German Economics Minister Michael Glos voiced surprise this week ...

to the proposed revision of Germany’s telecom act -- particularly new section 9a, which provides for nonregulation of new markets. The Commission is concerned about a “regulatory moratorium” because it raises serious questions about the relationship of competition, new markets and investment that should be addressed by the EU, not nations, Reding said. The legislative proposal suggests new markets be regulated only if development of sustained competition would be obstructed long run otherwise. That runs counter to the EU’s package of e-communications directives, Reding wrote: The law shouldn’t allow a monopoly to be revived, even for a limited time. She said also said Art. 9a: (1) Fails to make clear that consultation must take place before the German telecom regulator decides a new market exists. (2) Doesn’t clarify that “new market” and the duration of any regulatory moratorium must be defined by the regulator in close cooperation with the Commission. (3) Uses “sustained competition-oriented market,” an expression unknown in the EU regulatory framework that should be replaced with “effective competition.” Finally, Reding wrote, the Commission has already launched 2 EU Treaty violation procedures against Germany for infringing EU law by restricting the telecom regulator’s discretion. It’s the regulator -- not the legislature -- that must determine if and how regulation should be imposed, she said, and Art. 9a must be drafted to ensure that principle applies to new markets. Germany lags significantly behind other EU countries in broadband partly because it lacks essential regulatory measures such as bitstream access, she added. Glos said Tues. his office is surprised because the revised telecom bill was based on preliminary working-level talks between his department and the Commission, MarketWatch said. But the official said he would look into Reding’s concerns. The Head of the Federal Network Agency, Matthias Kurth, said “more transparency and sincerity” is needed in the debate to counter the impression that his agency favors “one single company and risk[s] the balance between competition and innovation.” The public consultation is aimed at defining “new market” and embracing the discussion started by the EC. The consultation should help clarify the issue for fixed net and broadband providers in Germany and across the EU, said Kurth. The Federal Network Agency will accept statements until April 19 from interested parties on 9 questions, on the agency’s website, about the definition and treatment of “new markets.” -- www.bundesnetzagentur.de/media/archive/5120.pdf.