Transcript Title

Towards a Connected
Continent
Robert Madelin
Director General DG CONNECT
NMHH Conference on investment in the telecom sector
Budapest, 4 December 2013
The Connected Continent Proposal is
important, but it is not the full story
Big Data
Data
protection
(Snowden)
CEF
Connected Continent
Regulatory
framework
End-user rights
Single
Authorisation Access
Net Neutrality products
Spectrum
Remedies
Consistent
Regulation
Proposal
Universal
Service, eprivacy
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Neelie Kroes (18 Dec. 2012):
Focus on Growth and Jobs
"The digital economy is
growing at seven times the
rate of the rest of the
economy, but this potential
is currently held back by a
patchy pan-European
policy framework. "
"2013 will be the busiest
year yet for the Digital
Agenda. My top priorities are
to increase broadband
investment and to
maximise the digital sector's
contribution to Europe's
recovery."
Connected Continent package
• The Communication: Commission's vision for a
Single Telecoms Market
• The costing and non-discrimination
Recommendation
• Proposal for a Regulation concerning the EU
Telecoms Single Market + Impact Assessment
Aims of the proposal
• Contribute to a single market based on freedoms of providers
and consumers to act across borders, leading to gradual market
integration
• Build on solid foundations of current legislation with focused
measures against identified barriers
• Maintain market regulation based on competition principles
• Safeguard open Internet, while leaving space for innovation
• Enable benefits of economies of scale to be passed to
consumers without prejudicing efficient operators of any
size
• Minimal governance changes to ensure collaborative, strategic
European approach
Content of the proposal
1. Single consumer space
 Harmonised end-user rights and easier switching
 Open Internet: net neutrality
 Phasing out roaming
2. Single EU authorisation
 Simplified regulation
regulatory conditions
and
enhanced
convergence
3. European inputs for high-speed broadband
 Wireless: spectrum coordination; facilitating small cells
 Fixed: European virtual access products
of
Balance: single vs. national market
1. Commission
1. Member States
• Aims to achieve the right
balance between the need to
ensure regulatory consistency
and the respect of national
competences in accordance
with the subsidiarity principle.
•
Remain responsible for regulating
the
provision
of
electronic
communications
services
and
networks and the use of spectrum
resources in their territories.
•
Conditions set by the host Member
State
concerning,
emergency
services, network security and all
other conditions applicable to the
operations
of
electronic
communications providers are not
affected.
• Envisages mechanisms that
facilitate
day
to
day
coordination
of
regulatory
measures, rather than shifting
decision-making
competences.
Effective legal certainty
• The regulation ensures the removal of single market barriers by
complementing the existing regulatory framework.
• Specific, directly-applicable rights and obligations for
providers and end users.
• A truly common approach to avoid divergent national solutions
• Has immediate effects in the market once adopted, thus it
provides for legal certainty.
• No replacement for full review of the existing regulatory
framework, on which preparations will soon start for the next
Commission mandate.
Pro-competitive elements
• Remove administrative barriers to entry and expansion
• Clearer legislative basis for market analysis
• Entry, expansion and efficient investment facilitated by common
European fixed virtual access products
• Objective competition test for certain spectrum conditions
• Enable greater wireless competition through provisions
favouring small cells and federated WiFi networks
• Incentivise operators to internalise roaming costs and pass on
« on net » advantage to consumers
• Easier cross-border integration, but no undue advantages for
consolidation – efficient smaller operators can prosper
Pro-investment elements
• Competition remains a main investment driver
• Stable fixed investment conditions through Recommendation on
Costing & non-discrimination
• Access regulation to consider quality and choice as well as price
at retail level
• High-quality virtual unbundling product to encourage Altnet
network investment where appropriate
• Spectrum coordination to ensure predictable investment
timetable
• More common sector-specific rules throughout Europe
• Openness to innovative online business models based on assured
quality
Investors' reactions
• The package regarded generally as positive for the industry and
investment in connectivity
• Proposal's potential to enhance product and service innovation
• Greater coordination of remedies very positive for investment
• Net neutrality provisions seen as balanced & acceptable
• Spectrum coordination mostly beneficial, also in short term
• Simplification of Wi-Fi conditions & removal of administrative
burdens for small cells beneficial in the medium to long term
A Connected Continent will bring:
Growth & jobs
•
•
•
•
5% on GDP = €1500 per person
2 million jobs
€110 billion GDP growth / year
€300 billion saving on public services
Better productivity
•
•
•
•
Savings from pan-EU telecoms providers
A secure cloud
Top-quality videoconferencing
World-class digital infrastructure
Real benefits for citizens
•
•
•
•
More choice & more telecoms offers
Phasing
out
unfair
charges
when
communicating across borders
A full open Internet
Easier & more efficient public services
A stronger telecoms sector
• Consistent rules, regulators & remedies
• Cross-border business boost
• Stable, consistent investment climate
Brighter prospects for SMEs & start-ups
• Operators can't block or throttle
• A home market that is fully connected
• Wireless services & devices that work perfectly
across the EU
EU-level broadband funding
• 2014 - 2020: ICT a priority under the European Structural and
Investment Funds
• Connecting Europe Facility (CEF): Some complementary EU
support by means of financial instruments (credit enhancement
for loans and principle of risk sharing with the EIB). The financial
endowment is 150 mEUR for 2014-2020. The EC/EIB debt will
leverage additional private sector investment.
• Currently project bonds pilot – open for project proposals.
Project bonds will also be funded under CEF.
• Expanded greater EIB lending activity in ICT/broadband
following capital increase
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