1. ©Ofcom EU Communications package : State of Implementation Kip Meek, Senior Partner, Content & Competition Brussels, 30 May 2005

2. ©Ofcom1 Market review progress UK completed all market reviews (except for wholesale international roaming – ongoing) Lot of continuity with previous UK regulatory requirements Reviews have allowed us to refine and update the measures – remove all regulation in mobile access & call origination – more sophisticated approach to Broadband markets – more sophisticated approach to leased line markets

3. ©Ofcom2 Assessment of Market Review process Enables regulatory decisions to be evidence based, forward looking and proportionate Is economically sound and consistent with competition law principles Allow regulation to evolve in line with market developments Promotes a degree of harmonisation and consistency within EU Overall, provides certainty for stakeholders which encourages innovation and investment But is an extended process and resource intensive for NRA and industry

4. ©Ofcom3 Issues arising Unclear how far harmonisation has progressed Need to ensure right balance to harmonised application of Framework Technical and commercial developments will be a challenge for Framework, for example: – NGNs – VOIP – 3G

5. ©Ofcom4 UK concerns Despite 20 years of liberalisation, BT still provides most infrastructure and has a very high share of narrowband and broadband access Ofcom has been reviewing it strategy (TSR). Concerns are: – evolving consumer needs – in what parts of the market is there scope for effective competition – is there scope for a significant reduction in regulation – how to incentivise efficient and timely investment in next generation networks – is the operational or legal separation of BT required to deliver a good outcome?

6. ©Ofcom5 Cooperation amongst NRAs and with Commission ERG is an Advisory Committee which promotes close co-operation amongst NRAs and with Commission Has produced a number of harmonised policy statements on key issues Art 7 process – potentially places NRAs and Commission in adversarial role – very resource intensive Need to find ways of deepening cooperation while minimising the negative effects

7. ©Ofcom6 Future evolution of regulation Ensure sufficient advance thinking on regulatory implications of strategic market developments (e.g. NGNs) Promote confidence amongst market players for new investments Work towards consensus on right approach to markets where competition is muted Promote dialogue on need for comparability in national appeals systems and national approaches to sanctions for non-compliant behaviour Work out how consumer protection policy should evolve under the Framework in line with market developments