IIC 2009 Annual Conference, Montreal, 27 October 2009 S ession Five: Communications and Regulation – Time to Start Over? Reinald Krue ger Head of Procedures related to National Regulatory Measures Unit Information Society and Media DG The views expressed in this presentation are purely those of the author and may not in any circumstances be regarded as stating an official position of the European Commission

Outline Challenges EU Regulatory Framework Transition to “competition-law-only” Institutionalised regulatory cooperation Outlook

Challenges

EU Regulatory Framework

Transition to “competition-law-only”

Institutionalised regulatory cooperation

Outlook

Technological development Next generation access networks Mobile generations New business opportunities & strategies Winners & losers New players? Changing market structures Consolidating the internal market Challenges

Technological development

Next generation access networks

Mobile generations

New business opportunities & strategies

Winners & losers

New players?

Changing market structures

Consolidating the internal market

Technological neutrality: what counts? Substitution Competitive situation in the market Sector-specific regulation: when & for how long? in relevant markets meeting specific criteria In-built transition to “competition-law-only scenario” Transition issues EU Regulatory Framework (1)

Technological neutrality: what counts?

Substitution

Competitive situation in the market

Sector-specific regulation: when & for how long?

in relevant markets meeting specific criteria

In-built transition to “competition-law-only scenario”

Transition issues

National regulators & European Commission Market analyses EU Consultation procedure (Art. 7 Framework Directive) Harmonisation procedures (Art. 19 Framework Directive) Telecoms Reform Package Independent & properly resourced national regulators EU Telecoms body (BEREC) Reinforced Commission oversight Functional separation remedy EU Regulatory Framework (2)

National regulators & European Commission

Market analyses

EU Consultation procedure (Art. 7 Framework Directive)

Harmonisation procedures (Art. 19 Framework Directive)

Telecoms Reform Package

Independent & properly resourced national regulators

EU Telecoms body (BEREC)

Reinforced Commission oversight

Functional separation remedy

Commission Recommendation on relevant markets Deregulation does take place Three criteria test Competition law to take over “ Period of notice” (Art. 16(3) Framework Directive) Challenges for national regulators Regular effective market analyses Prognoses on market developments Transition to “competition-law-only”

Commission Recommendation on relevant markets

Deregulation does take place

Three criteria test

Competition law to take over

“ Period of notice” (Art. 16(3) Framework Directive)

Challenges for national regulators

Regular effective market analyses

Prognoses on market developments

European Regulators Group (ERG) From ERG to BEREC Consolidation of the internal market Bilateral (in future trilateral) process with the Commission Market definition Market dominance (SMP) assessment Remedies Need for harmonisation procedures Recommendation on termination rates (May 2009) Recommendation on NGA (in progress) Institutionalised regulatory cooperation

European Regulators Group (ERG)

From ERG to BEREC

Consolidation of the internal market

Bilateral (in future trilateral) process with the Commission

Market definition

Market dominance (SMP) assessment

Remedies

Need for harmonisation procedures

Recommendation on termination rates (May 2009)

Recommendation on NGA (in progress)

Increase regulatory consistency with the Telecoms Reform Package Continued work on consistent regulation of key access products cost accounting & cost orientation remedies Cost base & cost methodology Commitment-driven vs. pure regulatory approach Transparent process Position of alternative operators Lifting regulation in broadband markets Small markets? Differentiation of remedies within the same market? Outlook

Increase regulatory consistency with the Telecoms Reform Package

Continued work on consistent regulation of key access products

cost accounting & cost orientation remedies

Cost base & cost methodology

Commitment-driven vs. pure regulatory approach

Transparent process

Position of alternative operators

Lifting regulation in broadband markets

Small markets?

Differentiation of remedies within the same market?

Thank you for your attention