On October 1st, 2008, Viviane Reding, Information Society and Media Commissioner talked at the Irish Commission for Communications Regulation (ComReg) Conference in Dublin about “The digital dividend: A unique opportunity for Europe's wireless economy”.

Firstly, Ms. Reding emphasized the continuously rising substance of wireless networks in the market: “wireless is becoming a true alternative to wired”. By highlighting this fact, Ms. Reding suggested that the wireless potential can become true if spectrum is granted to wireless networks. She stated that: “If we want wireless broadband to stand up as a competitor to fixed networks, we need the bandwidth. We need the spectrum. We need to use this digital dividend opportunity. And we need to use it now”. Justifying the importance of wireless services, Ms. Reding enumerated some public services, economic, and social benefits.

Secondly, Ms. Reding made a special reference to the significance of broadcasters. She insisted that the allocation and assignment of radio frequencies should be made according to transparent, non-discriminatory and proportionate criteria. Highlighting the importance of elements like media pluralism and cultural diversity, Ms. Reding stated that “broadcasting must get an important share of the digital dividend so that it can develop new services, in particular High Definition TV and also interactive services and mobile TV”. Nevertheless, she added that “a large share of the dividend for other public interest services and for stimulating economic growth has to be reserved”. Furthermore, she gave several examples of some Member States (MS) that have already reserved part of the digital dividend for services like open auctions. She also distinguished a group of MS (consisting of Sweden, France and possibly Germany) that started to introduce wireless communications in the upper part of the UHF band.

Finally, Ms. Reding came up with two suggestions: she proposed a "fair play" 50:50 rule and a more coherent and coordinated approach of digital dividend management at EU level. Regarding to the 50:50 rule, she explained: “That is half the dividend for the broadcasters and half the dividend for the new users. A bold step like this will show the world that we mean business. This is the only way we will cut the knot and make real progress”. According to Ms. Reding, “the coordinated approach on the split between high power (i.e. broadcast) and lower power (i.e. communication) networks will mean significant efficiency gains in spectrum use and in the economic case for wireless services”. Otherwise, a big share of digital dividend will be wasted. She also specified that by “coordination” she means the balance between national flexibility and EU level synergies at EU level and not a one size fits all MS model. Ms. Reding concluded that the telecom reforms taking place in the European Parliament and in the Council are largely in line with the European Commission (EC) proposal. Nevertheless, a regulatory tool for wireless networks is still missing. Ms. Reding stated: “I believe that the Spectrum Action Plan proposed last week by the European Parliament could be a good way of agreeing an overall spectrum strategy for Europe – if we get it done quickly”.

EC Communication on universal service directive

On September 25th, 2008, the EC published a communication on the second periodic review of the scope of universal service in electronic communications networks and service directive (universal service directive). The communication was brought out in order to launch a debate and explore the necessity, the extent and the time of any reviews to be made on the universal service directive in the future. The future release of spectrum (due to the analogue to digital television shift: digital dividend) gives the opportunity to the EC to scrutinize possible alternative uses of the available spectrum. In this communication it is briefly examined the possibility to use spectrum for mobile telecommunications and broadband networks. Based on numbers (mobile subscriber penetration in the EU), the EC draws the conclusion that EU consumers have already “widespread affordable access to mobile communications” thus mobile telecommunications are out of the scope of the universal service directive. On the contrary, provisional bigger needs for broadband internet in the future could place the broadband services in the scope of the universal service directive. The debate to follow this communication will show the means, the instruments and the intensity of the measures that have to be taken for the broadband networks’ upgrade.

Next steps
Decision of the Council of the EU on Telecom Package: November 27th, 2008
Launch of debate on the review of universal service directive: 2009

To access Commissioner’s Reding speech please click here.

To access the EC Communication please click here.