1. EU policy for electronic communications: what does it mean for Turkey
EU policy for electronic communications: what does it mean for Turkey? Richard Harris, DG Information Society
IKV 2004
Ankara, 20th October 2004

2. Agenda The context From the 98 framework to the New
Preparing for accession
Monitoring the markets
Technology neutrality and universal service
Harmonisation and implementation
One current issue - broadband

3. Context – 1980s telecommunications sector
Sea of technology
Monopoly no longer a viable model for telecommunications
US market opened by anti-trust decisions
UK market opened by legislation
European Court of Justice decisions
The electronic communications acquis rests on this
EU Green Paper on telecommunications policy 1987

4. Context – 1990s telecommunications sector
Liberalisation of telecomms had already begun
The “Information Society” gained currency
GSM and Internet technology arrived
Remaining EU monopolies abolished 1st Jan 1998
GATS was made, including the telecomms annex
For C&EE telecomms the rate of change was huge

5. Context – 2000 telecommunications and IT
Lisbon agenda - eEurope action plans
Third generation mobile technology arrived
The Internet bubble burst
2002 package, designed for an open market
10 new members joined the EU 1st May 2004
Slow progress in Turkey

6. From the 1998 package to the New
1998 designed to open markets that were dominated by a few privileged operators
2002 designed to consolidate a market where competition had taken root
Regulation must be reduced where possible
Vital transitional provisions - Article 27 of Framework Dir
Technological neutrality - see later
Harmonisation measures - see later

7. Article 27 of the Framework Directive (transitional provisions)
Member States shall maintain existing notifications for the purposes of LLUB and all obligations under national law referred to in Article 7 of Directive 2002/19/EC (Access Directive) and in Article 16 of Directive 2002/22/EC (Universal Service Directive) until such time as a relevant determination is made by a national regulatory authority in accordance with Article 16 of this Directive.

8. Article 27 of the Framework Directive (transitional provisions)
Article 7 of Directive 2002/19/EC (Access Directive) deals with rights and obligations between operators and refers back to specific articles of the earlier interconnection, voice telephony and leased lines directives.
Article 16 of Directive 2002/22/EC (Universal Service Directive) deals with rights and obligations between operators and end-users and refers back to regulation of retail telephony tariffs, carrier selection and leased lines under the earlier directives.

9. Preparing for accession
Abolition of monopolies in line with treaty obligations or with GATS - whichever is sooner.
Implementation of market opening and of an effective regulatory regime.
Full transposition and implementation of the acquis before accession.
Promotion of knowledge based economy.
Use of EU aid programmes where needed.

10. Monitoring the markets
Monitoring of regulatory aspects for 13 candidates is available as a multi-client commercial service.
Monitoring of commercial aspects was done for two years under a special contract for 13 candidate countries.
Monitoring for the present 8 candidate and potential candidates will start soon under a special contract.
Similar work is in hand under the MEDA program and analogous possibilities exist for other neighbouring countries and for Russia

11. Telecommunications market indicators
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

12. Telecommunications market indicators
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

13. Telecommunications market indicators - 30/6/2003?
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

14. Telecommunications market indicators - 30/6/2003
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

15. Telecommunications market indicators - 30/6/2003
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

16. Regular report
There is a certain level of alignment with the acquis.
Full market liberalisation was achieved at the end of 2003 in legal terms.
Further efforts are essential to complete the regulatory framework and to implement and enforce the rules in relation to the large powerful companies.
The progress achieved in some markets, such as mobile telephony or internet service provision, could not be achieved in all telecommunication services.
Turkey needs to take further steps in order to achieve genuine competition in all telecommunication markets.

17. Technological neutrality
The 2002 regulatory framework applies regardless of the technology involved.
This means that mobile operators can be regulated just as heavily as fixed operators.
Another consequence of this is that radio technology can be used for basic fixed access.
Where fixed penetration is low, this could be very significant, especially for GSM operators and radio based broad band services.

18. Harmonisation measures
To discourage fragmentation in the EU market.
Two kinds of measure:
Notification of certain decisions to Brussels.
Groups, committees and consultation between NRAs.
Non EU countries not fully part of this.
Solution needed for prospective EU members and for other countries that choose the EU regulatory framework.

19. Implementation issues
Commission as guardian of the Treaty
Specific notification deadlines.
Continuous review of the transposition and implementation of the Directives by Member States. Dialogue, complaints.
Public hearings.
Annual report in November.
Infringement proceedings.
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

20. Implementation issues
New Regulatory Framework of 2002
Built on the foundations of the 1998 package
Effective implementation of 1998 is a pre-requisite for the NRF
Transitional provisions in Article 27 of the Framework directive, maintain key parts of the 1998 package in force until reviews have been made under Article 16
Notified to EU candidate countries in July 2002
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

21. Implementation issues
Framework Directive
explicit impartiality of NRAs and independence from operators
attribution of NRA tasks between different national bodies not always clear
give the NRA the full range of powers contemplated by the framework
fix a reasonable time limit for carrying out the first market reviews
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

22. Implementation issues
Authorisations directive
conditions attached to general authorisation clearly defined in law
procedures for granting rights of use of radio frequencies must respect the principles of transparency, non-discrimination, etc.
no unnecessary limits may be imposed on the number of rights of use
existing limitations on the number of rights of use of frequencies must be reviewed
the NRA must make adjustments to balance administrative costs and charges and publish a yearly overview
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

23. Implementation issues
Access directive
law should not predetermine the obligations on SMP operators without regard to market conditions
law should not limit the NRA’s power to impose particular obligations on SMP operators
NRA should be empowered to ensure that RIO’s contain the minimum elements
NRA must be empowered to intervene on its own initiative where necessary
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

24. Implementation issues
Universal service directive
full range of US elements must be included
no operator may be excluded by law from having US obligations
US requirements must be neutral with respect to competition
Rights of end-users must be fully transposed
Obligations may not be imposed in a retail market unless the NRA considers wholesale remedies insufficient
eEurope 2002 set out to accelerate progress in the legal framework on, for example, telecoms and e-commerce and to re-orient financial instruments such as the R&D programmes.
We also defined a set (23) of indicators for benchmarking, in order to track progress in topics ranging from the price of Internet access to the development of e- Government.
The eEurope Benchmarking report that was adopted last week by the Commission is the first comprehensive reporting on these indicators.
The idea of eEurope was to set clear targets with equally clear deadlines to be achieved by the end of 2002.
Has this idea worked?
I think it has. Let me give you a few examples:
The new telecoms package, as well as the regulation on unbundling the local loop, have been rapidly adopted. This has been a substantial success and will generate improvements for both consumers and the industry in Europe.
A light, but effective, legal framework on e-commerce that should ensure predictability and enhanced security in this field.

25. What does this mean for Turkey?
Turkish policy is being overtaken by events – political courage is now required.
The need is to secure an orderly transition to a fully liberalised regime quickly.
Without this, the wider economy will suffer.
Vital that the resources and energies of Turk Telekom are harnessed more effectively.
EU rules apply in exactly the same way both to state owned and to privately owned companies.
Privatisation is not a requirement of EU rules but full liberalisation is required.

26. What does this mean for Turkey?
Above all, remember:
That a liberalised telecommunications sector is not an end in itself
It is the most important building block of the Information Society
When EU ministers meet, they no longer discuss liberalisation – it is history
They discuss spam, IPRs, eGovernment, security and how to promote broadband access

27. Broadband Why is the EU involved in broadband? What is it doing?
What progress is there?
Conclusions

28. Why is the EU involved? Concern about economic growth
Concern about competitiveness
Concern about exclusion

29. What is the EU doing? Liberalisation of telecommunications
One framework – many situations
eEurope action plans – Lisbon
Education
Content
Trust and confidence
National broadband strategies
Common elements of strategies
Supply side policies
Demand side policies

30. National broadband strategies
Supply side policies
Importance of competition
Extending coverage to under-served areas
Monitoring the market
Research and development
Demand side policies
Aggregation
Open and inter-operable services
Intellectual property
Trust and security

31. What progress is there?
See the following five slides

32. Broadband penetration rates – EU15

33. Broadband penetration in the New Member States (January 2004)

34. Broadband take-up by technology in the EU15 - July 2002 to January 2004

35. Facility-based competition (January 2004)

36. DSL and cable modem coverage in the EU15 (December 2003)

37. Conclusions Growth of broadband has accelerated
Wide differences between countries
Most growth is in DSL and cable
Other technologies are in evidence
Competition stimulates growth
Only rural areas have low accessibility
Scope for increased take-up is high

38. Thank you for your attention
For more information:
See - Europa web-site
Both benchmarking and promoting best practices are central to the eEurope 2005 approach.
Benchmarking was pioneered in eEurope The focus is measurable outputs. The process involves:
defining and then using a series of indicators to measure the development of the Information Society,
and then reflecting the findings in policy.
To ensure we are comparing like with like, the Commission will propose a legal basis for European Information Society statistics before the end of the year.
The benchmarking results will also help us identify best practices.
The analysis and dissemination of these best practices is critical to ensure that, for example, the many hundreds of local authorities across Europe do not all reinvent the local e-government wheel.