EU Looks to Level Regulatory Playing Field With Apps, Telecoms
August 15 2016 - 12:20PM
Dow Jones News
BRUSSELS—The European Union's executive body is set to propose
more rules for so-called over-the-top telecommunications services
like Microsoft Corp.'s Skype or Facebook Inc.'s WhatsApp, in a bid
to level the regulatory playing field with the bloc's big telecom
operators.
The European Commission plans to require internet communications
companies to meet stricter privacy and security protections and
make it easy for consumers to move their information when switching
to other services, according to an internal document obtained by
The Wall Street Journal.
The document outlines the commission's preferred policy options
for its coming package to update the bloc's telecom rules, expected
in the fall.
Major carriers including Deutsche Telekom AG and Spain's Telefó
nica SA have long been appealing the European Union to repeal some
of the extensive regulations governing carriers, or to extend
similar rules to internet-based text-message and voice-call
services such as WhatsApp.
Telecom firms have complained that the onus is on them to make
costly investments to update the networks, while internet companies
use those networks to offer free services like WhatsApp or Alphabet
Inc.'s Google Hangouts.
In the document, the EU says the new obligations for
over-the-top services "may entail some additional costs," but it
doesn't have concrete information on the size of the financial
burden.
Along with the privacy requirements, over-the-top providers that
connect with traditional telephone numbers could face
administrative charges, though these would differ among the member
states. In Italy, for example, the charges could add up to a total
of around 0.2% of annual revenue, according to the document.
Under the new proposals, some internet communications companies
could also be required to provide emergency-call services.
Traditional telecom operators, however, likely will be relieved
of some administrative burdens, especially where rules overlap,
such as those around compliance regarding contractual rights,
according to the document.
As part of the EU telecom package, the commission also aims to
better coordinate the use of radio spectrum among the bloc's member
states.
In its preferred policy option for spectrum, the EU says it
wants to introduce common criteria, binding to all EU member
states, around the timing of awards for spectrum allocation and the
duration of the licenses.
Once the commission makes its proposals, various EU institutions
would then debate the draft legislation before it enters into
law.
The Financial Times earlier reported the commission's plans to
increase regulation for over-the-top players.
(END) Dow Jones Newswires
August 15, 2016 12:05 ET (16:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Microsoft (NASDAQ:MSFT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Microsoft (NASDAQ:MSFT)
Historical Stock Chart
From Apr 2023 to Apr 2024