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New European Parliament Committee Chairman Runs Into Opposition

The election of a German legislator to head the powerful European Parliament Industry Committee seems to have split Europe’s information and communication technology and e- communications industries. Telecom companies and ISPs fear that the chairman, Herbert Reul of the European People’s Party/Christian Democrats, will favor incumbent Deutsche Telekom, according to an ISP industry source. But DigitalEurope, the voice of the ICT industries, praised Reul’s experience in energy, climate-change and media issues, saying he'll understand technology opportunities.

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In sharp contrast, there was wide approval among ICT companies, telecom groups, the music industry and others of the election of U.K. representative Malcolm Harbour, also of the EPP/CD, as chairman of the Internal Market and Consumer Protection Committee.

ISPs are “worried and disappointed” by Reul’s selection, the ISP industry source said. The chairman has no expertise in the e-communications industry, the source said.

“I can only hope that Mr. Reul will fully respect the neutrality required by his role” and won’t use his position to advocate the interests of any specific company, said Ilsa Godlovitch, European Competitive Telecommunication Association’s regulatory affairs director. It’s not in Germany’s interest for Deutsche Telekom to keep its monopoly because that produces high prices and poor service, she said. “I just wish German politicians would realize this.”

But DigitalEurope Director General Bridget Cosgrave called Reul a “good choice.” He understands energy and climate-change issues and has taken a strong position on proposed revisions in Europe’s “A-to-G” labeling system, she said. Reul also has experience in the German media industry and will understand technology opportunities and the need for a light regulatory touch, she said. He has the right attitude towards budgeting for innovation and research, she said. Reul is a “balanced person” who grasps the complexity of the issues presented by the European Commission and won’t accept extreme positions, said Veni Markovski of Internet Society Bulgaria.

Harbour is experienced and knowledgeable on telecom matters, is a veteran of two EU telecommunications legislative packages, and will “bring a lot of value” to the IMCO committee, Godlovitch said. He has played a key role in many telecom-related debates, said a spokesman for the European Telecommunications Network Operators’ Association. Harbour has been a well-informed, active IMCO member the past five years and consumer advocates enjoy working with him, said a spokesman for the European Consumers’ Organization. Harbour is “conservative but with an open mind” toward competition, the ISP source said, so he “shouldn’t worry anyone.”

The music industry likes Harbour because he has been “very open to discussion” of its interests and he recognizes the role of the copyright sector in the digital economy, said Frances Moore, International Federation of the Phonographic Industry regional director (Europe). The federation also works closely with the Legal Affairs Committee, now headed by Klaus-Heine Lehne of Germany and the EPP/CD, she said. As a committee member in the most recent legislature, Lehne supported copyright protection generally and specifically a proposal to extend the term of protection for artists and producers, she said.

DigitalEurope will also be monitoring the Budgets Committee, now chaired by Alain Lamassoure from the EPP/CD and France. A critical question for the panel is the EU 2013 budget and the “trade-off between milk and microchips,” she said. Now is the time to recognize that technology has more of a future than agricultural subsidies, she said. ICT companies are also watching the International Trade Committee, because they want talks to resume on free trade agreements with Russia, China and Turkey, Congreve said.

With 75 percent of the parliament’s members new, “there are opportunities for every sector,” said Secretary General Aarti Holla-Maini of the European Satellite Operators Association. The authors of all three revamping telecom regulation are back, meaning some knowledge and understanding of satellite issues remains, she said. The association enjoyed good relations with some former committee chairmen, but “we still welcome a change and the chance to promote our interests afresh,” she said. The group also hopes that parliament’s Kangaroo Group, an informal forum of politicians, officials and social partners, will motivate lawmakers to take an interest in spectrum, broadband, emergency communications, security and other issues that association members follow, she said.

A central theme for DigitalEurope in the new parliament and later at the European Commission is for all policy makers and agenda-setters to recognize that IT is no longer a “vertical segment” but a “horizontal enabler” for all policy domains, Cosgrave said. IT is a critical element in all solutions, from e-health to climate change, she said.