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France
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Article L1511 6 of the Code g n ral e e des collectivit s territoriales New e roles for local authorities to be legalized by France s transposition of the e-commerce directive, ie La loi sur l economie numerique, to be adopted this year by Parliament
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Continued
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Table 63 Legal situation of local authorities acting as telecommunications operators (Continued )
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Country Examples See right-hand column
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Identi ed legal barriers (other than competition law) Maximum level of involvement: duct/dark ber/optoelectronic equipment/full operation
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Germany
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Legal debate under way on to what degree local authorities can engage in commercial activities
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A large number of local authority-owned utilities, together with local public sector banks, have set up as city network operators (eg Netcologne in Cologne, ISIS in D sseldorf, EWETel in Oldenburg) However, u these operators are vertically integrated and provide primary infrastructure, telecom networks and services primarily to their own downstream operations See CI study on Broadband stimulation in France, Ireland and Sweden (wwwculleninternationalcom select public area)
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Ireland Local authorities may be involved in full telecommunications projects, provided at least 60 % of the project is funded by the private sector Otherwise, the project must be limited to passive infrastructure elements However, third parties must be given open access to these infrastructures
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Italy
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There are several utility companies controlled or partly owned by local authorities Metroweb, a dark ber provider was owned 33 % by e-Biscom and 67 % by AEM SPA, a multi-utility company owned 51 % by the City of Milan Atlanet, another licensed operator, is owned 33 % by FIAT Group, 33 % by Telefonica and 33 % by ACEA, a multi-utility company of the City of Rome
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Table 63 Legal situation of local authorities acting as telecommunications operators (Continued ) Maximum level of involvement: duct/dark ber/optoelectronic equipment/full operation Examples Broadband access initiatives in the municipalities of Eindhoven and Helmond initiated by the Ministry of Transport, Public Works and Water Management in the framework of the Kenniswijk project Fiber To The Home project initiated by the municipality of Almere in the framework of Almere Kennisstad project The ber network is intended as a community-owned network, fully unbundled and open for telecom operators and service providers One example is Metrocall, a company owned 40 % by the Metro of Madrid (Ayuntamiento, 75 % and Comunidad de Madrid 25 %) and 60 % by Euroinsta/Tecnocom SA It holds a type C1 license for the provision of support services to mobile operators in the Madrid metro network See CI study on Broadband stimulation in France, Ireland and Sweden (wwwculleninternationalcom select public area) Local authorities may be involved in development of telecommunications networks infrastructure with no restrictions on the maximum level of involvement Third parties must be granted access to network infrastructure on fair and nondiscriminatory terms
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Country
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Identi ed legal barriers (other than competition law)
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Netherlands
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Spain
Local authorities can conclude agreements with telecom operators through mixed economy companies or other types of formula Local authorities are generally not allowed to own the networks and act as telecommunications operators They have to select the network installer and the network operator through competitive tenders Companies owned by the local authorities are also eligible to participate in this procurement process The successful operator is then required to provide open nondiscriminatory access to the network for other operators at fair prices This operator would also become the owner of the network
Telecommunications ventures must respect objective criteria and cannot discriminate between operators
Sweden
No legal barriers but EU rules on state aid and competition law apply
Continued
Table 63 Legal situation of local authorities acting as telecommunications operators (Continued )
Country
Identi ed legal barriers (other than competition law) Maximum level of involvement: duct/dark ber/optoelectronic equipment/full operation
Examples There are no examples of such infrastructure being provided or even being built Oftel published guidance on its policy towards infrastructure sharing in June 2002 See wwwoftelgovuk/publications/ind guidelines/ duct0602htm (see, in particular, 5 on municipal ber networks) In Scotland, the Scottish Executive Agency has tendered for a contract to lay and manage a ber optics infrastructure in 12 of the country s top business parks (Atlas project) The new capacity acquired will be offered as a neutral high-capacity link, which any telco can use
There could be a problem for local authorities while they have access to the highway, if they dig too far below the surface, they would need permission from the owners of properties that front the road, and de nitely if they wanted to build up to the property