1. Jerker Torngren Competition in South East Europe Benefits are the same for all countries Challenges might differ from country to country

2. Jerker Torngren Why a reform? WTO commitments EU membership The welfare of the citizens

3. Jerker Torngren WTO obligations Depends on commitments made by the country As a EU Member, the country must adhere to commitments made by the EU

4. Jerker Torngren Obligations to the EU Accession countries are committed to implement all EU legislation. EU does not accept any special or exclusive rights within electronic communication

5. Jerker Torngren The welfare of the citizens The reform must be implement for the sake of the country, not primarily because of international commitments. Citizens’ welfare is the objective behind the EU policy

6. Jerker Torngren Citizens’ welfare Economical reasons For the private economy For private business Economic growth Social reasons Private contacts Access to information

7. Jerker Torngren The objective of the reform The reform must be based on the determination to improve the situation in the country, rather than fulfilling international obligations. Only a well defined objective can safeguard a successful implementation. It is the implementation that counts.

8. Jerker Torngren Challenges Regulatory All the “BUTs” These are often by far more difficult to deal with than the regulatory challenges

9. Jerker Torngren Some regulatory challenges (1) Any country planning to become a member of EU must focus on the EU legislation. Problems for accession countries with the new EU package EU has spent 10 years of gradual evolution But note, New package is an evolution of previous legislation, not a replacement as such.

10. Jerker Torngren Some regulatory challenges (2) Definition of relevant markets (art 15 Framework Dir) The Directive prescribes cooperation with Member states and the Commission, a cooperation that is not formally open to non- Members.

11. Jerker Torngren Some regulatory challenges (3) USO EU Directive puts obligations on Member States but Includes also restrictions on how to deliver.

12. Jerker Torngren USO, continuation How to put the needs of the individual country into the context of the EU legislation Remember: A universal service scheme by itself does not drive economic development. It prioritises the available funds for network development to achieve social goals rather than economic goals. This policy can be in conflict with the objective of economic growth.

13. Jerker Torngren Other Potential Challenges, the ‘BUTs ‘ Economical interest Political interests Lack of understanding Fear of unemployment Bureaucracy at national level Bureaucracy at local level Corruption. Lack of experience ‘What is competition? Never heard of that” “Will not work.” “Network will collapse” “New entrants are not interested in good services” Lack of capital No risk capital “Might loose my job” “Might loose my influence” An unlimited list of relevant and irrelevant arguments, often never publicly expressed

14. Jerker Torngren Important to realise that; Incumbents in South East Europe normally have a different position and role compared to former incumbents in US or some EU Member states.

15. Jerker Torngren In addition weak economies Economical interests in existing structure Political problems with rebalancing of tariffs Overstaffing within incumbent can result in unemployment The employment gains through new investments are not taken into account

16. Jerker Torngren In addition: Bureaucracy in all levels of society Misguided trust in regulating technical issues Corruption is still a deterrent to investments

17. Jerker Torngren Potential conflict of interest Economical growth is a relatively long term perspective Versus Incumbent providing source of income to the State, today But has the present situation created welfare for the citizens?

18. Jerker Torngren Conclusion Introducing competition is Difficult But Necessary, not primarily to please EU, but necessary for any country that wants to develop and improve the situation for its citizens Implementation counts, not the policy as such