Denmark 1990 Liberalisation of supply and service of telecommunications equipment. 1992 Liberalisation of the cellular communications market for GSM system. 1993 Liberalisation of the use of leased lines for resale of data communications services. 1994 Liberalisation of the used of leased lines for resale of voice services. 1995 Liberalisation of operating broadband infrastructure within municipalities. a) 1996 Full liberalisation of all telecommunications infrastructure and the services. France 1988 EC Terminal Equipment Directive opens the terminal equipment market to competition. 1990 The EC s ONP Directive liberalises value-added services and data services for business and closed-user groups. 1991 France Telecom becomes an independent operator under public law. 1995 Direction Général des Postes et Télécommunications (DGPT) issues a public consultation document on competition in telecommunications. March 1996 Parliament passes the Experimental Licensing Bill for immediate implementation. July 1996 Liberalisation of alternative infrastructures. July 1996 Implementation of the Telecommunications Regulation Law. July 1996 France Telecom incorporated. 1996 Regulatory provisions implementing the new law (licensing, establishment of interconnection charges, sharing the net cost of universal service). France Telecom s reference interconnection offer approved by DGPT and published January. 1997 The Autorité de Régulation des Télécommunications (ART) created as an independent sector specific regulatory body. Spring 1997 Licenses issued to competing public network and voice telephony operators, effective from 1 January 1998. 1 January 1998 The telecommunications market opened to full competition in France. January 1998 Call-by-call carrier selection for international and domestic long-distance calls introduced. January 2000 Carrier preselection for long distance introduced. 2000 54 Wireless in the local loop (WLL) licences attributed in Metropolitan France and its overseas territories). 2000 Unbundling decree published. 2001 Two UMTS licenses attributed. 2001 Flat rate interconnection offer for Internet access calls introduced. January 2002 Carrier preselection for local calls introduced. 2002 Third UMTS licence attributed. 2003 New telecommunications law under discussion. Germany 1989/1990 Separation of the telecommunications monopoly into transmission routes and voice telephony. 1990 Liberalisation of terminal equipment. 1990 Issue of the first mobile telecommunications licence to Mannesmann, licensing of satellite communications. 1991 Start of trunk mobile radio licenses. 1993 Corporate Networks Approval Concept, licensing of E-Plus. 1994 Paging/mobile data radio licenses. 1996 (August) Entry into force of the Telecommunications Act 1996/ end of monopoly on transmission paths. 1997 E-2 licence to Viag/BT. 1998 (January) Abolition of monopoly on voice telephony/industry Specific Regulator, RegTP, established. 2000 Six UMTS licences awarded. 2003 New telecommunications Act. Page 1 of 7
Greece 1930 Establishment of the Greek Telephone Company S.A. (GTC) with Siemens- Halske as its main shareholder. GTC developed local networks in 23 Greek towns. In 1946, 75% of GTC s foreign shares were handed over to the Greek State as compensation for war reparations. 1949: Law 1049/1949: Foundation of OTE 1973: Presidential Decree 165/1973 1982: Presidential Decree 1256/1982 1985: Presidential Decree 58/1985 1990: Law 1892/90 1992: Law 2075/92 1994: Law 2246/94 2000: New Law on Telecommunications OTE was founded as a merger of GTC and Cable & Wireless and had exclusive rights over the operation of telecommunication services in the country. The Decree extended Law 1049/1949 and specified OTE s relationship with the State. In particular: The State should not interfere in OTE s management. OTE s investment programmes should conform to the annual and fiveyear government investment programmes. International agreements, contracts, and tariffs should be approved by the Ministry of National Economy and the Ministry of Transport and Communications. OTE and its subsidiaries became parts of the public sector. The Decree provided for the socialisation of OTE as a public utility company allowing employee representatives to participate in OTE s Board of Directors. Liberalisation of value-added services and of mobile telephony. Opening of market to mobile services OTE excluded from mobile market. Liberalisation of all telecommunication services, except public voice telecommunication, and full liberalisation of mobile market allowing OTE to participate. The law has five basic aims: protect the consumer; safeguard free and healthy competition; safeguard personal information; the provision of universal service; and the growth of telecommunications. The law was passed by the Greek Parliament in early December 2000. Hungary 1990 Act LXXXVII on price fixing. 1991 Act XVI relating to the award of concession contracts to supply telecommunications services. 1992 Telecommunications Act (LXXII) which installed major regulatory changes. 1993 Act LXII on frequency management. 1993 158/1993 (XI.11) concerning the interconnection of telecommunication networks. 1993 24/1993 (IX.9.) on the numbering plan for the public telephone network. 1996 Act LVII concerning the prohibition of unfair and restrictive market practices. 1997 Act LXV which modified the Telecommunications Act (LXXII) of 1992. 1997 48/1997 (III.14.) on licensing telecommunications services. 1997 232/1997 (XII.12.) relating to the establishment of the Communications Authority Hungary (HIF) and on amendment of certain legal rules affecting communications. 1997 243/1997 (XII.20) on subscriber contracts for telecommunications services. 1997 29/1997 (XII.20) on terms and conditions of particular telecommunications subscriber contracts, associated with the protection of consumers and quality of service. 1997 31/1997 (XII.20) on usage charges for public telephony services. 1998 1/1998 (I.12) on the distribution of revenue relating to telecommunications services subject to concession. 1998 1071/1998 (V.22) Government Resolution formalising the government s telecommunications policy for the period 1998-2005. 1999 6/1999 (II.19.) Decree revising Interconnection fees. Page 2 of 7
Ireland 1984 Telecom Éireann was established as a fully government-owned telecommunications operator with an exclusive privilege. 1992 Provision of value added services were liberalised. 1994 Regulatory conditions regarding the supply of leased lines by Telecom Éireann were laid down. 1996 EC allowed Ireland a two-year derogation until 1 January 2000 to complete the full liberalisation of the telecommunications market. 1996 Telecommunications (Miscellaneous Provisions) Act, 1996 was passed. It provided the main framework for regulation in the fully liberalised market. 1996 Telecom Éireann established a strategic alliance with KPN and Telia. 1997 Competition in mobile phone services started with the entry of Esat Digifone as a second GSM operator (licensed in 1996). 1997 Alternative infrastructure provision was allowed by removing the monopoly on the provision of satellitebased telecommunications services and the supply of liberalised telecommunications services over cable TV networks and alternative public telecommunications networks. 1997 (June) The Office of the Director of Telecommunications Regulation (ODTR) was created. 1998 (May) The Minister of Public Enterprise decided to end the derogation with effect from 1 December 1998. 1998 A third mobile (GSM) operator was selected to end the duopoly, but the award of the licence was challenged legally by an unsuccessful applicant which delayed the process for two years until 2000. 1998 (1 December) Voice telephony was fully opened to competition to complete the full liberalisation of the telecommunications market. 1999 Telecom Éireann was privatised by a public share offering, and its name was changed to Eircom. Italy Before 1992 Provision of radio and telecommunications services by the State either directly or through concessionaires. 1992 The responsibility to provide all telecommunications services was given to the concessionaires. 1994 All concessionaires were merged into a single company, Telecom Italia, with the exception of TELEMAR. 1995 Liberalisation of telecommunications services except voice telephony, mobile and satellite services and network provision. Start of services of the second mobile operator (Olivetti). 1997 Establishment of the regulator (AGCOM). Privatisation of Telecom Italia. Liberalisation of satellite services. 1998 Liberalisation of voice telephony market. 1999 Start of services of the third mobile operator (Wind). 2000 Start of services of the fourth mobile operator (Blu). Netherlands 1989 Corporatisation of KPN and liberalisation of terminal equipment and value added services. 1993 Liberalisation of data communication services and resale of leased lines. 1994 Partial privatisation of KPN (involving a sale of 30 per cent of the shares); voice telephony in closed user groups permitted. 1995 Issuing of licences in mobile services, to KPN and Libertel; further sale of 25 per cent of the shares of KPN. 1996 Liberalisation of telecommunications infrastructure and liberalisation of all telecommunications services except fixed voice telephony. 1997 Liberalisation of voice telephony (1 July) and establishment of an independent regulator (1 August). 1998 Issuing of two (and possibly three) new national mobile (DCS1800) licences. Page 3 of 7
Poland 1990 Law: Communications Act. 1995 Ordinance OJ No. 127/608: Regulation on Interconnection Conditions. 1995 Ordinance OJ No. 118/571: Exemptions from the Obligation to Obtain Telecommunication Licenses and Permits. 1995 Ordinance OJ No. 118/572: The Level and Manner of Payment for Telecommunication and Postal Service License and for Access to Tender Document. 1996 Telecommunications Development Strategy. 1996 Ordinance OJ No. 20/93: General Conditions of the Provision of Public Network Service. 1997 Ordinance OJ No. 39/238: Quality of Service. 1998 The Outline of the Strategy of Telecommunications Market Development in the s 1998-2001. 1999 Ordinance OJ No. 79/897: General Terms of Interconnection and Settlement. 1999 Ordinance OJ No. 53/333: Procedure and Terms of Carrying Out Tender to Select Operators to Whom Licenses Will Be Granted. 2000 Law: Telecommunications Law. 2001 Ordinance OJ No. 31/358: Detailed Criteria and Method for Establishing an Operator s Share in the Market for Given Telecommunications Services. Spain 1987 Telecommunications (Regulation) Act of 18 December 1987. 1995 Satellite Telecommunications Act of 12 December 1995. 1995 Cable Telecommunications Act of 22 December 1995. 1997 Telecommunications (Liberalisation) Act 24 April 1997. 1998 Numbering Plan which came into force on 4 April 1998. 1998 General Telecommunication Law of 24 April 1998. 1998 Royal Decree 1651 of 24 July 1998 on interconnection and numbering. 1998 Royal Decree 1652/1998 of 24 July on registrations of holders of individual licences and general authorisations and on the single window procedure. 1998 Royal Decree 1736 of 31 July 1998 on public service obligations. 1998 Royal Decree 1750 of 31 July 1998 on charges. 1998 Ministerial Order of 22 September 1998 on authorisation and licensing. 1998 Numbering regulation 25 September 1998. 1998 Universal service regulation 26 September 1998. United 1981 British Telecom Act separates BT from the Post Office. Kingdom 1982 Mercury Communications issued with a licence to build and operate a second fixed link network in competition with BT. 1983 First broadband cable franchises issued. 1984 51% of the Government's shares in BT sold: BT became a plc. The 1984 Telecommunications Act establishes Oftel. 1985 First cable television licences issued. Licences issued to Cellnet and Racal- Vodafone to run competing cellular networks. 1991 Duopoly review and publication of White Paper Competition and Choice: Telecommunications Policy for the 1990s. Cable television operators also allowed to run voice telecommunications systems. 1993 First post-duopoly PTO (Public Telecommunications Operator) licence granted. Cable companies start to be licensed to provide competition to BT in the local loop. 1995 BT accepts Accounting Separation of Network and other activities and costorientated charges for unbundled standard interconnect services, determined individually by Oftel and to be applied on on-discrimination terms to competitors and BT s own retail operations. 1996 Launch of the Government s Information Society Initiative in February, which aims to promote the beneficial use and development of information and communications technologies multimedia in the UK. International Facilities liberalised. 44 international service licences issued in December 1996. 1997 BT accepts new RPI-X% control for interconnect charges, to be established on a current cost and LRIC basis. Page 4 of 7
United Kingdom (cont.) 1998 1999 European Union Telecommunication Networks fully liberalised from 1 January, following the UK s lead. EU 1999 Review of telecommunications started, with a view to revised Directives bringing European telecommunication regime up to date in line with convergence of telecommunications and broadcasting. 1999 Oftel applies charge controls to call termination charges raised by the two mobile operators with market power. 2000 Licence conditions requiring BT to unbundle it local loop introduced. 2000 UK Government s White Paper, A New Future for Communications, published with proposals to bring UK communications regulatory framework up to date with the convergence of telecommunications and broadcasting industries and increasing use of world-wide electronic communications. 2001 EU regulation on local loop unbundling in force. Office of Communications Bill introduced in Parliament (proposed establishment of OFCOM giving it preparatory functions to ease transition from 5 regulatory bodies into one converged regulator). 2001 EU adopts new Framework. 2002 Office of Communications Act passed Paving the way for Communications Bill and OFCOM. Turkey 1994 (June) The state-run monopoly Posts, Telegraphs and Telephone (PTT) was divided into the General Directorate of Posts to provide postal and telegraph services and Turk Telekom created as a state company to provide telecommunications services with some regulatory power (e.g. to propose issuing licences to private sector firms). Other regulatory functions were kept with the Ministry of Transport. 1994 (June) A new law was enacted to allow 49% privatisation of Turk Telekom. 1994 Two GSM 900 mobile operators (Turkcell and Telsim) and cable TV operators started operation under revenue sharing agreements with Turk Telekom. 1995 Regulation to liberalise value added telecommunication services was put in place. 1997 Turkey made commitments under the GATS agreement on basic telecommunication services to liberalise the Turkish basic telecommunication services market by 2006. 1998 (April) Revenue sharing agreements of the two mobile operators were transformed to 25-year licences issued by the Ministry of Transport. 1999 (April) The governement s new economic programme included the decision to enact new regulations that allowed Turk Telekom to act as a commercial entity with a fixedline monopoly until the end of 2004, and the establishment of a telecommunications regulatory body. 2000 (January) Parliament passed Law 4502 to reform the telecommunications sector after six years of preparation and delays, which established an independent regulator of five board members. The law also provided to end the monopoly of Turk Telekom by the end of 2003. 2000 (June) The government offered on tender a 20% block sale of Turk Telekom to strategic investors, but received no applications. 2000 (April to August): Two GSM 1800 licences were tendered, and Is Bankasi- Telecom Italia consortium (Aria) was the only successful applicant. Turk Telekom was awarded a GSM 1800 licence separately at the same price as Aria s licence. Canada 2001 The two GSM licensees started operation (Aria in March and Aycell-Turk Telekom in December). 1978 Initiation of a cost inquiry to establish reporting mechanisms for the CRTC to identify cross- subsidies. This concluded with Phase III I 1985. 1979 Telephone companies monopoly on private (leased) lines connected to PSTN ended (CRTC 79-11). 1980 Liberalisation of telephone set and customer premises equipment markets. 1984 Regional duopolies in mobile cellular market set up. 1985 CRTC denies request to interconnect with incumbents by CNCP for the provision of long distance competitive services. Concluded that benefits would not be sufficient. Page 5 of 7
1989 Supreme Court confirms Federal jurisdiction over Provincial telephone companies. 1992 Market for public long distance voice services opened to competition (Telecom Decision CRTC 92-12). Pre-selection for long distance introduced and framework for subsidy (contribution) from long distance to support local residential service rates formalised (Decision 92-12). 1993 Telecommunications Act passed. 1994 Establishment of new regulatory framework: Review of Regulatory Framework (Decision CRTC 94-19). 1995 Competitive wireless Personal Communications Systems licensed. 1997 Canadian Radio-television and Telecommunications Commission (CRTC) announced regulatory framework for competition in local telephone services (Decision CRTC 97-8). 1998 CRTC liberalised public pay telephone service market (Decision CRTC 98-8). Price Caps implemented (Decision CRTC 98-2). The Government of Canada liberalised the facilities-based international telecommunications market. Regulatory framework for international services established (CRTC 98-17). 1999 The CRTC required cable carriers to provide discount Internet service to other ISPs (Decision CRTC 99-11). Resellers provided with access to central office switches through competitive colocation facilities (CRTC 99-1107). 2000 Telesat Canada s monopoly on satellite telecommunication carriage ended. Long distance competition introduced in the areas served by Northwestel (mainly Northwest Territories, Yukon, Nunavut and northern British Columbia) (Decision CRTC 2000-746). 2001 Changes to the Contribution Regime (universal service funding) come into effect (CRTC 2000-745). Japan 1952 Establishment of MPT Establishment of NTT and KDD 1979 NTT starts mobile services 1985 Introduction of competition in the telecommunications market Granting Type 1 licenses to new common carriers (NCCs) (three national long distance carriers and two international carriers) Liberalisation of value-added network services Liberalisation of sales of telephone sets 1986 Privatisation of NTT 1988 NCCs enter the mobile market 1992 Separation of mobile business unit from NTT 1993 Division of the mobile business carrier separated from NTT into nine companies 1994 Introduction of competition by three or four carriers in each mobile market block Permission for three PHS carriers in each market block Liberalisation of the mobile telecommunications equipment market 1996 Announcement of NTT s break-up into one long distance company and two regional companies within a holding company structure Introduction of tariff notification system for mobile operators 1997 Liberalisation of international simple resale (ISR) services including Internet telephony service 1998 Lifting of restrictions on foreign capital investment, except for NTT. Introduction of tariff notification system for all Type 1 Telecommunications services except NTT s local services. Abolition of KDD Law (Lifting foreign ownership restriction on KDD). Page 6 of 7
United States 1960s & 70s Early 1980s Early 1980s Mid 1980s 1980s & 90s Rivals such as MCI and Sprint entered the long-distance market. Inadequate competitive safeguards limited the competitive significance of these entrants. Competition was also allowed in customer premise equipment. Numerous competitors entered as resellers. The Bell system was broken into AT&T (which competed with rivals such as MCI in long-distance and international) and seven RBOCs with geographically separate local monopolies: Bell Atlantic, NYNEX, SBC Communications (formerly South-western Bell), US West, Pacific Telesis, Ameritech and Bell South. Line-ofbusiness restrictions enforced a vertical separation. Cellular licences originally issued in 1981 were put into commercial use and a new product market emerged. The initial market structure was a duopoly in each of separate license regions. Market penetration of cellular services expanded markedly, though somewhat slower than some other OECD countries.c) Long-distance competitors became firmly established as the divestiture provided an effective safeguard against the incentive for local exchange carriers to discriminate against rival carriers on access terms. The market share levels attained by new entrants in long-distance increased significantly beyond levels experienced in other OECD countries. 1994 Acquisition of the leading cellular provider, McCaw by AT&T. 1998 January The February 1997 WTO Agreement on basic telecommunications services was signed by sixty-nine countries. By 1998, twenty-two of the OECD countries had unrestricted market access to all forms of telecommunications, including voice telephony, infrastructure investment and investment by foreign enterprises. Mid 1990s British Telecom/MCI and; Sprint/Deutsche Telekom/France Telecom entered into alliances. 1997 Local operating companies: SBC/Pacific Telesis and NYNEX/Bell Atlantic merged. 1997-98 Four applications by RBOCs to provide long-distance service were denied by the FCC. 1998 The number two and number four long-distance providers, MCI and WorldCom merge. 1998 July AT&T acquires a leading Competitive Access Provider, Teleport. (a) This allowed free access for all operators to install broadband networks to be used for high-speed connections (more than 2 Mbit/s). (b) Article 2 c) of Law Amending Certain Articles of the Telegram and Telephone Law, Law on Organisation and Responsibilities of the Ministry of Transport and Wireless Law, Law on Savings and Aid Fund of the Posts and Telegraphs and Telephone Administration and Organisational Charts attached to the Decree with the Force of Law on the General Cadrees and Procedures. In accordance with this law, monopoly rights of Turk Telekom will also expire if and when state ownership in the company falls below 50%. (c) OECD (1997), The OECD Report on Regulatory Reform: Volume I: Sectoral Studies, Figure 3.1, Paris, p. 44. Source: OECD, Regulatory Reform in the Telecommunications Industry, different issues. Page 7 of 7