CMS Quarterly Communications Update - July 2012

Quarterly update summarising regulatory and legal developments from the last three months in the communications, media and satellite sectors in Europe.

This edition includes contributions from the United Kingdom, Austria, Bulgaria, Germany, Hungary, Italy, Russia, Slovakia, Spain and Switzerland.

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Quarterly update summarising regulatory and legal developments from the last three months in the communications, media and satellite sectors in Europe.

This edition includes contributions from the United Kingdom, Austria, Bulgaria, Germany, Hungary, Italy, Russia, Slovakia, Spain and Switzerland.

UNITED KINGDOM

COMMUNICATIONS

Home Office publishes Communications Data Bill

The Home Office has published a draft Communications Data Bill which includes controversial plans for the expansion of existing communications data retention requirements to other forms of data, including data which the communications provider would not collect in the ordinary course of business. It also makes provision for access to that data by law enforcement and other public authorities. The Bill is designed to address the increased use of new forms of communication which are not under the control of communications providers but of information society service providers, as the latter are not covered by existing data retention legislation.

For more information please go to: http://www.official-documents.gov.uk/document/cm83/8359/8359.pdf

To access the Information Commissioner's Office's statement in response to the draft bill please go to: http://www.ico.gov.uk/news/latest_news/2012/statement-ico-response-communications-data-bill-14062012.aspx

Ofcom Business Connectivity Market Review

Ofcom have identified continuing concerns about the extent of competition in the provision of leased lines in the UK and proposes measures to address these in their consultation entitled 'Ofcom Business Connectivity Market Review, Review of the retail leased lines, wholesale symmetric broadband origination and wholesale trunk segments markets' dated 18 June 2012. The Market Review encompasses traditional leased lines and ethernet leased lines, both of which play an important role in business communications services and are used to support a wide variety of applications in the private and public sectors. The demand for leased lines bandwidth has increased steadily. The growth in demand for leased lines capacity seems set to continue as businesses demand more bandwidth, and as providers of mass market broadband services invest in fixed super-fast services and mobile next generation (4G) services supported by leased lines. Modern technologies are driving down the unit costs of leased lines bandwidth. Ofcom propose to find that BT has Significant Market Power (SMP) in a number of the markets apart from the London area, which it finds to be largely competitive. Charge controls are proposed as remedies for both traditional and ethernet leased lines. Ofcom are consulting on separately on these in the 'Leased Lines Charge Control' (see below). Ofcom review competition in some communications markets periodically, in accordance with the EU regulatory framework which is implemented in the UK by the Communications Act 2003. Ofcom last reviewed these markets in 2007/2008. This consultation closes on 24 August 2012 and Ofcom intend to publish a statement in the first quarter of 2013.

For more information please go to: http://stakeholders.ofcom.org.uk/binaries/consultations/businessconnectivity/summary/condoc1-4.pdf

http://stakeholders.ofcom.org.uk/binaries/consultations/business-connectivity/summary/section5-6.pdf

http://stakeholders.ofcom.org.uk/binaries/consultations/business-connectivity/summary/section7.pdf

http://stakeholders.ofcom.org.uk/binaries/consultations/business-connectivity/summary/sections815.pdf

Ofcom consultation on leased lines charge control

This consultation entitled 'Leased Lines Charge Control, proposals for a new charge control framework for certain leased lines services' published on 5 July 2012, contains Ofcom's specific proposals for new charge controls for certain leased lines services provided by BT. A leased line is a communications service which provides dedicated transmission capacity between fixed locations, which can be used to carry voice and data traffic. The Business Connectivity Market Review Consultation published on 18 June 2012 set out Ofcom's analysis of competition in the provision of leased lines services in the UK. This analysis indicates that BT has Significant Market Power (SMP) in the provision of a number of wholesale leased lines services. To address this SMP a number of remedies are proposed by Ofcom, including charge controls in some of the relevant markets which Ofcom have identified. Ofcom propose separate charge controls for traditional leased lines and ethernet leased lines, with ethernet leased lines set for a fairly steep reduction in prices. For the few services where Ofcom have found BT to maintain SMP within the London area, Ofcom propose simply a safeguard price cap. This consultation closes on 30 August 2012 and Ofcom will publish a statement in the first quarter of 2013.

For more information please go to: http://stakeholders.ofcom.org.uk/binaries/consultations/llcc-2012/summary/LLCC_2012.pdf

Ofcom consultation on the review of Relay Services

The growth in the availability and use of broadband and mobile data services, particularly email and mobile text messaging, has helped disabled end users to communicate. However, the ability to make and receive telephone calls remains crucially important in today's society. Users with hearing and speech impairments can face barriers when accessing voice telephony. The Universal Service Directive requires EU Member States to take action to secure access to and affordability of voice telephony services for end users with disabilities. Ofcom consulted in July 2011 on changes to the regulatory regime to introduce improvements to the current text relay service, which it called Next Generation Text Relay (NGTR). The result of the responses to this consultation was that Ofcom feel it is necessary to conduct a further consultation. This further consultation entitled 'Review of Relay Services – further consultation' published on 30 May 2012, focuses on:

Ofcom's assessment of the costs to industry and the benefits to disabled end users of implementing our proposals for NGTR, particularly as regards access by the mobile providers; and the criteria and process by which Ofcom propose to approve a relay service. This consultation closed on 13 July 2012 and Ofcom intend to publish a statement later this year.

For more information please go to: http://stakeholders.ofcom.org.uk/binaries/consultations/relay-services-review-12/summary/text_relays.pdf

Ofcom decision following review of premium rate services

Ofcom published their decision on the application of its analytical framework for regulation of certain premium rate services on 2 July 2012. Following a consultation in July 2011 Ofcom confirmed their view that fixed and mobile portal content services charged to customer's phone bills should no longer be subject to PRS regulation. Ofcom have also decided that PRS bought by Payfroit, a payment mechanism for WAP and web users offered by mobile providers, should continue to be regulated by PhonepayPlus. However, this regulation should be limited in order to be proportionate to and targeted at the limited risks to consumers that Ofcom have identified. Ofcom have amended the PRS Condition to reflect these changes with effect from 1 September 2012.

For more information please go to: http://stakeholders.ofcom.org.uk/binaries/consultations/review-prs/statement/statement.pdf

Law Commission consults on reforming Electronic Communications Code

The Law Commission has published a consultation on its proposals for reform of the Electronic Communications Code. The code is applied by Ofcom to certain network operators to give them rights to install and maintain telecoms apparatus on public and private land. The Commission's review of the Code is part of the government's wider review of the communications legislative regime, and the Commission proposes publishing its final report on the Code in the spring of 2013. Responses to the consultation are requested by 28 October 2012 and the Law Commission proposes to publish a final report with its recommendations in the spring of 2013.

For more information please go to: http://lawcommission.justice.gov.uk/consultations/1863.htm

Ofcom consultation on fixed narrowband market review and network charge control

Ofcom are undertaking a market review to examine retail and wholesale narrowband fixed telephony services. Ofcom consulted on this matter in June 2012 and sought stakeholders' views about: the proposed scope of their review; and the analytical approach that it should adopt for this review in assessing; and responding to, any finding that an operator has significant market power. This consultation ended on 28 June 2012. For more information please go to: http://stakeholders.ofcom.org.uk/binaries/consultations/narrowband-market-review-call/summary/condoc.pdf

Ofcom Review of Alternative Dispute Resolution Schemes

Ofcom are obliged to keep their approval of alternative dispute resolution schemes under review. In their consultation entitled Ofcom Review of Alternative Dispute Resolution Schemes published on 29 May 2012, Ofcom are proposing to modify the conditions of their approval of the Schemes as allowed under the Communications Act 2003. This would involve the introduction of a new condition requiring the Schemes to adopt a set of Decision Making Principles. The Principles are a set of high level guidelines that will be referred to by decision makers at both Schemes. This consultation ended on 29 June and Ofcom plan to publish a statement shortly.

For further information please go to...