Electronic Communications

By a recommendation addressed to the Member States of the European Union, the European Commission put in place the final piece of a new framework for electronic communications. As required under Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services (also called "the Framework Directive"), the Commission identified 18 (7 retail and 11 wholesale) markets in the electronic communications sector, the characteristics of which may be such as to continue to justify sector specific regulations at national level.

National regulators will be required to take markets listed in the Recommendation as a starting point for their own market analyses to be undertaken as soon as possible after the adoption of the Recommendation. The fact that the Recommendation identifies certain markets where ex ante regulation may be justified, however, does not mean that such regulation will automatically apply or that these markets will be always subject to the imposition of regulatory obligations. Any regulation may apply only if there is no effective competition on these markets. National regulators may, subject to specific conditions, define additional markets to these of the Recommendation.

The list of markets has been drawn in accordance with competition law principles subject to public consultation and consultation with national regulatory authorities. By listing the markets where the Commission considers that regulation at national level may be justified, the Recommendation aims at withdrawing national regulation where it is no longer required and providing greater legal certainty for suppliers of communication networks and services. As a result, sector-specific obligations will, in principle, only be imposed on undertakings, which are designated by national regulatory authorities as having significant market power. The Commission is required to review by 30 June 2004 the need of any update of the Recommendation on the basis of market developments.

The Recommendation is a key element of the new regulatory framework for electronic communications in Europe to take effect from 25 July this year. As the Treaty of Accession does not provide for any transitional provisions, the new regulatory framework, including the Recommendation, will apply to the Czech Republic as of the first day of accession.