Berec rules out extending telecom regulation to OTT sector

Nieuws Algemeen Europa 15 DEC 2015
Berec rules out extending telecom regulation to OTT sector
EU regulator Berec has issued its opinion on the ongoing review of the telecom regulatory framework, underlining the need to allow for national differences among the EU's 28 members in any reform. The European Commission requsted Berec's opinion as part of the ongoing public consultation on the review. Berec, which is composed of the 28 national telecom regulators in the EU, noted that "physical networks are and will remain national", and the EU's Digital Single Market "will always be the product of 28 competitive and well-regulated national markets".  

The regulator noted that regulatory convergence is already happening under the current framework, which "balances consistency of regulatory approaches and regulators’ ability to address the particularities of their national markets". Notably, the European Commission expressed 'serious doubts' about only four market reviews by national regulators this year, down from 19 in 2012, suggesting the national regulators are applying the EU recommendations and framework correctly. Any reform of the framework should aspire to greater EU harmonisation only where it makes sense, while maintaining room for national differences, Berec said. This includes allowing each country to set its own universal service obligations and taking a 'bottom-up' approach to spectrum harmonisation, based on national needs. 

The group also ruled out extending the regulatory framework to the OTT sector, something called for by some telecom operators seeking a 'level playing field' with the new competitors. While the definition of 'electronic communication services' covered by the framework could use some "clarification", a blanket extension to OTT providers could stifle the emerging sector, Berec warned. The national regulators think a better approach is to look at each service on a case-by-case basis. 

Possible areas for reform suggested by Berec include more flexible tools for national regulators to ensure the effective competition needed to achieve the EU's broadband goals. This includes notably the ability to intervene in oligopolistic markets, a topic covered in a consultation earlier this year by Berec and becoming of increasing importance in the wake of consolidation in several countries. Berec also sees room for strengthening the independence, both financial and operational of national regulators, and ensuring all national regulators have the financial resources to participate fully in Berec's work.  

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