1. Jerker Torngren 1. Universal Service Obligations The EU legislation A basic introduction Presented by Jerker Torngren torngren@aon.at 1

2. Jerker Torngren The EU Telecom Policy EU regulation aims at protecting: A functioning competitive market The rights of end-users (regulated primarily through the USO Directive) 2

3. Jerker Torngren USO Directive 2002/22/EC The Directive; Defines the minimum set of services of specified quality to affordable prices Sets out obligations regarding provision of certain mandatory services. Specifies that competition may not be distorted 3

4. Jerker Torngren Minimum services, Art. 4 All reasonable requests should be met by at least one operator for fixed location, which permits: Local, national and international calls, Fax communications Data communication, including functioning Internet access 4

5. Jerker Torngren Directory services, Art. 5 A comprehensive Directory either in printed or electronic format and updated at least once a year. and Directory enquiry service available to everyone, including users of payphones 5

6. Jerker Torngren Public Payphones, Art 6 Public Payphones to meet reasonable needs Should be accessible to disabled and make emergency calls possible without payment 6

7. Jerker Torngren Disabled users, Art 7 Special measures should be taken for disabled users, where appropriate Member States may take specific measures to ensure rights of choice for disabled 7

8. Jerker Torngren All services to be affordable 1. Prices to be affordable 2. The subscriber should be able to: Control the expenditure Be able to monitor the expenditure 8

9. Jerker Torngren What can be financed? Only those obligations can be financed and if there is a net cost for the operator which is deemed unfair by the regulator. Operators can not be forced to provide those services to an unfair net cost without being entirely compensated. Other obligations in accordance with the Directive, such as the provision of leased lines, may not be specifically financed. 9

10. Jerker Torngren How can USO be financed? Through public funds and/or Share the cost between providers of networks and services. 10

11. Jerker Torngren Quality of Service, art 11 All designated undertakings shall publish information on their performance based on quality of service parameters. But note that the regulator can request all undertakings to do the same (art 22) For designated undertakings the regulator can also set performance targets. 11

12. Jerker Torngren Designation of Undertakings Member States may designate one or more undertaking but it isn’t compulsory to designate any. Designated undertakings can provide different elements and/or cover different parts of the territory. No undertaking shall be a priory excluded from the possibility to be designated. Transparency and non-discrimination of paramount importance. 12

13. Jerker Torngren Specific obligations on SMPs Various obligations in relation to retail services (art 17) If leased line market not competitive, specific obligations to be imposed (art18) Obligations in regards to carrier selection and carrier pre-selection (art 19) 13

14. Jerker Torngren Obligations on all operators Subscribers have the right to have a contract Transparent and public information must be at hand concerning tariffs and standard terms and conditions Regulator has the right to request the publication of information on QoS All end-users must be able to call European emergency number 112 Number portability 14

15. Jerker Torngren Leased lines The availability of leased lines (to acceptable prices) is utterly important for many end users. The Regulator shall thus impose obligations regarding the provision of the minimum set (art 18) (Further regulation in the Framework Directive, 2002/21/EC, and not covered in this presentation) 15