Identity_ Nationalism and Cultural Policy in Europe

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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

  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
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

  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

                                                                        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
     - 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
     - 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

  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…
  Universal service…
  Provision of an electronic communications network…
  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

  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

                                                                               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

  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
  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
  – 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
  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
  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 -

  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

  We will be finished around 11.30

                                                                          28-06-2011 · 21