Position papers

• Position papers

  GSMA-ETNO response to public consultation on the Draft BEREC Report on M2M and permanent roaming (BoR (24) 96)

   The GSMA and ETNO welcome the possibility to comment on BEREC’s Draft report on M2M and permanent roaming based on BEREC’s call for input earlier this year. We first provide some general comments to the report followed by specific observations to the report findings including some suggestions for adjustments.

   

  General comments to the report

  Although the report’s data has certain limitations, the overall picture shows a dynamic and competitive market. Various figures show that both MNO’s and MVNO’s have completed a significant number of wholesale roaming agreements, which are increasing over time (last paragraph page 11, and figure 7) while wholesale prices/unit are decreasing over time (figure 10). This is in accordance with the expectations set forth in the current regulation that mobile network operators are increasingly responding and accepting reasonable requests for wholesale roaming agreements on reasonable terms, and explicitly allowing permanent roaming for machine-to-machine communications.

  We believe these figures strongly indicate that the market is competitive without signs of market failures and the current framework should not be reviewed at all.

  As the Commission rightly emphasized in the consultation on “How to master Europe’s digital infrastructure needs?”, the telecoms sector is going through a period of weakened financial health and, currently facing a large investment need to meet the Digital Decade Targets.

  New technologies, and notably M2M/IoT are the backbone of future productivity and competitiveness. Any overregulation of this sector will introduce further barriers to attract new investments in digital infrastructures.

  Along these lines, we welcome BEREC’s general statement in chapter 1.3, based on its Wholesale Roaming guidelines, recognising that “If M2M communication services are used on a permanent basis in a visited network, for example in cases of prevailing roaming consumption and presence according to the Commission Implementing Regulation (EU) 2016/2286 (CIR), wholesale roaming access should be subject to commercial negotiations”.

  Notwithstanding the above, the report indicates various topics and proposals from certain players for regulatory intervention despite the report being a mere summary of questionnaire responses, and we believe it contains assertions that have not been sufficiently substantiated or researched. In our view, a survey should not be used to adopt recommendations to modify regulations; the objective should be limited to obtaining statistics, always considering the validity of the sample of responses in each case.

  We believe that in a dynamically developing market segment such as M2M any intervention is inefficient by default, as it could impact the wider M2M/IoT ecosystem and place EU-based actors at a disadvantage compared to non-EU based actors. That also include eventual “softer measures”, be it a recommendation or enhancement of the existing recitals in the Roaming regulation setting certain “red lines”. However, we would like to emphasize that even “softer measures” , would still intervene into and constrain the fast development of a technologically sophisticated and innovative market segment and place competitive constraints on EU-based M2M providers

  Finally, we wish to underline that if EU-based access providers are to gain presence also outside of the EU/EEAA, regulatory predictability is of paramount importance. This means that any national deviations, whether these originate from an EU-Member State or outside of the EU/EAA, will have a negative impact on the ability of the provider to grow its business.

  Outside of Europe, Roaming for M2M devices and access to national IoT infrastructure, such as LPWA, are agreed upon based on technical and commercial considerations. In our experience this is quite important, as it is key for roaming providers to manage services in a way that justifies the network investments that is driven by the use of these technologies. The absence of regulated wholesale roaming also means, that providers of access outside of Europe can negotiate the terms of access to their networks. However, if wholesale roaming regulation would be further extended into M2M within the EU, the conditions of access are governed by a price book that is established by the regulator, and it is no longer determined by the commercial and technical needs determined between the two parties. It would create an imbalance between the negotiating parties (one in the EU subject to extended regulatory obligations and the other one outside the EU, being exempted from any regulatory obligations in its home market). This can have a negative impact on the ability of operators with EU presence to be able to compete against IoT deals that have an EU and a non-EU footprint.

  From the perspective of the GSMA and ETNO, this potential fragmentation plays into our overall ask for more harmonisation of authorisation, numbering and related compliance and reporting requirements as being essential for the European M2M/IoT market to develop.

  We elaborate more in the attached file. For any doubts about its content, please contact Benedict William Gromann (gromann@etno.eu), Policy Manager at ETNO.

  3 September, 2024 Read more
• Position papers

  ETNO-GSMA contribution on the draft BEREC Report on the IP interconnection ecosystem

  Building on the previous stakeholder engagements, ETNO and the GSMA would like to provide some further views on the draft BEREC Report on the IP interconnection ecosystem.

  As a preliminary remark, we welcome that draft BEREC’s report assesses IP interconnection from a holistic ecosystem perspective – including peering, transit and on-net CDNs – acknowledging the change in the market dynamics. We also generally appreciate BEREC’s efforts to collect primary data from a variety of stakeholder groups to establish an overview of the current practices of Internet Access Services (IAS) providers in the IP interconnection ecosystem between peering, transit and on-net CDNs. Although, improvements regarding the length of the consultation and the impartiality in the data collection process would be required. Further to this, in order to have a complete picture it would be important to match data from Content and Application Providers (CAPs).

  Concerning BEREC’s analysis, we would like to highlight the following shortcomings and conclusions:

  • We disagree with the finding that seven years after the last report in 2017, the sector is facing an evolution rather than a revolution. This is particularly true considering that this report also covers trends until 2030. As stated in the associations’ response to the draft BEREC report on the entry of large content and application providers into the markets for ECN/ECS, the market for digital infrastructure is undergoing massive changes and the dynamic and interaction in the internet ecosystem is developing with high speed. The risk to the open internet is huge. Big CAPs act independently of their competitors in the internet ecosystem through concentration, controlling more and more the open internet. CAPs only invest in transport and interconnection, not in the expensive delivery networks including access networks.
  • BEREC is conducting an isolated analysis of the IP-IC market, without taking into account the impact of large CAPs in the global internet ecosystem, discarding factual and potential market failures. We believe the situation of the global joint impact of CAPs becoming vertically integrated, gaining market power across the whole Internet value chain, further leveraging into adjacent untapped markets and gaining market and bargaining power, should be taken into consideration in this report, as it could change some of its conclusions.
  • The draft report ignores the fact that the interconnection market was originally developed as a market between operators (peers) functioning under the bill-and-keep philosophy. CAPs, however, are not peers offering an expansion of the addressable market. The relationship between large CAPs and integrated ISPs has evolved from a symbiotic coexistence to a pure business-to-business (“B2B”) relationship. None of the services which are provided by CAPs are feasible without the infrastructure of an integrated ISP as these bring the two market sides (CAPs on the one hand and end-user on the other side) together. Network operators are typically not inclined to provide IP data transport services on a settlement-free basis to a network with a significant traffic asymmetry which is especially the case between CAPs and ISPs traffic.
  • BEREC does not acknowledge the market power of large CAPs orchestrating “must have content”. It also ignores that the negotiating position of ISPs is constrained by competition with other ISPs (end-users can choose among several ISPs / routes by which to access their end-users) and by an asymmetric regulatory framework (telco operators are subject to access obligations on the end-user side, and to non-discrimination obligations imposed by the OIR in relation to the content provider side). Failure to consider this, puts into question the credibility of the market analysis.

  We elaborate more in the attached file. For any doubts about its content, please contact Maarit Palovirta (palovirta@etno.eu), Senior Director of Regulatory Affairs at ETNO.

  1 August, 2024 Read more
• Position papers

  ETNO-GSMA feedback on draft implementing act under the NIS2 Directive

  ETNO and the GSMA welcome the opportunity to share their views on the draft implementing regulation regarding cybersecurity risk management and reporting obligations for various digital infrastructure and service providers. Our members, who represent the leading telecommunication network and service providers in Europe, are thoroughly preparing to comply with the NIS 2 Directive and have been actively engaging with decision-makers and regulators on the national implementation of the law.

  Member States are currently implementing and applying a plethora of security legislation, including the national transposition of NIS 2, which now also encompasses security rules for the telecom sector previously under the European Electronic Communications Code (EECC); the new Critical Entities Resilience Directive (CER); the Digital Operational Resilience Act (DORA); and national measures stemming from the 5G Security Toolbox. Additionally, data privacy legislation such as the General Data Protection Regulation (GDPR) and the ePrivacy Directive demands further incident notifications in case of a data breach. These regulations affect the telecoms industry all at once. Therefore, consistent, and harmonized application of this layered security rulebook is paramount.

  As stated in NIS2, to avoid unnecessary disruption, existing national guidelines adopted for the transposition of the rules related to security measures laid down in Articles 40 and 41 of the EECC should be considered. If the Commission were to adopt further implementing acts in the future, we would encourage the Commission to perform a thorough gap analysis and to build on its established corpus of legal requirements and practices, including the ENISA Guidelines on Security Measures and Incident Reporting under the EECC, which we understand are being updated considering the draft implementing acts. 

  Regarding the draft implementing regulation, we understand that it is strictly addressed to categories of digital infrastructure, digital and ICT service management providers whose operations have a cross-border dimension. However, telecommunications operators typically also serve as cloud computing providers and often include CDN, DNS, and managed services as part of their portfolios. If telcos were to be subject to differing principles regarding the applicability of rules, thresholds, and requirements for incident reporting and risk management depending on which asset or service is affected, this could result in overlapping and incoherent rules, causing both additional legal and operational uncertainty and costs.

  The implementing regulation should therefore clearly specify how it applies to those entities whose core business is different from the provision of the services encompassed in the act, but which also provide these services as part of their portfolio. The act should help avoid duplication, support coherence, and prevent fragmentation through differing national cybersecurity policies.

  Below, we present some general remarks on the draft implementing act, along with specific comments on the text of the draft regulation and its annex. However, due to the short timeframe and the highly detailed and technical nature of the document, it cannot be considered a comprehensive assessment.

  We elaborate on our recommendations in the paper. For questions and clarifications regarding this feedback, please contact Paolo Grassia (grassia@etno.eu), Director of Public Policy at ETNO.

  25 July, 2024 Read more
• Position papers

  ETNO-GSMA contribution to BEREC Report on Cloud and Edge Computing Services

  Cloud and edge services are at the core of the transformation that our sector is undergoing: telecoms operators are turning their networks into platforms for innovation by embracing disaggregated and cloud native architectures, high automation (e.g. based on AI/ML), programmability, and the development of new network as a service (NaaS) applications. As ETNO and the GSMA, we have outlined our vision for telecom transformation in our contribution to the European Commission’s consultation on the future of the electronic communications sector and its infrastructure, which is clearly reflected in the Commission’s White Paper “How to master Europe’s digital infrastructure needs?”¹.

  23 May, 2024 Read more
• Position papers

  ETNO Position Paper on 6G

  The European Union has set ambitious Digital Decade targets for 2030, among them the objective to cover all populated areas with wireless high-speed networks of at least 5G performance. Societies increasingly rely on high-speed mobile and broadband connections. We expect Europe’s mobile data consumption per user to continue growing in the coming years with an annual growth rate of 25% . Mobile connectivity has a key role to play in attaining digital inclusion for all European citizens and businesses and enabling the twin digital and green transition.

  29 April, 2024 Read more
• Position papers

  ECTA, ETNO & GSMA Joint Statement on the European Parliament proposals to payment services regulation after the plenary vote

  Today, the European Parliament voted on a report proposing amendments to the European Commission’s proposal for a revised Payment Services Regulation. 

  The European telecommunications industry recognises the importance of revising payment service rules to improve consumer protection in electronic payments . We are keen to work closely with the banking sector to fight against impersonation fraud.

  Therefore, we call policymakers to find a proportionate and workable solution by deepening cooperation between the two sectors without changing the liability regime.

  To be effective in fighting impersonation fraud and safeguarding consumers the final text should strike the right balance and ensure that any additional obligations on telecommunications providers are aligned with what is legally and technically feasible.

  23 April, 2024 Read more
• Position papers

  ETNO-GSMA position on impersonation fraud in Payment Services Regulation

  The GSMA and ETNO strongly encourage policymakers to reconsider their approach to increasing liability for electronic communications services (ECS) providers in cases of impersonation fraud.

  Imposing liability on ECS providers will move responsibility of repayment to the victims of fraud, rather than helping to combat fraud from happening. The financial services sector has the direct consumer contact, designs the financial products, and they should and can setup sufficient safeguards when they do so. Telecoms operators provide access to the free and open internet. Our products, including text messages and numbering are widely known and are not designed to cater to the need of the financial sector specifically. If the telecoms sector is to be made financially liable, then it will have to change the way internet access and communication services are provided and setup strict safeguards for the use of text messages to the severe detriment of both the consumers and the financial sector.

  Telecoms operators have seen the most effective solutions come from bilateral cooperation with the financial services sector and would encourage policymakers to combat fraud by working with industry to facilitate and encourage this cooperation. The Payment Services Regulation should focus on the cooperation as a solution to combat fraud.

  Telecoms operators value consumer trust and are invested in combatting ’spoofing’ fraud. Members of the GSMA and ETNO are already implementing anti-spoofing and wider anti-fraud solutions on a voluntary basis, which have already proven their effectiveness. However, there are obstructions, both technical and legal, to implementing EU-wide measures - obstructions which can vary in different member states where different legislation applies. These would prevent telecoms operators from complying with proposed measures in the Payment Services Regulation, so removing regulatory obstructions must be a first step in a challenging process.

  We elaborate on our reflections in the paper. 

  14 March, 2024 Read more
• Position papers

  ETNO position paper on EU guidelines on exclusionary abuses by dominant undertakings

  With a view to the European Commission’s soon to be expected publication of the draft guidelines for the enforcement of Article 102 TFEU and the prohibition of exclusionary abuses by dominant undertakings, ETNO would like to provide some insights regarding its competitive experience on the telecoms market.
  20 February, 2024 Read more
• Position papers

  ETNO reflection paper on submarine communication cables

  The European Union’s dependence on submarine communication cables has emerged as a significant concern for Europe’s security, resilience, and sovereignty, a vulnerability underscored by notable incidents involving the Nord Stream undersea gas pipeline in 2022 and undersea cables connecting Estonia and Finland in October 2023.

  As the European Commission prepares to release a connectivity package detailing a fresh strategy for its telecom sector and internet infrastructure, including a Recommendation to strengthen coordination among Member States in the deployment, security, and governance of crucial cable connections, ETNO aims to offer its perspective on augmenting the resilience and security of the Union’s submarine cable infrastructure.

  We elaborate on our reflections in the paper. For questions and clarifications regarding this position paper, please contact Paolo Grassia (grassia@etno.eu), Director of Public Policy at ETNO.

   

   

  1 February, 2024 Read more
• Position papers

  ETNO comments to the European Commission’s Draft Implementing Regulation laying down templates concerning the transparency reporting obligations of providers of intermediary services and of providers of online platforms under Regulation (EU) 2022/206

  ETNO welcomes this opportunity to provide comments to the European Commission’s draft Implementing Regulation laying down templates concerning the transparency reporting obligations of providers of intermediary services and of providers of online platforms under the ‘Digital Services Act’ (DSA).

  In general, ETNO believes that the number of variables included in the annex I template should be strictly limited to the DSA obligations pursuant to articles 15(1), 24(1) and 42(2) in order to reduce to the administrative burden for providers. Obligations extend to ETNO members, who do not have neither ability nor the legal right to see the content of communications and therefore to moderate content for the vast majority of the services they provide. Many ETNO members also already publish transparency reports on relevant efforts (e.g. blocking of websites done on the basis of EU and national laws). Detailed regulation of how companies should report implies changes in systems and processes, without tangible benefits in terms of transparency.

  We elaborate on our comments in the document For questions and clarifications regarding this feedback, please contact Xhoana SHEHU, Policy Manager at ETNO (shehu@etno.eu).

  25 January, 2024 Read more
• load more