Cracking the Code

Date: 29/11/01

MEMBER states and MEPs are putting the finishing touches to the Commission's radical approach to regulating the EU's telecoms policy for the 21st century.

Telecoms chief Erkki Liikanen said tough rules put in place when markets were first liberalised in 1998 can now be relaxed thanks to greater competition in the markets.

The linchpin of the “technology neutral” plan is an approach to regulation based on established competition law, found in the draft framework directive.

That means the toughest rules and regulations - such as the need to open up networks to rivals at cost-based tariffs - will be reserved only for firms that are found to enjoy “significant market power”.

It will be up to national regulators to implement this - but the Commission is battling to ensure it gets a final veto on their decisions in cases it fears could affect the single market.

Here are the proposals:

• Framework directive: defines who can be regulated and the institutional interaction between the Commission and regulators
• Access and interconnection directive: sets out the tools of regulation
• Authorisation directive: provides for elimination of most of today's licensing procedures
• Universal service directive: guarantees citizens have rights to access a minimum level of service and sets out other consumer protection issues
• Data privacy directive: ensures citizens' data is not abused, sets limits for governments' snooping rights
• Competition directive: updates old directive ending monopoly rights of former state-owned operators

• Decision on radio spectrum: gives EU greater role in deciding how scarce radio airwaves for services such as 3G mobile are managed
• Local-loop unbundling regulation: entered into force on 2 January 2001, it forces old monopoly operators to open up one of the last bottlenecks - their local networks - to competitors.