Consumers, businesses and the EU economy as a whole are denied the full economic benefits of a truly single and competitive EU-wide telecoms market because of inconsistent application of EU telecoms rules, according to the European Commission's annual report on the Single European Electronic Communications Market.

Europe's telecoms market experienced zero growth in 2009 but fared well compared to the overall economy's 4.2% decline. Focusing on fast-growing innovative services such as mobile data services could boost the sector's future development. But inconsistent implementation of existing EU rules fragments telecoms markets along national borders, denying businesses access to a genuine Single Market.

Inconsistent regulation hinders Single Market

Major price differences still exist between Member States both at retail and wholesale level.  This situation is partly due to different regulatory approaches across the EU. Consumers and business still face 27 fragmented national markets. National telecoms regulators often delay, sometimes by years, the enforcement of EU rules.

Consistent application of telecoms rules is needed to foster the roll-out of investment-intensive infrastructure. The newly established Body of European Regulators for Electronic Communications (BEREC) will assist the Commission with its work to tackle the remaining divergences and to ensure that Member States implement the EU rules consistently.

Use of high-speed internet is growing

Average EU take up of fixed broadband per capita reached 24.8% as of January 2010 - more than 123 million lines. Denmark and The Netherlands are world leaders in broadband, with nearly 40% of the population enjoying broadband internet access. EU mobile broadband take-up almost doubled to 5.2% from January 2009 to January 2010. Growing demand for mobile broadband internet will put even greater pressure on limited radio spectrum. Higher capacity will be needed to meet the requirements of increased data traffic.

The European Digital Agenda contains specific measures to bring 100% broadband coverage for all Europeans by 2013. It foresees a Radio Spectrum Policy Programme, which will ensure that radio frequencies freed by the transition from analogue to digital broadcasting (the 'digital dividend') are available for new services, including mobile broadband.

Consumer prices falling

Prices for internet connections declined in 2009 thanks to flat rate offers and faster broadband speeds. For mobile voice calls, EU consumers paid 7% less than in 2008, withthe average price per minute falling to 13 €-cents from 14 €-cents. Consumers could switch their operator while keeping the phone number faster than before.

A press pack with the 15th Progress Report on the Single European Electronic Communications Market 2009 and EU Country summaries is available at the DG Information Society of the European Commission.