E.U. lawmakers question telecom regulation proposal

by Paul Meller

January 30, 2008 —

Controversial aspects of the European Commission's plan to increase competition
throughout the European Union telecommunications sector came under heavy fire
late Tuesday by the industry committee of the European Parliament.

The planned reforms, known collectively as the "telecoms review,"
are designed to increase choice and lower costs for consumers.

Parliamentary committee members from across the political spectrum raised a
red flag over two key, and much-debated, aspects of the review: plans to create
a pan-E.U. regulator and to force a functional separation of services from former
telecommunications monopolies.

The parliamentary committee described Tuesday's session as a preliminary exchange
of views. However, if the Commission does not address the parliamentary concerns,
the committee could push for changes to the planned reforms.

Several members of the committee questioned whether a supranational regulator,
dubbed the European Electronic Communications Market Authority (EECMA), is necessary.

"Who is guaranteeing the independence of the new agency?" asked Pilar
del Castillo, of Spain's conservative People's Party.

French Socialist Catherine Trautmann asked how the Commission would deal with
possible conflicts between national regulators and the new agency. Trautmann
is the committee's rapporteur on the telecom review, which means that she will
lead the debate in the committee.

Alexander Alvaro, a German Liberal, questioned the Commission's plan to make
the EECMA responsible for the functions of the European Network and Information
Security Agency (ENISA), an E.U. body in charge of network security, as well
as much of the work of the national telecom regulators. "I'm not sure whether
this would lock two different species into one cage," Alvaro said.

The Commission believes functional separation -- the splitting of telecom infrastructure
and networks from services -- is a necessary weapon to use against former national
monopolies that continue to obstruct fair competition in the services sector.

"Functional separation tries to achieve an equivalence of access,"
Fabio Colasanti, the Commission's director general in charge of telecom, told
parliamentary committee members. He added that the Commission wants to "re-establish
the equality of opportunity" among service providers.

However, many committee members appeared skeptical and were concerned about
the costs and benefits of functional separation.

Several other committees will also assess the planned changes. The parliament
as a whole has the power to block the proposals, as do the 27 national governments
of the E.U. However, a vote on the telecom review by the parliament remains
a long way off. Telecom Commissioner Viviane Reding, architect of the proposed
changes, expects the review to become law in 2009.

IDG News Service