Telenor Group Group Fornebu

Office: Snarøyveien 30 1331 Fornebu

Postal address: NO-1331 Fornebu

Telephone: +47 +47 67890000

Head Office: Snarøyveien 30 1331 Fornebu Norway Enterprise number: NO 982 463 718 VAT

TELENOR GROUP COMMENTS ON BEREC DRAFT WORK PROGRAMME 2014

Telenor Group welcomes BEREC’s work programme for 2014 and the opportunity to provide comments to the focus areas of BEREC. Telenor also takes the opportunity to provide comments related to BEREC’s functioning as a European body. Introduction During the course of the year of 2013, the European Commission has developed a proposal for a Connected Continent regulation and the creation of a single market for telecommunications. While details on the outcome of the legislative procedure related to the Commission’s proposals is still unclear, there is no doubt that BEREC will play a vital role in guiding NRAs in the implementation of the Commission’s final legislative measures. This will, as we see it, definitely influence BEREC’s focus and priorities in the coming years and require a harmonizing and holistic mind-set rather than national thinking on many of those issues covered by the Commission’s proposal. As a consequence, BEREC’s effort to secure a harmonized implementation of measures linked to the single market initiative will also require enhanced and dedicated resources. With this in mind, we would like to emphasize two areas that we see as particularly important, but not an exhaustive listing of areas, for BEREC to focus on in 2014:

Implications of OTT-developments and level playing field

Spectrum Management and Assignment

In addition, and in the last section, we have singled out a few issues for consideration with regard to how BEREC carries out its tasks. We discuss each in turn in the following. Implications of OTT-developments and level playing field The draft work programme does not specifically address the implications of OTT-developments for the traditional telecom sector. Our sector is constantly changing as evidenced by the content and application providers (CAPs) providing services via electronic communications networks. Most CAPs are not electronic communications services (ECS) providers and hence beyond the reach of the regulatory powers in the European Framework for electronic communications. Specifically, CAPs are not expressly subject to obligations such as for example:

Maintaining lawful interception capabilities.

Retention of data for national security and law enforcement purposes.

Use of traffic and location data for secondary purposes (marketing/advertising).

Provisions related to security breach notifications.

Provisions related to consumer protection. Such difference in treatment clearly raises the question of whether current regulation is safeguarding competition and guaranteeing a level playing field among those that operate in the market. The fact that there are players in the market that provide services that are increasingly used interchangeably with

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traditional regulated services and hence can pose a competitive threat to ECS providers, but are outside of regulatory reach, is in our view an unsustainable situation. New challenges arising from CAP’s have been pinpointed for several years already, but little attention has been devoted to the implication of these developments and to thinking through the implications for existing regulation. Evaluating the implication CAPs in the early stages of market changes was difficult, but the market has evolved and the time is now ripe to take the temperature on OTT-developments across the broader ECS value chain and to evaluate the regulatory consequences. Telenor proposes that BEREC in its effort to secure further harmonisation consider including the following elements in the work programme:

A study on the influence and presence of CAPs based on experience in each Member State as a first step to gaining a better understanding of the regulatory implications of the current regulatory framework for the ECS providers and CAPs and to determine the impact on the wider value chain

A reviewing of the regulatory provisions applied to ECS providers to ensure that functional equivalent services irrespective of sector are subject to the same regulatory provisions.

A study on the use of traffic and location data for secondary purposes (emergency calls/marketing/advertising).

Spectrum Management Spectrum management is an area where Telenor believes more harmonization is necessary and we appreciate the inclusion of spectrum as part of BEREC’s activities in 2014. Telenor supports BEREC in that the identified areas for cooperation with RSPG are important and we are particularly supportive of including recommendations and best practices for auction design and licensing as we are of the opinion that auction rules could be harmonized to maximize economic efficiency and increase transparency, openness and simplicity. In addition, we believe EU level rules could be strengthened on issues like spectrum allocation, re-farming and spectrum trading in order to ensure timely availability of spectrum for mobile broadband across all markets. Telenor therefore supports BEREC in further discussing tools and methods to promote efficient competition in spectrum auctions. The proposal for a public workshop on spectrum is highly welcomed by Telenor. Accordingly, Telenor believes the following work streams should be explored by BEREC:

Article 6(8) of the RSPP Decision has mandated spectrum trading as envisaged in Article 9(b)(3) of the Framework. A status of the work conducted by Member Status in implementing this regime, setting out key experiences could assist in promoting harmonisation and increased coordination across Europe.

Reconsider the work carried out in 2010 together with RSPG on market definitions and competition in the case of spectrum. In Telenor’s view, a stronger alignment across EU Member States is needed to prevent regulatory remedies and imposing of spectrum caps with the intention of having market structural effect being introduced through licensing without applying the rules of ex ante market regulation. Considering e.g the publication of the Norwegian auction rules for the 800/900/1800 MHz bands, the regulator is imposing spectrum caps with the intention of having market structural effects. Telenor would like BEREC to consider whether regulators’ practice to designing the market through licensing without any statutory authority is compliant with Community law.

Benchmarking of auction rules across Member States with the purpose of providing valuable insight

into the outcome and success of the rules applied. In addition, BEREC should put efforts in the task

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to establish rules across Member States that will secure all auctions with a complex format to be subject to an auction audit ex post by an objective third party.

BEREC functioning as a European body Telenor acknowledges that BEREC serves an important role in ensuring consistent application of the EU regulatory framework. There are however a few areas for improvement as we see it. From our perspective, BEREC could put even more effort into engaging the industry and to increase transparency in its working methods and the issues BEREC is currently working on. We suggest BEREC to consider the following:

More detailed information on o Current issues BEREC is working on (clearer roadmaps linked to BEREC deliverables); o The mandate of various working groups including purpose; o Members of working groups; and o Timeline for when BEREC and its working groups plan to do specific work.

Engaging the industry by commencing more frequent public hearings in relation to e.g. BEREC opinions, reports and advices to EU institutions as many of BEREC’s deliverables are adopted without consultation. We note that the draft work programme contains many deliverables that have no public consultation. It would increase transparency if guidelines where provided for when public consultation should be conducted.

Longer consultation periods on key regulatory issues. The maximum period of 20 working days is often not enough to carry out due considerations, analysis and quality assurance of responses.

Encouraging NRA’s to increase transparency and accordingly involve the industry locally on issues subject to discussion and decision by BEREC.

More resources to cover all of BERECs tasks and responsibilities satisfactorily including enhanced and dedicated resources to manage the efforts to implement the legislative measures related to the Commission’s Connected Continent proposal in close dialogue with the market and the industry.

October 24, 2013

About Telenor Group

Telenor Group is one of the world’s major mobile operators with more than 150 million mobile

subscriptions. We have mobile operations in 12 markets and in additionally 17 markets through our

ownership in VimpelCom Ltd. Telenor Group has a leading position in the Nordic mobile, broadband and

TV services market and a strong footprint in Central and Eastern Europe and Asia.

For more information visit: www.telenor.com