European telcos may get unlimited radio spectrum rights, EU document shows

BRUSSELS (Reuters) - Europe's telecoms providers may be given the use of lucrative radio spectrum without a time limit under the European Commission's proposed revamp of telecoms rules aimed at boosting investment, according to a document seen by Reuters.

The rule revamp known as the Digital Networks Act will be presented by EU tech chief Henna Virkkunen on January 20. She will have to finalise details with EU countries and the European Parliament in the coming months before the draft legislation can be adopted.

"Spectrum usage rights shall be in principle granted for an unlimited duration," the document said.

"Sufficiently long duration of rights of use of radio spectrum should increase investment predictability to contribute to faster network roll-out and better services, as well as stability to support radio spectrum trading and leasing," the document said.

It said indefinite duration should facilitate development of a functioning secondary market for spectrum trading and leasing.

EU regulators suggested "use-it-or-share-it or lose-it” conditions and roll-out obligations to ensure that spectrum would not be left idle or blocked and would be made available to more efficient or innovative competitors.

The document proposed that companies designated as having significant market power in a specific market may also be labelled as such in a closely related market and be subject to obligations of transparency and of non-discrimination and possibly other requirements such as accounting separation, price control and cost accounting.

The proposed Digital Networks Act also reiterated the principle of net neutrality in Europe, which requires telecoms operators to treat all Internet traffic equally, even as the telecoms industry wants a less restrictive regime.