There are three approaches taken by countries to address convergence: (i) a legislative approach; (ii) a regulatory approach; and (iii) a self-regulation approach. Although the first two are most commonly used among policy-makers, the self-regulation approach is gaining increasing popularity. Each of the approaches presents advantages and disadvantages as discussed below, but no one approach results in an optimal solution. In general, countries see more effective results when several approaches, especially the legislative and the regulatory ones, are used together. Moreover, the first two approaches are generally more effective when they also incorporate a consultative process (see Box 4-2), such as a public hearing. Additionally, incorporating a self-regulation approach with industry participation allows policy-makers to better understand the consequences of convergence and its trends, as well as to balance the different interests involved in convergence regulation.
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Box 4-2: The public consultative process within the European Union New Regulatory Framework
The liberalization of telecommunications in the European Union (EU), completed in 1998, is generally considered a marked success. Opening up formerly monopolistic markets led to dramatically lower prices and improved services for consumers and businesses, boosting Europe’s communications industry and creating economic growth.
Ongoing technological innovation, however, overtook the telecommunications regulatory regime. Digitalization now allows many kinds of content to be delivered over different networks. The Internet has become a global infrastructure for a range of electronic communications services. Information and communications technologies are converging, opening up myriad possibilities for new industries and services.
To tackle the emerging policy and regulatory issues associated with this new technological environment, the European Commission (EC) published a Green Paper on the convergence of telecommunications (Convergence Green Paper) in December 1997.1 This was followed by a five-month public consultation period, including a public hearing, to allow the EC to receive feedback from industry, member state regulators, and other interested parties. The EC subsequently published the results of the public consultations in March 1999.2
Later that year, the EC launched a review of its telecommunications framework in a consultation document known as “the 1999 Communications Review”,3 which was published in November 1999. The aims of the review were fivefold: (i) to promote more effective competition; (ii) to react to technological and market developments; (iii) to remove unnecessary regulation and simplify associated administrative procedures; (iv) to strengthen the internal market; and (v) to protect consumers.
The review drew on the key messages of a series of consultations, reports and independent studies, in particular, the Communication on the Convergence of the Telecommunications, Media and Information Technology Sectors, the Communication on the Consultation on the Radio Spectrum Green Paper,4 the Report on the Development of the Market for Digital Television in the European Union,5 and the Fifth Report on the Implementation of the Telecom Regulatory Package.6
A public hearing was held in January 2000 in which interested parties were invited to submit their comments on the 1999 Communications Review. The public consultation period ended in February 2000 and the results of these consultations were published in April 2000.7 After reviewing the responses of all interested parties, including member states’ regulators and industry representatives, the EC issued several “orientations” (i.e., policy documents) in April 2000 and subsequently proposed in July 2000 a package of measures for a new regulatory framework for electronic communications networks and services.8
The result of these lengthy consultations is the EU new regulatory framework (NRF), comprised of six specific directives and one decision,9 which tackles convergence by generally extending and adapting liberalization to electronic communications.10 |
ENDNOTES
1 European Commission, Green Paper on the Convergence of the Telecommunications, Media, and Information Technology Sectors and the Implications for Regulation, Com 97(623), 3 December 1997, available at http://europa.eu/scadplus/leg/en/lvb/l24165.htm
2 European Commission Communication, The Convergence of the Telecommunications, Media, and Information Technology Sectors and the Implications for Regulation – Results of the Public Consultation on the Green Paper, COM (1999) 108, 10 March 1999, available at http://ec.europa.eu/archives/ISPO/convergencegp/com(99)108/com(99)108enfinal.html
3 The 1999 Communications Review, COM (1999) 539, at http://ec.europa.eu/archives/ISPO/infosoc/telecompolicy/review99/com2000-239en.htm
4 European Commission, Green Paper on Radio Spectrum Policy in the context of European Community policies such as Telecommunications, Broadcasting, Transport, and R&D, COM (1998) 596, available at http://ec.europa.eu/comm/information_society/policy/spectrum/greenpaper_en.htm
5 European Commission, The Development of the Market for Digital Television in the European Union – Report in the context of Directive 95/47/EC on the use of standards for the transmission of television signals, COM (1999) 540, 9 November 1999, available at http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&numdoc=31995L0047&model=guichett&lg=en
6 European Commission, 5th Report on the Implementation of the Telecommunications Regulatory Package, 1999, available at http://europa.eu.int/information_society/policy/ecomm/implementation_enforcement/annualreports/5threport/index_en.htm.
7 European Commission, Communication from the Commission: The results of the Public Consultation on
the Communications Review 1999 and Orientations for the new Regulatory Framework, COM (2000) 239 26 April 2000, available at http://ec.europa.eu/archives/ISPO/infosoc/telecompolicy/review99/com2000-239en.htm
8 For links to the texts of the proposed new Regulation and Directives, in COM(2000)384, 385, 386, 392, 393 and 394 see http://ec.europa.eu/information_society/topics/telecoms/regulatory/new_rf/index_en.htm
9 See http://europa.eu.int/information_society/policy/ecomm/todays_framework/overview/index_en.htm.
10 European Commission, Factsheet 13: Electronic Communications
New Regulatory Framework – Principles, September 2005, available at http://europa.eu.int/information_society/doc/factsheets/013-regulatory_framework.pdf.