Commission Report 2002 (Romania)

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 19: Telecommunications and information technologies

Progress since the last Regular Report

Progress since the last Regular Report has been significant, particularly as regards primary legislation.

Concerning the liberalisation of the telecommunications market, the planned date for the liberalisation of the fixed-line telephony market remains the end of 2002. Until that date, the incumbent maintains a monopoly on these services. However, liberalisation has already taken place in other markets, such as cellular mobile telephony, data transmission, the provision of internet services, cable television and satellite networks. Fixed network penetration reached 18% and is growing slowly. Further network modernisation and price rebalancing will be needed. Penetration in mobile services has also reached 18%. There are two GSM operators and UMTS licences have yet to be issued.

At the end of May 2002 the Government approved an Emergency Ordinance creating the general framework for communications regulation. The legislation creates a National Agency for Communications Regulation (ANRC) whose primary role is to act as an regulatory authority implementing national policies in the field of electronic communication and postal services. The ANRC will be led by a president and a vice-president for a period of five years. The overall framework legislation is intended to transpose the most recent Community legislation in this area, adopted in April this year.

The adoption of legislation providing the regulatory framework is a major step towards achievement of Romania`s target date for full alignment with the acquis in this area by the end of 2003. The legislation creates a regulatory framework as regards authorisation procedures for electronic communication networks and services, the allocation of numbering resources and management of the radio frequency spectrum. As part of the basic policy objectives it provides the framework to promote competition in the communications market.

In February 2002 Romania adopted legislation introducing the single European emergency number 112, including the obligation of free and available access to this number from both fixed and mobile telephone operators. In January 2002 Romania adopted legislation transposing the acquis as regards access to electronic communication networks and associated infrastructure. The same legislation provides the framework for ensuring the interoperability and interconnectivity of these networks.

As regards postal services, legislation approved in January 2002 creates a general framework for postal service regulation and universal service provision. With the creation of the ANRC, the latter will also take over regulatory responsibility in this sector. There is a considerable degree of liberalisation in the sector. Restrictions remain for the moment on regular mail, parcels below 2 kg and money order and wire transfers. In the direct-mail market segment 10 private operators have been assigned licences.

Overall assessment

Now that the framework legislation has been adopted, the Ministry of Information Technology and Communications will need to follow up this achievement in the coming year with the adoption of implementing legislation and with institution building efforts in order to ensure that the ANRC can assume its functions in time for liberalisation of the fixed-line telephony market at the start of 2003. Last year`s assessment concerning the considerable amount of training and financial investment that will be necessary to ensure adequate administrative capacity in this area for the new regulatory authority remains valid.

The above remarks are equally pertinent for postal services, as the ANRC will also be responsible for this sector.

Overall, legislative transposition is on course to meet the Government`s targets. The major challenge will be ensuring that the administrative architecture necessary to implement this legislation is set up in a timely fashion and operates effectively and independently of both the Romanian authorities and the sector operators.

Romania has not yet been able to evaluate the economic implications of fully implementing the universal service acquis so as to achieve affordability and a decision on this point remains outstanding.

Conclusion

In its 1997 Opinion the Commission remarked that Romania could have some difficulty in adopting the EC model of telecommunications liberalisation, because of slow sector development and delays in liberalisation. However, the Commission expressed the view that with the implementation of new legislation during the next few years, Romania could be expected to fully achieve the approximation to EC regulation in the medium term. The Commission concluded that the competitiveness of the sector would crucially depend on the acceleration of the modernisation programme for networks and services, on the increase in foreign investment, as well as on market-oriented and flexible management of the public network operator.

Since the Opinion, Romania has made good progress although the adoption of legislation has taken somewhat longer than initially envisaged. Nevertheless, the regulatory framework now has the potential to be fully aligned with EC legislation in the near future and Romania has made important progress in preparation for liberalisation of the communications and postal markets.

Negotiations on this chapter are ongoing. Romania has not requested any transitional arrangements.

Romania should focus further efforts on creating an efficient and independent regulatory administration and on adopting implementing legislation. It should continue to transpose the updated telecommunications acquis and complete the implementation procedures as soon as possible.

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