Summary
The entire study is presented in PDF format (click on the link at the bottom)
Following the European Commission’s invitation and continuing its activities on the knowledge economy issues, the Lithuanian Free Market Institute (LFMI) submitted its response to the Public Consultation on the Review of the EU Regulatory Framework for Electronic Communications Networks and Services and the Public Consultation on a draft Commission Recommendation on Relevant Product and Service Markets within the Electronic Communications Sector Susceptible to Ex Ante Regulation (the Tomorrow’s Framework).
LFMI strongly supports the aims of the European Commission to move towards a more competitive and dynamic telecommunications market that would ultimately result in a high competitiveness of the region and provide its citizens with an increased level of welfare.
The Institute understands that by updating the regulatory framework, the Commission acknowledges inevitable technological change in the sector as well as convergence between media, telecommunications and IT industries.
In its response to the Commission LFMI writes: “We support the attempts of the Commission to liberalize the market as we share the same belief that regulation should not be catching up technological progress but rather be simplified so as to cover any potential development. Otherwise, we might risk harming rather than helping the competition by limiting access to innovation, new business models and higher quality services to the consumers.”
The Institute proposed a package of policy measures that may develop into constructive discussions within the Commission.
The key policy recommendations are the following:
Harmonize the internal market by deregulating it. Create consistency by fewer rules, not more.
Strongly reduce the scope of ex ante regulation, simplify the procedures and adopt more flexible approach for the remaining rules.
Abolish any ex ante regulation in the retail fixed, mobile telecommunications and broadcast transmission markets.
Wholesale fixed telecommunications market should move from artificially simulated competition within old infrastructure to fostering a sustainable market-led competition. Revaluate the need for local loop unbundling.
Foster the development of demand of broadband services in remote areas by training the potential users and providing additional online e-government services especially if those can reduce the public spending.
Adopt tender procedures for local authorities to choose the providers of universal electronic communication services.
Launch a wide scale spectrum liberalisation.
Contribute to the safe use of telecommunication technologies by ensuring safety in the communication systems of public institutions.
