Council of the European Union Brussels, 9 September 2016 (OR. en) B PU 11974/16 Interinstitutional File: 2016/0185 (COD) LIMITE C LI TELECOM 153 COMPET 466 MI 556 CONSOM 199 CODEC 1209 NOTE From: To: Presidency Delegations No. prev. doc.: 11429/16 TELECOM 139 COMPET 428 MI 515 CONSOM 176 CODEC 1088 10329/16 TELECOM 121 COMPET 381 MI 458 CONSOM 154 CODEC 898 + ADD1 + ADD2 No. Cion doc.: Subject: Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 531/2012 as regards rules for wholesale roaming markets Introduction 1. Following the discussions held during the WP TELE of 6 September 2016, and in view of the WP of 14 September, delegations will find in annex an amended full text of the proposed regulation. The amendments are in bold and strikethrough. Text underlined is taken from the existing Regulation 531/2012. 2. The changes made are described herein: 3. In Article 1(1), it is clarified that the second subparagraph of paragraph 4 of Article 3 of the regulation is still valid, and the notion of "defined period of time" is changed to a more precise notion of "period of validity of their agreement" 11974/16 CB/ek DGE 2B Conseil UE LIMITE 1 EN 4. A new paragraph (1a) is added to Article 1, to amend Article 3(6) of the existing regulation. The purpose of this amendment is to propose a concrete solution to the potential problems of permanent roaming and abuse as discussed in the WP on 6 September 2016. 5. Most importantly, in order to find a compromise solution on the cap for data, the Presidency proposes the following: • A glide-path for the data cap, set in €/GB instead of €/MB, now starting higher (12,70€/GB 1) but decreasing linearly over 3 years instead of 5, to 4,30€/GB. With this proposal the average cap over three years would remain at the level proposed by the Commission (8,50€/GB). The cap would be reviewed, if necessary, after the 3 years. • A voice cap of 3,53€c/min instead of 4€c/min. This is the EU-average wholesale price as calculated from the figures provided on fig. 9 p37 of the Impact Assessment. An objective and duly substantiated justification of the level of the price caps will have to be provided in the Recitals. The advantage of this compromise proposal is that operators with a significant outbound traffic would be able to get already in 2019 a much lower data cap than the Commission's proposal, as well as a lower cap on voice, while operators with a significant inbound traffic would get a higher cap for the critical first year, allowing them to invest in the additional infrastructure that might be required by the increase in traffic and until the anticipated decrease in cost per GB. 6. Following suggestions made by delegations, Article 1(5) is amended to make it optional to consult BEREC. 7. Finally, Article 1(6) is amended to invite the Commission to submit a legislative proposal if the report requires it. 8. Delegations will be invited to comment on these changes. 1 This figure is the median wholesale price coming from the Impact assessment (figure 10 p39) 11974/16 CB/ek DGE 2B LIMITE 2 EN Annex Article 1 Amendments to Regulation (EU) No 531/2012 Regulation (EU) No 531/2012 is amended as follows: (1) In Article 3, first subparagraph of paragraph 4 is replaced by the following: ‘4. Rules on regulated wholesale roaming charges laid down in Articles 7, 9 and 12 shall apply to the provision of access to all components of wholesale roaming access referred to in paragraph 3, unless both parties to the wholesale roaming agreement explicitly agree that any average wholesale roaming charge resulting from the application of the agreement should not be subject to the maximum regulated wholesale roaming charge for a defined the period of time validity of their agreement.’ (1a) In Article 3,paragraph 6 is replaced by the following: ‘6. The reference offer referred to in paragraph 5 shall be sufficiently detailed and shall include all components necessary for wholesale roaming access as referred to in paragraph 3, providing a description of the offerings relevant for direct wholesale roaming access and wholesale roaming resale access, and the associated terms and conditions. That reference offer may include conditions to prevent permanent roaming or anomalous or abusive use of wholesale roaming access for purposes other than the provision of regulated roaming services to roaming providers’ customers while the latter are periodically travelling within the Union. The reference offer may in particular provide for termination, upon prior authorisation by the national regulatory authority and after due notice, of wholesale roaming access contracts where such permanent roaming or anomalous or abusive use persist. 2 If necessary, national regulatory authorities shall impose changes to reference offers to give effect to obligations laid down in this Article.’ 2 The dispute resolution mechanism laid down in Articles 20 and 21 of the Framework Directive would apply to any such dispute, as made clear in Article 17 of Regulation 531/2012. 11974/16 CB/ek DGE 2B LIMITE 3 EN (2) In Article 7, paragraphs 1 and 2 are replaced by the following: ‘1. The average wholesale charge that the visited network operator may levy on the roaming provider for the provision of a regulated roaming call originating on that visited network, inclusive, among others, of origination, transit and termination costs, shall not exceed a safeguard limit of EUR 0.04 0.0353 per minute as of 15 June 2017. This maximum charge and shall, without prejudice to Article 19, remain at EUR 0.04 0.0353 until 30 June 2022. 2. The average wholesale charge referred to in paragraph 1 shall apply between any pair of operators and shall be calculated over a 12-month period or any such shorter period as may remain before the end of the period of application of a maximum average wholesale charge as provided for in paragraph 1 or before 30 June 2022. ’ (3) In Article 9 paragraph 1 is replaced by the following: ‘1. With effect from 15 June 2017, the average wholesale charge that the visited network operator may levy on the roaming provider for the provision of a regulated roaming SMS message originating on that visited network shall not exceed a safeguard limit of EUR 0.01 per SMS message and shall, without prejudice to Article 19, remain at EUR 0.01 until 30 June 2022.’ (4) In Article 12 paragraph 1 is replaced by the following: ‘1. With effect from 15 June 2017, the average wholesale charge that the visited network operator may levy on the roaming provider for the provision of regulated data roaming services by means of that visited network shall not exceed a safeguard limit of EUR 0.0085 [12,70] per megagigabyte of data transmitted. That maximum charge shall decrease to EUR [8,50] on 15 June 2018 and to [4,30] on 15 June 2019 and shall, without prejudice to Article 19, remain at EUR 0.0085 [4,30] per megagigabyte of data transmitted until 30 June 2022.’ 11974/16 CB/ek DGE 2B LIMITE 4 EN (5) In Article 17 ( 1) the following subparagraph is added: ‘Disputes between visited network operators and other operators on rates applied to inputs necessary for the provision of regulated wholesale roaming services may be referred to the competent national regulatory authority or authorities pursuant to Article 20 or 21 of the Framework Directive. In such a case, the competent national regulatory authority or authorities shall may consult BEREC, about the action to be taken in accordance with the provisions of the Framework Directive, the Specific Directives or this Regulation to resolve the dispute, and shall await BEREC's opinion before taking action to resolve the dispute. ’ (6) Article 19 is amended as follows: (a) in paragraph 3: - the first sentence is replaced by the following: ‘In addition, the Commission shall submit a report to the European Parliament and the Council every two years after 15 June 2017.’ - a second subparagraph is inserted: ‘If a report shows that the structural measures provided for by this Regulation have not adequately promoted competition in the internal market for roaming services, the Commission shall make appropriate legislative proposals to the European Parliament and the Council. ’ 11974/16 CB/ek DGE 2B LIMITE 5 EN (b) in paragraph 4 first subparagraph, the first sentence is replaced by the following: ‘In order to assess competitive developments in the Union-wide roaming markets, BEREC shall regularly collect data from national regulatory authorities on developments in retail and wholesale charges for regulated voice, SMS and data roaming services, including wholesale charges applied for balanced and unbalanced roaming traffic respectively. It shall also collect data on the wholesale agreements not subject to the maximum wholesale roaming charges provided in Articles 7, 9 or 12 and on the implementation of contractual measures at wholesale level aimed at preventing permanent roaming or anomalous or abusive use of wholesale roaming access for purposes other than the provision of regulated roaming services to roaming providers’ customers while the latter are periodically travelling within the Union.’ Article 2 Entry into force This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the European Parliament The President For the Council The President _________________ 11974/16 CB/ek DGE 2B LIMITE 6 EN
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