April 26, 2024

Fortified European Telecommunications Regulator Has Potential to Wield Real Power

THE HAGUE — A little more than a month ago, the European Union got a newly empowered telecommunications regulatory agency with the potential to exercise real clout. Not that many seem to have noticed.

On May 25 that agency, made up of telecommunications regulators from each country in the 27-nation bloc, received the power to police its members and press recalcitrant colleagues to follow European law or risk having national decisions overturned.

But so far the agency, called the Body of European Regulators for Electronic Communications, or Berec, has had little opportunity to flex its new muscles. No test cases have been brought before it, and none are in sight.

And that is no accident. Before May 25, the same regulators who sit on its board swamped the European Commission with decisions for review, some favoring former monopolies, to avoid Berec’s scrutiny.

“The commission was flooded with national market regulations,” said Chris Fonteijn, Berec’s elected chairman and the chairman of the Dutch telecommunications regulator, OPTA. “Everyone has been so mindful as to lodge and notify their decisions just prior to 25 May.”

Since that date, Europe’s revitalized telecommunications regulator has enjoyed, theoretically at least, the ability to wield greater influence in national markets. But the big question, experts say, is whether the body will be paralyzed by political self-interest or emerge as a forceful, independent voice that brings into being a harmonized single telecommunications market.

Skeptics are not hard to find.

“If you believe in pan-European regulation, this is a poor second choice to having a strong, single E.U. telecom regulator,” said John Delaney, an analyst in London for IDC, an industry research firm. “You have that inherent tension between the agendas of the national regulators and those of Europe, and a high hurdle for taking mandatory action.”

But others express greater optimism. Fabio Colasanti, who was the top civil administrator of the European Commission’s telecommunications arm from 2002 through March 2010, said Mr. Fonteijn’s prodding and the urgent need to develop a common European approach would lead to better oversight.

“I am confident that further progress will take place,” said Mr. Colasanti, who is president of an industry research body, the International Institute of Communications, based in London. “With the necessity to take a position on cases where the commission has doubts on the proposed remedies, the interaction among regulators will become more intense.”

Differing national agendas, and differing interpretations of E.U. rules, have done much to ensure that the European Union’s single market in telecommunications, despite its nominal unity, remains a patchwork of fragmented markets separated by a system of roaming charges that discourages more aggressive cross-border competition.

The wish to break that parochial impasse, and unlock the potential of the Union’s single market, is the reason European lawmakers created Berec in 2009, said Mr. Fonteijn, an affable, 56-year-old lawyer who grew up in The Hague.

Since 2005, he has overseen one of the most competitive national telecommunications markets in Europe, with three telecommunications and two cable TV operators selling broadband Internet and phone service.

Berec’s reinforced powers, Mr. Fonteijn said, will make it harder for individual countries to flout E.U. law.

“People understand that it is no longer a matter of choice to be completely doing their own thing,” he said during an interview in his office off the central plein, or square, that is home to the seat of the Dutch government.

“There is simply a need and a necessity to come to a decision jointly,” he added. “I really believe that the vast majority of members simply understands that there is no future in anything else.”

Article source: http://www.nytimes.com/2011/07/04/technology/04telecom.html?partner=rss&emc=rss

Dutch Lawmakers Adopt Net Neutrality Law

BERLIN — The Netherlands on Wednesday became the first country in Europe, and only the second in the world, to enshrine the concept of network neutrality into national law by banning its mobile operators from blocking or charging consumers extra for using Internet-based communications services like Skype or WhatsApp, a free text service.

The measure, which was adopted with a broad majority by the lower house of the Dutch Parliament, the Tweede Kamer, will prevent KPN, the Dutch market leader, and the Dutch units of Vodafone and T-mobile, from blocking or charging for Internet services. Its sponsors said that the measure would pass a legal review in the Dutch Senate without hitches.

Analysts said that the legal restrictions imposed in the Netherlands could shape Europe’s broader, evolving debate over network neutrality, pushing more countries on the Continent to limit operators from acting as self-appointed toll collectors of the mobile Internet.

“I could also see some countries following the Dutch example,” said Jacques de Greling, an analyst at Natixis, a French bank. “I believe there will be pressure from consumers to make it clear what they are buying, whether it is the full Internet or Internet-light.”

Advocates hailed the move as a victory for consumers, while industry officials predicted that mobile broadband charges could rise in the Netherlands to compensate for the new restrictions.

“We support network neutrality,” said Sandra de Jong, a spokeswoman for Consumentenbond, the largest Dutch consumer organization, based in Den Haag. “We don’t think operators should be able to restrict the Internet. That would be a bad precedent.”

Luigi Gambardella, the executive board chairman of the Brussels-based industry group, the European Telecommunications Network Operators’ Association, warned that the Dutch legislation could deter operators from making needed investments in high-speed networks for fear of building expensive but unprofitable infrastructure.

“Any additional regulation should avoid deterring investment or innovative business models, leading to a more efficient use of the networks and to creating new business opportunities,” Mr. Gambardella said. He said operators needed the ability to charge different tariffs for different levels of service, to recoup the costs of data-intensive applications.

Operators could still offer a range of mobile data tariffs with different download speeds and levels of service, but they would not be able to tie specific rates to the use of specific free Internet services.

Under the law, Dutch operators could be fined up to 10 percent of their annual sales for violations by the national telecom regulator, OPTA.

Patrick Nickolson, a spokesman for KPN, said that the legal change could lead to higher broadband prices in the Netherlands because operators would be limited in their ability to structure differentiated data packages based on consumption.

“We regret that the Dutch parliament didn’t take more time to consider this,” Mr. Nickolson said. “This will limit our ability to develop a new portfolio of tariffs and there is at least the risk of higher prices, because our options to differentiate will now be more limited.”

Stephen Collins, the head of government and regulatory affairs at Skype in London, applauded the move by the Dutch lawmakers.

“Skype welcomes the sensible and fair approach the Dutch parliament has adopted today,” Mr. Collins said. “It sets an example for other countries in Europe and elsewhere to follow.”

Bruno Braakhuis, a Dutch legislator from Haarlem who was the original sponsor of the legislation, called the adoption a victory for Dutch consumers.

“For us, this is really a basic right. We consider network neutrality to be as important as freedom of the press, freedom of speech,” Mr. Braakhuis, a member of the Dutch Green Left Party, said.

The Dutch restrictions on operators are the first in the 27-nation European Union. The European Commission and Parliament have endorsed network neutrality guidelines but as yet have taken no legal action against operators that block or impose extra fees on consumers using services like Skype, the voice and video Internet service being acquired by Microsoft, and WhatsApp, a mobile software maker which is based in Santa Clara, California.

Sanctions may be coming, however.

Article source: http://www.nytimes.com/2011/06/23/technology/23neutral.html?partner=rss&emc=rss