12th EU report on electronic communications


The European Commission has released its 12th report on electronic communications markets and regulation in the EU, presenting a snapshot of the sector in 2006.

The report, published on 29 March, cites the opening of telecom markets to competition as being one of the EU’s success stories. However Viviane Reding, Commissioner for Telecommunications, stresses that the 2.3% growth seen in the sector in 2006 falls short of what is needed when Europe’s competitiveness in the global market is at stake.

It is the Commission’s goal that regulation of the sector is centred on those areas where competition is not yet effective, so that both operators and consumers can take advantage of pan-European economies of scale.

Amongst its findings, the 12th report concludes that, in general terms, the price of calls has fallen and that mobile markets are reaching maturity with revenue growth of around 4.6% - with 478.4 million mobile users, the European penetration rate stands at 103 per cent of the population. On the other hand revenues of fixed communication operators have declined by around 4.5 and 5.1 per cent, while at the same time revenues from the broadband market have grown by between 7.8 and 8.5 per cent.

The report also points to a number of issues that remain unresolved. Among these the Commission highlights a lack of independence of some national regulatory authorities, delays in imposing remedies to competition problems, different remedies for similar competition problems, inefficient and fragmented management of radio spectrum, and the incomplete deployment of the 112 emergency number.

In its analysis of the Portuguese situation, the reports considers that the regulatory measures applied by ANACOM are beginning to produce results, mentioning in particular the fall in prices paid by alternative operators for using the incumbent’s networks and the increased investment made by alternative operators in local loop unbundling. The Commission also went on to point out ANACOM’s efficiency in conducting its first market analysis.

The scope of the report, in looking at the national markets, covers fixed and mobile telephony, as well as broadband and television broadcasting. Finally the report highlights important consumer information on tariff transparency and quality of service, universal service, directory services and directory enquiry services, must-carry obligations, emergency services, number portability, consumer complaints and out of court dispute resolution.


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