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The EC faces a fight with national telecoms regulators as it seeks to increase spectrum licence terms to 25 years.
European Commission (EC) proposals to increase the term of spectrum licences in the region from 10 years to 25 could pitch the body into a head-to-head battle with member states’ national regulators.
The commission plans to include the spectrum licence element in broader proposals on reforming the European Union’s telecoms regulations that are expected to be issued in September, Reuters reported, citing internal documents. The commission believes the longer licences will create a more stable market for operators, and in turn boost their investment in the telecoms sector.
While the move looks likely to be welcomed by European telecoms operators, Reuters notes that the EC could find itself locking horns with member states’ national regulators, which currently handle the allocation of spectrum licenses.
Spectrum auctions and sales have proven a lucrative boost for member states’ economies – a boost that could be threatened by the EC’s plan to amend the licensing process.
In addition to increasing the length of spectrum licences, the EC proposes that it would have the ability to issue binding terms on how spectrum is allocated, including setting deadlines on spectrum auctions and requiring spectrum sharing agreements to be put in place, Reuters reported. The commission also proposes that member states would be able to co-ordinate their spectrum sales, opening the door for the issue of multi-country or region-wide licences, the news agency added.
The EC’s proposals are just that: the plan must first be debated by member states and cleared through the European Parliament before being enacted into law, Reuters noted. The lengthy process means the EC is not pushing for its proposals to be adopted before 2018, the news agency explained.
Details of the EC’s plan for reforming spectrum allocation emerged a day after the Financial Times reported that the commission plans to tighten regulation of OTT messaging services including WhatsApp and Skype in an update of the EU’s electronic privacy rules.
Operators are expected to welcome the OTT regulation proposal, which they believe will help to create a more level playing field.
