The new European Electronic Communications Code - Towards a European Gigabit Society - files.enreg.eu

The new European Electronic
   Communications Code
    Toward s a Eu rop e an G igab it Society
 Workshop zum Telekommunikationsrecht
 Institut für Energie- und Regulierungsrecht

 Berlin – 28 Juni 2018
                                    Martin Harris Hess, M.Jur (Oxon)
                                    European Commission, DG CNECT

The Code
                                                                   Main objectives

The Code helps shaping the right environment for digital
networks and services to flourish as part of the Digital Single Market

   The Code provides for a much-needed modernisation of the current EU
   telecoms rules which will:

     ü stimulate sustainable competition

     ü drive investments

     ü reinforce the internal market

     ü strengthen consumer rights

                  Political agreement reached on 5 June 2018,
         less than 2 years after the Commission presented its proposals

The Code
                                                                   New developments

Consolidation of existing legal instruments with adapted objectives
and some new focus

  •   Code consolidates various instruments of old regulatory framework -
      Framework, Authorisation, Access, Universal Service Directives
  •   BEREC Regulation remains separate legal instrument
  •   Overview of main points:
      1)   Spectrum management (enabling efficient 5G roll-out)
      2)   End-user protection (universal service and general authorisation)

      3)   Network access regulation (continuation of SMP-based regime, new
           provisions on symmetric regulation and treatment of co-investment)
      4)   Governance structure (BEREC remains largely unchanged)
      5)   Intra-EU calls (on request of co-legislators)

The Code
                                                                Spectrum Management

          Spectrum Management
 1        Lay the groundwork for the deployment of 5G across Europe
          by more coordinated and efficient spectrum management

• 20 years investment predictability and usage flexibility for long term radio
  spectrum licences for wireless broadband and clear rules for renewal of rights
• Pioneer 5G radio spectrum bands (26 GHz and 3.6 GHz, in addition to 700 MHz)
  available all over Europe in the same technical conditions by the end of 2020
• Enhanced co-ordination and peer review within RSPG of planned national
  assignments of radio spectrum across the EU
• Timely assignment of radio spectrum to the EU market after harmonisation of
  technical criteria
• Setting appropriate radio spectrum fees to encourage investments
• Facilitating shared infrastructure and spectrum usage
• Eliminating cross-border interference issues within the EU as well as with third
  countries

The Code
                                                                      End-user Protection

           End-user Protection
    2      Adaptation of current telecoms rules for stronger and
           future proof end-user protection

•   Enhance protection irrespective of whether end-users communicate through
    traditional (call, SMS) or web-based services (Skype, WhatsApp, etc.). Most end-
    user provisions, including security requirements, now apply to all services
•   Harmonise end-user protection rules at EU level to ensure a high level of
    protection wherever they are in the EU and legal certainty for operators
•   Better protection for end-users subscribing to bundles and changing provider
•   Facilitate transparency and switching potential
•   A universal service ensuring availability and affordability of broadband and voice
    communications
•   Increasing protection of citizens in emergency situations and establishing a
    system in each Member State to transmit public warnings via mobile services or
    other electronic communications services with an equivalent reach

The Code
                                                                     Access Regulation

        Access Regulation (1/3)
3       Facilitate the roll-out of very high capacity networks through
        increased competition and predictability for investment

• Principle of regulation of significant market power remains (SMP-based regime)

• Increased emphasis on access to civil infrastructure (such as masts, ducts and
  cabinets) which will lower significantly deployment costs in particular for
  smaller operators

• Fosters ability of pure access seekers to provide competitive downstream
  services à taking advantage of new network capabilities and maintaining
  competitive pressure on network operators

• Lighter regulatory treatment for wholesale-only operators à supports business
  models which ensure that service-based competition is ensured where business
  case for parallel networks is weak

The Code
                                                                    Access Regulation

       Access Regulation (2/3)
3      Facilitate the roll-out of very high capacity networks through
       increased competition and predictability for investment

• Single termination rates determined by the Commission at EU level by the end
  of 2020, eliminating current cross-border distortions

• Empower national regulators with tools to provide investment certainty in less
  attractive areas by mapping network investment intentions

The Code
                                                                     Access Regulation

        Access Regulation (3/3)
3       Facilitate the roll-out of very high capacity networks through
        increased competition and predictability for investment

• Predictable rules for lighter regulation for on co-investment of investors in new
  very high capacity networks, promoting risk sharing in building new networks

• Fostering sustainable competition through enhanced rules on symmetric
  regulation to overcome technical or economic bottlenecks, in particular for in-
  house wiring (but also beyond the first concentration point)

• Adoption of revised SMP Guidelines in April 2018 helped to break deadlock on
  Joint Dominance

• For the last two new provisions, closer supervision by the Commission and
  BEREC in order to guarantee the internal market (so-called "double-lock veto")

                                 Member States have 2 years
                              for transposition into national law

The Code
                                                                            Governance

        Governance – BEREC Regulation
4      The (not so) new institutional system

• BEREC’s two tier structure remains (no legal personality for BEREC)

• The national regulatory authorities (NRAs) and other competent authorities will
  remain responsible for applying the rules of the Code in each Member State

• Reinforcement of the independence and competences of NRAs which should
  be in charge, or at least associated, in all the core telecoms regulatory tasks

• Enhanced mandate for BEREC with additional tasks such as issuing different
  opinions and guidelines as well as supporting the Commission in exercising
  control that the new rules on symmetric regulation and co-investments are
  consistently applied across the EU

The Code
                                                                         Governance

       Intra-EU calls                 (legal instrument tbc)
5      Regulated price cap (“Eurorate”) for cross-border calls
       within the EU

• Protection from excessive prices for international (intra-EU) communications,
  i.e. calls from one Member State to another Member State

• Safeguard cap: 19 cents per call minute and 6 cents per SMS sent from home to
  other EU countries

• Legal instrument still debated

                       Separate transposition deadline envisaged:
                                         15 May 2019

The Code

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