Out-Law News 2 min. read
14 Oct 2015, 4:35 pm
Andrus Ansip said coordinating spectrum would help drive investment into internet access and "make the next 5G mobile communications generation a success".
"If we are serious about having a DSM across Europe and about efficient spectrum use, we need a common European approach on network coverage and performance," Ansip said in a speech in Brussels on Tuesday.
Ansip said coordinating the allocation of spectrum should not mean "EU countries should lose out financially".
"They should be able to benefit from the allocation of this precious resource, which should be done in a consistent way so as to benefit all Europeans," he said. "Our primary aim should be to coordinate spectrum so that everyone gets properly connected - everywhere. It is the basis for a digitally enabled society."
Ansip said the fact EU countries allocate spectrum for different uses and at different times served as "a clear example of the fragmentation problem" that exists in the EU. He said the ongoing EU review of telecoms regulations was "probably the last chance" the trading bloc will have to address "Europe's spectrum issue" for the benefit of businesses and consumers.
Last month, UK culture minister Ed Vaizey said he supports moves to coordinate spectrum use across the EU but that he was against "forced harmonisation", which he said would involve the "top down imposition of spectrum regulations". He said individual countries should retain "an element of flexibility" in relation to spectrum allocation.
In his speech, Ansip said the EU's telecoms regulations review can help spur investment in next-generation telecoms infrastructure.
"Access to high-speed connectivity has become an integral part of our modern societies and economies," Ansip said. "This means that over the next decade, we need to make top-class connections available everywhere in the EU. These networks need to be built, quickly – and with the appropriate infrastructure. However, the type of high-capacity and high-speed broadband networks we are likely to require in the future do not come cheap."
"Tackling the huge investment gap to fund the next-generation networks that Europe needs is a major long-term challenge. The public purse cannot be expected to meet this shortfall. This is why the ongoing review of EU telecoms legislation will look closely at how to incentivise and leverage more private investment," he said.
Ansip said, though, that EU competition rules would not be "relaxed" to encourage telecoms investment. Doing so "would only shift the cost of the required network investments onto consumers", he said. A competitive telecoms market "is based on connections between different companies’ networks" and ensures rival providers get "fair access to essential infrastructure".
However, Ansip suggested the European Commission might be willing to approve some merger and acquisition deals in the telecoms sector after admitting "a degree of consolidation can … bring potential benefits".
"Cross-border consolidation, for example, can be a way to integrate networks as we move towards a pan-European telecoms market," Ansip said. "It can allow telecoms companies to expand beyond national borders and tap fully into Europe's massive customer base. Each case should be judged on its merits, and whether customers will benefit. Naturally, all are subject to scrutiny under EU competition law."
Last week, Sharon White, chief executive of the UK's telecoms regulator Ofcom, questioned industry views on whether mergers and acquisitions are necessary for telecoms companies if they are to afford to invest in next-generation infrastructure.