Following the presentation of the EC's proposals last month, most industry groups said they found the package was not comprehensive enough, and the EC had rushed through the proposal without sufficient consultation. In her speech, Kroes said it was not about "which processes and procedures to follow, but about facts and outcomes". ETNO chairman Luigi Gambardella said at the conference that the EU should conduct a "wide-ranging policy review", to help the regain the region's lead in the global digital economy.
Kroes said that operators need to face up to the economic challenges in the sector and the fact that the EU is falling behind in the global market. In order to boost both profits and investment, they need to accept that things like roaming and cross-border call surcharges soon won't exist, not due to regulation, but because of new IP technology and over-the-top services.
The EC's proposals for things like harmonised access products for fixed networks and a more consistent spectrum policy across the region would help operators address these challenges, she said. The net neutrality proposal would also help operators face more demanding consumers, who want unlimited access to broadband and online services. Kroes said the EC had also listened to industry objections, particularly by moving to an incentive-based rather than regulatory approach in roaming.
She also rejected claims that the legislation would reduce operators' ability to invest in new networks, saying there was little sign excess profits from roaming were going to short-term investment. Noting that most financial analysts have already discounted roaming in their earnings estimates for the coming years, Kroes said her proposals had the backing of the financial community - the true determinant in whether operators invest. "According to one major investment bank, 82 percent of Europe's major investors expect this package to mean greater investment in new networks. That backing already means a lot," Kroes said.
The commissioner said she hopes the EU Council meeting later this month will decide to make the telecom single market package a priority, so that it can be passed before the EU elections next May. She also promised to address operator concerns about unequal tax regimes that may benefit internet-only companies based outside the EU or in friendly jurisdictions, such as Google, Amazon or eBay. However, any such action would only come after dealing with the telecom single market, and then should focus on lifting regulation and creating a level playing field, she added.
