The European Commission has adopted two legislative proposals that it says will form key elements of the telecommunications sector’s regulatory framework after the January 1998 liberalisation. The first is designed to establish a common framework for member states to issue licences for telecommunications services, the second would update two existing Open Network Provision Directives. The Commission feels it is necessary to formalise the process for awarding telecommunications licences after 1998 to ensure that public interest objectives – such as universal service – are taken into account. While the Commission will not require member states to issue such authorisations, if they do, it proposes that they be in line with a set of principles forbidding an advance limit on the number of new entrants authorised, except where there are technical considerations, such as the need to ensure the efficient use of radio frequencies; licensing procedures will also have to be open, transparent and non-discriminatory. In addition, the Commission has decided that service providers will be able to ask national regulatory authorities to synchronise licence awards and offer them on substantially the same conditions if they intend to offer services in more than one country. As to Open Network Provision, a new element designed to ensure the independence of national regulatory authorities is being added to the existing framework directive. Specifically, where member states have significant ownership of – or control over – national operators, all regulatory controls will have to be completely separated from all activities related to that ownership or control. Amendments to rules on leased line provision are also planned: currently, these must be provided on request and without discrimination to all users but, to take market liberalisation into account, that requirement will only apply to suppliers with significant market power. To ensure that leased lines are available, the regulatory body in each member state will have to nominate one carrier with this requirement. Requirements for advance publication of tariffs will be removed, and the requirement for cost orientation of tariffs will be relaxed where there is strong competition in provision of leased lines. Both the proposals will be put to Community governments when they meet to discuss wide-ranging treaty reforms in March.
