 Historical
and juridical viewpoint
Changes
over the last three months (Oct.-Dec. 98)
On-going
developments
|
|
I - Historical
and juridical viewpoint 1. Context
Belgium is a federal state
with 3 Regions, 3 Communities, 10 provinces and 589
municipalities. Regulatory framework, licensing issues,
strategic consolidation of the main operator are held at
the Federal level; Regions are in charge of economical
matters; Communities are competent for cultural and
educational matters; projects may also be initiated at
Provincial and municipal level.
BELGIUM:
some facts
| |
Belgium |
Flemish
Region |
Walloon
Region |
Brussels
Region |
| Surface |
30 518 Km2
|
13 512 Km2
|
16 844 Km2
|
162 Km2
|
| Provinces |
10
|
5
|
5
|
0
|
| Local authorities
(Communes) |
589
|
308
|
262
|
19
|
| Population |
10 080 000
|
5 825 000
|
3 305 000
|
950 000
|
| PIB/pers. EC= 100 (1992) |
109
|
110
|
88
|
174
|
2. The telecom liberalisation process
2.1 Before 1996
Until recent changes,
telecommunications were ruled under a series of ancient
laws derived from the initial Telecommunication Law which
had created the RTT (Régie des Télégraphes et
Téléphones - 1930).
In March 1991, a
new national law permitted the reform of the RTT,
becoming BELGACOM as a national dominant operator under
autonomous public status. The strategic orientations of
BELGACOM were defined in an Agreement: it covered the
period of 1992 to 1997. Simultaneously, an independent
regulatory body was created: the IBPT (Institut Belge des
Postes et Télécommunications); it was set up in 1994
and has an advisory role to the Minister of
Telecommunications.
At the end of 1993, the
Belgian government declared it agreed to liberalise voice
and network markets by January 1st, 1998, in
line with the EU recommendations.
In 1994, the 1991 law was
revised under two major points: the opening of the mobile
phone market to competition and the partial privatisation
of the national operator
BELGACOM then obtained a
private company status and was partly privatised by
selling 49.9% of its shares to ADSB, a consortium
composed of Ameritech, Singapore Telecom, Tele Denmark,
and some other companies.
In 1995, the competitive
bidding concerning the first mobile telephony competitor
is organised by Royal Decree (Arrêté Royal du 7 mars
1995).
2.2 The 1996 period
Three important Royal
Decrees were published in 1996:
- "Royal Decree #
1", published in December 1996, organises
the competition on alternative structures by
developing a legal framework in line with the EU
Directives ;
- "Royal Decree #
2" defines as "public
telecommunications infrastructure" a set of
links that go through public domain and are -
exclusively or not - devoted to the public
provision of telecommunications services. Any
person - physical or "moral" - who
intends to exploit an infrastructure to provide public
telecommunications services has to obtain an individual
licence near the IBPT and pay an annual fee. To
exploit an infrastructure for non-public
telecommunications services, a declaration has to
be made to IBPT.
- A third Royal Decree
defines the Universal Service obligations, which
is a major revision of the 1991 Law.
These Royal Decrees marked
the effective initial liberalisation date of the
alternative networks, including CATV.
2.3 The 1997 period
One could observe until
end 1996, that successive Royal Decrees did not regulate
the overall domain of the telecommunication sector, nor
all the issues raised by the Information Society. Belgium
had not been working on a renewed general legal framework
for the telecommunication sector. This was partly due to
the federal organisation of the State. Thus, 1997 was
announced as a crucial countdown year with 39 Royal
Decrees to be published at national level: number
portability, financing of the Universal Service,
frequencies planning, procedures and conditions for a
third mobile operator etc…
A
specific IS federal initiative (May 1997)
The EC first
stated, in a document concerning the state of development
of legislative regulatory adaptations in all European
countries, that the Belgian regulatory framework was
incomplete. A package of measures was then decided on 30th
of May by a special Council of Federal Ministers devoted
to the IS: an Information Society promotion plan was set
up and a series of projects of Law or Decrees were passed
or scheduled.
New
laws and decrees in 1997
A second major
event of 1997 was the vote on 19 December 1997 of a Law
modifying the Law of March 21, 1991 reforming several
Public Economic Enterprises This Law aimed at adapting
the Belgian legal framework in line with the telecom
liberalisation process as decided by the EC and to
terminate the liberalisation process, at least in its
major aspects. The adaptations introduced by the December
1997 Law concerned four different issues:
- specific rules, such
as licensing and authorisations, are to be
applied to various telecom actors and services
such as vocal telephony, mobile telephony, public
infrastructures
- specific rules
guarantee the loyal functioning of a competitive
market: interconnection, numbering,
operators'duties, mediation
- Belgacom is kept in
charge of the public service including universal
service and general interest missions
- Consumer protection
is offered through a mediation service and a
reinforcement of the Law concerning privacy.
A series of secondary Laws
and Decrees were also voted concerning: the numbering
plan, the exploitation of DCS-1800 mobile networks, the
exploitation of GSM networks, the exploitation of the
mobile MOB2 networks, the major amending Law to the 21st
of March 1991 Law concerning public companies. All
secondary legislation was not published simultaneously
and further Decrees were expected during 1998
The telecommunication
regulatory framework being partly but not totally in line
with the liberalisation process, the Belgian
Telecommunication Minister announced at the end of
December 1997, that it would deliver provisory licenses
for vocal telephony to the companies wishing to offer
this service.
The following grid aims at
giving a brief and simplified summary of the telecom
liberalisation process. As such, it is in no way a guide
to the contemporary status and application of the Belgian
telecom legislation.
As "starting date of
liberalisation", has been chosen the date of the
legal measure stating the principle of this
liberalisation and not the date of the coming into force
(indicated between brackets) of this provision, nor the
dates of eventual executing regulations needed. These
executing regulations are in principle not presented in
the grid. In two cases (data communications and voice
telephony), a date for de iure liberalisation has been
specifically determined in the relevant legal text and is
thus indicated as starting.
"Ref" refers to
the legal references listed below in the presentation of
the legal framework of the Belgian deregulation process.
| |
The Belgian
Liberalisation Process in the Telecommunication
Sector
A thematic presentation
|
| |
Starting
date of liberalisation
|
Legal
references
|
Comments
|
| Terminal equipment |
March 21, 1991
(July 29, 1993)Ref.C
|
Ref.C
Art. 69 and 93 |
• Although the process of de
iure liberalisation of terminal equipment has
been started under the regime of Ref.A, it has
been achieved by the act of 1991
• The date of coming into force of the
relevant articles of Ref.C has from a legal point
of view been delayed until July 29, 1993 (Ref.C,
art. 128), but foreseen liberalisation measures
have been de facto applied before that
date |
| Data communication |
January 1st, 1993
This date has been determined by Ref.C, art.
83,3° |
Ref.C
Art. 69, 83, 3°, 87, and 89 § 1 and 2 |
• Art. 83, 3° concerned only
"data switching service", defined as
"a telecommunications service whose
functions are limited to transport and switching
of data by packet or circuit switching, including
the functions necessary for its operation"
(Ref.C, art.68, 9°). Other data services were
not defined and were to be considered as
"Non Reserved Services" (= whose
provision for third parties was not reserved to
Belgacom) |
| Value added services |
March 21, 1991 Ref.C |
Ref.C
Art.69, 87 and 89 § 1 and 3 |
• Ref.C did not use the concept
of "Value Added Services" but of
"Non Reserved Services". According to
Ref.C, art.87 this included all services other
than the "reserved services":
telephony, telex, "mobilophony",
paging, switched data services (latest until
December 31, 1992), telegraphy and the making
available of "liaisons fixes" (= leased
lines) (Ref.C, art.83).
• Telex and leased lines have been deleted
from the category of "reserved
services" respectively by Ref.J, art 3 &
4
• Telegraphy has only been liberalised by
Ref.L (see Ref. L, art.25) |
| Satellite services |
Dec. 22, 1994
(Dec. 31, 1994)
Ref.G |
Ref.C
Art.88, al.2 and 92, §1, al. 2 as introduced by
Ref.G, art.2 and 3
(both confirmed by Ref.I) |
• Executing regulations were
necessary but not adopted before 1997 amendments
to Ref. C. A step to practical implementation of
Ref.C, art.88, al. 2 and 92 § 2, al. 2 has been
made in 1995 by a Ministerial note (Ref.H)
• The issue is ruled today by Ref.C, art.92ter,
introduced by Ref.L, art.41 |
| Mobile communications |
Dec. 12, 1994
(Dec. 22, 1994)
Ref.F |
Ref.C Art. 69, 83, 2° (as modified by
Ref. F, art. 9), 87 and 89 § 2bis (as
introduced by Ref.F, art. 10, 1°)
|
• For each category of
"mobilophony" services, a set of
specifications were (are to be) adopted.
• Paging has been deleted from the category
of reserved services by Ref.J, art.3
• The issue is ruled today by Ref.C, art.89,
as introduced by Ref.L, art.35, which creates
distinctions between mobile telephony and paging
to the public, other mobile telecommunication
services to the public and non-public mobile
communication services. The principle of specific
sets of specifications has been maintained |
| CATV |
Oct. 28, 1996
(Dec.10, 1996) Ref.J |
Ref.C
Art. 92bis as introduced by Ref.J, art.9 |
• First attempts to liberalise
the provision of telecom services to the public
on CATV networks have been made under Ref.B,
art.7. This article has been modified several
times (esp. by Ref.C, art.125) and finally
includes other alternative infrastructures. The
practical implications of Ref.B, art. 7 have been
restricted by the fact that its coming into force
was limited to the bilingual Region of
Brussels-Capital (Ref.E, art. 2) and that the
necessary executing Royal Decrees have not been
taken
• Ref.J has been applied by Ref.K, art.92 §
1 (see Alternative networks below), applicable
also to CATV networks |
| Alternative networks |
October 28, 1996
(Dec. 10, 1996)
Ref.J |
Ref.C, art.92bis as introduced
by Ref.J, art.9
|
• Prior to Ref.J, alternative
telecommunications infrastructures of State,
Communities, Regions, Provinces, local
municipalities, the national railway company,
public transportation companies, water, gas and
electricity companies as well as CATV companies
could be established for their builders own
telecommunications usage – as defined by a
Royal Decree which was not adopted (Ref.C, art.92
§ 5). A similar provision with a similar scope
was foreseen by Ref.A, art.16
• The 1996 liberalisation was limited to
"existing alternative infrastructures"
(Ref.K, art.2, 7° and art. 3). This restricted
seriously its scope.
• All public fixed networks are today ruled
by Ref.C, art.92bis as modified by Ref.L,
art.40 |
| Public fixed networks |
Dec. 19, 1997
(January 1st, 1998) Ref.L |
Ref.C, art.69 and 92bis as
modified by Ref.L, art.14 and 40 |
|
| Voice telephony services |
January 1st, 1998 This date has been
determined by Ref.C, art.87
|
Ref.C, art.69 and 87 § 1 as
modified by Ref.L, art.14 and 33 |
• According to the original
1991 version of Ref.C, art. 68, 10°, voice
telephony service was defined as "the
telecommunications service intended to the direct
transport and the switching in real time of vocal
signals from and to connection points, if it only
includes the functions needed for its
provision". To be considered as telephony, a
voice service had to present at the same time all
the elements of the definition. In the opposite
case, it was considered as a non-reserved
service. |
Ó R.Queck (CRID), M.Bogdanowicz
(LENTIC)
The
major legal references of the Belgian telecom
liberalisation
A chronological presentation
Ref.A:
Law of October 13, 1930 co-ordinating the
different legislative provisions concerning wire
based telegraphy and telephony (Moniteur belge
October 20-21, 1930).
Ref.B:
Law of February 6, 1987 on radio-distribution and
television-distribution networks as well as on
advertising in radio and TV (Moniteur belge
April 3, 1987, err. April 25, 1987). Its
article 7 entered into force on September 15,
1993 (Ref. E, art. 1).
Ref.C:
Law of March 21, 1991 reforming certain Public
Economic Enterprises (Moniteur belge March
27, 1991, err. July 20, 1991). The date of
coming into force of the relevant articles (Title
III: Telecommunications) has from a strictly
legal point of view been delayed until July 29,
1993 (Ref.C, art. 128), but foreseen
liberalisation measures have been de facto applied
before that date (i.e.: equipment). The Ref.C has
been modified numerous times. The references to
specific articles are made in the numbering of
the period concerned. This numbering might be
changed in the reviewed version of the Law.
Ref.E:
Royal Decree of September 16, 1993 defining the
entry into force, for the bilingual Region of
Bruxelles-Capitale, of the Chapter II of law of
February 6, 1987 on radio-distribution and
television-distribution networks as well as on
advertising in radio and TV (Moniteur belge
September 1, 1993).
Ref.F:
Law of December 12, 1994 modifying the Law of
March 21, 1991 reforming certain Public Economic
Enterprises and the Law of June 17, 1991
organising the public credit sector and the
holding of shares in certain private financial
enterprises by the public sector (Moniteur
belge December 22, 1994). According to its
article 17, Ref.F entered into force on December
22, 1994.
Ref.G:
Royal Decree of December 22, 1994 modifying title
III of the Law of March 21, 1991 reforming
certain Public Economic Enterprises (Moniteur
belge February 10, 1995, err. May 13,
1995). According to its article 6 , Ref.G
entered into force on December 31, 1994.
Ref.H:
Ministerial note ("circulaire") of
August 30, 1995 introducing a new administrative
practice liberalising the importing,
commercialising, installing and exploiting of
certain sender or sender/receiver earth stations
for satellite telecommunications (Moniteur
belge February 13, 1996).
Ref.I:
Law of February 9, 1996 confirming the Royal
Decree of 22 December 1994 modifying title III of
the Law of March 21, 1991 reforming certain
Public Economic Enterprises (Moniteur belge
February 10, 1996).
Ref.J:
Royal decree of October 28, 1996 transposing the
obligations with regard to competition in the
telecommunications services markets stemming from
directives of the European Commission which are
in force (Moniteur belge December 10,
1996). According to its article 15, Ref. J
entered into force on December 10, 1996.
Ref.K:
Royal Decree of October 28, 1996 concerning the
conditions under which a derogation from article
92§1 of the Law of March 21, 1991 reforming
certain Public Economic Enterprises is possible (Moniteur
belge December 10, 1996). According to its
article 23, Ref. K entered into force on December
10, 1996.
Ref.L:
Law of 19 December 1997 modifying the Law of
March 21, 1991 reforming certain Public Economic
Enterprises in order to adapt the regulatory
framework to the obligations with regard to
competition and harmonisation on the
telecommunications markets, arising from
decisions of the European Union (Moniteur
belge December 30, 1997, err. April
23, 1998). According to its article 100, Ref.L
entered into force on January 1st,
1998 (with one, non relevant exception).
|
Ó R.Queck (CRID), M.Bogdanowicz
(LENTIC) - N.B.:Moniteur belge refers to the Belgian
Official Journal.
The
assessment of the EC, end of 1997
The European
Commission has put forward late 1997 (as it did already
in May 1997) the insufficient progress of the Belgian
legislative framework in a Communication to the Council,
the Parliament and the Social and Economical Committee (8
October 1997). Reserved rights on vocal telephony,
licensing procedures and tariff re-balancing were
considered as neglected. This Communication initiated the
second stage of an infringement procedure against Belgium
and aimed at speeding up the transposition of the EU
telecom liberalisation package.
Globally, end 1997, the
Belgian regulatory framework is characterised by the
Commission as follows:
| Law on telecommunication |
The new general framework, amending
the 1991 Law, and adopted late December 1997
needs secondary legislation to complete the
framework |
| Regulatory body |
Enhanced competencies but the
Telecommunication Minister has responsibility
both as shareholder of the former incumbent
operator and for overall management of the
regulatory body. Insufficient structural
separation. Needs monitoring. |
| Leased lines |
Forthcoming secondary legislation.
Issues: cost accounting obligations, procedures
to allow restrictions to access, availability of
information |
| Voice telephony |
Forthcoming secondary legislation.
Issues: cost accounting obligations, regulations
on special access |
| Licensing |
Forthcoming secondary legislation:
drafts are in preparation concerning general
authorisation and individual licences.
Issues: procedural aspects of licensing |
| Interconnection |
Forthcoming secondary legislation.
Issues: non discrimination principle, dispute
resolution and IBPT role, provisions on cost
accounting, excessive obligations regarding cost
orientation |
| Terminals/Satellite
earth station equipment |
Transposed since 1996.
Forthcoming secondary legislation: a draft Decree
is at an advanced stage and announced for the
first semester 1998 |
| Frequencies |
Transposed since 1992 |
2.4 The 1998 period
First
semester 1998
There has been
little change from a legislative point of view during the
first semester of 1998. Nevertheless, some secondary
legislation has been prepared.
The Flemish Parliament
voted a new Decree concerning the creation of its Media
regulatory body, the Vlaamse Mediaraad.
The Federal Council of
Ministers (FCM) announced that the Universal Service Fund
would be fully operational on 1st January
2000: it will be financed on a market-proportioned basis
by any public network or vocal telephony operator
announcing a turnover from 12,5 MECU up.
Portability will be
operational on 31st July 2000 and based on a
Carrier Access Code (15XX or 16XX).
A telecom co-ordinated Law
was announced, integrating all aspects treated until now
in various legal texts. This integration would also solve
some technical difficulties and allow to suppress rapidly
the existing regime concerning provisory licences.
Second
Semester 1998
Even though
the expected co-ordinated Law on telecommunications had
not yet been published, major decisions have been taken
concerning the telecommunication liberalisation framework
and some surrounding matters related to the IS.
Several Decrees were
published in the Moniteur concerning the terms of
reference and procedure for the individual licences and
vocal telephony services (MB, 15 July 1998), the creation
and exploitation of public telecom infrastructures (MB,
24 July 1998), the creation and exploitation of
non-public telecom infrastructures (MB, 26 September
1998) and approving the Agreement passed between Belgacom
and the Belgian state (MB, 18 July 1998).
Legal texts were also
published concerning some more peripheral matters.
3. The
telecommunication market
3.1 At the end of 1997
Effects
on the former DNO: BELGACOM
BELGACOM has
become a private company, with a state majority
shareholder. It has recorded 9.1% increase in turnover
(1995-1996), 30% operating profit rise and a record net
profit of 13 Billions FB (325 Mecu) on a segmented market
of 3.2 millions households, 750 000 SMEs and small
professional users, and 2 750 corporate major accounts
(> 2.5 MBF/y).
During 1996 and 1997,
BELGACOM has been preparing for January 1998:
- Finalisation of its
strategic partnership agreement with the ADSB
consortium
- Implementation of new
organisational structures under the TURBO plan
- Conclusion of an
agreement with SCITOR to provide corporate
customers with one-stop-shopping on international
services
- Conclusion of an
agreement with the Belgian banking sector to
combine the use of smart cards
- Implementation of the
TAT 12/TAT 13 transatlantic digital cable
network.
It has also created
further activities within subsidiaries such as: BELGACOM
Directory Services; BELGACOM Mobile; BELGACOM Multimedia
Ventures; BELGACOM Services; Betelcom (together with
banks, proposing various telecom services and
consultancy, including Internet access for corporate
clients); Espadon Telecom (exploitation, R&D, and
consultancy company in France) and BELGACOM Téléport
(Euroteleport in Roubaix - France).
An agreement concerning
6500 departures was signed in April 1997 between Belgacom
and its unions delegates. Simultaneously, Belgacom is
leading an important training plan,called TPS, started in
April 96 and dedicated to 6000 persons. The
cost of restructuration of Belgacom appears to be much
higher than announced earlier and creates a job gap in
most regional offices, mainly in the South of the
country.
Products
and tariffs
The
interconnection tariffs published by BELGACOM have been
contested by the IBPT, the EC 15th October
recommendation and various potential clients as being too
expensive. A new 20% average cheaper offer with
qualitative differences was then presented in November
97.
Competition
for services on fixed infrastructures
Since Mid
1997, WORLDCOM is already present in Brussels through its
joint venture with CODITEL, a major CATV operator. Early
November 97, WORLDCOM's purchase of MCI created the third
most important telecom company in the world. UUNet, major
ISP and WORLDCOM's subsidiary, has purchased
INTERNET-WAY, the third largest French ISP, and NLNet,
the leading Netherlander ISP. Furthermore, the
acquisition of CompuServe by AOL affected directly the
Belgian market, because WORLDCOM has also acquired
AOL’s Infrastructure Division (" Advanced
Networks and Services ") in the same merger.
WORLDCOM was then considered as being in an optimal
position to propose vocal telephony services on the Net,
in Belgium…and elsewhere.
Parallel merging moves
among the IAP Belgian actors, such as GLOBE, UNITED
CALLERS and BELGIUM ONLINE were interpreted as a local
potential response to WORLDCOM's concentration.
Other telecom competitors
were active on Belgian grounds:
- COLT, a UK based
company, had purchased 51% of LCL Powerphone, a
Belgian based radio communications operator.
- UNISOURCE had
positioned itself in Belgium.
- US WEST, a parent
company of TELENET, had established its telecom
and cable arms as two separate companies.
- Other operators were
also active, but less visible. They mainly
offered added-value services to corporate
clients: BT, FT, DT, FTI, Global One, etc. ESPRIT
Telecom and EUROPEAN Telecom expanded at regional
and interregional level.
All together, over 40
small companies, operated all over the country on various
legal basis and services.
Concerning their leased
lines, such companies were confronted with 13 different
offers resulting from 13 licensed infrastructure
providers (including Belgacom).
Competition
on the radio messaging market
Three
operators had answered to the bid of 22 August 1997,
concerning ERMES (Enhanced Radio Messaging System),
the third radio messaging 10 years long licence: BELGACOM
itself, PAGE+ (MULTIPAGE and ACYCLON Electronics) and
UNIPAGE (UNISOURCE and KPN the Netherlanders PTT).
Competition
on the mobile market
It took until
August 1996 to create competition in the mobile sector
with the arrival of MOBISTAR, a France Telecom
subsidiary, as competitor of BELGACOM MOBILE a Belgacom
subsidiary, active since December 1994.
The federal government had
further agreed, on 5th of September 1997, upon two
projects of Royal Decrees concerning the launch of a bid
for a third mobile phone operator, on a DCS 1800 basis.
Belgium was, in 1997, the
second fastest growing market in Europe and thus was
expected to attract most major operators. Selection was
due by spring 1998 and effective operating by 1999.
3.2 The 1998 period
Effects
on the former DNO : BELGACOM
As part of its
Agreement with the State, BELGACOM has to operate the
"to be developed" Internet access in the
"cyberschools" governmental project (I-Line
project at BELGACOM). A general trend amongst various
operators is to develop Asymetric Digital Subscriber Line
(ADSL) technology. BELGACOM has transformed its fixed
national tariffs on 1st of April 1998 but observers still
disagree on its effective impact. It has also regularly
transformed its international tariffs, proposing a
variety of low rate tariffs. BELGACOM has issued its two
interconnection offers BRIO 1 and 2: the first covers
interconnection tariffs for operators who own an
infrastructure, the second for those who do not.
Early 1998, BELGACOM along
with MULTIPAGE has obtained the licence for ERMES paging
in Belgium. BELGACOM has also won the bid for operating
WIN, the fibre infrastructure of the Walloon Ministry of
Equipment and Transport
The PTS plan, firmly
decided with the unions in April 1997, and its impacts,
has provoked strikes at local scale, mainly in the South
of Belgium, during February and March 1998. During the
first semester of 1998, the EC has cleared the
acquisition by AMERITECH, a major BELGACOM shareholder,
of a 34% minority stake (21.15 BDKK) in TELEDANMARK,
another major BELGACOM shareholder. AMERITECH expressed
to be favourable to a further privatisation of BELGACOM
and has gained a better positioning in the Belgian
operator's board, growing from 17.5% to 24.4% of shares.
BELGACOM has announced new
record results for 1997 with a 9.4% growth in turn-over
and 14.8BFB (380 MECU) of profit. In July 1998, BELGACOM
has also created BELGACOM France, its French subsidiary
and has started its activities in Lille, Paris and Lyon,
in line with its former activities in ESPADON and at the
Téléport of Roubaix. It has been licensed by he ART for
vocal telephony and infrastructures. It aims at offering
at major corporate clients a one-stop shopping solution
for their VAN telecoms ("Intelligent Network
Concept"), with a 10 to 20% discount in comparison
with FT tariffs.
Competition
for services on fixed infrastructures
As far as made
public by the IBPT by mid-98, the following companies had
obtained an authorisation or a licence for developing or
exploiting a public telecom infrastructure or service.
- Authorisation for
exploiting a public infrastructure had been
granted to the 6 following companies: BELGACOM,
HERMES Europe Railtel BV, TELENET Operaties NV,
Brutélé SC, Radio Public - TVD NV, and the
national railway company SNCB.
- A provisory licence
for vocal telephony had been granted to 16
companies.
- WORLDCOM
offers vocal telephony to all corporate
clients since the 1st January 1998.
Today, it manages a 32 km long fibre
infrastructure in the capital, has a provisory
interconnection agreement with BELGACOM, and has
obtained a voice telephony licence (CAC 1666).
WORLDCOM has also passed a collaboration
agreement with IDX Belgium, subsidiary of Data
Express (USA), for the management of
international telefax routing. It is also present
in the corporate Internet market through its
subsidiary UUNet. It co-finances with C&W a
transatlantic cable, thus confirming its position
as a major competitor in the corporate market.
- ESPRIT TELECOM
has confirmed its positioning by passing in
February 1998 a BRIO 2 interconnection agreement
with BELGACOM and was granted a Voice Telephony
licence from the IBPT, both operational on 1st
of March 1998.
- BT has
introduced at the end of February 1998 a demand
for a Vocal Telephony licence and targets the
corporate market, including SMEs.
- INTOUCH announced
it would question the EC about BELGACOM's
apparent abuse of dominant position concerning
the calling card market: absence of information
about special services in the BRIO 2
interconnection offer, overestimated tariffs,
etc.
- COLT
Telecom Group plc (COLT), has purchased 51% of
LCL Powerphone to benefit of its licensing and
develop fibre infrastructures all over Belgium.
It has started developing rapidly a fibre
infrastructure in Brussels and has opened its
Belgian offices in the capital.
- UNISOURCE
present in Belgium since 1992, infrastructures
but would be interested in leasing has opened its
new premises in Brussels during the first
semester 1998 and has introduced a demand for a
full vocal telephony licence.
- C&W
aims at developing its corporate market. It
negotiates its BRIO 2 Interconnection agreement
with Belgacom and, if successful, will introduce
a demand for an individual licence.
- TELECOM FINLAND
(TFI) aims at developing its business
towards the SMES: calling cards, intranets,
datanets, video-conferencing and other added
value services.
- DELLAN TRADE,
a Belgian SME has launched since 1st
January 1998 the free phone concept
- EUROPEAN
TELECOM has introduced a demand for an
individual licence and aims at offering its
international services to the residential market
from April 98 on.
- TELENET
has started offering vocal telephony to the
residential market since the 1st of
January. 98
but admitted, end 1998, some delay in the
development.
- QWEST
Communications, (part of LCI International)
announced it planned to extend its activities in
Europe including Belgium within EUNet, a leading
ISP.
A growing amount of
emerging companies offer various types of telephone
cards: In Touch Telecom pre paid card, Royal Telecom
Belgium, WorldXChange Communication, etc.
TELFREE, a
telephone operator who was developing free services
financed by on-line adds, had to close down by lack of
clients after a short business story started in October
1997.
A major announcement was
the launch of competitive offers for integrated fixed /
mobile telephony in Belgium by such companies as MOBISTAR
(since August 98), the mobile second competitor, or BT
Belgium (since September 98).
Competition
on the mobile market
- Only one candidate
has responded to the bid of the Belgian
government for the third mobile licence: the
Orange/KPN consortium. Orange is a UK mobile
operator, owned mainly by Huchinson Whampon and
British Aerospace, with 1.2 million GSM-1800
clients, and KPN, the dominant operator in
Netherlands, with 1.1 million mobile clients. The
consortium will have to pay a licence fee of 8
BFB (200 MECU) and plans to be operational by the
end of the year.
- PROXIMUS, the
BELGACOM MOBILE product, has announced 1 million
clients early September 1998. Together with
Mobistar, the market now represents 1,4 million
clients and still shows a continuous rapid
growth.
- MOBISTAR, the second
mobile operator, has passed an agreement with the
European Investment Bank (BEI) to finance its
network up to 9 BFB (225 MECU).
4. Other
issues
4.1 Information Society
Belgium has no umbrella
policy concerning the Information Society. Nevertheless,
the 30th of May 1997 Council of federal
Ministers, the SSTC R&D programs and the @GORA
initiative description of may
be considered as such.
4.2 Convergence Issues
A major convergence issue
is the definition of advanced services versus
audio-visual services. Since the start of the
federalisation of the State and since specific High Court
decisions of 1990 and 1991, Communities have been
designated as competent for all broadcasting and CATV
related matters: contents as well as technical issues,
copyright, price scaling, etc. Furthermore, CATV activity
in Brussels is considered as a specific
" bicultural " activity and, under
such circumstances, kept under the authority of the
State. As a consequence, the potential development of
CATV based services depends of various authorities and
often contradictory regulations.
4.3 Consumer protection
The Belgian framework
concerning consumer protection is mainly based on the 14th
of July 1991 Law (Loi sur les pratiques de commerce et
sur l'information et la protection du consommateur).
This Law has still to be adapted in line with EU
Directives.
4.4 Databases and privacy protection
Since December 1992, a
specific Law regulates all aspects concerning the
constitution and use of databases which would include
individual information
The Council of Ministers
approved in April 1998 a pre-project of Law to transpose
the European Directive of 24 October 1995 in the Belgian
legislative framework.
Another Law, voted on 10
June 1998, has modified the 1994 Law about phone taping (Loi
du 10 juin 1998 modifiant la Loi du 30 juin 1994 relative
à la protection de la vie privée contre les écoutes,
la prise de connaissance et l’enregistrement de
communications et de télécommunications privées - M.B.
September 1998).
4.5 Freedom of expression and information
These rights are
guaranteed both by the European Human Rights Convention,
art. 10, and by the Belgian Constitution. In the specific
case of public communication (Media Laws), the
proportionality rule is applicable.
4.6 Security and Encryption
Encryption is authorised
and free (Law of 17th of December 1997). But
in this matter, as more generally in all matters related
to Electronic Commerce such as payment systems, digital
signature, computer fraud, etc., Belgium is waiting for
European Directives to avoid future necessary
adaptations. A provisory legislation has been adopted for
the authorisation of digital signatures in the area of
Social Security Management (Royal decree project adopted
by the Council of Ministers of 15 May 1998), in line with
the development of the Banque carrefour, a major social
security database and the social security chipcard
launched by the government.
II - Changes
over the last three months (October 98 - December 98)
1.
Evolution of the legal framework
Some further secondary
legislation has been published during this last quarter
of 1998.
- the 13 September
Royal Decree authorising KPN-Orange Belgium to
develop its mobile communication activity on the
Belgian market
- the 20 September 1998
Royal Decree modifying the 1996 Decree concerning
the agreement of terminal equipment.).
The Council of Ministers
of 10 December 1998 has also considered two projects or
Royal Decrees modifying the 1996 rules concerning the
bidding for telecommunication markets.
2. The
telecommunication market
2.1 Competition for services on fixed
infrastructures
Since the 13 November
1998, Unisource Belgium has become a 100% subsidiary of
KPN but has kept its former name and corporate market.
Together with KPN-Orange, it aims at developing a fixed /
mobile integrated telecommunication offer. End of this
year, Unisource employs 210 people and announces a
turn-over of about 2.5 BFB (60Mecu).
2.2 Competition on the mobile market
The 25 September 1998
Council of Ministers has indirectly authorised BELGACOM
Mobile to close down the old MOB 2 network, a former
mobile service based on a 450MHz technology.
KPN-Orange has presented
its objectives for 1999: launching its services by Easter
1999, it aims at gathering 70 000 clients by December 99.
It develops its network in partnership with Ericsson and
Unisource Belgium and will cover 92% of the Belgian
population by end 99 with a team of 700 people.
2.3 Licensing and authorisations
Individual licences,
replacing the provisory individual licences launched
since December 1997, have been granted to four companies:
VersaTel Telecom Belgium NV, BT Ltd, Viatel Belgium Ltd
and Unisource Belgium NV.
III - On-going
developments
A co-ordinated Law on
Telecommunication is still expected.
On the telecommunication
market, KPN / Orange, the third mobile operator, started
its marketing operations at the end of 1998. The pressure
on the mobile market is growing again. Prices should
fall.
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