EU parliament waters down telecoms reforms

BRUSSELS (AFP) — The European Parliament on Wednesday backed a range of telecom measures aimed at giving consumers better rights and boosting competition among operators, but some components were watered down.

Among the measures, the package would set up a new European telecoms agency and allow regulators to require dominant operators to split their network infrastructure and services into separate businesses.

However on both these key issues, EU parliamentarians watered down the original proposals of the European Commission on their first reading.

The package also got mired in a debate on whether it is the responsibility of Internet service providers to police clients' activities for anything illegal.

Welcoming the package, EU Telecommunications Commissioner Viviane Reding said nevertheless it "will level the playing field for telecoms operators in Europe, enhance legal certainty and broaden consumer choice."

While MEPs voted in favour of a new EU telecoms agency, their version fell short of the European Commission's idea for a tough Europe-wide body to take on the many powerful, formerly state-owned telecom monopolies dotted around the 27-nation bloc.

The new body would be financed from the EU budget and by existing national regulators but the split in the costs has still to be decided.

The lawmakers also weakened another related proposal, saying the new body should not oversee network and information security questions.

The MEPs in addition rejected a call that the Commission be allowed to veto remedies introduced by a national regulator to improve competition.

Under the parliamentary version, Brussels would have to discuss the matter with the new EU regulatory authority, which would have the final say.

The EU parliament voted overwhelmingly in favour of a proposal to allow regulators to force telecoms companies to run their network and retail services as separate businesses to help competitors get easier access to their networks.

However, they said this should be an exceptional measure used only when the regulatory authorities agree that it is the only way to boost competition in a given country.

Major operators such as France Telecom have opposed any forced split of their operations.

There is "no possibility of using functional separation simply to punish historic companies," said French Socialist Catherine Trautmann, one of the parliamentary rapporteurs on the issue.

The parliament also introduced an amendment underlining that it is not the job of Internet service providers to "police" clients for illegal activities, such as breaches of copyright.

The French government has been working on plans against Internet copyright piracy that would see warning messages sent to web surfers who download material illegally or even the suspension of Internet access.

However, the amendment inspired mixed reactions, with some lawmakers glad that the French plans were derailed while others regretted that it got the broader telecoms package side-tracked.

"I would have preferred that we did not open a debate on intellectual property," said Trautmann, considering it as a "side issue."

"It would be bad to ask Internet service providers to keep an on eye on content and make them deputy sheriffs," said German Liberal Alexander Alvaro, who has worked on data privacy issues.