The new telecoms framework approved by the European Parliament last week is set to strengthen the rights of phone and internet users while boosting competition in the European Union, not least in Malta, which for the first time could take an active part in the drawing up of the package.
"The current framework, dating back to 2002, was adopted when Malta became a member of the EU. The difference today is that Malta, as a member state, was actively involved in the discussions on the framework," explained Philip Micallef, chairman of the Malta Communications Authority. "Though the deadline for transposition is May 2011 we want to have it transposed onto Maltese legislation as early as possible."
The telecoms framework is a set of legal instruments that regulate areas such as competition, end-user rights, users' privacy and data protection, security, the use of the limited and precious radio frequencies, and the role of national regulators.
The major changes in the new legislative framework relate mostly to the role of the national regulators, a stronger say of the European Commission on competition remedies, better use and management of radio frequencies, and better citizens' rights in their use of communications services. Indeed for the first time a European legal text refers to the use of internet as an exercise of fundamental rights and freedoms.
The MCA wanted better consumer protection in the new framework, said Celia Falzon, MCA chief of external relations. "This does not mean the new legislation will not provide better protection, but we are thinking of enhancing the provisions in the new framework with local provisions for the benefit of the Maltese consumer," she said.
Consumers will see important changes in the contract of service when subscribing to a communications service. Contracts should include information on any conditions limiting access to services and applications, including access to emergency services, and measures put in place to shape traffic such as limitations of access to certain online download services. In the case of internet, service providers will have to say what contingency plans they have in place if they experience connectivity problems. National regulators like the MCA will have powers to set minimum quality levels for networks so as to promote "net neutrality" and "net freedoms" for users.
European citizens' privacy is a priority of the new telecoms rules. Names, e-mail addresses and bank account information of the customers of telecoms and internet service providers, and especially the data about every phone call and internet session, need to be kept safe from accidentally or deliberately ending up in the wrong hands. There is mandatory notification for personal data breaches - the first law of its kind in Europe.
In addition, the rules concerning privacy and data protection are strengthened, e.g. on the use of "cookies" in web browsers and similar devices. Internet users will be better informed about cookies and about what happens to their personal data, and they will find it easier to exercise control over their personal information in practice. Furthermore, internet service providers will also gain the right to protect their business and their customers through legal action against spammers.
Under the new EU rules, a user's internet access may only be cut off if "appropriate, proportionate and necessary within a democratic society" and only after "a prior, fair and impartial procedure" which gives users the opportunity to state their case and respects the principles of presumption of innocence and the right to privacy.
This means that the police or an internet service provider cannot arbitrarily decide to block internet access to a customer.
In terms of quality of service, the new package will make it mandatory on mobile operators to provide number portability, i.e. changing a mobile provider but keeping the same number, within one day. Malta prompted this provision indirectly.
"The new framework will impose a one-day timeframe for number portability in mobile telephony. This has been included as a result of Malta being the first EU country, after Ireland, to be able to provide such a service within one day. The European Commission openly said that if a small market like Malta could do it in one day then all EU countries would be able to do it. The porting in fixed-line telephony takes fives day to implement and we want that also to happen within one day," revealed Mr Micallef.
The MCA is currently working to reduce number portability in fixed-line telephony from five days to just one, as with mobile telephony.
Apart from securing more benefits to consumers and citizens, the new EU telecoms framework introduces important changes in terms of regulation, competition and use of resources. Radio spectrum management will be harmonised across the EU, especially with a view to the switchover from analogue to digital TV by 2012 (Malta will switch over on December 31, 2010).
It also allows for "functional separation" within large operators, i.e. rules requiring dominant operators to separate their network infrastructure from business units offering services that use this infrastructure. Go is one such provider in Malta.
The European Regulators Group, comprising the national communications authorities of the EU member states, will be replaced by the Body of European Regulators in Electronic Communication. This will improve the harmonised application of the telecoms framework and advise and assist the European Commission and the national regulators. BEREC will also have to be consulted if the European Commission wants to make recommendations to a national regulator on national market definitions and dominance analysis.
On the other hand the national authorities like the MCA will have greater independence of action, and this is protected against external intervention or political pressure.
The communications framework also encourages competition and investment in next-generation access networks. These networks, based on new optical fibre and wireless network technologies, are replacing less efficient traditional copper-wire networks (ADSL and cable) and will allow high-speed internet connections.
The MCA is already studying the provision of internet access to homes through fibre-optic networks, but developments are expected over the next few years. In the meantime the MCA is working on the idea to consider basic broadband internet access as a universal service, which means all citizens will have the right to access it.
If everything goes according to plan, the work on the transposition of the new EU framework into Maltese legislation will be done during next year so that it comes into force in early 2011, a few months before the mid-2011 deadline set for all EU countries.