CHAPTER 7: A Sunset clause?
56. We have accepted the need for regulatory
intervention in the European roaming market. However, we believe
that regulation will over time tend to lead to rigidities in markets
and hence should be applied in such a manner as to encourage competition
and innovation which will eventually replace regulation. This
principle is at the core of our conclusion that wholesale and
not retail regulation should be adopted in the first instance.
Following this rationale, we also believe that this regulation
should only remain in place for the minimum time required.
57. We took evidence from many sources on this
issue and have found a general agreement on the suggestions of
the German Presidency that any Regulation put in place:
- Should be reviewed after 18 months
from its imposition to judge the extent to which they are successfully
delivering the required benefits. In particular, the German Presidency
notes the need to consider both the development of competition
and consumer protection (QQ 324, 136); and
- Should be removed after three
years from its imposition, if the evidence were to indicate that
this was justified (Q 270). However, the possibility of renewed
or new regulation exists if the required benefits were judged
not to have been met.
58. We agree with the suggestions of the German
Presidency on the introduction and timing of such a review and
sunset clause for this regulatory intervention. This must be in
tandem with better data collection; as such data will be critical
in reviewing the success of the Regulation.
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