The European Commission today adopted Commissioner Reding's proposal to make use of the unusual instrument of a Regulation to address wholesale charges and retail tariffs for international roaming on public mobile networks.

The full text of the 'Proposal for a Regulation of the European Parliament and of the Council on roaming on public mobile networks within the Community and amending Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services' can be accessed by clicking here.

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The essence of the proposal is as follows:

Wholesale level

Article 3: Wholesale charges for the making of regulated roaming calls

The total wholesale charge that the operator of a visited network may levy from the operator of the roaming customer’s home network for the provision of a regulated roaming call, including inter alia origination, transit and termination, shall not exceed the applicable amount per minute determined in accordance with Annex I.

ANNEX I

The total wholesale charges that the operator of a visited network may levy from the operator of the roaming customer’s home network for the making of a regulated roaming call originating on that visited network shall not exceed, on a per-minute basis, an amount equal to the average mobile termination rate published pursuant to Article 10(3) multiplied:

a) by a factor of two, in the case of a regulated roaming call to a number assigned to a public telephone network in the Member State in which the visited network is located; or

b) by a factor of three, in the case of a regulated roaming call to a number assigned to a public telephone network in a Member State other than that in which the visited network is located. The charge limits in this Annex shall include any fixed elements, such as call set-up charges.

Retail level

Article 4: Retail charges for the making of regulated roaming calls

Subject to Article 5, the total retail charge, excluding VAT, which a home provider may levy from its roaming customer for the provision of a regulated roaming call may not exceed 130% of the applicable maximum wholesale charge for that call determined in accordance with Annex I. The charge limits in this Article shall include any fixed elements associated with the provision of regulated roaming calls, such as call set up charges or opt-in fees.

Article 5: Timing of application of maximum retail charge limits for regulated roaming calls

The obligations in Article 4 shall take effect six months after the entry into force of this Regulation.

Article 6: Retail charges for the receipt of calls while roaming in the Community

The total retail charge, excluding VAT, which a home provider may levy from its roaming customer in respect of the receipt by that customer of voice telephony calls while roaming on a visited network shall not exceed, on a per minute basis, 130% of the average mobile termination rate published pursuant to Article 10(3). The charge limits in this Article shall include any fixed elements associated with the provision of regulated roaming calls, such as one-off charges or opt-in fees.

T-REGS Note: As will be seen from the text above, the proposal is that only voice calls would be subject to wholesale and retail price regulation. However, a role is reserved for the National Regulatory Authorities for messaging services, expressed as follows:

Article 8.6 National regulatory authorities shall monitor developments in wholesale and retail prices for the provision to roaming customers of voice and data communications services, including the Short Message Service (SMS) and the Multimedia Messaging Service (MMS), in particular in the outermost regions of the Community, and shall communicate the results of such monitoring to the Commission on request.

An interesting aspect going forward will be the implementation and enforcement. In this regard, we draw attention to the following:

Article 9: Penalties

The Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive. The Member States shall notify those provisions to the Commission not later than six months following the entry into force of this Regulation and shall notify it without delay of any subsequent amendment affecting them.

As regards the inclusion of the wholesale international mobile roaming market in the Revised Recommendation on Relevant Markets Susceptible to Ex-Ante Regulation (this market is included in the list in Annex of the Consultation Document), page 10 of the explanatory document associated with today's proposal contains a statement as follows:

For an in-depth discussion of this key development, please contact This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Today, the European Commission issued two essential public consultation documents (and associated documents), which are of key importance given that they contain proposals which will structure the future regulatory framework for electronic communications from 2007 onwards.

The documents in question are a proposal for a revised Recommendation on Relevant Markets Susceptible to Ex-Ante Regulation (to be valid from the first quarter of 2007) and indications of proposed revisions to be made to the EU directives on Electronic Communications (to be valid from 2009 onwards, although more likely in the next century, depending on the timetable for adoption by the EU institutions and transposition into the national legislation of EU Member States).

The deadline for filing responses for both consultations is set at 27 Oct 2006.

The proposed revision of the Recommendation on Relevant Markets Susceptible to Ex-Ante Regulation now contains 12 identified markets, although it is clear that some of these markets are most likely to be further segmented by National Regulatory Authorities.   

The list is as follows:

Retail level

1. Access to the public telephone network at a fixed location for residential and nonresidential customers.

T-REGS Note: this implies that all retail telephone calls markets (3 to 6) are proposed to be removed, and that the retail leased lines market is proposed to be removed.

Wholesale level

2. Call termination on individual public telephone networks provided at a fixed location.

For the purposes of this Recommendation, call termination is taken to include local call conveyance and delineated in such a way as to be consistent with the delineated boundaries for the markets for call origination and for call transit on the public telephone network provided at a fixed location.

3. Call origination on the public telephone network provided at a fixed location.

For the purposes of this Recommendation, call origination is taken to include local call conveyance and delineated in such a way as to be consistent with the delineated boundaries for the markets for call transit and for call termination on the public telephone network provided at a fixed location.

4. Transit services in the fixed public telephone network.

For the purposes of this Recommendation, the boundaries of this market should be delineated in such a way as to be consistent with the delineated boundaries for the markets for call origination and for call termination on the public telephone network provided at a fixed location.

5. Wholesale unbundled access (including shared access) to metallic loops and subloops (or equivalent) for the purpose of providing broadband and voice services.

6. Wholesale broadband access.

This market covers ‘bit-stream’ access that permit the transmission of broadband data in both directions and other wholesale access provided over other infrastructures, if and when they offer facilities equivalent to bit-stream access.

7. Wholesale terminating segments of leased lines.

8. Wholesale trunk segments of leased lines

9. Voice call and SMS termination on individual mobile networks.

T-REGS Note: This includes, for the first time, wholesale SMS termination, and follows the proposals of the French regulatory authority ARCEP to define a separate market for wholesale SMS termination. It will be interesting to see whether NRAs will (if it is adopted as such) examine the market as defined by the Commission, or further segment this market.

10. Access and call origination on public mobile telephone networks*

11. Wholesale national market for international roaming on public mobile networks.

12. Broadcasting transmission services, to deliver broadcast content to end users*.

* The Commission notes that the number of notifications for these markets has been relatively limited (various analyses by the NRAs are still on-going). In view thereof and the complexity of issues raised, the Commission seeks particularly the stakeholders’ view on whether these markets should be retained in the revised version on the Recommendation.

The full text of the proposed revisions to the Recommendation on Relevant Markets (51 pages) containing the full text of the proposed Recommendation, the list of markets, and the proposed explanatory memorandum can be accessed by clicking here.

As regards the 2006 Review of the Regulatory Framework for Electronic Communications, the European Commission published three separate documents, which we have made clickable on the T-REGS website:

- Communication on the Review of the EU Regulatory Framework for electronic communications networks and services (12 pages).

- Staff Working Document which outlines in greater detail possible changes to the regulatory framework (37 pages)

- Impact Assessment (53 pages).

For a discussion of these documents, and of the associated process of consultation and decision-making leading up to the adoption of revisions to the regulatory framework, in the European Union, please contact This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Although this website is dedicated to telecommunications regulation, it is worth noting that on 13 June 2006, the GSM Association announced that, this weekend, it will celebrate the fact that more than 2 billion people are using GSM mobile telephony services, in 213 countries and territories.

We posted the announcement of 1 billion GSM users on this website on 24 Feb 2004.

It took essentially 15 years to reach one billion, while the second billion was reached in 18 months.

According to the GSM Association, (3)GSM represents 82.4% of all global mobile connections. Commercial 3GSM is live on 105 networks in 50 countries and territories.

The press release of the GSM Association can be accessed by clicking here.

The French regulatory authority ARCEP has issued an eagerly awaited decision, resolving a dispute that arose between France Télécom (the fixed incumbent operator, initiator of the complaint) and Neuf Télécom (an infrastructure-based fixed alternative operator, utilising mainly unbundled local loops, bitstream access, and fibre in its access network) relating to the wholesale call termination charges applied by Neuf Télécom.

T-REGS Note: This is a very important precedent, because it is the first interconnection arbitration decision to be issued since the entry into force of ARCEP's market analysis decision for Market 9 "call termination on individual public telephone networks provided at a fixed location". In this market analysis decision (valid until 1 Sep 2008), ARCEP had imposed a regulatory obligation on alternative fixed operators which was expressed as "not to apply excessive tariffs for call termination to geographic numbers". After the entry into force of this decision, several alternative fixed operators, including Neuf Télécom, had increased their wholesale call termination charges.

The essence of ARCEP Decision n° 06-0551 of 30 May 2006 (published today) is as follows:

1) Neuf Télécom is entitled to apply an average per-minute wholesale interconnection (call termination) charge for calls to its geographic numbers of 1,110 c€/min. for the period from 1 Jan 2006 to 31 Dec 2006 and 1,088 c€/min. for period from 1 Jan 2007 to 1 Sep 2008.

2) These amounts are the equivalent of France Télécom's regulated single transit interconnection charge of 3 years earlier (concept of 'delayed reciprocity' N-3), plus 10%.

3) The new 10% mark-up is justified by ARCEP as representing a 'risk premium' for an alternative operator which is building up its customer base and does not enjoy the same economies of scale as the incumbent operator which remains dominant on retail markets.

4) The operators are required to modify their interconnection agreement to reflect the ARCEP decision within 4 weeks from notification of the dispute resolution decision.

T-REGS Notes: In decisions taken under the previous regulatory framework, ARCEP had applied 'delayed reciprocity' N-5 (5 years), without a mark-up, and taking into account the interconnection architecture established between the fixed incumbent and the new entrants (the extent of reliance on single transit and local interconnection) for calls flowing from the new entrant to the incumbent. In this decision, the incumbent's single transit interconnection charge is taken as the reference for the first time, and a mark-up is added for the first time. This dispute resolution decision is valid until 1 Sep 2008, to synchronise its duration with the validity of the market analysis decision for Market 9.

The full text (84 pages, in French only) of ARCEP Decision n° 06-0551 can be accessed by clicking here.

For a discussion of wholesale call termination charge issues, in France and in other European countries, please contact This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Today, the German Council of Ministers approved the draft text of modifications to the Telecommunications Act (Telekommunikationsgesetz - TKG), prepared by the Ministry of Economy and Technology.

The text focuses on:

1) The regulatory approach to “emerging markets”.

2) Consumer protection (in preparation for several years).

Especially the first point has been subject to major controversy, within Germany and also with the European Commission.

The draft proposes to incorporate a new paragraph (Paragraph 9a) into the Act, containing the following:

Die Einbeziehung neuer Märkte in die Marktregulierung nach den Vorschriften dieses Teils soll in der Regel nur erfolgen, wenn Tatsachen die Annahme rechtfertigen, dass anderenfalls die Entwicklung eines nachhaltig wettbewerbsorientierten Marktes im Bereich der Telekommunikationsdienste oder –netze langfristig behindert wird. Bei der Prüfung der Regulierungsbedürftigkeit nach § 10 und der Auferlegung von Maßnahmen nach diesem Teil hat die Bundesnetzagentur die Verhältnismäßigkeit der Festlegungen unter besonderer Berücksichtigung der Ziele, effiziente Infrastrukturinvestitionen zu fördern und Innovationen zu unterstützen, zu berücksichtigen.

Freely translated, this paragraph indicates that regulation should only ensue as and when facts justify the assumption that (without regulatory intervention) the development of a sustainable competition-oriented market for telecommunications services or –networks would be hampered in the long term. The German regulatory authority (the Bundesnetzagentur) must, when verifying whether a market should be regulated, and whether regulatory remedies should be imposed, consider whether this would be proportional in view of the goals stipulated. These goals are efficient infrastructure investment and the support of innovation.

The Ministry stated in its press release today that sector-specific regulation should be “reticent” and enable resourceful and innovative companies to flourish in the market, all the while allowing “imitators” to flourish as well, as long as they make investments themselves.

Consumer protection will also be enhanced by the changes to the Act. According to the Ministry, this will impede “black sheep” in the market from abusing the end users and prevent such providers from tarnishing the reputation of bona fide providers.

The draft will now be forwarded to the Parliament, with an expectation of ratification towards the end of the year 2006.

The full text (in German) of the draft modifications to the Telecommunications Act can be accessed by clicking here.

The press release (in German - link to the list of all press releases) of the Ministry can be accessed by clicking here.

The Danish regulatory authority IT og Telestyrelsen (ITST) has opened a public consultation and announced a public hearing on convergence and next generation networks (NGNs). The regulatory authority requests input on two sets of questions.

The first area that ITST wishes to discuss concerns regulatory or technical problems can be foreseen with regard to NGNs in connection with the telecommunications legislation in Denmark. Issues can include topics such as interconnection, market analysis, the treatment of personal data, consumer protection, access to numbers and other addressing forms such as domain names or IP addresses, transnational issues, frequency administration, etc.

The second area the regulator requests input on concerns general problems that could be foreseen with regard the the European ICT strategy i2010 and the Review of the EU regulatory framework for electronic communications. This topic can encompass issues such as technological development and standardization, legislation, ensuring innovation and the creation of a positive investment climate, ensuring 'a proportionate regulatory climate' and everything related to NGNs (networks, services, terminals and markets).

Interested parties are invited to raise other subjects.

A note is appended to the consultation, which addresses questions such as:

The German regulatory authority BNetzA announced today that it has decided to reduce Deutsche Telekom’s interconnection charges by 10% on average. The decision will enter into effect on 1 June 2006 and is valid until 30 Nov 2008.

The regulator's decision stands in sharp contrast with the request that Deutsche Telekom had filed with the BNetzA and which triggered the proceeding on interconnection charges.

On 22 Feb 2006, the request of Deutsche Telekom (DTAG) was published in the Official Journal (Amtsblatt) of the BNetzA. DTAG requested an increase of the local interconnection charges (by 33% for peak and 35% for off peak calls respectively) and coupled this to a proposed decrease of the single and double transit interconnection charges. DTAG motivated its request by stating that PSTN traffic has decreased considerably since 2003. DTAG added that the alternative operators are steadily moving into the 474 local interconnection areas, thereby causing a shift of DTAG’s costs to the periphery of the network. DTAG also argued that it would not be appropriate to make comparisons with operators in other countries, due to the fact that DTAG is now using Element Based Charging (EBC).

It has become clear today that the BNetzA did not follow DTAG’s logic. Not only did BNetzA lower the local interconnection charges, it also declared that the interconnection charge levels requested by DTAG for double transit calls were clearly below the cost of an efficient provider. The BNetzA used data from international benchmarks and also from a model independent from DTAG’s EBC model to support its findings.

The interconnection charges imposed by BNetzA are presented in the table below, together with the previously applicable charges and the charges proposed by DTAG, but not accepted by BNetzA.