The market’s shift “from copper to cloud” makes for new priorities and challenges, and an imperative for both regulation and regulators to adjust in response
The regulatory environment has delivered network investment, innovation and choice for end users
On 17 May 2024, ComReg (Ireland’s communications regulator) hosted an event to discuss developments in the technological and regulatory landscapes, and how those changes impact ComReg’s responsibilities and how it carries them out. ComReg’s three Commissioners (Robert Mourik, Garrett Blaney and Helen Dixon) each shared thoughts on how the market and the regulator’s activities and priorities are evolving. Mourik struck a positive note, stating that the past 25 years have been successful in terms of driving investment, innovation and choice, which has delivered better customer outcomes. He sees a vibrant telecoms industry in Europe, particularly in Ireland, where the mobile market provides good value for money and four players are rolling out fibre. Mourik envisages deregulation to be on the horizon, with “the job close to being done” in the telecoms sector. However, he cautioned that while deregulation is a noble aim, it cannot be a political decision and must happen only when market conditions allow. Despite the benefits the industry brings, it is unrecognisable compared to several years ago, with new players and a different and more complex value chain, and the profitability of operators under pressure. Mourik suggested this had implications for regulation and ComReg’s role in sustaining both innovation and investment, while preventing markets “backsliding” towards less competition.
ComReg is focused on specific consumer protection issues such as ensuring clear contract information, as well as big picture issues like the switch-off of legacy mobile networks
Dixon agreed that the sector – while “densely regulated” – has a strong track record of delivery, especially on investment, and expects it will face up well to the challenges and opportunities that arise as the broader environment evolves. She touched on the changing duties of ComReg, drawing parallels with Ireland’s Data Protection Commission (DPC), which Dixon used to lead. The DPC was relatively small when the GDPR was in gestation but quickly had to scale up to enforce new data privacy rules – something ComReg may need to do in response to the adoption of EU legislation (potentially a reference to the DSA, DMA or AI Act). Dixon also considered that ComReg has an “appropriate active focus” on consumer protection issues, for instance ensuring contractual information is clear in order to help consumers make better choices. She noted the work ComReg is doing in collaboration with industry to support end users, e.g. the new Broadband Checker (the online tool that enables individuals to look up broadband availability in their area), as well its own-initiative investigations into billing practices and roaming alerts. In this context, the regulator continues to be focused on major developments such as upgrades of legacy (i.e. 2G/3G) networks, placing an emphasis on transparency to ensure consumers are sufficiently informed throughout the process.
With telecoms central to a broader digital ecosystem, it is crucial that regulators work together
Blaney’s remarks highlighted the role of telecoms as being critical infrastructure – a realisation he felt many people came to during the COVID-19 pandemic. He considered the telecoms sector to be part of a broader ecosystem that is “vital to everything”, with this importance manifesting in new legislation, for example the NIS2 Directive. The Irish Government has tasked ComReg with ensuring compliance with the new cybersecurity measures, marking a significant change in its traditional role as an economic regulator for telecoms. In Blaney’s view, this shift requires ComReg to adopt a different mindset and for its culture to evolve, which he considered are bound to happen as it takes new functions on. Blaney also spoke to the importance of coordination among regulators, including ComReg, the Competition and Consumer Protection Commission (CPCC), the DPC and Coimisiún na Meán (Ireland’s new commission for regulating broadcasters and online media), to anticipate challenges emerging from digital markets, reflecting similar efforts seen elsewhere – such as the Digital Regulation Cooperation Forum (DRCF) in the UK.
The EC is yet to develop solutions to fully address the issues it has identified
When questioned about the EC’s recent digital infrastructure white paper, Mourik stated that the EC has provided a good analysis of the issues affecting the telecoms sector (reiterating comments made at an event two months prior) and how it might develop, including the move from vertical integration to greater cloudification. Mourik’s expectation is that the white paper consultation will feed into the review of EECC scheduled for next year, where it will be vital to figure out the bottlenecks and competition problems that might appear in future. He considered the EC should propose legislation that tackles issues in the wider value chain, not just telecoms, but the EC hasn’t quite “nailed the solution” to the vision it has painted. Anticipating ongoing issues with access – whether in networks or cloud computing resources – Mourik stated that there is work to do to modernise the EU regulatory framework so it’s fit for the future, which could involve more use of ex-post competition law over ex-ante rules. As it seeks to deliver on that objective at the domestic level, ComReg is considering shortening the time horizon for its strategic outlook from five years to two. Subject to consultation, future strategy statements would be more concise, high-level and principles-based, which could enable the regulator to better respond to the pace and scale of changes in the sector.
