Europe’s telecom and entertainment sectors agreed last week that intellectual property rights (IPR) are the lifeblood of the content industry and content is key to unleashing broadband. The acknowledgment by each side of the other’s importance to the rollout of digital content paved the way for productive talks at last Thurs.’s European Telecom Network Operators’ Assn. (ETNO) workshop on content and convergence, participants said. But they said the historic agreement on IPR -- and the need for interoperability -- is just the beginning, and several issues remain unresolved.
LONDON -- The U.K.’s telecom regulator “won’t rule out” a universal service order (USO) for broadband, it said Tues. However, given the significant progress in rollout the past 5 years, Ofcom will wait 12-18 months before recommending the govt. impose a USO, said Office of Communications (Ofcom) Chief Exec. Stephen Carter. Doing so now would be “preemptive,” he said at a hearing of the Commons Dept. of Trade & Industry Committee here Tues.
LONDON -- British Telecom (BT) may be “talking the talk” but competitors have yet to see it “walk the walk” on giving rivals equal access to its last-mile copper loop, Commons Trade & Industry (DTI) Committee Chmn. Martin O'Neill said Tues. The committee is looking into the Office of Communications’s (Ofcom’s) strategic review of the country’s telecom sector. Both Ofcom officials, ISPs and competitive telcos said that while BT’s proposals for providing greater access to rivals sounds good, the devil is in the details.
German public service broadcasters (PSBs) are under scrutiny by the European Commission (EC) over how their TV license fees are used. Last week, Competition Comr. Neelie Kroes told ARD and ZDF to expect a legal opinion from the Competition Directorate-Gen. setting out its views on whether the 2 PSBs are wrongfully using the fees to fund new services such as Internet sites, an ARD spokeswoman said.
Deutsche Telekom (DT) on Tues. defended its proposal to raise the monthly rate it charges competitors to access its unbundled local loops. Last week, the incumbent telco asked the Regulatory Authority for Telecoms & Post (RegTP) to approve a new nationwide fee of 17.40 ($22.62), a significant change from the current rate of 11.80 ($15.42) (CD Feb 22 p6). This is the 3rd time DT has sought the increase, a spokesman said. Using its own price-setting methodology, RegTP turned down requests in 2001 and 2003, he said, but the fact the telco has consistently asked for the same amount shows prices are stable. RegTP has said it will decide DT’s request in about 10 weeks, the spokesman said. Meanwhile, another rival weighed in on the request. “We are not amused,” said a spokesman for alternative telco Versatel. DT’s request has nothing to do with its actual costs, he said.
European competitive telcos will likely rejoice over a study, published Mon., that links changes in market concentration to broadband uptake. The Strategy & Policy Consultants Network report found that for every 1% drop in market concentration there’s a 3% rise in broadband penetration. The finding will provide ammunition to new entrants that have long complained Europe’s broadband market is far from competitive.
Deutsche Telekom (DT) infuriated its rivals late last week by seeking a hefty increase in the monthly charge for access to its unbundled copper loop. In a motion filed with the Regulatory Authority for Telecoms & Post (RegTP), the incumbent telco sought a monthly nationwide fee of
Mobile network operators (MNOs) are aware of the threat spam poses to customer satisfaction and their corporate image, but appear uncertain how to control it, an industry-academic consortium said last week. Its study, Insights into Mobile Spam, analysed differences in how consumers and MNOs perceive mobile spam issues and how well they think the problem is being managed. Both sectors say industry self-regulation is the key to stopping unsolicited mobile messages.
The European Commission (EC) Thurs. launched its 2nd probe into wholesale international roaming (WIR) charges in member states. The investigation of German mobile network operators (MNOs) T-Mobile and Vodafone will -- with an earlier inquiry into overcharging allegations against U.K. companies Vodafone and O2 -- have far-reaching effects on European operators, forcing prices down, the EC said. Complaints by consumers about excessive rates have reached the point that European telecom regulators have made finding common ground on WIR a priority for this year.
British Telecom (BT), which could face an antitrust probe if it fails to give competitors more access to its network, said Thurs. it will make “radical” changes -- but only if the U.K.’s telecom regulator commits to deregulation. In response to an Office of Communications (Ofcom) consultation -- part of the 2nd phase of its strategic review of the country’s telecom sector -- the incumbent telco said a fair settlement with Ofcom “would balance ‘real equality of access’ with the opportunity for BT to develop its business, to invest and take commercial risks, and to succeed for its customers and shareholders if these actions are successful.” In Nov., Ofcom laid out 3 options for dealing with the “economic bottlenecks” in BT’s system -- across-the-board deregulation; referring BT to the Competition Commission for an antitrust investigation; or forcing BT to give competitors equivalence of products and to undertake major corporate behavioral changes (CD Nov 19/04 p5). Ofcom chose the 3rd. BT said it’s willing to make “significant organizational changes,” including creating a new access services division. It also agreed to: (1) Introduce equality of access in a phased and effective manner. (2) Ensure that wholesale line rental is “demonstrably fit for purpose.” (3) Keep local loop unbundling at the heart of its wholesale offerings. (4) Make sure the rest of its broadband products cut key wholesale broadband prices, beef up speeds and give all service providers a wide choice of offerings to suit their business models. (5) Agree on the “enduring economic bottlenecks” and work to ensure that “tight, appropriate” regulation is focused on them. (6) Detail the ground rules underpinning development of its 21st Century Network. But BT said it wouldn’t agree to any of this unless Ofcom commits to “rapid and significant deregulation” in the highly competitive consumer and business markets, and considers further deregulation. BT also wants Ofcom to create a stable investment environment, and to enable the incumbent to compete on a level playing field with other operators. In responses, competitors agreed with Ofcom’s call for equality of access but said they were skeptical BT will play fair. The main area of concern is the “current lack of developed thinking about implementation and delivery of a new ‘regulatory settlement,'” said the U.K. Competitive Telecom Assn. (UKCTA). BT could “make small movements” toward a settlement while “continuing to prevaricate and delay,” the group said. The industry can’t afford to “sit through months of talks while competition continues to be harmed thought the marked lack of equality of access on BT’s key bottleneck wholesale products,” UKCTA said. Cable & Wireless (C&W) also questioned BT’s intentions, saying unless Ofcom continues its “robust direction” over the incumbent now and in the future, “BT will continue to be able to inhibit choice and prolong the unsustainable structure of the fixed telecom industry from which only they benefit.” C&W detailed 9 provisions it said should be part of any settlement agreement. If the settlement doesn’t include every point, it said, Ofcom should send the matter to the Competition Commission.