German public service broadcasters (PSBs) are under scrutiny by the European Commission (EC) over how their TV license fees are used. Last week, Competition Comr. Neelie Kroes told ARD and ZDF to expect a legal opinion from the Competition Directorate-Gen. setting out its views on whether the 2 PSBs are wrongfully using the fees to fund new services such as Internet sites, an ARD spokeswoman said.
Dugie Standeford
Dugie Standeford, European Correspondent, Communications Daily and Privacy Daily, is a former lawyer. She joined Warren Communications News in 2000 to report on internet policy and regulation. In 2003 she moved to the U.K. and since then has covered European telecommunications issues. She previously covered the U.S. Occupational Safety and Health Administration and intellectual property law matters. She has a degree in psychology from Duke University and a law degree from the University of Tulsa College of Law.
European competitive telcos will likely rejoice over a study, published Mon., that links changes in market concentration to broadband uptake. The Strategy & Policy Consultants Network report found that for every 1% drop in market concentration there’s a 3% rise in broadband penetration. The finding will provide ammunition to new entrants that have long complained Europe’s broadband market is far from competitive.
Deutsche Telekom (DT) on Tues. defended its proposal to raise the monthly rate it charges competitors to access its unbundled local loops. Last week, the incumbent telco asked the Regulatory Authority for Telecoms & Post (RegTP) to approve a new nationwide fee of 17.40 ($22.62), a significant change from the current rate of 11.80 ($15.42) (CD Feb 22 p6). This is the 3rd time DT has sought the increase, a spokesman said. Using its own price-setting methodology, RegTP turned down requests in 2001 and 2003, he said, but the fact the telco has consistently asked for the same amount shows prices are stable. RegTP has said it will decide DT’s request in about 10 weeks, the spokesman said. Meanwhile, another rival weighed in on the request. “We are not amused,” said a spokesman for alternative telco Versatel. DT’s request has nothing to do with its actual costs, he said.
Deutsche Telekom (DT) infuriated its rivals late last week by seeking a hefty increase in the monthly charge for access to its unbundled copper loop. In a motion filed with the Regulatory Authority for Telecoms & Post (RegTP), the incumbent telco sought a monthly nationwide fee of
Mobile network operators (MNOs) are aware of the threat spam poses to customer satisfaction and their corporate image, but appear uncertain how to control it, an industry-academic consortium said last week. Its study, Insights into Mobile Spam, analysed differences in how consumers and MNOs perceive mobile spam issues and how well they think the problem is being managed. Both sectors say industry self-regulation is the key to stopping unsolicited mobile messages.
The European Commission (EC) Thurs. launched its 2nd probe into wholesale international roaming (WIR) charges in member states. The investigation of German mobile network operators (MNOs) T-Mobile and Vodafone will -- with an earlier inquiry into overcharging allegations against U.K. companies Vodafone and O2 -- have far-reaching effects on European operators, forcing prices down, the EC said. Complaints by consumers about excessive rates have reached the point that European telecom regulators have made finding common ground on WIR a priority for this year.
British Telecom (BT), which could face an antitrust probe if it fails to give competitors more access to its network, said Thurs. it will make “radical” changes -- but only if the U.K.’s telecom regulator commits to deregulation. In response to an Office of Communications (Ofcom) consultation -- part of the 2nd phase of its strategic review of the country’s telecom sector -- the incumbent telco said a fair settlement with Ofcom “would balance ‘real equality of access’ with the opportunity for BT to develop its business, to invest and take commercial risks, and to succeed for its customers and shareholders if these actions are successful.” In Nov., Ofcom laid out 3 options for dealing with the “economic bottlenecks” in BT’s system -- across-the-board deregulation; referring BT to the Competition Commission for an antitrust investigation; or forcing BT to give competitors equivalence of products and to undertake major corporate behavioral changes (CD Nov 19/04 p5). Ofcom chose the 3rd. BT said it’s willing to make “significant organizational changes,” including creating a new access services division. It also agreed to: (1) Introduce equality of access in a phased and effective manner. (2) Ensure that wholesale line rental is “demonstrably fit for purpose.” (3) Keep local loop unbundling at the heart of its wholesale offerings. (4) Make sure the rest of its broadband products cut key wholesale broadband prices, beef up speeds and give all service providers a wide choice of offerings to suit their business models. (5) Agree on the “enduring economic bottlenecks” and work to ensure that “tight, appropriate” regulation is focused on them. (6) Detail the ground rules underpinning development of its 21st Century Network. But BT said it wouldn’t agree to any of this unless Ofcom commits to “rapid and significant deregulation” in the highly competitive consumer and business markets, and considers further deregulation. BT also wants Ofcom to create a stable investment environment, and to enable the incumbent to compete on a level playing field with other operators. In responses, competitors agreed with Ofcom’s call for equality of access but said they were skeptical BT will play fair. The main area of concern is the “current lack of developed thinking about implementation and delivery of a new ‘regulatory settlement,'” said the U.K. Competitive Telecom Assn. (UKCTA). BT could “make small movements” toward a settlement while “continuing to prevaricate and delay,” the group said. The industry can’t afford to “sit through months of talks while competition continues to be harmed thought the marked lack of equality of access on BT’s key bottleneck wholesale products,” UKCTA said. Cable & Wireless (C&W) also questioned BT’s intentions, saying unless Ofcom continues its “robust direction” over the incumbent now and in the future, “BT will continue to be able to inhibit choice and prolong the unsustainable structure of the fixed telecom industry from which only they benefit.” C&W detailed 9 provisions it said should be part of any settlement agreement. If the settlement doesn’t include every point, it said, Ofcom should send the matter to the Competition Commission.
Europe must “restart the dynamism” of its economy if it wants to meet its goal of becoming the world’s most competitive knowledge-based society by 2010, European Commission (EC) Pres. Jose Barroso said Wed. He unveiled a report, approved by the EC, that calls for a focus on growth and employment to meet the so-called Lisbon Agenda goals. Europe’s mobile and telecom sectors welcomed the revamped strategy and used Barroso’s announcement to press for roll-back of sector-specific regulations.
The collision between broadcasting and the Internet may make online content regulation necessary, the head of the U.K.’s media regulator said last week. A “challenge for policymakers will arise at the point where the boundaries between traditional media and Internet-based content truly blur,” said Office of Communications (Ofcom) Chmn. David Currie. Although Ofcom’s reach doesn’t now extend to the Internet, it will begin looking soon at regulatory issues raised by content becoming available over a range of platforms, Currie told an Internet Services Providers’ Assn. (ISPA) U.K. parliamentary advisory forum in London.
A European Parliament (EP) committee will scrutinize the European Commission’s (EC’s) proposal to force communications service providers (CSPs) to retain Internet and telephone traffic data for law enforcement agencies, officials said. The Committee on Civil Liberties, Justice & Home Affairs (LIBE) will have its first exchange of views Jan. 31 on a working paper on the controversial directive, said rapporteur Alexander Alvaro, a German member of the Alliance of Liberal & Democrats for Europe group. One issue is the legality of the procedure under which the directive is being handled, Alvaro said. That could end up in court, he said.