jerker torngren competition in south east europe benefits are the same for all countries challenges...
TRANSCRIPT
Jerker Torngren
Competition in South East Europe
Benefits are the same for all countries
Challenges might differ from country to country
Jerker Torngren
Why a reform?
WTO commitments EU membership The welfare of the citizens
Jerker Torngren
WTO obligations
Depends on commitments made by the country
As a EU Member, the country must adhere to commitments made by the EU
Jerker Torngren
Obligations to the EU
Accession countries are committed to implement all EU legislation.
EU does not accept any special or exclusive rights within electronic communication
Jerker Torngren
The welfare of the citizens
The reform must be implement for the sake of the country, not primarily because of international commitments.
Citizens’ welfare is the objective behind the EU policy
Jerker Torngren
Citizens’ welfare
Economical reasons For the private economy For private business Economic growth
Social reasons Private contacts Access to information
Jerker Torngren
The objective of the reform
The reform must be based on the determination to improve the situation in the country, rather than fulfilling international obligations.
Only a well defined objective can safeguard a successful implementation.
It is the implementation that counts.
Jerker Torngren
Challenges
Regulatory
All the “BUTs” These are often by far more difficult to deal with than the
regulatory challenges
Jerker Torngren
Some regulatory challenges (1)
Any country planning to become a member of EU
must focus on the EU legislation.
Problems for accession countries with the new EU package
EU has spent 10 years of gradual evolution
But note,
New package is an evolution of previous legislation, not a replacement as such.
Jerker Torngren
Some regulatory challenges (2)
Definition of relevant markets
(art 15 Framework Dir)
The Directive prescribes cooperation with Member states and the Commission, a cooperation that is not formally open to non-Members.
Jerker Torngren
Some regulatory challenges (3)
USO
EU Directive puts obligations on Member States
but Includes also restrictions on how to deliver.
Jerker Torngren
USO, continuation
How to put the needs of the individual country into the context of the EU legislation
Remember:
A universal service scheme by itself does not drive economic development. It prioritises the available funds for network development to achieve social goals rather than economic goals. This policy can be in conflict with the objective of economic growth.
Jerker Torngren
Other Potential Challenges, the ‘BUTs ‘
Economical interest Political interests Lack of understanding Fear of unemployment Bureaucracy at national level Bureaucracy at local level Corruption. Lack of experience ‘What is competition? Never heard of that” “Will not work.” “Network will collapse” “New entrants are not interested in good services” Lack of capital No risk capital “Might loose my job” “Might loose my influence”
An unlimited list of relevant and irrelevant arguments, often never publicly expressed
Jerker Torngren
Important to realise that;
Incumbents in South East Europe normally have a different position and role compared to former incumbents in US or some EU Member states.
Jerker Torngren
In addition weak economies
Economical interests in existing structure Political problems with rebalancing of tariffs Overstaffing within incumbent can result in
unemployment The employment gains through new
investments are not taken into account
Jerker Torngren
In addition:
Bureaucracy in all levels of society
Misguided trust in regulating technical issues
Corruption is still a deterrent to investments
Jerker Torngren
Potential conflict of interest
Economical growth is a relatively long term perspective
Versus
Incumbent providing source of income to the State, today
But has the present situation created welfare for the citizens?
Jerker Torngren
Conclusion
Introducing competition is Difficult But Necessary, not primarily to please
EU, but necessary for any country that wants to develop and improve the situation for its citizens
Implementation counts, not the policy as such