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PROGRESS TOWARDS A EUROPEAN DIGITAL SINGLE MARKET IN 2014

53

exerted by the different stakeholders) that the

Commission’s proposal for a Regulation has not

been approved yet. It has subsequently been

amended by the European Parliament and is

currently the subject of debate in the Council.

The new measures proposed by this regulation

are explained below.

Single EU authorisation

Despite continuous talk of the benefits that

could flow from a single market, telecommuni-

cations operators have to apply for licences in

each of the Member States in which they wish

to provide services. This contradiction between

the desired outcomes and the administrative re-

ality has led to the development of the concept

of a single authorisation, making possible for an

operator to provide services in all Member

States without having to apply for license on a

state by state basis.

The purpose of this measure was to reduce

the barriers to entry to national markets, pre-

venting states from obstructing the entrance of

competitors by imposing different licence re-

quirements. The single EU authorisation, accom-

panied by the introduction of European virtual

access products, is designed to be a harmoniza-

tion process that would reduce the administra-

tive load and thus the costs to operators.

This proposal would also favour the provi-

sion of transnational services, and thus the ap-

pearance of pan-European operators able to

compete globally and invest in infrastructure

due to their increased investment capacities and

economies of scale. The elimination of national

fragmentation by these operators would also

make it possible to offer better services and to

reduce the price paid for them. This concept

was eliminated by the European Parliament.

European virtual access products

The European Commission Regulation proposes

the creation of standardized Europe-wide virtual

access products. This measure, together with the

single EU authorisation, would make it possible

to reduce barriers to entry to national markets as

it would dramatically reduce the administrative

requirements. However, this could also be seen

as a threat to European operators, as the ap-

proval of such measures would make it possible

for an entrant operator to provide services

throughout the European Union very easily, sim-

ply by establishing itself in one Member State.

Roaming services

Roaming was one of the central measures of

this Regulation. Commissioner Neelie Kroes has

repeated on several occasions the need to elim-

inate this difference between tariffs, as it makes

no sense to speak of a single market when there

are differences between the prices paid by citi-

zens depending on which Member State they

are in. This is one of the most popular measures,

because citizens also want the elimination of

roaming so that they don’t have to switch their

phones off while travelling for fear of running

up huge bills while using roaming services.

The complete elimination of roaming would

be the final step in the glidepath that has grad-

ually reduced the cost of providing these ser-

vices during recent years as a result of Roaming

Regulations I, II and III. At present, following the

latest reduction in tariffs, the maximum amount

that users can be charged for roaming are:

E

0.19 per minute for making calls,

E

0.05 per

minute for receiving calls,

E

0.06 for sending a

SMS and

E

0.20 per MB of data.

The Commission proposed the elimination of

the difference between roaming and domestic