INTERVIEW WITH DANIEL PATAKI, CHAIRMAN OF THE EUROPEAN REGULATORS' GROUP : TELECOMS PACKAGE: "THERE IS NO NEED FOR A REVOLUTION".

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Daniel Pataki, who heads the Hungarian telecoms authority, is the new chairman of the European Regulators Group (ERG), which brings together the 27 national regulators to serve as an advisory body to the European Commission. Pataki says there are alternatives to the creation of a European authority that would replace the ERG.

Will 2008 represent a turning point for the ERG?

The year 2008 is crucial. I think that in the next six months there will be two critical issues: text messages and data on mobile phones in roaming [ie sent and received from one EU country to another - Ed] and mobile termination rates. We have been criticised for not being united, for not advising Europe. We must deliver. That is what I've told my colleagues. This is not just about regulatory reform. It is also about the future of the ERG, whether we can prove that there is a viable alternative to a European telecoms authority, based on the existing network of regulators.

What role can you play in the debate on reform?

The ERG is not a player in institutional decisions. That is the role of the Council of Ministers and the European Parliament and of course, it is the European Commission that makes proposals. We concentrate on our work, but of course we are interested and we are ready to advise the institutional players on a better institutional organisation for the next decade. I think the debate is just getting under way.

What impact would a European telecoms authority have?

We share the Commission's goals for strengthening market coherence. The big news is that all the regulators support them. That may not have been true a year ago or even a few months ago. That is very important. But the problem with the current proposal is that it shifts the institutional balance with the creation of the authority, and also with the veto [on remedies chosen by regulators to solve competition problemsa- Ed]. Liberalisation has made good progress and the regulatory framework has worked well. Now the framework has to evolve with the market. There is no need for a revolution. So why this transfer of power? We think that any new institution must strike a better balance with the national authorities.

What do you think of functional unbundling of the incumbent operators?

It is not a remedy that everyone should use following adoption of the package. It is one of a range of remedies. With the ERG, we think it is a good thing. We then have to follow the whole market...

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