Emerging EC framework
9.1 A variety of measures are being put in place at European level in order to prepare for the full liberalisation of telecommunications within most of the Community by 1 January 1998. It was recognised at an early stage that liberalisation must be accompanied by parallel action to create a harmonised regulatory framework which secures the delivery of universal service. Of particular importance for universal service are the Full Competition Directive, the proposed Interconnection Directive and the proposed Amending Voice Telephony Directive. Guidelines on the approach to be taken for costing and funding Universal Service have also been issued recently by the European Commission. Note 4 summarises these provisions.
9.2 The concept of universal service, based on the principles of universality, equality, continuity and affordability, is well developed at European level. The proposed Interconnection Directive defines universal service in a general way as a defined minimum set of services of specified quality which is available to all users independent of their geographical location and, in the light of specific national conditions, at an affordable price . The proposed Amending Voice Telephony Directive, which is still at an early stage of negotiation, seeks to set out in detail what this minimum set of services should be and what measures should be put in place to ensure quality. The EC framework also sets limits on what can be funded from a universal service funding mechanism, with details about how such a mechanism should operate. Under the Full Competition Directive, Member States must give prior notification to the Commission of any schemes to share universal service costs.
Implications for the UK
9.3 The UK has been very closely involved in the development of EC legislation and will comply with any relevant Directives as and when they are agreed. Given the relatively mature nature of the telecommunications market in the UK, the general theme of the UK input has been to stress the way in which growing competition will deliver a great deal of consumer protection more effectively than regulation, and that overprescriptive intervention should be avoided. Oftel believes that the proposals in this document are consistent with the framework that is being put in place at European level.