Calls for Simpler Telecoms Regulation in Europe

GSM Europe, the European Interest Group of the GSM Association, says that it welcomes the European Commission's commitment to simplify and harmonise EU and national regulation as described in the better regulation package. The Commission's proposed better regulation concept could remove impediments to competition, innovation and growth for EU mobile businesses.

GSM Europe also welcomes the proposed actions to reinvigorate the Lisbon Strategy that will be presented to the European Council on 22-23 March. GSM Europe is eager to see whether this "Partnership for Growth and Jobs" at EU, national and local level will reduce volumes of EU regulation and improve its quality and consistency.

"Where regulation is necessary it must be proportionate and this requires adequate cost benefit analysis to be undertaken when proposed national regulation is being developed," said Ms Kaisu Karvala, Chair GSM Europe. "However, the practical experience in all national markets today is far from the Commission's better regulation vision."

A recent study by Ovum revealed that for the EU15 alone, the mobile services sector generated a GDP contribution of US$140.6 billion in 2004. Furthermore, 2.8 million jobs in the EU15 are dependent on the mobile services industry. Of these, over 423,000 jobs are in direct employment with mobile service companies; 738,000 jobs are in support services; while a staggering 1,638,000 jobs are generated indirectly or induced as a result of the expenditure in the economy created by the industry.

These figures do not include the GDP contribution or the employment created by the productivity benefits that mobile has delivered to the wider European business community.

"Yet mobile could make an even greater contribution to achieving the Lisbon goals if the sector wasn't being constrained by growing regulatory uncertainty in areas such as interconnection regimes and termination prices," observes Ms Karvala. In addition, mobile operators are currently facing increasing regulation on issues such as e-money and payments, copyright and data retention.

Ms Karvala continues, "An advanced mobile telecommunications infrastructure is a key catalyst to stimulating growth and creating jobs in Europe, yet the required investments are both long term and not without risk. Ever increasing regulation becomes a disincentive to investment. GSM Europe welcomes the Commission's commitment to clamp down on over-regulation, and will actively contribute to impact assessments in order to deliver less regulation, common-sense regulation and better regulation. "

"If the Commission and Member States maintain a light touch, mobile's contribution to the economy and achieving the Lisbon goals will only increase further," Ms Karvala concluded."

Posted to the site on 22nd March 2005