Gibraltar Liberalises Telecoms Sector

by Ulrika Lomas, Tax-News.com, Brussels

31 July 2001

The long awaited Gibraltar Telecommunications Ordinance 2001 finally came into effect on the 19th July 2001, representing the arrival of full liberalisation of the telecommunications industry in Gibraltar.

The effects of liberalisation will be felt over the coming months as new players come into the market, quality improves and the prices of many services fall in real terms. On-line services, notably via the Internet, will see continued growth, as companies compete with each other to offer new service packages and new pricing formulae. The Government says it views these developments as fundamental for the growth and development of an Information Society.

The Telecommunications Ordinance 2001 provides for the assignment or conferring of functions on the Minister for Trade, Industry and Telecommunications and to the Gibraltar Regulatory Authority, which has been established as a separate legal body. The previous laws relating to the telecommunications sector were the Wireless Telegraphy Ordinance and Part II of the Public Utility Undertakings Ordinance, which have been repealed, and new provisions for operators wishing to provide telecommunications services and establish or operate of telecommunications networks have been made.

The Gibraltar Regulatory Authority was constituted under the Gibraltar Regulatory Authority Ordinance 2000. It is through this Authority that the telecommunications sector in Gibraltar will be regulated. The Minister for Telecommunications, however, will have all the licensing powers. This follows the United Kingdom model, where the Secretary of State grants licences under the Telecommunications Act.

Under EU legislation, telecommunications regulatory authorities such as the GRA have been set a range of tasks, from the assessment of new mobile and fixed network licence applications, to approving interconnection prices and agreements; policing prices charged to customers for changing operators, and dealing with the allocation of numbers to new market players.

At European level, the rules that are currently applied are set out in 7 liberalising measures and 14 harmonising directives and decisions, which have now been complemented by a number of recommendations and guidelines. These have been transposed into Gibraltar law by the Telecommunications Ordinance 2000 and a set of Regulations which transpose into Gibraltar law the following European directives:

(i) Directive 90/387/EEC (on the establishment of the internal market for telecommunications services through the implementation of open network provision) as amended by Directive 97/51/EC (for the purpose of adaptation to a competitive environment in telecommunications).

(ii) Directive 90/388/EEC (on competition in the markets for telecommunications services) as amended by Directives 94/46/EC (on satellite communications), Directive 95/51/EC (abolishing restrictions on the use of cable television networks for the provision of already liberalised telecommunications services), Directive 96/2/EC (on mobile and personal communications) and Directive 96/19/EC (implementing full competition in telecommunications markets).

(iii) Directive 92/44/EEC (on the application of open network provision to leased lines).

(iv) Directive 97/13/EC (on a common framework for general authorisations and individual licences in the field of telecommunications services).

(v) Directive 97/33/EC (on interconnection in telecommunications to ensure universal service and interoperability through application of the principles of open network provision) as amended by Directive 98/61/EC (on operator number portability and carrier pre-selection).

(vi) Directive 98/10/EC (on the application of open network provision) to voice telephony and on universal service for telecommunications in a competitive environment).

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