Ref: 22/02
Date: 24 April 2002

Supporting competition and rolling back unnecessary regulation are at the centre of the new European electronic communications regulatory framework set out today by the European Commission.

The new framework, contained in four new Directives published today, covers all telecoms and broadcasting networks across Europe and will take effect in each member state in July 2003.

Welcoming publication, David Edmonds Director General of Telecommunications said:

"The new regulatory framework for telecoms and broadcasting networks that will take effect in 2003 has been set out today by the European Commission.

"For the first time a harmonised legislative framework for electronic communications networks and services will be in place across Europe for a converging communications sector.

"Promoting competition to deliver real benefits to consumers and rolling back unnecessary regulation will be first and foremost of all regulator’s work.

"Before implementation, regulators across Europe must review the separate telecoms markets defined by the Commission to assess the need for regulation based on the level of competition.

"This process will be top of Oftel’s agenda for the next 15 months and will constitute the most thoroughgoing examination of market competition that any UK sector specific regulator has ever undertaken.

"Regulation will only be imposed on operators that have significant market power in the relevant market, and safeguards to give consumers the protection they need.

"Oftel supported the increased emphasis on competition in drawing up the new Directives, and is a reflection of Oftel’s approach to regulation in the UK.

"Oftel already carries out regular market reviews with the aim of rolling back regulation where markets are competitive. Eventually, these Directives will be enforced in the UK by OFCOM.

"Competition will deliver the best deal for consumers while inappropriate regulation will fail consumers by hindering or distorting market developments."

Notes to Editors

The four Directives have been published today in the Official Journal of the European Communities. The Directives are:

Framework Directive - sets the overall framework which Oftel must take into account when making regulatory decisions. In most cases, market reviews must be carried out before regulation is imposed and regulation will only to be imposed where the market is not effectively competitive.

Authorisation Directive. Current licences will be abolished and replaced with a number of obligations that will apply to all providers of networks and services, significantly streamlining the licensing regime.

Access and Interconnection Directive. Obliges operators to negotiate interconnection arrangements with each other and sets out responsibilities of NRAs and the limits of their discretion in imposing obligations related to access or interconnection.

Universal Service Directive. Sets out a procedure for designating providers of universal service and a minimum set of services that these operators must provide.