91996E1708

WRITTEN QUESTION E-1708/96 by Amedeo Amadeo (NI) to the Commission (25 June 1996)

Subject: Competition, telecommunications and employment

With regard to the draft Commission Directive (C(95)1843 ((OJ C 263, 10.10.1995, p. 6. ))) amending Commission Directive 90/388/EEC ((OJ L 192, 24.7.1990, p. 10. )) regarding the implementation of full competition in telecommunication markets, what impact does the Commission think this liberalization will have on employment?

Answer given by Mr Van Miert on behalf of the Commission (16 July 1996)

One of the Commission's priorities is to give the utmost encouragement to the development of new markets and to the creation of jobs on those markets. In its 1994 White Paper on growth, competitiveness and employment, ((COM(93) 700. )) the Commission stressed the importance in this respect of eliminating the remaining exclusive rights that were causing fragmentation of the single market and restricting new investment. Directive 96/19/EC on the implementation of full competition in telecommunications markets, ((OJ L 74, 22.3.1996. )) which the Commission adopted on 13 March 1996 following wide-ranging public consultations, forms part of this approach.

In the United States the number of new jobs created by telecommunications firms (equipment and services) since 1985 exceeds by more than 100 000 the number of redundancies at ATT. In Finland employment in the telecommunications sector rose by 4% between 1987 and 1993 following the opening-up of the market to competition; this contrasts with an average fall of 16% in all sectors.

The liberalization of telecommunications also has an impact on other sectors of the economy. An econometric study ((The WEFA Group, 'Economic impact of deregulating US communications industries', Burling (Mass) - Bala Cynwyd (Penn), February 1995. )) envisages growth in total employment in the United States of 3.4 million units over ten years following a combination of cheaper services, easier network access, innovation and the spin-off from new services (health, distribution, multimedia). Similar effects are expected in the Community.

At this juncture, it is not yet possible to quantify the impact of Directive 96/19/EC on employment. This will depend to a large degree on the regulatory framework set in place by Member States in accordance with that Directive and with the Council and Parliament directives in the process of being adopted that relate inter alia to interconnection ((Proposal for a European Parliament and Council Directive amending Directives 90/387/EEC and 92/44/EEC for the purpose of adaptation to a competitive environment in telecommunications (OJ No C 62, 1.3.1996). )) and licences, ((Proposal for a European Parliament and Council Directive on a common framework for general authorizations and individual licences in the field of telecommunications services (COM(95) 545). )) particularly inasmuch as investors are of the opinion that this framework affords them the legal certainty necessary to undertake long-term investments in new infrastructures.