Review by the Director-General The year 2001 was exceptional. At the beginning of September, the Telecommunications Administration Centre changed its name to the Finnish Communications Regulatory Authority. At the same time, a revised corporate image and new logo were introduced. The new name reflects our broad scope of operations, particularly in the field of electronic communication, and is not tied to any individual technology or means of communication. We are being entrusted with extensive new responsibilities in the communications sector. In June, a government ministerial committee decided that detection and resolution of computer security infringements and responsibility for information security will be allocated to FICORA. The CERT-FI unit of the Authority is involved in prevention, monitoring, resolution and information on information security infringements. The Authority cooperates with business and industry and other authorities, including the police, Finland's defence forces, and CERT units in universities. International cooperation also plays an important role. A special unit for COMSEC and CERT duties and corresponding working groups involving outside expertise were established at FICORA on July 1. In addition, the Council of State on October 25 set up an advisory board for information security issues to promote cooperation in this area between public administration and the industry and to prepare a review and a strategy regarding information security in Finland. Prerequisites for convergence through legislation During the year, the adoption of a package of directives regarding communications was ensured in the EC bodies. The directives create uniform standards for the electronic communications markets, and will contribute to liberalising the sector and safeguarding users' access to affordable high-quality communications services throughout the EU area. According to the provisions, the authorities in each country will examine how competition works in the relevant communications markets and prescribe operators having significant market power special obligations with regard to pricing and network access, which will expand competition to traditionally monopolised areas. Harmonised regulation involves both telecommunications and Internet operators and companies possessing radio and TV networks. Economic regulation of communications markets to ensure functional competition During the course of the year, FICORA intervened in the pricing of operators having significant market power. It has demanded that Sonera Oyj make considerable reductions in the network or interconnection fees for mobile networks which are collected from other telecommunications operators and it made a decision on Elisa Networks Oy's local loop prices and fixed network interconnection prices. The Telecommunications Market Act stipulates that network fees collected by operators with significant market power must be equal and reasonable. Both operators have announced a reduction in prices, which means other telecommunications service operators will have a better chance of entering the market. The increasing competition between telecommunications operators will afford consumers and customers greater choice and will eventually lead to lower end-user prices. Regulations defining the duties of FICORA are, as a whole, undergoing thorough revision. This is due to the convergence of communications markets and technologies, the rapid technical advances in electronic communication and the trend towards greater competition and harmonised regulatory practices in the EU area. In 2001, the economic picture for communications markets and companies changed, with new communications technologies, such as digital TV and UMTS, not advancing as quickly as envisaged. Aim to promote development of information society Both Finland and FICORA aim to promote the development of the information society. We want to be a leader and a driving force creating the best possible conditions for access to functional, secure and affordable communications services and products. Our goal is to safeguard the functionality and efficiency of the communications markets, technical operations and security within communications networks, and the adequacy of limited natural resources, (radio frequencies, numbering and addressing in communications networks) - to meet users' needs. To meet the challenges of this rapidly developing sector and to serve our customers the best way possible, our organisation must be developed further. We have continued our development project by reforming our operational planning and organisational structure. Convergence of communications markets has been taken into account by, among other things, abandoning the system of technology-based profit areas (telecommunications, postal, media) and introducing new profit areas for communications markets and services, and for communications networks. Furthermore, our aim is to continue improving the efficacy of internal functions, to raise cooperation between the profit areas and to develop the already extensive know-how of our personnel. The goal is to emphasize the customers' standpoint and to increase general awareness of FICORA's expertise in the sector. Change is a natural state. Continuous development keeps an organisation lively and also provides new opportunities for personnel. However, change and renovation are not possible without good personal interaction, training and the upkeep of vital know-how. The development project continues. By acting together and by maintaining an open discussion with various stakeholders in the sector, we can take care of our broadening scope of operations in the best possible way. The established advisory boards, along with their working groups, are an important tool in this cooperation and their role will be further enhanced. Rauni Hagman Director-General