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Towards a Connected Continent Robert Madelin Director General DG CONNECT NMHH Conference on investment in the telecom sector Budapest, 4 December 2013.

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Presentation on theme: "Towards a Connected Continent Robert Madelin Director General DG CONNECT NMHH Conference on investment in the telecom sector Budapest, 4 December 2013."— Presentation transcript:

1 Towards a Connected Continent Robert Madelin Director General DG CONNECT NMHH Conference on investment in the telecom sector Budapest, 4 December 2013

2 2 The Connected Continent Proposal is important, but it is not the full story Connected Continent Proposal End-user rights Single Authorisation Net Neutrality Spectrum Access products Remedies Consistent Regulation Regulatory framework Market Regulation Big Data Data protection (Snowden) CEF End-user rights, authorisation, rights of use Universal Service, e- privacy

3 Neelie Kroes (18 Dec. 2012): Focus on Growth and Jobs "2013 will be the busiest year yet for the Digital Agenda. My top priorities are to increase broadband investment and to maximise the digital sector's contribution to Europe's recovery." "The digital economy is growing at seven times the rate of the rest of the economy, but this potential is currently held back by a patchy pan-European policy framework. "

4 Connected Continent package The Communication: Commission's vision for a Single Telecoms Market The costing and non-discrimination Recommendation Proposal for a Regulation concerning the EU Telecoms Single Market + Impact Assessment

5 Aims of the proposal Contribute to a single market based on freedoms of providers and consumers to act across borders, leading to gradual market integration Build on solid foundations of current legislation with focused measures against identified barriers Maintain market regulation based on competition principles Safeguard open Internet, while leaving space for innovation Enable benefits of economies of scale to be passed to consumers without prejudicing efficient operators of any size Minimal governance changes to ensure collaborative, strategic European approach

6 Content of the proposal 1.Single consumer space  Harmonised end-user rights and easier switching  Open Internet: net neutrality  Phasing out roaming 2.Single EU authorisation  Simplified regulation and enhanced convergence of regulatory conditions 3.European inputs for high-speed broadband  Wireless: spectrum coordination; facilitating small cells  Fixed: European virtual access products

7 Balance: single vs. national market 1.Commission Aims to achieve the right balance between the need to ensure regulatory consistency and the respect of national competences in accordance with the subsidiarity principle. Envisages mechanisms that facilitate day to day coordination of regulatory measures, rather than shifting decision-making competences. 1.Member States Remain responsible for regulating the provision of electronic communications services and networks and the use of spectrum resources in their territories. Conditions set by the host Member State concerning, emergency services, network security and all other conditions applicable to the operations of electronic communications providers are not affected.

8 Effective legal certainty The regulation ensures the removal of single market barriers by complementing the existing regulatory framework. Specific, directly-applicable rights and obligations for providers and end users. A truly common approach to avoid divergent national solutions Has immediate effects in the market once adopted, thus it provides for legal certainty. No replacement for full review of the existing regulatory framework, on which preparations will soon start for the next Commission mandate.

9 Pro-competitive elements Remove administrative barriers to entry and expansion Clearer legislative basis for market analysis Entry, expansion and efficient investment facilitated by common European fixed virtual access products Objective competition test for certain spectrum conditions Enable greater wireless competition through provisions favouring small cells and federated WiFi networks Incentivise operators to internalise roaming costs and pass on « on net » advantage to consumers Easier cross-border integration, but no undue advantages for consolidation – efficient smaller operators can prosper

10 Pro-investment elements Competition remains a main investment driver Stable fixed investment conditions through Recommendation on Costing & non-discrimination Access regulation to consider quality and choice as well as price at retail level High-quality virtual unbundling product to encourage Altnet network investment where appropriate Spectrum coordination to ensure predictable investment timetable More common sector-specific rules throughout Europe Openness to innovative online business models based on assured quality

11 Investors' reactions The package regarded generally as positive for the industry and investment in connectivity Proposal's potential to enhance product and service innovation Greater coordination of remedies very positive for investment Net neutrality provisions seen as balanced & acceptable Spectrum coordination mostly beneficial, also in short term Simplification of Wi-Fi conditions & removal of administrative burdens for small cells beneficial in the medium to long term

12 A stronger telecoms sector Consistent rules, regulators & remedies Cross-border business boost Stable, consistent investment climate Better productivity Savings from pan-EU telecoms providers A secure cloud Top-quality videoconferencing World-class digital infrastructure Brighter prospects for SMEs & start-ups Operators can't block or throttle A home market that is fully connected Wireless services & devices that work perfectly across the EU Growth & jobs 5% on GDP = €1500 per person 2 million jobs €110 billion GDP growth / year €300 billion saving on public services A Connected Continent will bring: Real benefits for citizens More choice & more telecoms offers Phasing out unfair charges when communicating across borders A full open Internet Easier & more efficient public services

13 13 2014 - 2020: ICT a priority under the European Structural and Investment Funds Connecting Europe Facility (CEF): Some complementary EU support by means of financial instruments (credit enhancement for loans and principle of risk sharing with the EIB). The financial endowment is 150 mEUR for 2014-2020. The EC/EIB debt will leverage additional private sector investment. Currently project bonds pilot – open for project proposals. Project bonds will also be funded under CEF. Expanded greater EIB lending activity in ICT/broadband following capital increase EU-level broadband funding


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