Review of the Regulatory Framework

An agreement on the EU Telecoms Reform was reached by the European Parliament and Council of Ministers on 4 November 2009, after two years of discussion during the legislative process. The new rules will now need to be transposed into national laws of the 27 Member States by May 2011.

The framework notably defines rights and obligations for all market players, be it telephone companies, cable operators and other service providers. One of its main objectives is to foster competition in markets which have traditionally been dominated by incumbent telecom companies.

This new framework has put in place a new European Telecoms Body, Berec, together with reorganising the market analyses notifications process known as art. 7 procedure. The principle of infrastructure-based competition has been safeguarded. New provisions aim to promote sustainable investment in NGAs while safeguarding competition. It also includes many safeguards for disabled end-users and consumers' protection in general (transparency obligations, emergency services, number portability, right to withdraw from contracts etc). 

Digital Agenda

The Commission issued a Communication on giving the EU economy a brighter future through the EU 2020 Strategy. The Commission identifies three key drivers for growth, to be implemented through concrete actions at EU and national levels: smart growth (fostering knowledge, innovation, education and digital society), sustainable growth (making our production more resource efficient while boosting our competitiveness) and inclusive growth (raising participation in the labour market, the acquisition of skills and the fight against poverty). One of the highlights is the need for a European Digital Agenda delivering sustainable economic and social benefits from a Digital Single Market based on ultra fast internet. All Europeans should have access to high speed internet by 2013. EU's IPR system should be modernized. Commissioner Kroes outlined in its Digital Agenda for Europe action plans to boost Europe's prosperity and well-being. It has seven goals:

• A new Single Market to deliver the benefits of the digital era
• Improve ICT standard-setting and interoperability
• Enhance trust and security
• Increase Europeans' access to fast and ultra fast internet
• Boost cutting-edge research and innovation in ICT
• Empower all Europeans with digital skills and accessible online services
• Unleash the potential of ICT to benefit society 

The Commission invited Heads of State and Government to take ownership for this new Strategy. The role of the European Parliament will also be enhanced. 

Recommendation on Next Generation Access Networks

Further to two consultations and as announced in the Digital Agenda for Europe, the Commission is now working on the final version of its Recommendation on Next Generation Access Networks, that will be used as guidelines by NRAs to foster investments and maintain competition between infrastructure networks and services providers in the broadband area. The Recommendation is expected to be adopted after the summer. 

Digital Dividend

Stimulating competition in the ICT sector and encouraging the introduction of new communication technologies is one of the stated goals of European decision makers and specifically, the European Commission at the highest level (President Barroso).

The "Digital Dividend" is the additional spectrum that will become available for new wireless and TV services as a result of the switchover from analogue to digital TV, which has started in the EU Member States and is expected to be completed by January 1st 2012. 

In examining the Digital Dividend, Cable Europe has identified potential negative impact on consumer equipment and in-home network (TV and internet) that is caused directly by the release of spectrum between 790-862MHz for new mobile services. The discovery of this interference was made through laboratory testing carried out by Cable Europe members, as well as Cable Europe Labs and external independent testing. 

Interference identified in EU consumer equipment includes:

• TV sets
• Cable broadband modems
• Set Top Boxes
• PMSE (audio equipment used in live performances)
• Personal video recorders
• In-house wiring
• Gaming Consoles

The Commission has adopted a Commission Recommendation and a Communication to the European Parliament and Council on 28 October 2009. It also adopted a Decision on harmonised technical conditions of use in the 790-862 MHz frequency band for terrestrial systems capable of providing electronic communications services in the European Union (800 MHz band).

Cable Europe has issued a call to ensure Member State decision makers and technology authorities carefully assess the risks for the EU consumer posed by interference.

Net Neutrality 

The Revised Telecom Framework has provided with new rules on Net Neutrality. It indeed states that NRAs will be able to set minimum quality of services (QoS) requirements on public electronic communications network providers in order to prevent the degradation of service, the hindering or slowing down of traffic over networks. Operators are however allowed to use procedures to measure and shape traffic on a network link so as to avoid congestion and poor performance. But they will need to inform customers of these procedures.

The Commission announced in the Digital Agenda for Europe a public consultation before summer 2010 on Net Neutrality to report on whether additional guidance is needed, in order to secure the basic objectives of freedom of expression, transparency, the need for investment in efficient and open networks, fair competition and openness to innovative business models.

Cable Europe has issued, together with other industry stakeholders, a Joint Statement on "Delivering openness, innovation and choice for consumers".