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The rebates, which consist in granting a lump sum discount to the ...

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costs and benefits related <strong>to</strong> <strong>the</strong> establishment of <strong>the</strong> new regula<strong>to</strong>ry body, as evaluated <strong>in</strong> <strong>the</strong>European Evaluation Consortium.EECMAcontribution <strong>in</strong> <strong>the</strong>various policy areasDirect Costs ofEECMAO<strong>the</strong>r Regula<strong>to</strong>ryCostsPossible benefits(orders ofmagnitude)Key As<strong>sum</strong>ptionsOversight of NRAremediesReplacement of NRAnot carry<strong>in</strong>g marketanalysis <strong>in</strong> timeAuthorization andregulation of serviceswith pan-EuropeanpotentialO<strong>the</strong>r operationaland managementactivitiesTOTAL COSTSAND€ 0.7 mn € 1- 2 mn € 50 – 120 mn • EECMA reduces by 10%regula<strong>to</strong>ry risk across EU• In addition, <strong>the</strong>re aresome yearly 40 NRAremedies with hiddenunexploited deadweighteffects - potential benefit €150 - 600 mn€ 2.7 mn € 10.8 mn € 20 - 80 mn • 1-2 delays <strong>in</strong> carry<strong>in</strong>g outmarket analysis areexperienced on a yearlybasis€ 7.9 mn In <strong>the</strong>ory none € 180 - 600 mn • Every three years <strong>the</strong>launch of one pan-European market isshortened by one yearbr<strong>in</strong>g<strong>in</strong>g one-off benefits€ 16mn€ 27 mn € 12 mn € 250- 800 mnProcedures foranalysis of transnationalmarketsPotential additional costs /benefits€ 24 mn € 300 - 600 mn • If 1-2 transnationalmarkets were identifiedand regulated <strong>in</strong> <strong>the</strong> periodSource: Cost-Benefit Analysis of Options for Better Function<strong>in</strong>g of <strong>the</strong> Internal Market <strong>in</strong> ElectronicCommunication, F<strong>in</strong>al report of European Evaluation Consortium, 22 Oc<strong>to</strong>ber 2007As showed <strong>in</strong> <strong>the</strong> table, <strong>the</strong> imputation of costs and benefits are made <strong>in</strong> a strategic way, <strong>in</strong> order <strong>to</strong>justify a decision already taken: <strong>the</strong> economic approach is used only <strong>to</strong> give a “numerical” evidence<strong>to</strong> <strong>the</strong> potential benefit aris<strong>in</strong>g from <strong>the</strong> <strong>in</strong>stitution of a new body that, accord<strong>in</strong>g <strong>to</strong> <strong>the</strong> result of <strong>the</strong>analysis, seem <strong>to</strong> have a per se magic power <strong>to</strong> lead <strong>to</strong> <strong>the</strong> so much deseeded s<strong>in</strong>gle market forEuropean electronic communication. As showed on <strong>the</strong> table, <strong>in</strong> <strong>the</strong> column of <strong>the</strong> costs <strong>the</strong> analysis84

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