PDF to HTML - Convert PDF files to HTML files

Europaudvalget 2003-04
EUU Alm.del Bilag 1112
Offentligt

PDF udgave (115 KB)

Medlemmerne af Folketingets Europaudvalg

og deres stedfortrædere

Bilag

Journalnummer

400.C.2-0

EUK

20. juli 2004

Til underretning for Folketingets Europaudvalg vedlægges dansk

høringssvar vedrørende Kommissionens konsultation om anvendelse af

ePenge-direktivet i forhold til mobiloperatører.

PDF to HTML - Convert PDF files to HTML files

Comments from the Danish Government on the Commission’s consultation

process concerning the E-money Directive

Referring to the consultation paper of 10 May 2004 from the European

Commission on whether mobile phone activity involves issuance of

“electronic money”, the Danish Government hereby gives its comments.

The Commission has asked several questions, focusing on the business

models of the mobile operators. The Danish Government will primarily

comment on general matters of principle. Where relevant, references to

specific questions are given. Referring to question 12, this paper is

concluded with a summary of the Danish sector specific regulation

concerning telecom operators.

According to the consultation paper, the Commission has initiated the

hearing to make sure that EU rules are clear, proportional and are applied

consistently throughout all Member States with a view to encourage

investment in the electronic communications sector and the development of

new and innovative services. The Danish Government welcomes the

consultation and the possibility for Member States and all relevant

stakeholders to comment on the rules and developments in this area.

The Danish Financial Business Council concluded on 24 May 2004 that telecom

operators’ use of prepaid air-time in some instances is to be considered as e-money.

The Danish Government recognises that there are many aspects to be considered when

contemplating the future policies in this area.

At this stage, however, the ICT sector in Denmark continues to have

concerns regarding the consequences of the European rules about e-money.

The rules do not seem to accommodate the technological development in

the ICT sector, especially the new types of payment via the mobile phone.

From an ICT perspective, a major new market is emerging in electronic

services, both in the current mobile market and in the emerging 3G-market.

To ensure the competitiveness of the actors in the European markets, it is

necessary that the legal framework is designed in such a way that it allows

these markets to evolve. Cheap and flexible payment solutions will be

fundamental to improve the conditions of the European producers of

electronic content services thus strengthening Europe’s strategic position in

the global market. At the same time competition in the ICT sector and the

financial sector will be improved.

PDF to HTML - Convert PDF files to HTML files

The issue has been discussed on several occasions at European level,

primarily in the framework of The Information Society General Directorate:

The revision of the eEurope 2005 Action Plan, several Commission

communications, the blue print on Mobile Payments from the Mobile

Communications & Technology Platform, the Lisbon Strategy etc.

The development of attractive new services is also one of the top priorities

eEurope

2005. A priority that has been reinforced by the European

Telecommunications Ministers at the Council Meeting on 10 June 2004.

The above mentioned issues concerning the ICT sector have a broader

perspective because the need for cheap and flexible payment solutions

applies to several other business sectors. At the same time, it is important

that new technologies are implemented in a way that ensures that all

relevant aspects concerning with payments in general, including consumer

protection, trust, security, proportionality (risk and value), financial stability,

sectoral and technological neutrality etc., are taken into account.

Impact of the E-money Directive on the ICT sector

Prepaid air-time has been a major driver in the Danish mobile market.

Consumers, and particularly young users, have evidently welcomed these

easily accessible and low priced products.

The Commission asks for evaluations of operational and business

consequences with respect to competitiveness and future development of

new services and new technologies (question 19).

As far as the Danish Government is informed, the issue has been discussed

in several Member States and the interpretations of the E-Money Directive

have not been similar. These interpretations relates primarily to the

definition of e-money and the interpretations regarding the implemented

waivers.

The consequences could be an uneven playing field for competition

between the Member States and between traditional sectoral borders. The

Danish Government therefore welcomes the Commissions attempt to reach

a common understanding on the definition of e-money regarding prepaid

air-time and how to interpret the waivers.

In some countries the mobile operators will be seen as issuers of electronic

money and as a consequence they are obliged to comply with the rules

regarding e-money. This might result in prepaid air-time no longer being a

viable business model for providing services. A worst case scenario is that

PDF to HTML - Convert PDF files to HTML files

the mobile operators from 3rdclose down prepaid activities delivering for

delivery of services decide to parties (content providers with regard to

instance a ring tone).

Another consequence of the e-money rules might be that some operators

choose “a walled garden” strategy, delivering all kinds of services

themselves.

In a highly diversified market with fierce competition this might turn out to

be a costly strategy, which will primarily benefit strong players (for instance

earlier state monopolies). It will strengthen the inclination for content

providers to sell electronic services through a mobile operator. In addition,

the subcontractor model will most likely lead to higher prices to the

detriment of the consumers.

It should be taken into account that it is questionable whether mobile

operators are ready to take larger economic risks in developing content. It

seems quite obvious that content providers themselves would be more

willing to take such risks. Consequently, the subcontractor model could

slow down innovation in the whole ICT sector and thereby be an obstacle

to the European growth.

Furthermore, either scenario is likely to have negative consequences for the

framework conditions for innovation and the access to electronic supply

channels in the content provider industry in general.

There are different rules concerning prepaid and post-paid services, which

reflect different concerns for protection. Regarding micro payment

solutions (characterized by small value/amounts and onetime delivery) there

is a need for further analysis on all relevant concerns in the different

situations, including the need for protection.

Possible future solutions

The Commission also asks for viewpoints on interim solutions and

long-term approaches (question 20 and 21).

The EU is about to pass new legislation in this field (a new legal framework

for payments in the internal market) and rules on money laundering.

Consequently, it is of major importance that the relevant issues are

addressed simultaneously and as soon as possible. All kinds of relevant

aspects, which apply to the ICT sector and payments in general must be

analysed to create a coherent, consistent general legislation across different

PDF to HTML - Convert PDF files to HTML files

sectors. This is a prerequisite to establish viable long-term solutions.

The aspects includes among others:

consumer protection,

usability,

trust,

security,

interoperability,

innovation,

competition,

proportionality (risk and value),

financial stability,

sectoral neutrality, and

technological neutrality.

The European markets of content providers, mobile operators (3G in

particular) and suppliers of alternative payment solutions have after a period

of recession begun to show small signs of recovery. In this context it is

necessary to analyse the activity structures in various sectors using and/or

providing payment solutions.

If content production, originated in a European cultural and economic

context, is to cope with the global competition and globalisation in terms of

innovation and growth, the EU must facilitate optimal conditions (with

reference to the Lisbon Strategy and the

eEurope

2005 Action Plan).

Thus in the short run it is necessary to address the rules on micro payments.

A supportive regime for micro payments will procure access to different

payment channels and will stimulate a positive development of the markets

of content providers and telecom operators and facilitate the use of

e-payment solutions for providers of goods and services in general. These

effects will further stimulate the general development of the internal market

and the take-up of e-business. Furthermore, secure and protected payment

solutions are vital for the smooth functioning of the emerging digital

economy.

A practical consideration in the short run could for instance be to look into

the interpretation of the definition of e-money and the interpretation of the

possibilities in the waivers of the E-money Directive in order to level the

playing field between Member States.

To conclude, the Danish Government is in full support of the need for

further analysis of the whole payment area in order to secure that rules

comply with the needs of the emerging digital economy and the

Information Society.

PDF to HTML - Convert PDF files to HTML files

./.

Please find annex 1 enclosed.

Annex 1: Danish consumer regulation in the telecommunications

sector

In Denmark consumer protection is covered by the Act on Competitive

Conditions and Consumer Interest in the Telecommunications Market, last

consolidated in Act No. 661 of 10 July 2003. Firstly, the Act empowers the

Minister for Science, Technology and Innovation to lay down rules on

consumer protection in different areas. Moreover, the Act contains rules

about access for end-users to free carrier selection and number portability.

According to the above-mentioned act, specific rules for consumer

protection are laid down in Executive Order No. 666 of 10 July 2003 on the

Provision of Communications Networks and Services. The purpose of the

rules is to oblige providers of public electronic communications networks or

services to end-users to ensure a number of basic user rights in connection

with agreements on delivery of electronic communications networks or

services to end-users.

PDF to HTML - Convert PDF files to HTML files

The Executive Order contains rules about:

Requirements to be met by owners of electronic communications

networks and providers of voice telephony services

Common terms for the provision of public electronic

communications networks and services to end-users

Functions and facilities

Secrecy, processing of traffic and location data, security and duty to

give information

Ad. 1.

These requirements are for example that it must be possible to make

calls free of charge to the public emergency service (112) and make calls to

the USO provider's text telephone service and the emergency call number

of that service. It is also a requirement that end-users shall have access to a

call-based charge advice facility.

Ad. 2.

It is a requirement that a contract is made as a basis for any customer

relationship with an end-user. In addition, the contract must contain certain

information.

The end-users must be informed of changes in the terms and relevant prices

applicable to the provision at a notice allowing the end-user to terminate the

agreement with effect, at the latest, from the date on which the change

enters into force.

Also the end-user shall be entitled at any time to terminate the contract after

mostly six months without further costs.

Further rules apply to:

The disconnection of the line that the end-user does not pay

The certifying of providers charging, billing and invoicing systems

associated with the provision

The providers handling of complaints

Ad. 3.

Providers must offer functions and facilities such as:

Referral to new numbers and forwarding of calls to new numbers

Stopping of call forwarding from a third party

Access to current billing data

Tariff-grouped billing and itemized billing

Billing control arrangement

Barring

Barring of access to information and content services

Current monitoring of billing fluctuations

PDF to HTML - Convert PDF files to HTML files