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Although we are in the clear, the European Commission is going to put the heat on tardy territories, threatening 'infringement proceedings if action is not taken rapidly'. Italy looks likely to be fashionably late, but seems to have charmed the EU into accepting a date of 31 July for its compliance.

Erkki Liikanen, European Commissioner for Enterprise and the Information Society, said: 'The Commission is determined to take action to ensure the full implementation of the new framework, and will start proceedings in the next few weeks against those Member States that have not yet

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transposed the regulations. We will ensure that the new framework is implemented quickly.'

The Communications Act, which received royal assent last week, puts in place EU directives for a new regulatory framework for the industry. The new directives seek to ensure a fair, open and competitive market in the communications industries, while protecting consumer interests.

It covers 'converging communications services' including interactive television, email, text messaging and voice telecoms services.

Stephen Timms, e-commerce Minister said: 'The Communications Act is the lynchpin to liberalising a market currently worth over £12 billion of investment a year.'

David Edmonds, Director General of Telecommunications said: 'This is a major event as Oftel is putting in place a completely new regulatory framework for the UK communications sector. There are a number of significant changes, including the end of the current licensing regime for telecoms companies.

'This includes the requirement on the four mobile network operators to maintain their 15 per cent reduction of call termination charges until the outcome of the necessary market review.'