The rapporteurs in the European Parliament for the telecoms package are determined to find a solution before the end of this term (mid-2009) to push the European Commission into dialogue and to rouse the Council.

“We think that this package is one of the main subjects that the EP will work on until the end of the term (there is also an energy package). Because today telecoms make up a large part of EU growth, with 250 million Europeans connected to the internet,” said Catherine Trautmann (PES, France), who is responsible for the draft framework directive, on 23 April in Strasbourg, in the margins of the plenary session. “However, access is still not optimal everywhere,” she added.

After the vote in the different EP committees, particularly industry, the EP wants to have “as strong a position as possible with the bases for a compromise” to be able to hold a discussion with the Council.

As Europoliticsannounced (3512), the EP should heavily modify the proposal for a European telecoms authority. “We want greater balance in the competences between the Commission, the new Body of European Regulators in Telecoms (BERT) and national regulators,” summarised Trautmann.

The ‘super regulator’ (EECMA) that the Commission wanted to equip with an anti-cyber attack cell is removed and replaced with the BERT, an improved European regulators’ group.

“The main idea of my report, which gained the agreement from the large political groups on its options, is the creation of a new authority based on the idea of European regulation,” explained Pilar Del Castillo Vera (EPP-ED, Spain). For her, the EECMA carried a “risk of excessive bureaucracy,” encroachment on national competences and a “slowdown in the regulatory system”. The anti-cyber attack cell has also been removed. Furthermore, “the Commission’s message contradicts the general request to urgently have, in the telecoms field, a more regulated but also more competitive market”.

According to general opinion, the EECMA will not overcome the obstacle that the Council represents.

“At present, the big discussion is to find the budget for this new body and to arrive at a common legal viewpoint on the issue,” added Trautmann. Ultimately, telecoms are supposed to fall under EU competition law. The European Telecommunications Network Operators Association (ETNO) demands a review clause or termination clause which would send a “positive signal to investors”.

Second point: the proposal to reinforce the Commission’s power that Trautmann torpedoed and replaced with an arbitration system to be shared between the EU executive, the BERT and national regulators. Put simply, she explained, the Commission’s proposed veto on a remedy selected by a national regulator to overcome a competition problem has been removed. It has been replaced with a ‘reflection period’, which will be used in cases where the Commission disagrees with the remedy because it believes that it is not adapted or is contrary to EU law. Therefore, over two months, the Commission, the BERT and the national regulator can negotiate to find a more suitable remedy. During this time, the BERT votes on its opinion by simple majority. And, if, like the Commission, the body does not agree with the remedy, the regulator will have three months to amend its remedy – and to notify the authorities again – or to withdraw it. If the BERT gives its approval, the regulator will have to take into account its comments as well as those made by the Commission.  The Commission and the BERT will have to give their green light to the functional separation of incumbent operators.

Much to ETNO’s satisfaction, Trautmann believes it is “indispensable” for companies to be urged to invest more securely, particularly in new fibre optic networks. She encourages geographic segmentation, in other words the possibility for the national regulator to focus its action wherever competition is lacking.

Key dates

16 June: vote on the reports (framework directive and EECMA) in the Industry Committee

7-11 July: first reading vote in plenary