••• 1 IIC Telecommunications and Media Forum 7 December 2010, Washington, DC Recent developments in regulating broadband markets in Europe Reinald Krueger Head of Procedures related to National Regulatory Measures Unit Information Society and Media DG The views expressed in this presentation are purely those of the author and may not in any circumstances be regarded as stating an official position of the European Commission
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Reinald Krue ger Head of Procedures related to National Regulatory Measures Unit
IIC Telecommunications and Media Forum 7 December 2010, Washington, DC Recent developments in regulating broadband markets in Europe. Reinald Krue ger Head of Procedures related to National Regulatory Measures Unit Information Society and Media DG. - PowerPoint PPT Presentation
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••• 1
IIC Telecommunications and Media Forum7 December 2010, Washington, DC
Recent developments in regulating broadband markets in Europe
Reinald KruegerHead of Procedures related to National Regulatory Measures UnitInformation Society and Media DG
The views expressed in this presentation are purely those of the author and may not in any circumstances be regarded as stating an official position of the European Commission
••• 2
Outline
• Digital Agenda for Europe• Broadband strategy & regulatory approach
– Market-based regulation in the EU– NGA Recommendation (next generation access)
• Current fibre regulation in the EU• Outlook
••• 3
Digital Agenda for Europe(Context)
• One of seven lead initiatives of the Europe 2020 strategy
• Aim:• overcoming the crisis• preparation for the challenges of the century
• Function:• work plan for the European Commission• cross-portfolio approach
••• 4
Digital Agenda for Europe(Priority areas)
• Creating a digital Single Market• Enhancing the interoperability of ICT products• Increasing trust and security of the Internet• Establishment of faster Internet connections• Increasing investment in research and development• Enhancing digital literacy and skills• Use of ICT to master societal challenges
••• 5
Digital Agenda for Europe(Targets & Actions)
• EU2020 strategy:• faster Internet as a basis for growth, productivity & social integration
• Targets:• 2013:Broadband for all Europeans• 2020:30 Mbit/s for all Europeans (50% of subscriber lines > 100 Mbit/s)
• Actions : European Broadband Strategy Foster investment in fibre rollout (Measures in the area of spectrum policy)
••• 6
Broadband strategy & regulatory approach(Fixed broadband subscribers by technology)
••• 7
Broadband strategy & regulatory approach(Broadband fixed lines in international comparison)
••• 8
Broadband strategy & regulatory approach(Market-based regulation in the EU - 1)
• Technological neutrality: what counts?– Substitutability analysis (competition law principles)
– Competitive situation in the market
• Sector-specific regulation: when & for how long?– In relevant markets which meet specific criteria
(the “three-criteria-test”!)
– In-built transition to “competition-law-only scenario”
• Interaction between national regulators and Commission– Market analyses by NRAs using COM Recommendation on relevant markets
– Oversight by Commission with intervention possibilities
– BEREC
••• 9
Broadband strategy & regulatory approach(Market-based regulation in the EU - 2)
• Stage 1:Identify markets susceptible to ex ante regulation (“3 criteria test”)
– High and non-transitory entry barriers– No tendency towards effective competition– Insufficiency of competition law
• Stage 2:Identify dominant operator (“SMP test”)
– Dominance concept under competition law– Single or joint dominance
• Stage 3:Impose regulatory remedies
– On dominant operator– Regulatory toolbox in Directives
••• 10Source: European Commission, DG Information Society and Mediaas of 25/11/2010
Broadband strategy & regulatory approach(Deregulation and remaining bottlenecks)
• Regulatory certainty through common EU approach• Observed differences• Cost of non-Europe
• Support of investment in fibre rollout while safeguarding competition
• Guidance for national regulatory authorities • General principles for NGA regulation in each Member State• Variation possibility for national/regional characteristics
• Primacy of market-based approach• What is the state of competition observed?• Forward-looking approach
••• 13
Broadband strategy & regulatory approach(Fixed broadband lines by type of operator - 1)
Fixed broadband lines - operator market shares at EU level, January 2006 - July 2010
• As a matter of principle, fibre access seen as substitute to copper access• Substitutability analysis• Market 4: Wholesale physical infrastructure (LLU access)• Market 5: Wholesale broadband access (bitstream access)
• Focus on remedies for SMP operators, but:• Insisting on technological neutrality• No regulation in markets with sufficient competition• Co-investment & competition in downstream markets• Access conditions
••• 17
Broadband strategy & regulatory approach(New entrants` DSL lines by type of access)
Full ULL Sharedaccess
BitstreamResale
Jul-07
Jul-08 Jul-09
Jul-10
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
30.000.000
New entrants` DSL lines by type of access at EU level, July 2007 - July 2010