France may be taking over an issue that is already on the table, but that does not mean the reform of EU telecoms legislation will be any less work for the French Presidency, particularly because Paris will be pushing for political agreement to be reached at the Telecoms Council, on 27 November. The European Parliament would also be keen to find compromise solutions before becoming too involved in its campaign for the 2009 elections. So much so that it has given itself a head start and in September, MEPs may change some of the more controversial elements in the European Commission’s proposal, starting with the draft European telecoms regulator.

“The European Parliament’s version is better than that of the Commission,” says one French diplomat, adding that no one in the Council is in favour of creating a ‘super regulator’ in the telecoms sector. Although they have not discussed other alternatives in detail, member states nevertheless prefer the Parliament’s proposals which include increased power for the existing European Regulators Group (ERG), made up of the 27 national regulators, whose current role is that of a simple advisor to the Commission.

But Viviane Reding, the information society commissioner, is not backing down. “We need an independent body that is stronger than today’s ERG,” she told Eric Besson, head of digital economy within the French government, in Paris on 29 May. She also invited the French Presidency to work with her and the European Parliament in defining the features of the future body, such as its political and financial independence, human resources, and a clear definition of its remit. Funding is expected to dominate the discussions because the Commission would like to use the EU budget whereas the Parliament favours a mixed budget which would be two-thirds financed by national regulators.

Emmanuel Gabla, director of information and communication technologies at the French Ministry of Economy, Finance and Industry, speaking for France, appealed for a transparent, efficient, light and non bureaucratic “architecture” made up of independent experts. This could indeed be based on an ERG strengthened by greater cooperation between national regulators, he told a conference in Bonn, on 24 and 25 April. Now, it remains to be decided whether the Commission should be given the power to adopt ‘decisions’ or ‘recommendations’ on measures taken by regulators should there be competition disputes.

The European Parliament’s rapporteurs and the majority of the member states favour the second option.

RADIO FREQUENCIES

One area where the Council has made excellent progress is the liberalisation of radio frequency management. Backing the compromise of the current Slovenian Presidency, the member states have shown themselves to be much more conservative than MEPs. They reject the joint management of certain frequency bands. Moreover, the Slovenian Presidency is placing far more restrictions than the Parliament on trading certain ultra high frequency (UHF) bands currently reserved for radio broadcasters. The Commission has in fact proposed creating a ‘secondary market’ to derive maximum benefit for the internet and mobile television from the conversion in Europe from analog to digital television. This idea may, however, be blocked by the two co-deciders which are intent on protecting radio broadcasters in the name of cultural and linguistic diversity and media pluralism. They also protest that not enough research has been done into possible interference between television and mobile services.

Reding responded with a warning against squandering these frequencies with high coverage potential and the capacity to penetrate inside buildings. “Let’s not waste this opportunity by giving in to those who wish to monopolise the UHF frequencies and refuse to see that there is room for both old and new technologies,” she pleaded, calling on France to ensure that “courage” and “foresight” win against “conservatism” and “inertia”.

In an attempt to bridge the ‘digital divide’ between towns with broadband access and rural areas which are frequently forgotten by operators, the French Presidency could in fact opt for ‘universal service’, whereby operators would be required to offer a minimum service such as telephone directories, public call boxes and the European emergency number 112. Luc Chatel, French secretary for industry and consumer affairs, has announced that he wanted to look into the “relevance of the right of access” to broadband internet facilities at affordable prices throughout the entire EU and take into account local conditions in the different member states. He would also like to examine ways to combat unsolicited canvassing via text messages and attempts at fraud on mobile telephones.

During its Presidency, France intends to lead a debate on investment into new fibre optic networks called for by former monopolies such as France Telecom and Deutsch Telekom on which they spend large sums. The Commission has not made any proposals on the issue as part of the telecoms package, but is preparing a recommendation which will clarify and secure the legal requirements for these investments “while still remaining competitive”. It plans to publish this in the autumn.

While the EU is busy looking for ways to enforce copyright regulation on the internet, France is debating the concept of a ‘calibrated response’ by which subscriptions will be cancelled in cases of repeated illegal downloading. Reding sees this as a fitting solution, whereas it was rejected by most MEPs, who voted on an own-initiative report on cultural industries with symbolic relevance in mid-April.

Finally, it should be noted that the Commission may, under the French Presidency, propose to implement a maximum price on SMS and internet data via mobile telephones in the same way as it did for telephone calls, and to keep this regulation beyond 2010.

“The European Parliament’s version is better than that of the Commission”