YOU ARE AT:Archived ArticlesEU MAY UP DEADLINE FOR ENDING TELECOMMUNICATION MONOPOLIES

EU MAY UP DEADLINE FOR ENDING TELECOMMUNICATION MONOPOLIES

The European Commission is considering a recommendation that would accelerate by two years the 1998 deadline set to end state monopolies of mobile communication services in the European Union.

The proposal under consideration would require EU member governments to offer full liberalization of new telecommunications infrastructure-including licensing of new operators-by January 1, 1996.

Previously, the EU had agreed to liberalize basic phone service but hadn’t set a time table for ending monopolies over the infrastructure. That means other providers must rent lines from state operators.

When the Telecommunications Council last November agreed on the Jan. 1, 1998, deadline for infrastructure liberalization, it would not endorse a proposal that would allow existing networks such as cable TV or utilities to carry some telecom services as early as this year.

France, Britain, Germany and the Netherlands supported the strategy of using alternative networks, but it reportedly was rejected by other council members, who thought the action was premature until new regulatory systems were assembled.

A Nov. 23 commission report examines ways to promote pan-European mobile phones, paging and other personal communications services, describing mobile communications as the fastest-growing area of telecommunications. Nearly 40 million people in the European Union are expected to use wireless communications by the year 2000, with expectations the introduction of PCS will cause that number to double by 2010.

The report-drafted in light of responses made to the commission’s Green Paper proposals in April 1994-outlined several areas of commission consensus, including the abolishment of exclusive and special rights, and the need for effective procedures to make frequencies and phone numbers available.

In almost every member state, users have a choice between at least two digital mobile telephony systems, with firm plans underway for a second network in member states where that is not the case. The commission is still debating whether network operators have an implied obligation to deal with all service providers to promote pan-European services, and whether a code of conduct for these operators should be voluntary or mandatory.

Also being considered is whether mobile network operators have the right to use third party infrastructure, and whether mobile operators should be able to directly connect to other mobile or fixed networks nationally or in other member states. Different views were expressed about the role of the open network provision as the basis for regulatory framework and to what extent regulatory intervention should take precedence over commercial negotiations.

Austria, Finland and Sweden became full EU members in January. Other members are Greece, Italy, Spain, Portugal, France, Luxembourg, Belgium, Germany, the Netherlands, Denmark, Great Britain and Ireland.

ABOUT AUTHOR