Scope

Evaluation of the Framework Directive 2002/21/EC as amended, the Authorisation Directive 2002/20/EC as amended, the Access Directive 2002/19/EC as amended, the Universal Service Directive 2002/22/EC as amended, the BEREC Regulation 1211/2009, the Radio Spectrum Decision 676/2002/EC, the Radio Spectrum Policy Group Decision 2002/622/EC, Decision 243/2012/EU establishing a multiannual radio spectrum policy programme (RSPP).

Evaluation findings

The specific objectives of the framework such as promoting competition, realising the single market and protecting consumer interests remain valid. Most regulatory areas remain relevant e.g., spectrum management and access regulation.

The regulatory framework has been effective in delivering a competitive sector overall, with benefits for end-users. The achievements of the framework in protecting end-users and in ensuring a safety net (universal service) are significant. However, regulatory consistency has been achieved only to a limited extent.

As regards efficiency, the benefits of the framework - for most operators, end-users and society as a whole - outweigh the costs of implementing it. But a certain level of complexity is unavoidable to ensure a well weighted intervention. However, where administrative burden could be reduced it was without making the provisions less effective.

Estimated savings and benefits

Due to the limited availability of data, the costs and benefits of the existing framework could not be quantified.

In the absence of reporting requirements imposed by the regulatory framework on Member States and operators regarding administrative costs and burdens, it has not been possible to do a precise cost calculation. However, the evaluation has shown that overall the benefits of the framework - for most operators, end-users and society as a whole - greatly outweigh the costs of implementing it.

Which objective(s) does the Commission pursue?

The general objective is to ensure that the pro-competitive framework leads to unconstrained connectivity as the basis for a digital single market. The internal market remains an objective of the framework and underpins each objective of the review.

The specific objectives are:

• to contribute to ubiquitous connectivity in the internal market.

• to promote competition and user choice in the internal market.

• to simplify the regulatory intervention and to achieve internal market coherence.

A number of potential synergies and trade-offs between objectives have also been identified.

• The initiative aims to remove legislation, which has become obsolete or not necessary, such as a number of specific provisions concerning end-user rights, where the general provisions provide adequate end-user protection.

• It aims at ensuring coherence with other pieces of EU law, such as in the area of audiovisual, consumer and data protection. Furthermore, the coherence between the regulation aimed at incentivising competitive network roll-out and the EU financing and State aid rules in the sector is reinforced.

• It aims at ensuring consistency in particular by recasting four directives and their amendments (from 1 up to 3 amendments each) into one comprehensive and consistent directive. The recasting increases the readability and accessibility of EU electronic communications law. Overall, this has a significant simplification effect.

• The initiative seeks to enhance the effectiveness of the framework by harmonising the competences of the national regulatory authorities and by empowering them to act in all areas, relevant for the regulation.

• The procedures and steps necessary for imposing ex ante sector specific regulation have been simplified wherever this was possible without compromising the quality and appropriateness of the resulting regulation.

Estimated savings and benefits

The Commission proposal is estimated to lead to an increase of investment and consumption. It is expected that there will be a cumulative effect on growth of 1.45 % and on employment of 0.18 % by 2025, assuming the reforms are implemented by 2020. Labour productivity is also expected to increase by 0.8 % during the period 2020-2025.

The Commission proposal is expected to lead to an increase of the period in between successive market reviews from 3 to 5 years, which should increase certainty for stakeholders and reduce administrative costs. Costs savings have been estimated at 10-15% of the current costs involved with market reviews (a saving of up to EUR 7.5m).

More consistent spectrum assignment will generate total benefits of EUR 146.5 billion a year. The preferred option for services might contribute to cost savings in the telecoms and many other industries.

Outcome of Legislative Procedure

The co-legislators supported the Commission proposal to extend the scope of the Regulatory Framework to Number-Independent Interpersonal Communications services (OTTs) and to exempt these services from the general authorisation regime.

In the area of access regulation, the co-legislators upheld the main elements of the Commission proposal, albeit with modifications. Regarding the favourable regulatory treatment of co-investments in very high capacity networks, the co-legislators introduced a commitments procedure that SMP operators would have to follow under the control of the national regulatory authorities (NRAs). Moreover, they agreed on additional conditions to be met by co-investment schemes, including more favourable terms for access seekers. On symmetric regulation, the co-legislators agreed that the imposition of obligations for access on non-replicable assets would not be mandatory. As a procedural safeguard, NRA decisions on co-investments and on certain symmetric obligations would have to be subjected to a joint veto by the Commission and Body of European Regulators for Electronic Communications (BEREC). Regarding market analysis, the extension of the maximum period between two reviews to 5 years maximum has also been accepted. The Commission proposal for a single fixed and a single mobile termination rate has been accepted, however with those rates being imposed directly on providers by means of a delegated act, rather than by the individual NRAs.

In the area of spectrum management, the Commission proposal aimed at ensuring investment predictability, innovation, enhancing coordination and consistency of spectrum assignments and re-assignments and improving cross-border spectrum coordination between Member States. Most implementing powers of the Commission have not been retained. However, the outcome ensures a minimum of 20 years predictability of spectrum assignments and the coordinated timing of assignment of two 5G pioneer bands and of spectrum harmonised for wireless broadband to ensure the availability of radio spectrum for early deployment of 5G networks. Other benefits:

• consistency of spectrum assignment conditions through a non-binding peer review

• allowing the Commission to support cross-border spectrum coordination through implementing measures,

• calling for an increase in the advisory role of the Radio Spectrum Policy Group

• allowing the Commission to define implementing rules to reduce obstacles to the deployment of 5G networks stemming from lengthy permit granting procedures

• inviting Member States to improve consistency on protection of public health against electromagnetic fields.

On end-user rights, the outcome ensures a level playing field between services, which are functionally substitutes, by extending the application of certain obligations to services provided over the internet, such as messaging apps, where it makes sense (e.g. contract information requirements). The protection of end-users with regard to contract duration, termination, bundles and switching of provider is enhanced. End-users are protected from high-prices for intra-EU communications, to the main benefit of occasional consumers of such services. Affordable adequate broadband internet access must be available to all consumers regardless of their location or income (universal service obligation) with a view to ensuring the bandwidth necessary for social and economic participation in the society. Support is to be provided to consumers with disabilities to ensure that they can afford the necessary terminal equipment, specific equipment and specific services. End-users with disabilities are also to have equivalent access and choice in relation to electronic communications services.

The proposal to finance universal service obligations only through public funds was rejected by the co-legislators and the possibility to use funding also from the electronic communications service providers was included.

Regarding the institutional set-up, the Commission proposal to harmonise the competences of national regulatory authorities, with the view to enhancing consistency in the application of the framework, was upheld by the co-legislators to a significant degree. The final outcome ensures that national regulatory authorities are consulted even when they are not given the competence for certain tasks. On the contrary, the proposal to transform BEREC into an EU agency, by adapting its structure to match the interinstitutional agreement on EU agencies, was rejected in principle by the co-legislators and only limited improvements to its functioning have been upheld.

Estimated savings and benefits

The outcome of the legislative process differs in some respects from the Commission proposal. No new impact assessment was carried out to calculate the impact of these changes on the estimated savings and the benefits.

However, given that the co-legislators supported the main elements of the Commission proposals, the estimated benefits should be close to those of the proposal.

Implementation reported by Member States

Implementation of the new rules by the Member States remain limited.

To date (December 2022), only 17 Member States have fully transposed the EECC (AT, BE, BG, CZ, DE, DK, EL, ES, FI, FR, HU, IT, LU, LT, MT, SE and SK) and 8 have notified complete transposition and are currently undergoing completeness checks (CY, EE, FR, HR, LV, NL, RO, SI). Overall only 2 Member States have not yes transposed (IE, PL).

On 6 April 2022, the European Commission referred 10 Member States (Ireland, Spain, Croatia, Latvia, Lithuania, Poland, Portugal, Romania, Slovenia and Sweden) to the Court of Justice of the European Union over their failure to fully transpose and communicate to the Commission their respective national implementing measures for the EECC.

However, achievements have been made as the Commission decided to close 8 infringement procedures, including some of those for which a referral has already been decided due to complete transposition on behalf of those Member States namely Bulgaria (closure decision adopted on 6 April 2022), Italy and Lithuania (on 15 July 2022), Belgium, Czechia, Germany, Malta and Sweden (on 29 September 2022).

In the absence of complete transposition, the procedures are pending before Court of Justice of the EU against Ireland, Latvia, Poland, Portugal and Slovenia.

Implementation by Commission

The Commission is fully implementing the EECC. Since its entry into force, it has adopted an implementing Regulation paving the way for high capacity 5G network infrastructure¹, an implementing Regulation establishing a template for the contract summary to be used by providers of publicly available electronic communications services², as well as a delegated regulation setting EU-wide voice-call termination rates³. In parallel, the Commission adopted a revised version of the Commission Recommendation on relevant product and service markets within the electronic communications sector susceptible to ex-ante regulation⁴. Moreover, it worked together with BEREC on a number of deliverables, taking the form of guidelines, such as on the location of the network termination point. The Commission also adopted a new Decision⁵ on the set-up of the Radio Spectrum Policy Group taking into account the provision of the EECC, thus enhancing the role of the RSPG and faclitating the Peer Review process.

Moreover, since the application date of the Directive (21 December 2020), the Commission adopted 64 decisions on the basis of Articles 32 and 33 (corresponding to the previous Article 7, 7a procedure), mostly commenting or issuing no comments decisions, while 8 cases were closed after in-depth investigation either with a veto decision or withdrawal of the draft measures by a NRA.

The Commission has also adopted in December 2022 a delegated act on the measures necessary to ensure effective emergency communications in the Union⁶.

¹ Commission Implementing Regulation (EU) 2020/1070 of 20 July 2020 on specifying the characteristics of small-area wireless access points pursuant to Article 57 paragraph 2 of Directive (EU) 2018/1972 of the European Parliament and the Council establishing the European Electronic Communications Code (Text with EEA relevance) C/2020/4872,  OJ L 234, 21.7.2020, p. 11–15.

² Commission Implementing Regulation (EU) 2019/2243 of 17 Decembre 2019 establishing a template for the contract summary to be used by providers of publicly available electronic communications services pursuant to Directive (EU) 2018/1972 of the European Parliament and of the Council (Text with EEA relevance)

³ Commission adopted Delegated regulation on EU-wide voice-call termination rates | Shaping Europe’s digital future (europa.eu)

⁴ Commission updated the Recommendation on Relevant Markets | Shaping Europe’s digital future (europa.eu)

⁵ COMMISSION DECISION of 11 June 2019 setting up the Radio Spectrum Policy Group and repealing Decision 2002/622/EC (2019/C 196/08).

⁶ Commission Delegated Regulation (EU) 2023/444 of 16 December 2022 supplementing Directive (EU) 2018/1972 of the European Parliament and of the Council with measures to ensure effective access to emergency services through emergency communications to the single European emergency number ‘112’ (Text with EEA relevance)