Interconnection and Interoperability
This page focuses on :
- Interconnection of networks
- Access to networks
- Interoperability of services
- Interoperability of digital television
Interconnection
Interconnection covers the physical and logical linking of networks, and is an essential element in any multi-network environment. It allows the users on one network to communicate with users on other networks, or to access services provided on other networks. In a newly liberalized market, terms and conditions for interconnection to the incumbent operators network are critical for successful market opening.
All operators of public communications networks in the EU have both a right and a duty to negotiate interconnection with each other. In the event of a dispute, the national regulatory authority may intervene.
Under the 1998 regulatory framework, incumbent operators were required to provide interconnection according to the principles of transparency, non-discrimination and cost orientation, and to publish a Reference Interconnection Offer containing the relevant terms and conditions. The Commission recommended the use of forward looking long run incremental costs (FL-LRIC) as the most appropriate costing methodology for fixed network interconnection, and published a series of 'best current practice' prices for NRAs to use as guidelines when assessing interconnection charges.
These former obligations are carried forward to the current regulatory framework, until an NRA undertakes a market analysis, and maintains, amends or withdraws the former obligations as appropriate. NRAs have more flexibility under the current framework in terms of the precise remedies imposed on operators with significant market power in particular markets.
The Commission Recommendation on relevant markets identifies call origination, call termination and transit as markets that need to be analyzed separately by NRAs.
Commission Recommendation on relevant markets:
Access
Access is a generic concept covering any situation where one party is granted the right to use the network or facilities of another party, on either an exclusive or shared basis. As defined in the Access Directive, interconnection is a special form of access.
The key regulatory questions are: When to provide access, to what facilities, at what price ?
Mandating access can serve to increase competition. However, if the price of access is set too low, it can remove incentives for further investment; if the price is too high, it will undermine the purpose of mandating access in the first place. The Access Directive lays down a procedural framework for NRAs to follow, and identifies factors to be taken into account when granting access, but does not specify precise access obligations. In general access obligations are only imposed on operators that have significant market power in specific markets, as a means of remedying a particular market failure, but there is also provision for access to be imposed by NRAs in pursuit of broader public policy objectives.
Interoperability of services
Interconnection of networks does not guarantee interoperability of services provided over those networks. Interoperability of services requires the use of common standards and protocols, or else the use of a conversion function that can map between different systems.
Member States are required to encourage the use of standards as a means of ensuring interoperability of services and freedom of choice for users. The Commission has published in the Official Journal of the EU (OJ) a list of standards and/or specifications to serve as a basis for encouraging the harmonized provision of electronic communications networks, electronic communications services and associated facilities and services.
If the standards and/or specifications published in the OJ are not adequately implemented so that interoperability of services in one or more Member States cannot be ensured, the implementation of such standards and/or specifications can be made compulsory by the Commission, following a public consultation and with the agreement of Member States.
Interoperability of digital television
There are technical obligations for equipment manufacturers concerning the use of European scrambling algorithms, and provision of SCART sockets on analogue set with a visible diagonal greater than 42 cm.
Providers of digital interactive TV services on digital interactive TV platforms are encouraged, regardless of the transmission mode, to use an open application program interface (API) ; providers of all enhanced digital TV equipment deployed for the reception of digital interactive television services on interactive digital TV platforms are encouraged to comply with an open API. The Commission will be reviewing the effectiveness of these arrangements during the course of 2004.
Last update: 18/01/2007