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For information
about the pojects that make up the EU Market Review click on the
relevant link below.
EU Market
Review Consultation Documents
On 25 July 2003
a major milestone was reached when the new EC regulatory framework
was fully implemented into UK law. Comprising four Directives –
Framework, Authorisation, Universal service, and Access – the
new framework legally underpinss the considerable amount of work
Oftel has undertaken during previous months.
Two key aspects
of Oftel's work as part of this process are the series of market
reviews, and the replacement of licences by a regime of general
authorisation.
The market reviews
define markets, assess the level of competition and propose regulation
where appropriate. Operator-specific regulation can then only be
applied to a provider who is identified as having Significant Market
Power (SMP) in the relevant market. The overall objectives are to
promote competition and the interests of EU citizens, and develop
a European-wide internal market.
In early August
2003, following initial consultations on a wide range of telecoms
markets, Oftel began the second stage of the market review process
when it published a statement on the wholesale
mobile access and call origination market. In this that market,
Oftel maintains its initial draft proposal that no provider in that
market should be designated with SMP. This would mean that Vodafone
and O2 would no longer be subject to certain interconnection obligations
in this market.
This second
stage in the review process allows a month for representations on
the Director's Oftel's draft proposals to be made by the European
Commission, National Regulatory Authorities in other EU Member States,
and UK stakeholders. Oftel is the first EU regulator to reach this
official stage of consultation. After this period, a final statement
will be issued, taking into account views expressed and confirming
the future regulatory position.
As with all
the market reviews, until final conclusions are reached, the SMP-based
licence obligations of the previous regulatory framework have been
formally continued until final conclusions are reached about competition
in the market. This ensures that there is no break in regulation
of markets which may not yet be competitive. Obligations still apply
between the end of the old licensing framework on 25 July and the
conclusion of each market review.
Further second-stage
documents were published in August, covering:
Along with a
first stage consultation on terrestrial broadcasting transmission,
further publications will follow in the coming months for:
- leased lines;
- wholesale
broadband access;
- financial
reporting obligations; and
- mobile call
termination.
A further requirement
of the new Directives is to replace the old UK licensing regime
with one of general authorisation to provide electronic communications
networks and services, coupled with general and specific conditions.
The general conditions apply to all network and service providers
(or all network and service providers of a particular type), whereas
the specific conditions will be imposed on individuals, for example
those with SMP or designated universal service obligations.
The new general
conditions of entitlement, which took effect from 25 July, are a
set of rules which apply to the provision of an electronic communications
network or an electronic communications service. They impose obligations,
on all communications providers, to ensure a basic level of consumer
protection. Obligations include consumers’ termination and
disconnection rights and terms to be included in contracts.
The main difference
between the old and new regimes is that all communications providers
only need to consult one set of general conditions to ensure they
are complying with the law. There are no longer different licences
containing different conditions, although the new obligations are
similar to those contained in the old licences.
Most of the
general conditions are drafted so that they only apply to a limited
set of network or service provider, for example 'providers of publicly
available telephone services' or 'providers of public electronic
communications networks'. It will be the responsibility of all providers
of electronic communications networks and services to consult the
general conditions and determine which conditions apply to them.
To help in this process, Oftel has produced guidance aimed at service
providers, see www.oftel.gov.uk/publications/eu_directives/2003/spfaq0503.htm;
and for ISPs, see www.oftel.gov.uk/publications/eu_directives/2003/ispfaq0303.htm.
Oftel has published
several other documents as part of the process of implementing the
Directives, for example, a statement on universal service conditions
under the new regime. These are available on Oftel's website from
www.oftel.gov.uk/publications/eu_directives/index.htm.
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