Energi-, Forsynings- og Klimaudvalget 2015-16
EFK Alm.del Bilag 97
Offentligt
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Danish Non-Paper on the Review of the Electronic
Communications Regulatory Framework
The electronic communications regulatory framework should be adapted to better support the roll-out of
high-speed broadband in the EU while at the same time continuing to promote competitive prices and
innovative services to the benefit of European businesses and consumers.
The Danish Government welcomes the Commission’s Digital Single Market Strategy and shares the view
that a strong, competitive and dynamic telecoms sector is a prerequisite for a well-functioning Digital Single
Market. In fact, resilient, high-speed networks that provide businesses and consumers with ubiquitous
connectivity are no longer just limited to being the foundation for the so-called “digital economy” but
rather something that underpins basically all sectors of a modern economy. In other words, making sure
Europe has a fit-for-purpose electronic communications regulatory framework is vital for the European
economy going forward.
Much has changed since the last framework review in 2009. Connectivity has become ever more important
to businesses and consumers alike and providers of electronic communications services are faced with
growing competition from service providers using the Internet to deliver communications services. Taken
as a whole, the current framework has proven both resilient and, to a large degree, successful in promoting
broadband rollout, competitive prices and innovative services. In this sense, the regulatory objectives of
the Framework – promoting effective and sustainable competition and efficient investment, contributing to
the development of the single market and promoting the interest of EU citizens – remain valid and
appropriate. However, the results vary across the EU and the review should take due note of what lessons
can be learned from Member States where the current framework has proven successful in generating a
high level of investment from the private sector in digital infrastructure. This should provide a good starting
point for making the necessary changes to the framework while also recognizing that a significant part of
the current framework structure can still be useful going forward. One such part are the important roles
played by independent national regulatory authorities (NRAs) and BEREC in ensuring a harmonized
European approach to telecoms regulation, while also taking differing national circumstances into account.
The NRAs and BEREC should continue to be trusted with these roles.
The objective of the review should be to
support the roll-out of high-speed broadband
in the EU and to
continue to
promote competitive prices and innovative services
to the benefit of European businesses and
consumers. Promoting efficient competition and stable, predictable regulatory conditions for providers of
electronic communication will spur investment in digital infrastructure and should, thus, be at the heart of
an up-dated framework. At the same time, it is necessary to make sure that the rules are clear and
comprehensible. Where possible without being to the detriment of competition or consumer protection,
the review should also look to
remove unnecessary regulation and regulatory burdens
placed on providers
of electronic communications and national regulatory authorities.
The Danish Government looks forward to playing an active and constructive role in making the electronic
communications regulatory framework fit for the future.
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 EFK, Alm.del - 2015-16 - Bilag 97: Høringssvar og notat vedr. revisionen af EU’s centrale regelsæt på teleområdet
SMP regulation
As stated above, Denmark believes that the main focus of the regulatory framework should continue to be
ensuring competition and setting stable conditions thus promoting the necessary investments in digital
infrastructure.
In Denmark the incumbent telecoms operator continues to have a high market share in the broadband and
cable TV markets and also plays an important role in the roll-out of high-capacity networks. However, high-
capacity fiber networks (FTTH) are also rolled out by regional electricity utilities as well as by local cable TV-
providers etc. These providers are not subject to the same access obligations as the incumbent.
The regulatory tools in the present framework are primarily aimed at regulating wholesale access to the
network of a single owner of one national network. The current tools are not necessarily the right ones in a
situation where a number of actors have local dominance in different geographical areas. Few households
will have access to more than one high-capacity network. Households not connected to the incumbent’s
network are, thus, limited in their choice of internet service provider.
The Commission should consider whether the current ex-ante SMP-regulation should be adapted to
also allow NRAs a more flexible approach to imposing symmetrical obligations of access to high-
capacity infrastructure where it is deemed necessary.
Governance
NRAs and BEREC have played key roles in ensuring a harmonized European approach to telecoms
regulation, while also taking differing national circumstances into account. Denmark believes that the
national regulatory authorities should continue to play an important part in the day-to-day regulation, as
they are closest to and have the deepest knowledge of the national market conditions. Further institutional
harmonisation runs the risk that Member States might be hindered from solving market problems in their
respective countries while potentially undermining the principle of independence and connection to and
understanding of local markets. Institutional independence of NRAs (the BEREC members) should continue
to be guaranteed by the framework. However, as it stands today various supervision obligations under the
framework can nationally be the responsibility of non-BEREC members. While BEREC members need to stay
independent, BEREC would benefit from opening up its work to experts from other relevant national
authorities. This would also allow BEREC to respond to an ever more complex and convergent sector.
While generally preserving the current institutional setup within BEREC and keeping BEREC
members’ institutional independence, the Commission should look at the possibility of opening up
the work done in BEREC to other relevant national authorities (non-BEREC members) vested with
supervision obligations under the framework.
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 EFK, Alm.del - 2015-16 - Bilag 97: Høringssvar og notat vedr. revisionen af EU’s centrale regelsæt på teleområdet
Universal service
Access to electronic communication is crucial in today’s society, and universal service continues to play a
role ensuring access to basic services for all. However, a number of services mentioned in the present
Universal Service Directive are outdated and have been replaced by new means of communications such as
mobile phones and e-mail. There is no need to maintain the provisions on payphones and telefax.
The Commission should evaluate which obligations in the Universal Service Directive are no longer
needed and thus can be removed without hurting end-users.
It should be up to the Member States to evaluate the needs, availability and funding mechanisms and thus
to decide whether a universal service obligation is the right tool to ensure access to broadband.
The Commission should evaluate the current provisions on broadband in the Universal Service
Directive and consider whether they need to be updated.
End-user rights
Denmark believes that there should be a continued focus on ensuring transparency for consumers allowing
them to make rational choices, and thus strengthen competition. In general, Denmark is satisfied with the
present level of consumer protection in the framework.
Denmark believes that end-user rights should be harmonised to as large extent as possible. The rules
should be as simple as possible while at the same time ensuring the adequate level of consumer protection.
This will make it easier for operators to provide services across borders thereby strengthening the digital
single market.
A key aspect of consumer protection is the ability to switch provider if the consumer is not satisfied with
the pricing or services offered. Denmark believes that the 1 day porting rule is a key enabler to enhance
competition and on top of that Denmark has a 6 months maximum commitment period.
The Commission should consider whether a general reduction of the maximum commitment period
would be beneficial for competition.
The Commission should consider to what extent the legislation on end-user rights can be
substituted with general consumer protection legislation and supervision.
Spectrum
The demand for spectrum will only increase as a result of future technological developments. There will
continue to be a need for efficient and effective management of spectrum.
Sufficient and appropriate spectrum should be available to meet the need for spectrum in all relevant
sectors in order to support national policy goals also in other areas, i.e. in the areas of transport,
environment and climate, governmental use, audio-visual media and Internet of Things.
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 EFK, Alm.del - 2015-16 - Bilag 97: Høringssvar og notat vedr. revisionen af EU’s centrale regelsæt på teleområdet
Denmark has a very good coverage with mobile services. Competition in the mobile market has ensured
Danish businesses and consumers low prices and attractive products. Demand for and supply of mobile
services varies significantly across the EU, and Denmark believes that allocation of spectrum should be
organized to suit the different requirements of the markets in the different Member States.
Spectrum auction design and setting license conditions, including coverage requirements and duration of
licenses, should remain a national competence in order to ensure efficient use of spectrum and take
national circumstances into consideration.
If new regulatory measures are considered, the Commission should first consider how more
effective spectrum management can be achieved through the use of existing regulatory and
Commission powers in the current framework.
Furthermore, the Commission should consider if an enhanced role for the existing EU Radio
Spectrum Policy Group (RSPG) can ensure better coordination and alignment of spectrum auctions
between Member States.
Measures to promote investment
The Digital Agenda for Europe sets ambitious goals for broadband roll-out and take-up by 2020. Stable
regulatory conditions and predictability in the market are preconditions for the necessary high levels of
investment in the high-capacity infrastructure needed.
The current regulatory framework promotes market based investment and rollout of infrastructure.
Denmark believes that this is still the right approach, although it may be necessary to supplement it with
some form of state initiatives in more sparsely populated areas that supports the market based approach.
The Commission should evaluate where it is possible to remove unnecessary regulation and
regulatory burdens placed on providers of electronic communications and national regulatory
authorities without being to the detriment of competition or consumer protection.
Furthermore, demand stimulation and demand aggregation may greatly enhance the scope of a
market based roll-out while not interfering with the working of the market. The Commission should
explore these options.
When looking into how an updated framework can spur private sector investment, the Commission
should draw upon the lessons learned from Member States where the current framework has
proven successful in generating a high level of private sector investment in digital infrastructure.
High Capacity Broadband
It is a prerequisite for the success of the digital single market that high-capacity infrastructure is available to
consumers and businesses across Europe. As previously stated, the roll-out of such infrastructure should be
market-driven and technology neutral. However, it should also be recognised that there are local areas
where the market will probably not deliver high speed connectivity in the near future without targeted
incentives from the public sector. If such incentives are introduced it is important to consider the economic
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 EFK, Alm.del - 2015-16 - Bilag 97: Høringssvar og notat vedr. revisionen af EU’s centrale regelsæt på teleområdet
rationale and vital to strike the right balance between enabling connectivity in these areas and the need to
maintain a high level of private sector investments in digital infrastructure without being to the detriment
of competition.
Denmark believes that any new broadband targets for Europe should not solely focus on speeds. Denmark
prefers a broader (but also more complex) goal which includes a number of aspects such as reliability and
latency.
Denmark does not believe that new goals for the take-up of broadband should be set. The public sector has
very limited influence over which speeds (and other features) the consumers will actually subscribe to.
The markets for TV/video and electronic communications services are converging. One such example is the
bundling of internet access services with TV packages or video services. This leads to a growing need to
create better a link between the regulatory framework for electronic communications and EU regulation on
audiovisual media services and copyright.
The Commission should explore how the link between the regulatory framework for electronic
communications and EU regulation on audiovisual media services and copyright can be improved.
The competitive environment for providers of electronic communications services has changed since the
last framework review in 2009. Providers of electronic communications services are facing increased
competitive pressure from service providers using the Internet to deliver communications services. While
electronic communications services and services provided over the Internet may look the same to end-
users, they are to some degree regulated differently. Any changes to the electronic communications
regulatory framework should also take into account the new competitive environment in the digital
economy and consequences to the value chain due to OTT (Over-The-Top) providers using existing
broadband connections to deliver services. It is recommended that any proposals for adding or removing
regulation await the BEREC analysis on the topic.
The Commission should examine the need to adjust the current framework to better take into
account this new competitive situation.
E-privacy
The Danish government believes that there is a need to evaluate and revise the e-Privacy Directive
(2002/58/EC) - particular article 5 (3) of the directive on the protection of users in connection with storing
of information, or gaining access to information already stored, in the terminal equipment of a subscriber
or user (“cookies”). This provision has proven unnecessarily rigid, difficult to enforce and goes beyond the
purpose of the rules. The rules result in unnecessary burdens for businesses, and at the same time lead to
solutions, which are an inconvenience to users and ultimately undermine the central protection by consent.
Therefore, a review of the e-Privacy Directive is urgent and should be initiated as soon as possible.
The Commission should initiate the revision of the e-Privacy Directive as soon as possible in order
to exempt solutions that do not influence the user’s privacy (“Privacy by design”) from the
requirements to give information and obtain the user’s consent.
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