2nd UPDATE: EU Clears Final Hurdle For Telecom Reforms
(Adds comment from Commissioner Reding, telecoms companies.)
By Carolyn Henson
Of DOW JONES NEWSWIRES
BRUSSELS -(Dow Jones)- The European Union Tuesday cleared the final hurdle for
sweeping new rules for the bloc's telecommunications sector as the parliament
gave its blessing after months of delay.
A vote in favor at the plenary session of the European Parliament confirmed a
breakthrough reached earlier this month and will ensure the reforms enter into
force next month and are transposed into national law by the middle of 2011.
The new directive will end the dominance of incumbant telecom companies by
requiring them to separate their networks from their telecom services businesses
if there is insufficient competition and it will set up a European body of
national regulators with greater powers to punish anti-competitive behavior and
bring down prices for consumers.
The new directive will also boost investment into fiber- optic broadband,
bringing faster Internet services throughout the 27-nation bloc, and will
modernize the use of the radio spectrum.
Consumers' rights will be enhanced by requiring companies to transfer mobile
phone numbers to rivals within one working day when customers switch between
service providers, and Internet users will need to give their consent to the use
of cookies -- personalised information automatically downloaded to a user's
computer when they visit a Web site.
"The EU telecoms reform will bring more competition on Europe's telecoms
markets, better and cheaper fixed, mobile and Internet services and faster
Internet connections for all Europeans," said Viviane Reding, the E.U.'s
Telecoms Commissioner.
The reforms were held up by a controversial clause in the legislation that
would have allowed governments to cut off Internet access for people suspected
of using the Web for illegal activities, such as downloading copyrighted
material.
The parliament opposed the clause insisting Internet access was a basic right
and won a compromise earlier this month that ensured no-one should be barred
from Internet use without a "prior, fair and impartial" hearing. The deal allows
governments, however, to immediately cut off access where users are suspected of
terrorism, organized crime or child pornography.
The directive was welcomed by many in the telecom sector as a way to level the
playing field among competitors and streamline the single market.
"The telecoms package contains important proposals that confirm Europe's
commitment to open and competitive telecoms markets including the power for
regulators to separate dominant firms if they fail to abide by competition rules
and a clear signal that fibre networks should be opened for competition," said
Innocenzo Genna, chairman of ECTA, the European Competitive Telecoms
Association, which groups new-entrant telecom companies.
"This will benefit consumers through more choice and diversity in high speed
broadband services which will promote creativity and investment and create
jobs."
-By Carolyn Henson, Dow Jones Newswires; +32 2 741 1481; carolyn.henson@
dowjones.com
(END) Dow Jones Newswires
11-24-091131ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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