EU parliament adopts Telecoms Reform Package

Reform package aims to help Europe roll out better next-generation networks and mobile broadband services

EU set to adopt Telecoms Reform Package

The European Union (EU) will almost certainly adopt its Telecoms Reform Package today.

EU commissioner for information, society and the media, Viviane Reding, said its modernised rules will provide a supportive and predictable environment for competition and investment in the electronic communications sector.

A major focus for the Reform Package will be the regulation of the Next Generation Access (NGA) networks to ensure efficient use of radio spectrum in the provision of mobile broadband services.

Reding said of the new rules: "They will strengthen the tools which national regulators can use to enhance competition and ensure that the risks involved in allowing access to NGA networks are properly taken into account. In this way, telecoms operators can receive a fair return on their investments."

A major cost in NGA deployments is building the physical infrastructure, which includes ducts and in-building wiring, but Reding said that rules within the Reform Package governing the sharing of network elements should help lower the overall financial costs for operators of NGA networks."

This is in keeping with Ofcom's view that incumbent telco BT should be allowed a fair return on its investments with respect to fibre-to-the-home (FTTH), fibre-to-the-cabinet (FTTC) and fibre-to-the-premises (FTTP) deployments.

On mobile broadband service rollouts, Reding said the new provisions in the telecoms reform package will help overcome the digital divide by ensuring that spectrum resources are better managed and available where most needed for delivering broadband connectivity at a reasonable price.

Reding added: "The stronger emphasis on technology and service flexibility in spectrum use will also make it easier for new technologies and services to be introduced."

Ofcom is currently deciding what it should do with the "digital dividend" of radio spectrum to be released as TV broadcasters move to digital from analogue.

One problem Ofcom faces is around the issue of competition. The UK joint venture following the merger of Orange and T-Mobile will see it rake in the lion's share of UK mobile revenue at 37 per cent, as well as commanding over half the mobile radio spectrum. There is speculation that Ofcom has asked the group to give up some of this spectrum.

Another important aspect of mobile broadband service provision is the "net neutrality" principle regarding IP voice applications.

Reding said a major issue that had come up in her discussions with colleagues in the European Parliament and with consumer bodies was the blocking of VoIP applications such as Skype by some mobile operators.

She said: "Before they sign a contract, consumers must be informed about the nature of the service to which they are subscribing, and this should include traffic-management techniques and their impact on service quality."

The reformed telecoms rules will become law in December 2009. Reding added: "The rules of the game for Europe's telecoms markets are now clarified and stable – at least until 2015."