The Single Telecom Market Proposal Isn’t Perfect But Must be Adopted Now, Kroes Says
EU Digital Agenda Commissioner Neelie Kroes defended her wide-ranging proposal to create a single European telecom market announced Wednesday (CD Sept 12 p7), as mostly negative reactions continued. At a news conference the next day, Kroes criticized “illusions” about the legislation, saying “we can’t wait for a perfect package.” Competitive telecom companies and consumers said the proposal falls short of expectations, while the cable sector voiced general approval. The European Parliament pressed the European Commission to end all roaming fees by 2015.
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Kroes said she wanted to dispel the illusions that the measure is only about mobile roaming prices; that it only concerns the telecom sector; and that the package would be better if she had waited. The legislation is all interconnected, she said. It’s concerned with how digital technology can boost all sectors, not just telecom, she said. As for waiting, Kroes said: “No way.” Failing to implement the package would mean a delay of at least two to two-and-a half years, by which time, “the global race is lost,” she said. Not acting now would hurt the apps economy, predicted to grow from 11 billion euros ($14.6 billion) this year to 15 billion euros in 2016, she said.
Contrary to claims, Kroes said she received “overwhelming support” for the measure from the EC, including the net neutrality provisions. Any comments to the contrary are just spin, she said. Asked how the EC will guarantee that Internet companies respect net neutrality, she said national regulators will have to ensure open access to the Internet for all, ISPs must act transparently and the EC will have to enforce the rules. Kroes’ spokesman Ryan Heath stressed the importance of the transparency and input from the European Parliament that the package offers. If users think there’s a loophole in the proposal, they can ask lawmakers or the EC to close it, he said, but just saying they don’t like the package doesn’t move the debate forward.
Asked whether she expects pressure from large Internet players and EU members to water down the package, Kroes said she believes in the measure, but she also believes in “arguments.” Debate is badly needed on the issues considering how quickly the global telecom scene is changing, she said. She wants an agreement before the next European Parliament is elected next year, she said.
The reform “will only benefit consumers if it brings about healthier market competition, meaning more consumer choice and keeping prices in check,” said European Consumer Organisation Director General Monique Goyens. Historically, the Internet’s success has been built on its equal treatment of online content, but manipulating data traffic has become “all too frequent,” she said. Consumers must have strong net neutrality safeguards, she said. The package opens the door to more robust EU action but falls short because its many loopholes will let operators continue to discriminate among data traffic or unduly push their own services, she said.
The package isn’t genuinely pro-competition, said the European Competitive Telecommunications Association. It accused the EC of clouding the discussion of the real barriers to a single market by over-emphasizing network investment. Many local incumbent operators failed to upgrade their network in good time using the “considerable profits” gained from consumers and rivals, and deregulation under the reform proposals “would be the wrong approach to fixing the bad commercial decisions of certain dominant telcos,” it said. Only reinforced competition will create a true single market, it said.
Cable Europe sounded the only completely positive note on the proposal, among the statements we received. The signal that there will be no fundamental changes to the existing regulatory framework, and that only market dominant players would be subject to regulation, will ensure competition and infrastructure investment from all players, said Chairman Matthias Kurth. Some elements in the package could lead to less regulation while encouraging market forces, he said. Kurth called for a “common understanding on the principles of net neutrality for all of Europe rather than fragmented legal skirmishes” in each country that “would be a recipe for irritation and confusion.”
The European Parliament, meanwhile, approved a non-binding resolution Thursday that calls for “roaming-free EU” by 2015. The resolution, which responds to the EC proposal, also proposed measures to reduce barriers and improve access to the Internet; called for more education access to financing to help fill expected information and communication technology jobs; and said the EU should invest in fat broadband so that by 2020 all European households receive at least 100 Mbps, Parliament said. - Dugie Standeford