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Mobile Communication - Regulation
Mobile Communication –
Design, Business and Social Context
MA, PhD - Assistant Professor Bjarki Valtysson
Digital Culture and Mobile Communication
28-06-2011 · 1
Mobile Communication - Regulation
3 x regulation
07.09.2010 – Macro perspective:
What is regulation? – Why regulate? – Different approaches /
Consequences of regulation
14.09.2010 – Meso perspective:
Europe – EU Directives on the regulatory framework of electronic
communications
21.09.2010 – Micro perspective:
Denmark – What to be aware of (from a regulatory perspective) when
developing a mobile phone company in Denmark - Visit to the National IT
and Telecom Agency
28-06-2011 · 2
Mobile Communication - Regulation
Today’s programme
A few words on EU and its institutional path….
EU’s regulatory framework for electronic communications
- Directive 2002/21/EC
- The rest of the Telecommunications Package (Authorisation Directive; Access
Directive; Universal Service Directive; Privacy and Electronic Communications
Directive; and the Radio Spectrum Decision)
Amending acts: Regulation (EC) No 717/2007; Regulation (EC) No 544/2009 and
the latest Directive 2009/140/EC which has entered into force but the deadline
for transposition in the Member States is 25.5.2011
Two communications on progress in the single European electronic
communications market (14th and 15th reports)
Regulation (EC) No 1211/2009 establishing the Body of European Regulators for
Electronic Communications (BEREC) and the Office
…showing the institutional path…
28-06-2011 · 3
THE FIELD OF
CULTURAL/COMMUNICATION/MEDIA POLICY
Mobile Communication - Regulation
European Union – Democratic deficit or a dream world?
The EU Triangle:
- European Commission (looks after the interests of the Union);
- European Parliament (the voice of the people; did you vote?)
- The Council of the European Union (represents the voice of the member
states)
From the viewpoint of communication/media/cultural policies, two other
institutions are of importance:
- Committee of Regions (CoR)
- The European Economic and Social Committee (EESC)
The institutional path of the newly amended Directive 2009/140/EC
28-06-2011 · 5
Mobile Communication - Regulation
Directive 2002/21/EC
Acknowledges that opening up telecommunications markets to competition
has been successful
The Directive is meant to follow up on this by adopting legislation in tune with
technological progress and market requirements
The main aim of this regulatory framework is to strengthen competition by
making market entry easier and by stimulating investment in the sector
This Directive is the umbrella in the big Telecommunications package that also
contains the Authorisation Directive, the Access Directive, the Universal
Service Directive and the Privacy and Electronic Communications Directive
28-06-2011 · 6
Mobile Communication - Regulation
The Directive’s Scope and Aim
To establish a harmonised framework of regulation of electronic
communications networks and services (basic definitions, general
provisions on the national regulatory authorities and rules for granting
essential resources such as radio frequencies, numbers or rights of way)
Responding to convergence of technologies and the need for horizontal
regulation, this framework is no longer limited to telecommunications
networks and services, but covers all electronic communications networks
and services. This includes fixed-line voice telephony, mobile and
broadband communications and cable and satellite television
However, the content of services delivered over electronic communications
networks, such as broadcasting content is excluded
28-06-2011 · 7
Mobile Communication - Regulation
National Regulatory Authorities – Arm’s Length
Member States must guarantee the independence of national regulatory
authorities (NRAs) by ensuring that they are legally distinct from and
independent of all organisations providing electronic communications
networks, equipment or services
Effective national mechanisms must allow any user or provider of electronic
communications networks or services the right of appeal to an
independent appeal body in the event of disputes with NRA
Member states must ensure that NRAs exercise their powers impartially and
transparently
28-06-2011 · 8
Mobile Communication - Regulation
National Regulatory Authorities – General Tasks
To promote competition in the provision of electronic communications networks
and services:
- ensure that users derive maximum benefit in terms of choice, price and
quality;
- encouraging investment in infrastructure and promote innovation;
- encourage efficient use and management of radio frequencies and
numbering resources
Contribute to the development of the internal market:
-encourage trans-European networks and interoperability of pan-European
services;
- no discrimination in the treatment of providers
- cooperate with each other and the Commission to ensure development of
consistent regulatory practice
NRAs must promote European public interest:
-ensuring access (Universal Service Directive)
-ensuring protection of private data and privacy (Privacy Directive)
28-06-2011 · 9
Mobile Communication - Regulation
Regulatory Controls and Market Power
‘An undertaking is considered to have significant market power if it is in a
position to behave independently of competitors, customers and,
ultimately, consumers’
Market definition procedure (the Commission adopts a recommendation for
this, deciding upon what is a ‘healthy market’)
Market analysis conducted by member states with guidelines from the
Commission
If there is ‘market unevenness’, the national regulatory authorities are meant
to act
‘Standardisation should remain primarily a market-driven process’ (p. 37)
28-06-2011 · 10
Mobile Communication - Regulation
The Directive is a Jungle of Definitions
Electronic communications networks…
Transnational markets…
Electronic communications service…
Public communications network…
Associated facilities….
Conditional access system…
National regulatory authority…
User…
Consumer…
Universal service…
Subscriber…
Provision of an electronic communications network…
End-user…
Enhanced digital television equipment…
Application program interface…
…behind each of them lies a process of insanely complex negotiations…
28-06-2011 · 11
Mobile Communication - Regulation
…And So Is the Rest of the Telecommunications Package
Authorisation Directive - To harmonise and simplify the rules and conditions for
authorising electronic communications networks and services in order to facilitate their
provision throughout the Community
Access Directive - harmonises the way in which member states regulate access to, and
interconnection of, electronic communications networks and associated facilities.
Establishes a regulatory framework for the relationships between suppliers of networks
and services that will result in sustainable competition and interoperability of electronic
communications services
Universal Service Directive - To ensure the availability of a minimum set of high-quality
services that are available to all users at an affordable price, without distortion of
competition
Privacy and Electronic Communications Directive - This Directive contains
provisions that are crucial to ensuring that users can trust the services and technologies
they use for communicating electronically. The main provisions apply to spam, ensuring
the user’s prior consent ("opt-in"), and the installation of cookies
28-06-2011 · 12
Mobile Communication - Regulation
…The Amending Acts
Regulation (EC) No 717/2007 – on roaming on public mobile telephone
networks within the community
Regulation (EC) No 544/2009 – amending the other one on roaming….!!!!
…and the new Directive 2009/140/EC – which to make it just a little bit more
complex, are still two Directive, because there is another one as well –
Directive 2009/136/EC
… the former amends the common regulatory framework, the Access
Directive and the Authorisation Directive;
…while the latter amends the Universal Service and Users’ Rights and the one
on Protection of Privacy…
…on the way to fewer Directives, but the field is still rather complicated
(understatement!!!)
28-06-2011 · 13
The 2 Regulations on Roaming
• 2007 version – Article 1 • 2009 version – Article 1
• This regulation introduces a • This regulation introduces a
common approach to ensuring that common approach to ensuring that
users of public mobile telephone users of public mobile
networks when travelling within communications networks when
the Community do no pay excessive travelling within the Community do
prices for Community-wide not pay excessive prices for
roaming services when making Community-wide roaming services
calls and receiving calls, thereby in comparison with competitive
contributing to the smooth national prices, when making calls
functioning of the internal market and receiving calls, when sending
while achieving a high level of and receiving SMS messages and
consumer protection, safeguarding when using packet switched data
competition between mobile communication services, thereby
operators and preserving both contributing to the smooth
incentives for innovation and functioning of the internal
consumer choice….. market….
28-06-2011 · 14
Mobile Communication - Regulation
The New Directive – Main elements of reform I
A right of European consumers to change, in 1 working day, fixed or mobile
operator while keeping their old phone number (today this takes on an
average 8.5 days with mobile and 7.5 days for fixed number)
Better consumer information (what people are subscribing to)
Protecting citizens' rights relating to internet access by a new internet freedom
provision (respect the fundamental rights and freedoms of citizens, as they are guaranteed by the
European Convention for the Protection of Human Rights and Fundamental Freedoms)
New guarantees for an open and more ‘neutral’ net (national telecoms authorities will
have the powers to set minimum quality levels for network transmission services so as to promote
"net neutrality" and "net freedoms" for European citizens)
Consumer protection against personal data breaches and spam (the new rules
introduce mandatory notifications for personal data breaches – the first law of its kind in Europe)
Better access to emergency services, 112
28-06-2011 · 15
Mobile Communication - Regulation
The New Directive – Main elements of reform II
National telecoms regulators will gain greater independence (eliminating political
interferences in day-to-day duties
A new European Telecoms Authority that will help ensure fair competition and
more consistency of regulation on the telecoms markets (BEREC)
A new Commission say on the competition remedies for the telecoms markets
(the Commission gets the power to oversee regulatory remedies proposed by national regulators, to
issue recommendations that requires national regulators to drop plans)
Functional separation as a means to overcome competition problems (National
telecoms regulators will gain the additional tool of being able to oblige telecoms operators to
separate communication networks from their service branches, as a last-resort remedy – stop
monopolization)
Accelerating broadband access for all Europeans (overcome the digital divide)
Encouraging competition and investment in next generation access networks (These
networks, based on new optical fibre and wireless network technologies, are replacing less efficient
traditional copper-wire networks and will allow high-speed internet connections - new rules will
also ensure telecoms operators receive a fair return on their investments)
28-06-2011 · 16
Mobile Communication - Regulation
Why Amending? – The Commission’s View
Telecoms central to our lives and work – important for economic and social
activities
Major developments since the 2002 framework including the growth in voice-
over-internet (VOIP) telephony and the uptake of television services through
broadband lines
Economy: €290 billion annual turnover 4% of jobs in the Union
Want to create even a more effective internal market (prices of telecoms services
reduced by 30% on average the last decade)
Only few operators provide pan-European services – different ways how national
regulators have implemented the framework – internal market too fragmented
The Commission’s proposal to merge the existing EU agency ENISA, in charge of
network security, with the new European telecoms body was not accepted by
Parliament and Council
28-06-2011 · 17
Mobile Communication - Regulation
Institutional Road: Main proposed amendments from the Commission
– Reforming spectrum management, in application of the Commission’s policy
approach on spectrum management set out in the Communication of
September 200512. Technological development and convergence underline
the importance of spectrum, but its management within the EU has not kept
pace with this evolution. A more flexible approach is thus needed to exploit
the economic potential and realise the societal and environmental benefits of
improved spectrum usage.
– Improving the consistency of regulation of the internal market in electronic
communications. This will be achieved by a stronger role for the Commission in
remedies imposed by NRAs, which will be combined with the close
involvement of the new Electronic Communications Market Authority in the
‘Article 7’ procedure to ensure that the joint expertise of NRAs can be
effectively harnessed and efficiently taken into account in the final Commission
decision.
– Strengthening security and integrity, for the benefit of users of e-
communications. This is essential in order to reinforce the trust and confidence
of business and citizens using e-communications.
28-06-2011 · 18
Mobile Communication - Regulation
The Two Reports
Basically a overview of the accomplishments of the Commission in the sector
The mobile market the most dynamic part of the electronic communications
sector due to increasing call volumes and the take-off of mobile broadband
Prices for mobile services falling
Prices throughout the EU vary greatly, Denmark being amongst the most
expensive (different business models, competitive conditions and
regulatory differences)
SMS account for 11% of mobile operators’ total revenues
The use of 3G services increasing, at the end of 2008 around 91,3 million
users in the EU (15.5% of the total mobile operators’ subscribers)
Still concerns regarding the independence and the effectiveness of national
regulatory authorities
Consumers and businesses are still faced with 27 different markets and are
not able to take advantage of the single market
28-06-2011 · 19
Mobile Communication - Regulation
BEREC
The Body of European regulators for Electronic Communications
Part of the December 2009 Telecom Package
Contribute to the functioning of the internal market for electronic
communications
Develop and disseminate among NRAs regulatory best practice
Assist NRAs in the regulatory field
Deliver opinions on draft decisions, recommendations and guidelines
Issue reports and provide advice on the electronic communications sector
Assist the Parliament, Council and Commission and NRAs in the dissemination
of best practices
28-06-2011 · 20
Mobile Communication- Regulation
Next time…
Field Trip to the National IT and Telecom Agency - Holsteinsgade 63 -
Østerbro
We show up at 10.00 (please be there a bit earlier…) where Christian
Østergaard Madsen will welcome us and talking mainly about the role of
the National IT and Telecom Agency and how they implement EU
regulation
We will be finished around 11.30
28-06-2011 · 21
