Czech Republic "Hangs Up" on EU Telecom Talks

Talks aimed at changing the European Union's ("EU's") telecommunications rules deteriorated last week when the Czech Republic (which currently holds the rotating presidency) refused to join a compromise in the negotiations. The erosion of the negotiations may prevent an agreement from being reached on the legislative package before the European Parliament elections in June. This package includes:

• a proposal for a unified regulatory body for the entire EU (comprised of national regulators from the 27 member states)
• redistribution plans for spectrum following the analog-digital switch
• rules on mobile number portability
• the potential for enforced "functional separation"

Much of the package was authored by Commissioner Viviane Reding, who has advocated the creation of a single European regulator. Reding's system would likely be similar to the FCC in many respects. Practically, it may function similar to the way the national central banks operate, with national regulators responsible for analyzing their own markets, and a central regulator that would issue final decisions.

While both proponents and opponents of these proposals are on the sidelines, it seems that a more centralized regulator could theoretically benefit EU telecommunications companies (particularly smaller firms) by increasing regulatory certainty and unifying resources. It may assist in the push to further privatize the former government-owned telecom monopolies throughout Europe.

For more on the EU proposals, please visit:

http://www.techworld.com/networking/news/index.cfm?newsid=112282&pagtype=all