NEW EU ICT COMMISSIONER KROES SEEKS AMBASSADOR'S HELP IN

UNCLAS BRUSSELS 000168 SENSITIVE SIPDIS DOC FOR NTIA - SPECK FCC FOR WEISLER STATE FOR EEB/CIP, EB/IPE, EUR/ERA PLEASE PASS TO USTR NOT FOR INTERNET DISTRIBUTION E.O. 12958: N/A TAGS: ECPS ECIN EINV EINT ETRD ECON EUN SUBJECT: NEW EU ICT COMMISSIONER KROES SEEKS AMBASSADOR'S HELP IN ADDRESSING EU CHALLENGES ¶1. (SBU) SUMMARY. Incoming EU Digital Agenda Commissioner Neelie Kroes sought Ambassador Kennard's help during their initial meeting February 8 in identifying and addressing the major ICT challenges she will face in her new position. She listed as her priorities broadband development, infrastructure investment, cybercrime, copyright and privacy issues, and building the new EU ICT regulatory body. She hoped to visit senior USG ICT officials in Washington soon. Kroes stressed her interest in closer U.S.-EU consultation on digital agenda issues, and the Ambassador agreed to provide her ideas on improving our cooperation. END SUMMARY. ¶2. (SBU) In their initial meeting February 8, Neelie Kroes, EU Competition Commissioner since 2004, welcomed Ambassador Kennard to Brussels and said she hopes to draw on his extensive ICT background to help her master her new portfolio as EU Digital Agenda Commissioner. Kroes said it is "too early to tell" the full range of challenges she will face in her new role, but identified as priorities the need to: extend EU broadband coverage; promote investment in new ICT infrastructure; strengthen the new fledgling EU ICT regulatory body (BEREC); address cybercrime, copyright and data privacy issues; and focus ICT R&D spending on the most innovative regions across the EU. ¶3. (SBU) The Ambassador stressed the Obama Administration's forward-thinking commitment to ICT development and deployment, and openness to transatlantic cooperation in this area. Kroes noted she plans to travel soon to the U.S., hopefully to meet with FCC Chair Genachowski and other key U.S. ICT officials, to talk about greater U.S.-EU ICT cooperation. The Ambassador said he hopes to get Genachowski to visit Brussels; Kroes said this would be ideal, preferably in the next few months during the Spanish EU Presidency. ¶4. (SBU) Kroes sought the Ambassador's advice in helping her approach key regulatory issues in Brussels, and asked how the role of the FCC in the U.S. differs from that of the FTC and Department of Justice, with whom she had close relations as Competition Commissioner. She explained her interest in helping the new Body of European Regulators for Electronic Communications (BEREC), established under the EU telecoms regulatory reform package adopted in December, get started as a fledgling EU ICT regulatory body. She is concerned about the degree of independence of the heads of the member state national regulatory authorities making up BEREC, as well as the varying levels of competence of the national regulators. Kroes also noted Member State competition over hosting the seat of BEREC. She said that if BEREC can be made independent and effective, however, it could become a strong ally for her. ¶5. (SBU) The Ambassador emphasized that Kroes' experience as Competition Commissioner will help her greatly in her new position. He suggested that overcoming the fragmentation of the EU ICT market and promoting cable competition with telecoms incumbents to deliver broadband, (as has occurred successfully in the U.S.),will be important challenges for her in Europe. Kroes said that while the EU digital agenda is an important Commission priority, she is aware that incumbent resistance to market opening, the potential lack of independence of some national regulators, and the new, more extensive role of the European Parliament in legislation under Lisbon will make her job more complicated. The Ambassador agreed to provide her with ideas on positive areas for U.S.-EU cooperation and issues that he sees present complex challenges, and both agreed to work together closely on our joint ICT agenda. KENNARD