Revision of the Recommendation on the Relevant Markets: Rapidly changing market and technology realities call for more targeted regulation

Date

09 Jan 2013

Sections

InfoSociety
Innovation & Enterprise

Press release

BRUSSELS – As the new recommendation on relevant markets will identify the markets susceptible to regulation by national regulators up to 2020, the review should be forward looking and not only reflect today’s market changes but also anticipate rapidly evolving technologies and consumer habits, says ETNO in its response to the EC open consultation closing today.

“This review offers an opportunity to make another bold step towards the deregulation of the sector which is essential to unlock investments that are indispensable for meeting the policy goals of the Digital Agenda. The new recommendation should reflect the new regulatory paradigm for broadband investment announced by Vice President Kroes and take into account new market

developments that should determine the scope of regulation for the years to come”, says Luigi Gambardella, ETNO Executive Board Chair.

“In line with increased competition on the markets and rapid technological evolutions, the revision of the recommendation on relevant markets should not only lead to a reduction of the number of regulated markets. It should also imply a fundamental change in the way regulation applies to wholesale broadband markets”, says Daniel Pataki, ETNO Director.

For ETNO, the main changes to the recommendation should include:

- A reduction of the number of markets, in particular the retail market for access to the fixed telephone network (market1): no competition issues are observed on this market where fixed telephony is increasingly subject to competition from mobile networks and consumers increasingly use online Over the Top services over broadband networks to keep in touch.

- A new approach to wholesale regulation of broadband networks which takes into

account all competing platforms at retail level (including cable and next generation

mobile networks), in accordance with the principle of technological neutrality.

National regulators should also be asked to analyse geographical differences within a national market, in order to focus regulation on uncompetitive areas.

- ETNO sees no need for adding new markets (such as IP transit or SMS termination) to the list of relevant markets.

For more information, please contact: Thierry Dieu, ETNO Director for Communications and Public Policy

Tel: (32-2) 219 32 42 Fax: (32-2) 219 64 12 E-mail: dieu@etno.be

ETNO’s 37 member companies and 12 observers from Europe and beyond represent a significant part of ,total ICT activity in Europe. They account for an aggregate annual turnover of more than €600 billion and employ over 1.6 million people. ETNO companies are the main drivers of broadband and are committed to its continual growth in Europe.

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