The European Free Trade Association's (EFTA) Surveillance Authority has reported that Iceland is in breach of its obligations to offer 3G licenses, from the beginning of 2002.
The UMTS Decision (128/1999/EC) requires the EEA States to take all measures necessary in order to allow for the coordinated and progressive introduction of UMTS services on their territory by 1 January 2002 and, in particular, to establish an authorisation system for UMTS no later than 1 January 2000. In February 2002, the Authority opened infringement proceedings against Iceland for the latter's failure to comply with the Decision. In its reply to the Authority's letter of formal notice, Iceland admitted that it had not taken any measures to implement the UMTS Decision. In addition, the Government of Iceland put forward that it considered it sensible to delay implementation of the Act due to delays generally experienced with the rollout of third generation mobile networks all over Europe and the dreadful general State of the telecommunications sector.
However, the observations made by Iceland have no bearing on that State's obligations to fully and timely comply with the provisions of the UMTS Decision. Since Iceland has not taken any implementation measures in this regard, the Authority has concluded in a reasoned opinion that Iceland is in breach of the EEA Agreement.
Compliance with the UMTS Decision does not require Iceland to issue licenses as such, but it obliges it to have the necessary legal, administrative and regulatory framework in place to allow interested parties to obtain an authorisation for the operation of a third generation mobile network, if they so request, within a reasonable timeframe. The Authority will closely monitor the suitability of the procedures and the framework to be adopted by Iceland, in order to ensure effective access to the market for economic operators. Special attention will be paid to the expedited handling of procedures once a manifest interest in obtaining UMTS licences in Iceland has emerged.
In its reasoned opinion, the Authority requires the Government of Iceland to take all necessary measures to comply with the opinion within two months. If Iceland does not comply with the opinion within this period, the Authority may bring the matter before the EFTA Court.
The aim of the EEA Agreement is to guarantee the free movement of goods, persons, services and capital, as well as equal conditions of competition and non-discrimination against individuals in all 18 EEA States. It presently applies between Iceland, Liechtenstein and Norway on the one side and the 15 Member States of the European Union on the other, forming together the 18 EEA States."
Posted to the site on 28th March 2003
Posted to: www.cellular-news.com/story/8582.php