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Digital Single Market: new European Electronic Communications Code and Recovery Fund
By Avv. Margherita Grassi Catapano and Avv. Lucrezia Puliatti
29 September 2020
By December 21, 2020, the Italian State (as well as all EU Member States) is required to implement the Directive that established the new European Electronic Communications Code (Directive 2018/1972); this is being done through the European Delegation Law of January 23, 2020. This is a measure with a high degree of innovation as its aim is to create the digital single market at the European level.
With a view to simplification, the Directive aims to revise the previous regulatory framework (merging the four directives 2002/19/EC, 2002/20/EC, 2002/21/EC, 2002/22/EC) and pursues a true industrial policy in telecommunications, as well as having as its ultimate goal the achievement of full free competition in the market for electronic communications networks and services. Therefore, the development of connectivity throughout the national territory through ultra-high capacity networks, entirely in fiber optics, which can guarantee high-performance access even in cases of high simultaneous usage or other critical conditions.
The aim is to definitively eliminate the so-called digital divide by allowing access for all users (with particular attention also to the category of people with disabilities). The old concept of universal service as a telephone service has been abandoned; from now on, we will speak of voice communication service, which is much broader, more current, and technologically neutral. Great importance is given to parameters such as latency, availability, and reliability. Essentially, each Member State must ensure that the service is geographically homogeneous, at an affordable price, and based on adequate access to ultra-fast broadband, in compliance with security requirements. In practical terms, it is necessary to quickly carry out a geographical mapping of the existing network to understand which areas need rapid intervention as they are currently not covered by the service.
After that, it will be up to the Member States to create a secure context for investments, also through their regulation, in order to complete the implementation of the national fiber optic network and interventions for the development of 5G networks. Achieving this goal is now also necessary to ensure that Italy (as well as any other country) has access to the Recovery Fund, the disbursement of which is subject to the approval of national plans—currently being drafted—by the Council, which must guarantee the use of funds, among other things, for the implementation of the digital transition, as recommended by the Commission.
Therefore, the implementation and balancing of interests that should lead to the concrete realization of the digital single market are, in fact, left to the individual States. This is also in consideration of the structural differences of each country (for ultra-fast broadband (100 Mbps and above) it is estimated that Italy has coverage of just 24% compared to an EU average of 60% source: Commission report on DESI 2019). The Directive instead takes a firm position on the protection of competition in retail supply, which leaves no room for intervention by individual States. In fact, through EU Implementing Regulation 2019/2243, it already provides for the entry into force on December 21, 2020, of some additional obligations for electronic communications service providers. This is a pre-contractual information notice that must be provided to the user (somewhat reminiscent of those in the financial sector) through a summary contract model (a facsimile of which is also provided among the Regulation's annexes). An A4 sheet, written on one side only, easily readable (font size at least 10 points) containing all the elements of the contract that the user is about to enter into. It must be delivered beforehand and signed.
The discussion on the Directive could go on, as it is a substantial text and contains many other interesting principles and provisions. In conclusion, we can say that the implementation of this text could enable the creation of a truly digital society, making Italy and Europe more competitive.
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