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Brussels threatens to take governments to court to create single mobile market Brussels threatens to take governments to court to create single mobile market
(7 months later)
The European commission has waded into battle on behalf of the region's beleaguered mobile companies, threatening to overrule national governments by taking them to court in order to enforce the creation of a single market for telecoms.The European commission has waded into battle on behalf of the region's beleaguered mobile companies, threatening to overrule national governments by taking them to court in order to enforce the creation of a single market for telecoms.
In a move which could erode the power of national watchdogs like the United Kingdom's Ofcom and centre decision making in Brussels, telecommunications commissioner Neelie Kroes promised to drive through one set of rules for the industry across Europe's 27 member states.In a move which could erode the power of national watchdogs like the United Kingdom's Ofcom and centre decision making in Brussels, telecommunications commissioner Neelie Kroes promised to drive through one set of rules for the industry across Europe's 27 member states.
"Mobile needs a real single market," Kroes told the Mobile World Congress trade fair in Barcelona. "We are going to start using our EU treaty powers to change the situation.""Mobile needs a real single market," Kroes told the Mobile World Congress trade fair in Barcelona. "We are going to start using our EU treaty powers to change the situation."
The hope is that European states, if they act in unison, have a population of 500 million which is large enough to create a telecoms industry power base from which to take on the United States and China.The hope is that European states, if they act in unison, have a population of 500 million which is large enough to create a telecoms industry power base from which to take on the United States and China.
"Europe used to lead the world in wireless," said Kroes. "Yet now we are falling behind, overtaken to the east and the west. We urgently need to catch up. To reclaim a strong wireless industry. To cement a strong economy.""Europe used to lead the world in wireless," said Kroes. "Yet now we are falling behind, overtaken to the east and the west. We urgently need to catch up. To reclaim a strong wireless industry. To cement a strong economy."
The arrival of 4G superfast mobile internet in Europe has been slow and badly co-ordinated. South Korea has more 4G subscribers than the entirety of Europe, and 17 EU member states have yet to install the technology. "We are shooting ourselves in the foot", said Kroes.The arrival of 4G superfast mobile internet in Europe has been slow and badly co-ordinated. South Korea has more 4G subscribers than the entirety of Europe, and 17 EU member states have yet to install the technology. "We are shooting ourselves in the foot", said Kroes.
She criticised the messy way in which different countries have allocated different bands to mobile, saying Europe's spectrum map looked like a "bowl of spaghetti".She criticised the messy way in which different countries have allocated different bands to mobile, saying Europe's spectrum map looked like a "bowl of spaghetti".
The commission is about to initiate what are known as 'infringement proceedings' against states that are resisting airwave sales. Letters will go out to ministers and regulators in the next few weeks which could lead ultimately to the European court of justice imposing fines.The commission is about to initiate what are known as 'infringement proceedings' against states that are resisting airwave sales. Letters will go out to ministers and regulators in the next few weeks which could lead ultimately to the European court of justice imposing fines.
Kroes will flesh out how a single market would operate in a Wireless Action Plan to be published on 27 March. It will have the support of mobile network chief executives, who met with Kroes in Barcelona on Tuesday and will now begin lobbying ministers in their home markets to promote the idea.Kroes will flesh out how a single market would operate in a Wireless Action Plan to be published on 27 March. It will have the support of mobile network chief executives, who met with Kroes in Barcelona on Tuesday and will now begin lobbying ministers in their home markets to promote the idea.
Networks have been pushing to boost their profits through mergers, which could lead to two or three competitors per country rather than the minimum of four preferred by many nations including the UK. The commissioner said she was open to consolidation, with permission granted based on regional rather than national market share, so long as regulation becomes European.Networks have been pushing to boost their profits through mergers, which could lead to two or three competitors per country rather than the minimum of four preferred by many nations including the UK. The commissioner said she was open to consolidation, with permission granted based on regional rather than national market share, so long as regulation becomes European.
Capacity-crunched networks are also clamouring for more spectrum, at lower prices. The EU has identified a 1,000 megahertz slice of airwaves which can be used for mobile, but on average member nations have handed just 650 MHz to their local operators.Capacity-crunched networks are also clamouring for more spectrum, at lower prices. The EU has identified a 1,000 megahertz slice of airwaves which can be used for mobile, but on average member nations have handed just 650 MHz to their local operators.
In the UK, Ofcom has handed over 583 MHz including the 4G spectrum sold this month, but it could take until 2020 to sell a further 500 MHz of airwaves currently being used by the military, aviation and emergency services.In the UK, Ofcom has handed over 583 MHz including the 4G spectrum sold this month, but it could take until 2020 to sell a further 500 MHz of airwaves currently being used by the military, aviation and emergency services.
Deploring the "kaleidoscope of different rules and practices across the EU", Kroes warned: "We all need to change our mindset. We can no longer just think instrument by instrument, interest by interest, country by country. We can no longer stick to legacy systems, 20th century needs, historically allocated powers."Deploring the "kaleidoscope of different rules and practices across the EU", Kroes warned: "We all need to change our mindset. We can no longer just think instrument by instrument, interest by interest, country by country. We can no longer stick to legacy systems, 20th century needs, historically allocated powers."
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