epp-ed public hearing: ‘telecom package’
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EPP-ED Public Hearing: ‘Telecom Package’. Roland Doll, Vice President International Government Relations, Deutsche Telekom AG Brussels, March 05 2008. Deutsche Telekom in Europe…. Operation of Fixed and/or Mobile networks. Provision of integrated ICT solutions for business costumers. - PowerPoint PPT PresentationTRANSCRIPT
EPP-ED Public Hearing: ‘Telecom Package’
Roland Doll, Vice President International Government Relations,
Deutsche Telekom AG Brussels, March 05 2008
Deutsche Telekom in Europe…
05.03.2008
Hungaria
Slovakia
Czech Republic
Poland
The Netherlands
Great Britain
Germany
Macedonia
PortugalSpain Italy
Belgium
Turkey
Russia
Denmark Sweden
AustriaSwitzerl
and
Operation of Fixed and/or Mobile networksProvision of integrated ICT solutions for business costumers
Montenegro
Croatia
* EU-5, The Netherlands, Sweden ** Korea, Japan (2007 figures n.a.)Source: IDATE (2007)
Number of fibre-based connection subscribers(IDATE 2007)
Subs
crib
ers
in M
io.
0
2
4
6
8
10
12
Europe* USA Asia**
200420072004
20072004
2006
Asia and the US successfully extend their fiber-based infrastructure.
05.03.2008
Europe lags behind competing economic regions in terms of Telco-investments. Per capita levels are 50% higher in the US than in Europe.
In addition, investment rates in the US are rising due to consistent deregulation.
Result: the investment gap is widening.
*EU-15 **Japan, KoreaSource: OECD (2007)
Telecommunications-Investment per capita (OECD 2007)
US
Dol
lar
100
150
200
2003 2004 2005
Asia**
USA
Europe*
Investment levels in telecommunications - Successful turnaround after deregulation.
05.03.2008
Limits on Internet access capacity will eventually hamper innovation and growth.
1) nemertes research, The Internet Singularity, Delayed: Why Limits in Internet Capacity Will Stifle Innovation on the Web, November 2007
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Year
PetaBytes/Month
Estimated access line capacity based on current investment levelsEstimated demand. Increase mainly due to P2P, Web 2.0, HDTV.
05.03.2008
Deregulation intended by Review ‘99 has not been achieved despite competitive market development.Chart by European Commission, DG Infso, Nov. 2001, road show on the Review ’99
05.03.2008
Conclusions.
05.03.2008
The European Telecoms sector faces major challenges: against the backdrop of shrinking revenues in the sector, new fibre based access networks and next generation mobile broadband networks have to be rolled out to secure Europe’s competitiveness in the next decade.
Europe lags behind East Asia and North America in the deployment of high-speed next generation access networks and in overall investment levels.
Rapid increase in data traffic will lead to a multiplication of capacity required by consumers and businesses from fixed and mobile networks.
The regulatory concepts of the past have been successful in opening up former monopolistic markets but they are not adequate for stimulating investments in new fibre based access networks. The review must give answers how to adapt the regulatory regime to the investment challenge facing the industry.
If we want to stimulate growth in the telecommunications sector with positive spill over effects for the entire EU economy, deregulation must now be implemented, instead of further extending regulation. In order to achieve such a move towards the application of general competition law, legally binding exit rules are needed.