Broadband and mobile services in the EU are
benefiting from intensifying competition and strong growth in some areas,
according to a report just published by the European Commission.
The EU executive's latest report on the implementation of the
EU electronic communications regulatory package says that while progress
in implementing the EU's regulatory package has been good, more regulatory
work is needed if Europe is to reap the benefits of a fully competitive
sector.
The report, which covers 25 Member States for the first time, highlights the
strong expansion of mobile and broadband communications in Europe.
While overall growth has stabilised, broadband lines have grown to almost
30 million and competition is intensifying as new entrants invest further in
infrastructure.
Mobile phones are now used by 83 per cent of European citizens, and the rate
is still rising. Third-generation (3G) high-speed networks and services have
been launched in most Member States.
There are an estimated 2.6 million 3G subscribers in the EU and on
average, at least 43 per cent of the EU population should be covered by the
end of 2004, estimates the report.
Fixed-line telephony has declined in value terms, among other things
because growing competition is forcing prices down.
Despite the growth, the EU Commission is concerned that delays and
ineffective application of the regulatory package in some EU Member States
could hinder competition, innovation and investment.
Information Society and Media Commissioner Viviane Reding said the
electronic communications sector was "a vital driver of growth and
prosperity of Europe's economy", but reiterated the need for full and
effective implementation of the rules: " Effective competition in this
sector is essential if we want to reach Europe's Lisbon objectives."
"Already today, consumers are benefiting from more choice, lower prices
and innovation. To guarantee this, full and effective implementation of the
EC's new regulatory framework continues to be essential. It is a major
achievement that twenty Member States have adopted the necessary primary
legislation, although five Member States lag behind and we are taking the
necessary measures to remedy this. It is our priority to see EC law fully
applied in all Member States."
Where competition is still weak, the Commission promises to monitor its
development actively and intervene "where appropriate".
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