Industry groups say EC telecom package not good enough

News General Europe 12 SEP 2013
Industry groups say EC telecom package not good enough
Telecom industry groups have accused the European Commission of not doing enough in its proposed telecom reform package for boosting growth in the sector. ETNO, the lobby group for incument fixed operators, and the GSMA, the main mobile industry group, both welcomed the EU attention for the sector, but said the proposal does not do enough to support growth in the digital economy. 

ETNO welcomed the EC's recommendation on regulating wholesale access to broadband networks, saying it will "provide the much needed price stability for copper lines and will support NGA investments through the lifting of price regulation". However, the overall proposals "would not create the momentum required to achieve the Digital Agenda targets and to contribute to Europe’s economic growth", the group said. ETNO wants more action to allow consolidation in the industry, more deregulation and a better approach to addressing competition from over-the-top online service providers. 

The GSMA welcomed some of the proposals on spectrum harmonisation, but said the package needs a "more thorough and comprehensive approach". While the EC recognises the areas where the market needs help, including consolidation, deregulation and equal regulatory treatment, the proposed regulation creates too much uncertainty, the GSMA said. It said the EC's interest in quickly passing legislation before the elections next year meant it had not taken enough time to develop the proposals.

The FTTH Council Europe was also disappointed by the proposal, saying it does not do enough to encourage investment in fibre infrastructure and instead favours copper upgrades. While the EC addressed the issue of a slow LTE roll-out in the EU, it did not so the same for fibre policy, the lobby group said. It also lamented the quick pace of the legislative process, saying a proper public consultation could have resulted in a better proposal. 

ECTA, the lobby group for alternative operators, said the proposal did not focus enough on increasing competition. It said there was too much emphasis on promoting investment, rather than fixing the real barriers to a single market. They fear the incumbent operators will benefit from reduced regulation, despite having failed to invest sufficiently in upgrading their broadband networks. ECTA said positive elements in the package include the single operator authorisation, harmonising spectrum licensing and the proposal on fixed wholesale access inputs. It said it will work with legislators on improving the proposals before their adoption. 

Cable Europe was more neutral on the proposal, given that the cable sector still largely escapes regulation in EU. It said the legislation could bring some stability and predictability to the market, and the cable group also supports a common net neutrality policy, rather than a country-by-country approach to the issue. 

Related Articles