The European Commission published on November, 7th, some new legislative texts on the EU Telecom Reform package to take account of the European Parliament vote of September, 24th, 2008 and the ongoing discussions in the Council. At the heart of the compromise texts is a new, small and independent office for Europe's Telecom regulators that should help the Commission to bring about more consistency to regulatory measures on Europe's Telecom markets.

In November 2007, the Commission made proposals for the reform of the EU Telecom rules, designed to create a Single EU Telecom Market with improved rights for consumers and businesses, more competition and investment to boost the take-up of cross-border services and wireless high-speed broadband for all.

After the agreement reached by the European Parliament and the Council on the need to strengthen the EU single Telecom market, the European Union must now move beyond this consensus on the objectives and also reach an agreement on the concrete legislative texts. According to  Viviane Reding, EU Telecom Commissioner, this is now the main concern, and with the proposed texts, the Commission aims “to facilitate the work of the European lawmakers. We have focussed on what is important and have left out what is not essential at this moment in time”.

The texts within the Telecom Reform package will be discussed in the Council of Telecom Ministers on November, 27th. The new regulatory framework is expected to become law in all 27 EU Member States by 2010.

Commission's modified proposal on the EU Telecom Reform: main elements

• The European Telecom Authority proposed by the Commission will be substantially smaller in size and competences than initially envisaged. Following the wishes expressed by Parliament and Council, it will be a lean and efficient office that will focus on Telecom regulation and have no competences with regard to spectrum or network security. In contrast to the initial Commission proposal, the European Network and Information Security Agency (ENISA) will not be merged with the new office, but continue to exist separately, as it had been requested by Parliament and Council. Independent national regulators will form the heart of the new office, which will be called "Body of the European Telecom Regulators". The Commission also accepts the Parliament's proposal that 50% of the staff of the new office can be seconded by national regulators.
• The Commission reaffirms its proposals of November, 13th, 2007 to entrench the personal and financial independence of national Telecom regulators in the reformed EU Telecom rules, a proposal that has been endorsed already by the European Parliament.
• More consistent remedies on the EU Telecom Market: The existing rules under which national regulators consult the Commission and their peers in other Member States on draft regulatory measures are strengthened to ensure a direct and efficient involvement of the new "Body of the European Telecom Regulators". In particular national regulators may be required to amend or withdraw a draft measure which both the Commission and the new office consider to create a barrier to the single market or to be otherwise incompatible with Community law.
• The modified proposal reaffirms the power of national regulators to impose, where required to overcome persistent competition bottlenecks, the remedy of functional separation. This remedy would require a dominant operator to separate its network infrastructure from its service branch (without changing the ownership structure) to improve competition in the market. This remedy can only be imposed by a national regulator with the approval of the Commission which, as "guardian of the Treaty", needs to ensure that it is used in a way consistent with the principles of the EU's Telecom rules.
• With regard to radio spectrum policy, the strategic coordination of radio spectrum policy will be strengthened at political level through a process whereby the Commission submits a multi-annual EU radio spectrum policy programme to be jointly adopted by Parliament and Council. The Commission's role in coordinating conditions and procedures relating to rights to use spectrum is now clearly focused on "pan-European services" as proposed by the European Parliament. The creation of a new advisory body for radio spectrum policy, as suggested by the Parliament, has however not been retained by the Commission, in order to avoid duplication of work with the existing Radio Spectrum Policy Group.
• Investment in new networks: The Parliament has confirmed and reinforced the existing EU rules applying to investment in high-speed broadband networks by rejecting all calls for "regulatory holidays" and promoting efficient investment in new fibre optic networks, and the Commission welcomes these important clarifications. In line with this, the Commission will give more detailed regulatory guidance on next generation access networks in 2009.
• Consumer rights: More transparency and better information, better access for users with disabilities, consumers' right to change fixed or mobile operator within 1 working day while keeping their number, as well as a more efficient 112 European emergency number, are major consumer benefits proposed by the Commission and supported strongly by the European Parliament. The Commission therefore reaffirms these consumer rights in its modified proposal. The Commission also agrees with the European Parliament about the need to ensure effective implementation of harmonised numbers of social value that begin with "116", such as the 116000 missing children hotline number. In addition, national Telecom authorities will be able to take action in order to secure minimum quality of service for internet users in order to maintain, if necessary and appropriate, "net neutrality" in Europe. The Commission's modified proposals ensure that any national requirements are set in a consistent way that does not create barriers to the internal market.
• The Commission considers Amendment 138 adopted by Parliament in its plenary vote on September, 24th, to be an important restatement of key legal principles of the Community legal order, especially of citizens' fundamental rights. It leaves Member States sufficient scope for reaching a fair balance between different fundamental rights, in particular the right to respect for private life, the right to protection of property, the right to an effective remedy and the right to freedom of expression and information.
• Data security: The Commission reaffirms the need of Telecom operators to notify regulators and the public about security breaches. The Commission reaffirms that notifications must, as a matter of principle, be sent to the individuals affected by them and that the notification procedure must remain swift, simple and effective.

Next steps on the Telecom Reform

• Meeting of the Council of Telecom Ministers on November 27th, to debate such texts.
• The vote in second reading in the European Parliament is scheduled for April 2009.
• The public consultation on the future of ENISA, open until January, 9th, 2009.