A European Market For 3G Hearing

At a hearing on the information society held on Tuesday by the Industry Committee the first speaker, Commissioner Erkki Liikanen, underlined the need for current and new technologies to co-exist. He spoke strongly in favour of creating an inclusive platform to discuss a new legal framework for the information society, increased competition between Member States and improved rural communication systems. He also said he wanted a flexible market for frequency allocations and would be putting forward a report on joint actions for the 3G industry.

From an academic point of view, Ben Benasaou (INSEAD) argued that the 3G sector would be fully operational when services were guaranteed at reasonable prices. The technology itself, he said, was not as interesting as the possible services, such as wireless communications with authorities or data transfer to hospitals in rural areas. Annabelle Gawer (INSEAD) highlighted the importance of the dynamics between hardware and software to promote the 3G sector. On the health aspects in the telecoms sector, Madeleine Bastide (University Montpellier I) stressed that the adverse effects of mobile communications could appear to differ from one country to another as the parameters of the tests were different. Juan Represa (Valladolid University) stated that 450 studies into the effects of mobile phones had not demonstrated any adverse effects on human beings. The main problem had been the bad press surrounding mobile phones. W.G. Van Velzen (EPP-ED, NL), who organised the hearing, was disappointed that the image of the new technology was rather unfavourable and asked how the Commission could promote the interoperability of new products. Commissioner Liikanen agreed that interoperability was a pre-condition for creating a functioning open market.

Christopher GENT (Vodafone) stressed that governments often only had consumers’ interests in mind and not those of industry. What was needed was not state aid but support from governments and not too much regulation by the Commission. He added that the economic crisis in the communications sector could be attributed to both regulators and managers, who had both made mistakes. Anni Vepsäläinen (Telia Sonera) emphasised the goals for 3G, which in her opinion consisted of more flexibility, use of the multimedia sector and improved user friendliness. Mika Vehviläinen (Nokia) called for the creation of a virtual 3G market in Europe, which would have to observe the principles of liberalisation, global competition and anti-monopoly policies. Etienne Fouques (ALCATEL) underlined the importance of interoperability between networks, the promotion of research, development programmes and information policies for the public.

For the horizontal organisations, Kaisu KARVALA (GSM Europe) stated the GSM Association had been supporting research for several years. This research, she remarked, would ensure that any identified gaps in knowledge were filled and that guidelines for limiting both public and occupational exposure to radiation were scientifically based, rather than arbitrary values being imposed by some Member States. Neil ANDERSON (Head of the Telecom Department for Union Network International) recommended full financial disclosure and stronger measures against fraud, an affordable universal broadband service and the creation of a European Regulatory Authority to ensure quality service and the elimination of sustainable price competition. Governments should be encouraged, he said, to re-invest the returns from the 3G auction process in the development of the industry. Jim MURRAY (European Consumers' Organisation - BEUC) stressed that consumers would either make or break the 3G market, since industry had invested so heavily in the 3G auction process. Mel READ (PES, UK) concluded the hearing by saying that business had been ”inconsistent, partial and nearsighted in its approach to 3G.”