Telecom Regulation

On regulation of the telecommunication in Denmark, definition and guidance on the term "provider" and the universal service obligation.

The term “a provider” is defined in Section 2 (1) of the Danish Act on Electronic Communications Networks and Services as any natural or legal person who makes products, electronic communications networks or services governed by the Act available to other parties on a commercial basis. Anyone who is encompassed by this definition is subject to the rights and obligations in the Act as well as in executive orders issued according to the Act.

Traditional telecom companies that provides internet access and/or voice telephony are the archetypical providers but the definition also encompasses businesses, organisations and authorities etc. that are not telecom companies, and where the provision of electronic communications networks or services are ancillary to the company’s etc. main activity.

A commercial basis, see above, exists if for example a company sells or markets a product to directly or indirectly obtain a profit. Whether the activity in question is profitable or not is not relevant.

For example, if a hotel establishes an internet hotspot in its lobby or makes internet or voice telephony available in their rooms, free of charge, the hotel will be regarded as a provider, because the activities take place to make the hotel more desirable, and thereby to obtain a profit.

A commercial basis furthermore exists if an activity usually takes place on a commercial basis, regardless if, in the actual case, the company, association or authority aims to obtain a profit.

For example, if a municipality rents out rooms for businesses with internet access included, the municipality will be regarded as a provider, because letting usually takes place on a commercial basis, and because the provision of internet access usually takes place to make the lease more attractive.

Registration of providers of electronic communications networks and services

No authorisation is required of providers of electronic communications networks and services but all providers must register with the Central Data Section of the Danish National Police.

Registration can be done on the website for Danish police

The definition of a provider and the Executive Order on the retention and storage of traffic data (…)

A number of businesses, associations and authorities regularly contact The Danish Agency for Data Supply and Infrastructure inquiring whether or not the definition of a provider in the telecommunications act applies to them. The inquiries are often motivated by a desire to know whether or not the business etc. in question are obliged to retain data in accordance with the Executive Order on data retention. The Executive order on data retention has been in effect since September 2007 (latest amended in 2022) and obliges providers to end users to retain and store traffic data generated or processed in the provider’s network.

The Executive Order on data retention is managed by the Ministry of Justice, but the duty to retain and store information lies with providers of electronic communications networks and services. The definition of a provider is to be found in the Act on Electronic Communications Networks and Services, hence the questions concerning the scope of the definition lie under the purview of the Danish Agency for Data Supply and Infrastructure. Questions concerning the scope of the duty to retain data i.e. what data to retain lie under the purview of the Ministry of Justice. 

Questions and guidance concerning the definition of a provider

Is it of consequence whether the service in question is fixed or mobile based or an internet access service? And what about internet hotspots? 

No. The type of technology used does not matter – the definition of a provider is technological neutral and does not distinguish between different technologies.

Who is the provider in a specific case? My business (for example a caravan park) or the company that establishes the actual connection and provides internet access to my business?

The business that has the end-user relationship is the provider in the meaning of the Act on Electronic Communications Networks and Services. If customers pay the caravan park directly and the caravan park subsequently pays an internet access provider, the caravan park will, in regard to the customer/end-user, be regarded as a provider.

I provide free wifi at my café, gas station etc. – am I a provider?

Yes. When the internet connection is made available in connection with a commercial enterprise, the activity provision of internet access will be regarded as being made on a commercial basis (cf. above). The number of customers the café, gas station etc. services and whether or not the customers pay directly for internet access is not relevant in this context.

 

Bindings to a specific service provider

Providers of electronic communications networks or services shall ensure that the contract with a consumer does not contain terms that bind the consumer to the contract for more than six months.

For end-users that are microenterprises, small enterprises or not-for-profit organisations, the commitment period shall not exceed 24 months unless they have explicitly agreed to waive this.

There is no telecom regulation on the duration of commitment periods in contracts between telecom providers and businesses.

Bindings to a specific network

Providers of telecommunications terminal equipment used for mobile communications services shall ensure that consumers are not committed, e.g. by SIM locks, to using a specific electronic mobile communications network for a period of more than six months.

“SIM lock” means that the phone can only be used in connection with a specific operators SIM card.

The prohibition against binding to use a particular electronic mobile communication network applies not only to SIM lock, but also to other kinds of binding to an electronic communication network. In a specific case of Wi-Fi routers in cars, the router was equipped with an eSIM. It was possible to buy internet access via a display in the car. However, it was not possible, via the display or in any other way, to get internet access services on this equipment from other service providers than a pre-selected provider. SDFI made a decision that this was in violation of, of the executive order on end-users rights, section 7 (2).

Shall the telecommunications companies ensure that some basic services are made available to all on request?

According to the Danish Act on Electronic Communications Networks and Services all consumers in Denmark shall have access to basic telecom services at reasonable quality and at affordable prices. This is ensured by the so called “Universal Service Obligations”.

The Danish Agency for Data Supply and Infrastructure designates one or more undertakings to guarantee the provision of universal service. TDC A/S was in 2017 designated as universal service provider and is still the only company providing services under the Universal Service Obligation. The current designation expires by the end of 2023. The Danish Agency for Data Supply and Infrastructure expects in the autumn 2023 to disclose what undertaking(s) has been designated as universal service provider from 2024 to 2029.

What services are provided under the Universal Service Obligation?

The following services are covered by the Universal Service Obligation:

  • A web-based text relay service for disabled end-users.
  • Routing of 112-calls to the most appropriate PSAP.
  • An exhaustive directory containing all numbers in the overall Danish numbering plan assigned to end-users.

The Universal Service Obligation does not include broadband connections. Prices and provision of broadband connections are exclusively governed by market competition.

From 1 October 2022 voice telephony is no longer covered by the Universal Service Obligations.

All services provided under the Universal Service Obligations till the end of 2013 are stated in the Executive Order on Universal Service Obligations from 2022. 

More about the Universal Service Obligations

The new Executive Order on Universal Service Obligations states the services that will be provided under the universal service from 2022. Furthermore, the Order states how the universal service providers are designated, how the detailed provisions for the universal service are determined, requirements on the content of the contract with the end-user, regulation of prices and the possibility of getting compensated for the net costs from providing universal services.

The Executive Order on Universal Service Obligations (only available in Danish)

 

Operators can start provision of electronic communications networks and services without a previous notification to the Danish Authorities but the undertaking shall be registered at the Danish National Police.

You can find the registration form here (only in Danish).