The big telecoms operators have not yet adopted a firm position on the Commission’s public consultation on universal service, i.e. basic telecommunications services like telephone directories, access to a fixed line and public pay phones. One thing is certain, though: they want a reform that implies fewer obligations. They have misgivings about the inclusion of broadband internet in the Universal Service Directive, a possibility the EU executive is considering (see Europolitics 3930).

“Universal service is not really the right scheme for broadband for all as technological progress continues,” said Michael Bartholomew, Director of ETNO, the European association that represents the former telecoms monopolies, at a meeting with the press on 12 March in Brussels. In his view, the public consultation on the 2002 universal service directive should allow for a review of what constitutes basic services today in a context of technological developments and strong competition between operators.

According to the Commission’s figures, “60 million Europeans are not connected to internet,” pointed out Bartholomew, but he sees this not as a problem of access but rather as one of motivation and interest. “Demand has to be stimulated,” he insisted, calling for concrete measures, both private initiatives to improve knowledge and public measures such as education on the internet and access to online public and health services.

“ISOLATED REGIONS”

The fact remains that the incumbent operators are not ready to take losses on investments in the deployment of optical fibre networks. Such deployment is a “tremendous challenge for us” in a context of shrinking growth, loss of income on voice services and strong competition, “especially because we don’t know what demand will be”, explained Bartholomew. His association calls for VAT cuts to “encourage the use of telecoms services”.

Asked by Europolitics about low broadband coverage in rural areas in the EU, Bartholomew replied: “Fibre is very expensive. Urban areas will be connected first.” He added: “We would like to see all of Europe connected, but there is no strong economic motivation for isolated regions.” As a result, these should make do with public-private partnerships and financial support through the Structural Funds and state aid. In any case, the deployment of optical fibre “will be much more gradual in such areas”, according to ETNO. The association suggests the use of wireless internet connections, which could be more appropriate and less costly.

An average of 93% of Europeans could access broadband internet at the end of 2008 but 23% of rural populations did not have access. The Commission is therefore seeking the views of the sector – in its public consultation that will run until 7 May – on the advisability of adding broadband internet to the service obligations imposed on telecoms operators and on policies to be developed in support of inhabitants of rural and isolated areas or low-income persons. A conference will be held on the subject, on 30 March, in Brussels.

To date, the EU executive has not considered broadband internet and mobile services to be basic services.

Background

Under the 2002 Universal Service Directive, member states must guarantee that all citizens, irrespective of their geographical location, can connect to the public telephone network and access public telephone services allowing voice communications and data transmission via a basic internet access. This therefore involves service providers for telecoms operators. Consumers must also have information and directory services, public pay phones and specific measures if they are disabled.