Introduction of the new EC Framework for electronic communicationsImpact of the new EC framework

The scope of the framework is wider than before and is closer to the greater range of responsibilities that Ofcom will have.

The new regime is positive news for consumers as it should encourage more competition across the electronic communications sector leading to better choice, quality and lower prices. It is also good news for industry as the new rules will lead to greater certainty and a more uniform approach to regulation across Europe.The new framework, which is based on four EC Directives, was implemented in the UK by the Communications Act 2003. However, Oftel has had to substantially remake a number of Orders, Conditions, Directions and Guidelines to ensure Oftel’s approach is consistent with the new framework. Full details and copies of the new documents can be found on Oftel’s website.

Unsurprisingly, Tthe new regime has some significant changes from the old. The principal ones, which relate to telecommunications, are :

• The definition of Significant Market Power (SMP) is now explicitly linked to the competition law concept of dominance.
• National Regulatory Authorities (NRAs) may only impose ex-ante controls on individual operators determined as having significant market power (SMP) following a market review. of the relevant market;
• The definition of SMP has changed and is now explicitly linked to the competition law concept of dominance;Appeals against NRA decisions may can now be on both merits and process (it was previously on process only).
• Disputes between operators, which are referred to the NRAs to be for settled, ment must be resolved by the NRA in four months (it was previously six months).
• The existing licence regime has been abolished and replaced by a general authorisation regime with general conditions of entitlement) and specific conditions (see the article on page xx for further details);
• There’s an explicit goal of harmonisation in the new framework:
• NRAs must work together with the Commission and other NRAs in the European Regulators’ Group (ERG) to establish common approaches to regulation and to remedies for competition issues;

• when analysing markets, NRAs must take full account of the Commission’s Recommendation on market definition and their Guidelines on market analysis and assessment of SMP; and

• NRAs must notify the Commission and other NRAs of the outcome of market analyses (and the Commission has the power to veto certain decisions).

Most of these changes take effect immediately.

For further information, contact Andrew McWhir (tel: 020 7634 5306 / andrew.mcwhir@oftel.gov.uk).