Next steps in Europe's digital agenda

Abstract

The 2005 European Commission review of the ICT sector concluded in late 2009 and was transposed into national legislation by all Member States by 25 May 2011, including the 12 countries that joined the EU since 2004. The Internet and mobile sectors had continued their rapid growth over this period so that by late 2000s the ICT sector was seen as a major driving force in the European economy. Whereas the First wave of liberalization reforms focused on the telecom sector, and the second on the converged ICT sector, the current wave is on telecom/ICT driving economic growth via applications to improve efficiency, productivity and employment throughout the EU economy and society. The original objective remains the liberalization of access to national markets so as to obtain a competitive European common market in telecom network provision and services as a platform for ICT products and services that will be applied across the European economy and beyond. It attempts to put into action key building blocks for the Lisbon Agenda objective to make the EU the “most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion” (Lisbon 2000). The review of the EU telecom policy framework acknowledges that although competition has grown in some markets and countries, it had not done so in many others and the European market is still largely fragmented, with few operators offering services across several Member States. It concludes, as did past reviews, that, “the revised rules would focus regulation on those market sectors where competition is still lacking, and develop stronger EU-level regulation to foster the development of the internal market.” (EU 2009). The revised EU regulatory framework covers all forms of fixed and wireless telecom, data transmission and broadcasting. The new policy framework provides a laundry list of focus areas that includes, “Giving consumers more choice by reinforcing competition between telecoms operators.” But surprisingly there is no mention of any new liberalization initiatives or indication of how competition among telecom operators will be expanded, or how liberalizationwill enhance policy objectives in any of its other focus areas. (Melody 2012). Apparently competition, although still in the general rhetoric of EU policy, is no longer seen as a key element for successful implementation of these programs. Significant further steps focused on the implementation of effective competition were not forthcoming. It is of course possible that increased opportunities for competition could be enhanced by successful implementation of some of these new programs, but barriers to competition could also be created. The important change in policy priorities is that liberalized market initiatives and enhanced competition are not seen as essential elements in the implementation of the new policy framework intended to progress the movement toward common European markets in telecom-based services.