New Trends in Telecommunications 3 – Implications for Lawyers

One might ask if the previous observations concerning the newest developments in the area of electronic communications really have much to do with law as such. However, on a closer view it becomes clear that these two areas are closely interconnected. The key issue here is the EU-wide regulation of markets for electronic communication. Looking from a historic perspective, one can understand that in the early stages of development each of the markets in this area were regulated separately, i.e. there was a separate regulatory framework for voice telephony, mobile telephony, internet, etc. The current regulatory framework has set a one framework for all markets in this area. The markets are still looked up separately (currently, there are 18 markets defined by the Commission), but the same rules apply to all of them. In 2006 there will be a major review of the existing framework; the changes adopted are likely to come into force in 2009-2010. Looking at what reforms should be made (also considering the fact that it is widely accepted that the current framework works very well) it is absolutely essential to understand in what direction the telecommunications markets are likely to develop. The clearest example of this tendency is the proposal by the new German coalition government and the National Regulatory Authority to establish “regulatory holidays” for the Deutsche Telekom’s investments in new technologies. This concept would basically mean that DT would be under no obligation to grant access to its network for competitors (on detailed discussion concerning this issue see “EU worried about the German coalition plans in relation to telecommunications” on this website). This example shows especially conflicting interests between two objectives: on the one hand, investment and innovation can be achieved through ensuring efficient recoupment of investment. On the other hand, it can also be achieved through ensuring competition in the electronic communication markets. Therefore, it is important to get the reforms of the EU regulatory framework right. And to do this one must be able to understand the issues behind the industry which is being regulated.