92002E0266

WRITTEN QUESTION P-0266/02

by Sir Robert Atkins (PPE-DE) to the Commission

(1 February 2002)

Subject: Preparation for the European Council meeting Barcelona

The 2000 Lisbon European Council called on the Member States, together with the Commission, to work towards introducing greater competition in local access networks before

the end of 2000 and unbundling the local loop in order to help bring about a substantial reduction in the costs of using the Internet. What cost reductions for Internet use have been achieved in the EU since the Lisbon Summit?

Answer given by Mr Liikanen on behalf of the Commission

(6 March 2002)

A list of Internet access prices in Member States in March 2000, at the time of the Lisbon European Council (23 and 24 March 2000), and in August 2001, which are the latest data currently available is sent directly to the Honourable Member and to Parliament's Secretariat. These data show that prices across the Community have dropped by between 19 % and 37 %, depending on how intensively the Internet is used. It is usually considered that among the four sets of data the 20h off-peak use and the 40h peak use are the most relevant figures, the former corresponding to a typical private household and the latter to a typical business user.

The Honourable Member should be aware, however, that due to the large number of tariff schemes available both for access calls and subscriptions to Internet service providers (ISPs), a comprehensive analysis of prices for Internet access is not feasible. The data in the above-mentioned list relate to the lowest prices applied by the largest telecommunications operator for each usage profile chosen, in accordance with the Organisation for Economic Co-operation and Development (OECD) methodology. The prices applied by alternative telecommunications operators and ISPs may differ from those indicated, and in particular may well be lower.

It should also be borne in mind that Regulation (EC) No 2887/2000 of the Parliament and of the Council of 18 December 2000 on unbundled access to the local loo(1) came into force only at the beginning of 2001. Given the time necessary for competitors to invest in equipment and roll out their infrastructure, the main impact of local loop unbundling on prices will not be felt immediately. The Commission has also pointed out in its Seventh Implementation Repor(2) that the take-up of unbundled local loops has sofar been disappointing across the Community. It should in this context be noted that other regulatory or market action, such as the introduction of flat rate interconnection offerings, is likely to have an impact on the price of access. The Commission is following these developments with great attention, in particular in the light of its intention to promote broadband.

(1) OJ L 336, 30.12.2000.

(2) COM(2001) 706 final.