1. Telecoms Review Institutional aspects European Parliament, 5 March 2008

2. Is there a problem?  For consumers: Broadband prices range from €2.40 per Mbit/s in France to €19.20 in Greece (Belgium €12.10). Local loop unbundling – mandated by EU Regulation in 2001 to promote broadband competition and lower prices still ineffective in 17 countries  For the economy: Business providers unable to offer effective service to multinational companies to ineffective national inputs in 11+ countries  For pan-European services: expensive mobile data roaming and VoIP inconsistencies highlight failure in the European single market

3. Will the problem disappear?  Competitive bottlenecks are enduring: One or two access lines max today. Analysts suggest in most cases one or two fibre access lines in future if consumers pay more  There will be new issues for co-ordination: LLU success in some countries 7 years after EU Regulation. How long to address competitive challenges with next generation networks? ‘Core’ network Local Exchange Incumbent BB Market share 82% 62 % 46%46% Access line Retail service

4. How can it be solved?  Someone needs power to ensure remedies are robust and that regulators are proactive  Commission only legal possibility  EECMA needed to provide counterweight to Commission  EECMA remodelled as strengthened and formalised ERG Controlled by NRAs. Independent of Member States and Commission Independent Director – technical expert with guaranteed tenure Accountable to Parliament Transparent and consultative NRA commitment to ‘take account’ supported by EECMA monitoring Focused role: Economic regulation primary task Spectrum duties if role with other bodies defined Security issues handled separately Staffing reflects ‘co-ordination’ role  Best outcome where no need for Commission to use powers… Incentives and institutional competition deliver!

5. Background Broadband speeds, fibre and investment

6. Where is the highest speed broadband?  France, Sweden, Italy, Finland, Portugal, UK and Germany offer highest EU broadband speeds. These countries have more than average competition through local loop unbundling (more than 15% BB connections)  Sweden, Denmark, Italy, Netherlands and Slovak Rep have highest EU fibre penetration, but from low base. World highest is Korea and Japan

7. Wireline and wireless comparisons OECD average advertised broadband speeds by technology Oct 2007

8. Worldwide investment comparisons  US and European investment levels roughly the same (source Infonetics Research 2006 or similar from OECD Comms Outlook (only to 2005))  EU investment varied widely by country from USD219 per capita in UK to USD40 in Poland (figures from OECD Communications report 2007 reporting investment data as of 2005)