Digital Agenda: Commission concerns on aspects of Belgian regulators' proposal to regulate broadcasting and (to a lesser extent) broadband markets

Commission comments

The Commission has expressed a number of concerns about the Belgian regulators' proposals.

In particular, it has criticised the regulators' analysis of the broadcasting markets. It has also asked the regulators to take better account of market developments in the light of recent entry of competitors into the market (in particular, Belgacom's IPTV), the trend towards multi-play and converged broadband-broadcasting offers and the proposed regulation of Belgacom (which should allow third parties to offer both broadband and IPTV services over Belgacom's network).

The Commission further asked the regulators to justify better the proportionality of the obligation on cable operators to provide an analogue resale offer, also in the light of the declining importance of analogue TV. Moreover, the Commission has asked the Belgian regulators to justify the proposed obligation to provide such access also to Belgacom, which is quite successfully developing its IPTV and has a strong presence in the neighbouring telecom markets.

Concerning the broadband markets, the Commission invited the Belgian regulators to ensure that the proposed regulation does not prevent access to offers over next generation fibre networks and to take into account the competitive pressure exercised at retail level by the cable operators.

Procedures

On 20 May 2011, the Belgian Conference of Electronic Communications Sector Regulators (CRC) notified the Commission, as required by Article 7 of the EU Telecoms Framework Directive, of draft decisions on the markets for wholesale infrastructure and broadband access and on the retail market for broadcasting services in Belgium.

In Belgium, competence related to electronic communications is shared between the Federal State and the Communities. The CRC was established by the 2006 Cooperation Agreement as the body for cooperation between BIPT (Federal State), Conseil Supérieur de l'Audiovisuel (CSA - French speaking Community), Vlaamse Regulator voor de Media (VRM - Flemish Community) and the Medienrat (German speaking Community).

The Commission has sent the "comments letters" to the CRC under the "Article 7 procedure" procedure (MEMO/08/620). This procedure leaves considerable scope to national telecoms regulators on how to achieve effective competition, but requires them to notify draft regulatory measures to the Commission. Under the rules applicable to Member States' regulatory remedies notified to the Commission before 25th May 2011 (as in this case), the Commission may make comments of which the national telecoms regulators are required to take utmost account.

In the case of notifications of regulatory measures received after 25 May 2011, the EU's revised telecoms rules apply. The revised rules, and more particularly the new Article 7a, grants the Commission, in cooperation with the Body of European Regulators for Electronic Communications (BEREC), extra powers of oversight on the competition remedies for the telecoms markets. In practice, should the Commission, in consultation with BEREC, consider that a draft remedy notified by a national regulator would create a barrier to the single market, the Commission can proceed to an in-depth examination and ultimately issue a recommendation to the national regulator to amend or withdraw its planned remedy (see MEMO/11/321).

The Commission letter will be available at:

http://circa.europa.eu/Public/irc/infso/ecctf/library?l=/commissionsdecisions&vm=detailed&sb=Title

Digital Agenda website: http://ec.europa.eu/digital-agenda

Neelie Kroes' website: http://ec.europa.eu/commission_2010-2014/kroes/

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