The European Parliament has given its final approval to the new EU telecoms regulations. In addition to measures designed to support the roll-out of fibre and 5G networks, the legislation extends consumer protection rules to OTT service providers and introduces a cap on the cost of intra-EU calls and SMS.
MEPs approved by a large majority the new European Electronic Communications Code as well as legislation to update the activities of the EU telecoms regulator Berec's. First proposed in September 2016 by the European Commission, the new code overhauls EU telecoms regulation and introduces a new aim alongside promoting competition of stimulating investment in gigabit connectivity.
The Parliament added its own measures to the legislation, including notably a cap on intra-EU call prices. Designed as an extension of the 'roam like home' rules in the EU, the new price caps apply for both fixed and mobile calls and SMS between EU countries. They will take effect from 15 May 2019 at 19 cents a minute for calls and 6 cents for text messages.
MEPs also introduced a new requirement for telecom service providers to notify customers in the event of a major emergency or disaster. Affected customers must be alerted by SMS or mobile apps, building on existing national alert systems. EU states will have 42 months to put the system in place after the directive comes into effect.
The legislation will take effect once it receives formal approval from the EU Council and is published in the official journal, expected in the next few weeks. EU states will then have two years to incorporate the new rules in national legislation, apart from the consumer protection and emergency measures, which have longer transition periods.
Berec guidelines crucial
ETNO, the association of incumbent telecom operators, said in a statement it was ready to work with all the institutions on implementation of the new code. In particular, the group wants to participate in developing the new guidelines from Berec for national regulators implementing the regulations. "These will be crucial to ensure that, when the new rules are translated into practice, they deliver on the promise of driving investment and innovation in new networks and services," the group said.
The sentiment was seconded by ECTA, the association of alternative operators, which said implementation will be key to realising the goals of the regulation. "Member states and regulators must act to safeguard durable and effective competition as they translate the Code into practice," ECTA said in a statement. "All anti-competitive loopholes must be closed."
The code was welcomed by the FTTH Council Europe. The group said the code "creates a more investment-friendly environment as well as ensures the regulatory certainty needed to foster efficient and competitive investments in future-proof digital infrastructures, not only from traditional business models but also from new innovative infrastructure models, e.g. wholesale-only".
The Council's only note of caution was the increasing use of the word 'fibre' in broadband advertising for networks and services that were not entirely fibre. The FTTH Council called on regulators to take action to stop the misleading choice, so consumers can make a more informed choice.
More rights for consumers
The legislation was also largely welcomed by consumer groups. The EU consumers group Beuc said consumers will benefit from new rights, such as the ability to cancel single elements of a bundled package and end contracts early without penalty. The German consumer group VZBW was also pleased, pointing to new rights such as compensation for missed technician visits or problems with switching provider.
However, the German group predicted some countries may face difficulties implementing the legislation, which calls for maximum harmonisation of the consumer rules across EU states. It warned against watering down existing rights in the name of EU harmonisation and noted that national legislators will have less flexibility to respond to quickly changing market conditions.
