Annexes to COM(2009)140 - Progress Report on the single European electronic communications market 2008 (14TH Report)

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agreements with industry and various measures on quality of service introduced in Hungary, Greece, Latvia, France and Spain lay down clear requirements regarding broadband speeds.

Several Member States have also introduced measures to reinforce transparency for premium rate and other services using non-geographic numbers, where lack of pricing information often cause concern.

Universal service

Following a regular review of the scope of universal service, the Commission issued a Communication on the subject in 2008, thereby initiating a forward-looking EU debate on the future of universal service, with particular reference to broadband services.

Several Member States have limited the scope of the current universal service obligations as some universal service elements are being delivered by the market without the need to designate any specific undertaking(s) (e.g. Czech Republic, Denmark, Hungary, Latvia).

In June 2008, the European Court of Justice issued an important ruling with regard to France, denouncing a national rule under which only those undertakings able to provide universal service for the whole of the national territory could be designated. According to the Court, Member States have an obligation to ensure the provision of universal service in a cost-efficient manner, whilst respecting the principles of objectivity, non-discrimination and minimum market distortion.

Many Member States appear to have found it difficult to establish comprehensive directories and directory enquiry services including both the fixed and mobile subscribers who have consented to be listed. The Commission opened a total of 11 infringement proceedings in this regard, all of which have been closed as the services have become available, with the exception of the case concerning Portugal, which is pending before the ECJ. However, comprehensive directories and directory enquiry services are not yet available in Bulgaria and Romania.

Service providers have voiced concern with respect to retention rates applied by mobile network operators for calls made to directory enquiry services.


Number portability

Number portability is now available for both mobile and fixed users in all Member States with the exception of Bulgaria (for fixed numbers), the latter having been granted an exemption until January 2009 under the accession agreement.

The number of ported mobile numbers increased over the past year (14.1 million more in 2008) [14]. Since its introduction 60.2 million subscribers (10.3% of mobile numbers) had ported their number by October 2008 (8.3% in October 2007).

Since the introduction of fixed number portability, almost 26 million subscribers had ported their numbers by October 2008 (a 37% increase on 2007).

The prices applied for number portability vary to a great extent. While no wholesale charge is applied in some countries, e.g. Estonia and Spain (for mobile) and Germany (for fixed), these charges are as high as €49 for fixed number portability in Slovakia and €45 for mobile number portability in Malta.

(...PICT...)

The time aspect is crucially important. In October 2008, the European average time taken for mobile number portability was 8.5 days and for fixed number portability was 7.5 days (7.8 days in October 2007).

The time taken varies significantly across Member States which cannot be justified by national circumstances. There is therefore considerable scope to reduce the time taken for number portability, which is why the Commission has recommended a duration of one day in its Review proposals. At least six Member States (UK, Portugal, Spain, Slovakia, Italy, Poland) have proposed to shorten the time taken to port numbers to between one and five days.

(...PICT...)

(Data from Denmark and Luxembourg not available)

European emergency number 112

The single European emergency number 112 can now be dialled to contact emergency services from fixed and mobile phones free of charge anywhere in the EU. However, there are still some areas for improvement, such as the provision of caller location information for 112 calls from mobile phones, the handling of calls and raising of awareness.

The infringement proceeding against Bulgaria for non-availability of 112 was closed in early 2009, and out of seven infringement proceedings for failure to ensure the provision of caller location information for 112 calls as of January 2009, four resulted in judgments (the Netherlands, Lithuania, Slovakia and Italy). Only Slovakia has so far complied with the Court's decision. Moreover, the Commission launched an infringement proceeding against Italy for failing to ensure that the handling and answering of 112 calls is as effective as for calls made to other national emergency numbers.

In June 2008, the Commission launched a website [15] dedicated to 112 that provides information in all the official EU languages. As a further part of the drive to highlight the 112 number, 11 February was declared European 112 Day and the Commission will continue to promote 112 and to disseminate best practice amongst Member States.

ePrivacy

Despite international cooperation initiatives on enforcement, achieving genuine confidentiality and security over electronic communications remains a challenge, in particular over the Internet, as illustrated by several security breaches or controversial Internet marketing strategies in Member States (e.g. Germany, UK, Malta).

5. Conclusions

In 2008, the telecom sector continued to grow and is showing good resilience in the present difficult economic situation. Even though the state of competition is improving and new technologies are being taken up, there is evidence of a lack of consistency in regulatory approaches to the removal of persistent bottlenecks and to the roll-out of fibre.

In an increasingly challenging environment it is crucial to ensure effective implementation and consistent regulatory approaches, which are key aims of the reform of the regulatory framework started by the Commission in November 2007. It is necessary to complete the Review as soon as possible in order to bring the single market closer to completion, give legal certainty to market players and deliver increased consumer benefits.

[1] The current crisis is different from the downturn in 2002, which affected the telecom sector specifically.

[2] COM(2007) 697-699.

[3] Unless otherwise indicated the situation is that at 31 December 2008 and the market data are those applying at 1 October 2008.

[4] EITO November 2008.

[5] http://ec.europa.eu/information_society/activities/roaming/regulation/index_en.htm

[6] EITO November 2008.

[7] Dow Jones SXKP Telecoms Index (as of 22 August 2008): see Annex for constituents

[8] As measured by the Dow Jones 50 Stoxx Index.

[9] Further details can be found in the Annexes.

[10] According to OECD data, mobile penetration was 87% for the USA and 84% for Japan in 2007.

[11] Bundled offer means a commercial offer of two or more services marketed as a single offer and offered for a single price.

[12] COM(2008) 572 on the scope of Universal Service - the Commission opened a debate on the future of universal service with particular reference to broadband services.

[13] No 626/2008/EC.

[14] Figures for UK not available.

[15] http://ec.europa.eu/112

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