Towards A Single Market: New Telecoms Laws Explained

In what is a major and some believe long overdue reform of European telecoms laws, the Better Regulation Directive and the Citizen’s Rights Directive of the EU’s Digital Agenda came into force for all member countries on 25 May.

The principle aims are to improve cooperation between European regulators and, in the process, to eliminate the inconsistencies and variations in telecoms rules/regulations, prices and services applied in EU countries which militate against a single, competitive pan-European telecoms market. Countries that had not implemented the changes by the deadline could face infringement proceedings.

The new laws give more regulatory powers to the EC and to the Body of European Regulators for Electronic Communications (BEREC), including persuading national regulators to change or withdraw plans deemed to create a barrier to the single market.

There are new directions to national regulators governing interconnect to next generation access (NGA), fibre networks. National regulators will have more powers to oblige telcos with significant market power to separate their networks from their service branches thereby ensuring non-discriminatory access for competitors – an issue which has long been debated. Regulators are expected to make it easier for incumbents to offer and buy network services and to introduce tough penalties on illegal downloads and file sharing.

Businesses and consumers will have more rights - the overall goal is to provide improved and faster services. People will be able to change their fixed or mobile operator in one working day and without having to change their phone number. Making it easier to switch to better deals, contracts for new phone or broadband services will be limited to a maximum of two years and annual agreements thereafter: users must be offered a choice of contract lasting no longer than a year.

There is to be more transparency about services offered, including details of minimum service quality levels. Internet subscribers must be given information about traffic management techniques and their impact on service quality plus any limitations on actual connection speeds including bandwidth capping, throttling or blocking access to services like VoIP. ISPs must provide details of compensation and refunds if minimum levels are not met.

There is more and stronger security of online personal information protection and defence against spam and cookies. Operators must notify both data protection authorities and customers if personal data has been compromised. Service providers must ensure users are fully informed about what information is being collected, how it is being used and consent given to personal data being accessed or stored on their devices.

The emergency services number throughout the EU is to be 112.

Despite the deadline, the EU expects only a third of countries will have implemented the new rules by the cut off date. Neelie Kroes, VP, European Commission responsible for the Digital Agenda warned: “If these rights are not made available in practice, I will take the measures necessary to fix that situation vis-à-vis member states and telecoms operators. Limited progress towards a true single market is disappointing. Member states need to do more to ensure telecoms rules are properly implemented.”

Looking ahead, the Digital Agenda plans to reach 100% basic broadband coverage by 2013 and support very high speeds by 2020. It also outlines how and when mobile broadband networks are rolled out across the EU.