Existing frameworks for how trade is facilitated betweencountries in this sector
The arrangements described in this section are examples of existing arrangements between countries. They should not be taken to represent the options being considered by the Government for the future economic relationship between the UK and the EU. The Government has been clear that it is seeking pragmatic and innovative solutions to issues related to the future deep and special partnership that we want with the European Union. There are a number of existing arrangements which govern the way in which non-EU Member States trade with the EU in this sector.
Telecommunications is an example of a liberalised, yet highly regulated sector. NonEU based telecoms companies operate in UK and EU markets without discrimination compared to domestic and EU companies as a result of commitments made under the WTO General Agreement on Trade in Services (GATS).
GATS includes an Annex on Telecommunications,and a Protocol on Basic Telecommunications.This sets out the international rules for a highly liberalised market in telecoms services. Post-GATS, WTO members negotiated on basic telecommunications services which are set out in the Fourth Protocol to the GATS which include additional commitments made by a subset of WTO Members.
These rules apply to 108 of the WTO’s 159 Member States and include the EU / UK. The GATS rules provide the rules for cross-border trade in telecoms services, which the UK currently adheres to as a member of the EU.
Paragraph 5(a) of the GATS telecoms annex states that each Member shall ensure that any service supplier of any other Member is accorded access to and use of public telecoms networks and services, on reasonable and non-discriminatory terms.
The EU Framework (EU Access Directive) is based on the same principles of liberalised and competitive markets as GATS. GATS does not require regulatory harmonisation but seeks to ensure liberalised access by any company that offers telecommunications services within any member (for example providing access to an incumbent’s infrastructure).
Telecoms chapters of trade agreements go beyond the provisions in GATS to deliver further incremental liberalisation in the sector. For example, the EU-Canada Comprehensive Economic and Trade Agreement (CETA) improves access, while guaranteeing regulatory transparency and safeguarding against anti-competitive practices, while also including a requirement for suppliers to have access to domestic dispute resolution procedures.
The majority of EU agreements with third countries include a telecoms section. For example, these range from the Moldova-style Association Agreements60 that are aimed at approximating the telecoms laws of Moldova to those of the EU acquis; to CETA that have a dedicated telecoms chapter but do not require fully harmonised law, through to agreements the EU has with countries like Algeria that call for a dialogue on telecommunications policies.
In addition, the EU – Moldova / Ukraine / Georgia Association Agreements establish Deep and Comprehensive Free Trade Agreements (DCFTAs), which allow third country access to EU markets and grant EU investors the same regulatory environment in the associated country as in the EU. The agreements refers to, among other things, the powers, impartiality and independence of NRAs; access to markets, networks and other elements; authorisation, registration and licensing; competition and significant market power; and interconnection and universal service obligations.
Devolution and overseas territories
Telecoms regulation is a reserved matter and implementation of the EU Electronic Communications Framework is undertaken at the UK level.
Gibraltar is in the EU, having joined the EEC as part of the UK’s 1973 accession.Following the Lisbon Treaty, Article 355 (3) of the TFEU applies to ‘the European territories for whose external relations a Member State is responsible’. As such the EU Electronic Communications Framework currently extends to Gibraltar and the UK has addressed EU Pilot cases linked to potential breaches of the Framework in Gibraltar.
UK Overseas Territories and Crown Dependencies must be represented by the UK at ITU, OECD, CTO, ECO, ITSO, IMSO and Eutelsat IGO forums. The Overseas Territories cannot officially represent themselves or be represented by any country other than the UK in these forums.
Except for Gibraltar, the EU’s roaming regulations do not apply to the Overseas Territories and Crown Dependencies. The current roaming rules allow Gibraltar consumers to use Spanish mobile phone networks surcharge-free. The roaming regulations have also removed the previous problem of accidental roaming across the Gibraltar / Spain border.
Telecoms is a reserved matter and therefore not devolved. However, mobile roaming is of particular importance to consumers in Northern Ireland, given the high volume of frequent cross-border travel and the effect on daily life for people in the border regions. The EU’s roaming regulations have removed the previous problem of inadvertent mobile roaming across the Northern Ireland and Ireland border. (See section 2.1 above for further information on roaming).