Posted on 18/Dec/2014
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EU governments look pretty keen to scrap plans for more coordination in spectrum licensing across the continent. However, the move may jeopardize future efforts to improve Europe’s mobile networks, with negative impacts on consumers and businesses alike.

It is unclear whether EU member states are going to broker a deal on the Telecoms Single Market package anytime soon. Differences abound on the details of Net Neutrality provisions and plans to end roaming fees featured in the proposed bill.

However, what’s more certain at this stage is that most governments are keen to get away with the package proposals pushing for more coordination in spectrum licensing for wireless broadband.

If confirmed, the move would strike a fatal blow to the very spirit of the legislation.

For in a world increasingly dominated by mobile communications there will be no digital single market without a higher degree of harmonization in spectrum policies.

The expected gains will be paramount to speed up the roll out of 4G networks, bringing huge benefits to consumers and businesses alike. The same goes for the introduction of more flexibility and market-led mechanisms in spectrum usage provided for by the legislative package.

Speaking at a recent GSMA event, the EU new digital single market chief Andrus Ansip urged governments to make up their minds rightfully pointing out that more cooperation on spectrum assignment “is not a technical issue” but would translate into cheaper and higher quality connectivity, as well as new services.

MEPs should also step up their pressure by threatening to block any incoming inter-institutional negotiations on the TSM proposal if member states water down or drop its provisions on spectrum usage. It would be a logical step since the European Parliament in April passed an amended draft of the bill that reinforces its original plans on spectrum harmonization.

The truth here is that auctions for frequencies have long provided an easy source of revenue for governments. This explains their reluctance, also welcome by national regulators, to relinquish powers to a more centralized mechanism of the sort contemplated by TSM package. A single market for wireless communications would be however a far more lucrative bargain for everyone in the long run.

Although the European Commission has pledged to work out new legislation on ‘radiospectrum management’, it would be foolish to give up on the rules put forward by former EU digital chief Neelie Kroes under the scope of the TSM package. In fact any future bill should build up upon them, impulsing greater harmonization and – why not? – even daring to break the great taboo of pan-European auctions.

At this stage a fresh legislative initiative would take a while to be drafted and presented, not to mention adopted. Do not expect anything like that before 2016. Meanwhile, the gap between Europe and other regions (such as the US) in LTE deployments, network speeds, total mobile usage or the rollout of advanced services may get bigger to the detriment of the continent’s economy.

To be sure, a lot is at stake here. Up to the new Commission and the European Parliament to convey this message to their national counterparts.