27 November Telecoms Council

Date: 03/12/1998

INDUSTRY Commissioner Martin Bangemann told EU telecoms ministers to stop protecting their post offices from the competition which could make them more modern and efficient. He warned after the meeting that postal companies would be “dead” in ten years time if markets continued to be protected.

BANGEMANN said he had hoped to unveil proposals on the future of the sector before the end of the year, but would not be able to do so before January 1999 as the European Commission had so far only received one of the studies on liberalisation it had ordered.

THESE proposals will involve setting a timetable for introducing competition, while giving countries which have particular difficulties additional time. Bangemann said Greece might warrant special treatment, for example, because of the challenges it faced delivering mail to hundreds of small islands. He also said that governments would be able to set up special funds or take other measures to protect 'universal service' at an affordable price.

THE Commissioner also presented ministers with the institution's latest report on member states' progress in putting into place the telecoms liberalisation package that was meant to be implemented on 1 January this year. He said the Commission was relatively satisfied that most of the rules had now been implemented by member states.

MINISTERS failed to reach agreement on Commission proposals to regulate electronic signatures used in on-line contracts. They remain deadlocked over whether or not to set specific technical requirements for the devices designed to ensure that electronic signatures are secure. France, Germany and Italy argued that such requirements were needed to build consumer confidence in electronic commerce, while another group, led by the UK, Finland, Sweden and the Netherlands, said the question should be left to the market. Officials said the issue would not now be resolved until Germany takes over the EU presidency from Austria in the new year.