calls varies considerably across the EU, since this 
area is not subject to harmonised rules. Pending the amendment of the current EU regulation, 
which  will  provide  a  framework  for  best  practice  in  this  area,  the  Commission  is  working 
through the Communications Committee and its specialised subgroup on emergency access, 
as well as the Civil Protection Committee, to promote the quality of response to 112 calls. 

5. CONCLUSIONS 

The sector continues to enjoy increased revenues from continued growth in turnover for fixed 
broadband  and  mobile  services.  At  the  same  time,  consumers  have  benefited  from  a 
strengthened competitive environment through lower prices. 

The  EU  regulatory  model  has  shown  itself  capable  of  ensuring  increasingly  competitive 
markets while providing solid consumer protection and a guaranteed basic service. 

In Member States where regulation has been applied at best practice levels, the potential for 
consumers  to  benefit  has  been  demonstrated,  for  example  in  the  roll-out  of  innovative 
broadband  services.  Regulatory  action  has  been  particularly  successful  where  the  market 
analysis  process  was  carried  out  on  time,  remedies  imposed  on  SMP  operators  have  been 
sufficiently  precise  and  detailed,  the  appeals  process  and  judicial  intervention  have  been 
carried  out  efficiently,  and  regulators  have  not  been  constrained  from  tackling  non-price-
related issues actively. 

However,  the  regulatory  framework  currently  allows  a  great  deal  of  latitude  as  to  the  exact 
rules to be put in place and in the way in which they are actually applied. The result is that the 
regulatory  environment  is  frequently  based  on  inconsistent  approaches  which  greatly  hinder 
the  realisation  of  a  real  single  market  across  the  Union  and  the  economic  benefits  flowing 
from it. Examples of disparate regulation include that relating to mobile termination rates and 
glide  paths,  accounting  methodologies,  treatment  of  VoIP,  mobile  number  portability,  and 
non-price discrimination by dominant players. 

The  Commission’s  proposals  currently  before  the  European  Parliament  and  Council  seek  to 
address these issues, using innovative approaches where appropriate while retaining the basic 
overall concept that formed the 2002 framework. 

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