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Telenet Vlaanderen is an initiative of the Flemish government, together with the Flemish cable operators and some commercial partners, to offer the public telecommunications services. It is the aim of the Flemish government to improve these services by giving the public a second choice besides Belgacom, the national Belgian telephone company. Competition is a new concept in the telecommunications sector in Belgium: until not so long ago, Belgacom held a monopoly, but the European Union imposed a liberalization on its members.
Competition being on of its goals, the Flemish government takes this opportunity as a chance to create a telecommunication company that has its center of decision in Flanders. And this is exactly why Telenet Vlaanderen caused some resentment in the French-speaking parts of Belgium. The Walloon region in particular fears that one day, Telenet Vlaanderen could become an important operator in Wallonia as well, Belgacom losing much of its importance. If Telenet Vlaanderen would take off well, this is quite possible in the longer run. The Walloon region in a further future being dependent on a Flemish company for its telecommunications is a complete nightmare for Walloon politicians.
The then federal Minister of Communications, Elio di Rupo , tried to make the road as heavy as possible for Telenet Vlaanderen on its way to an open telecommunications market in Belgium. In August 1996, he tried to enact three Royal Decrees, but got a lot of protest from Flanders.
First of all, he tried to restrict the licences for public telecommunications services to the then operative infrastructures. This would be a severe handicap for Telenet Vlaanderen that wasn't on the market yet at that time. As to the universal services, that are the services every operator has to guarantee to everybody, he suggested to extend the minimal packet, and to assign it exclusively to Belgacom. Future operators would have to pay a share of the costs, and these costs would be calculated by the Ministery of Communications. Belgacom as a company though is dependent from that same Ministery.
Not alone did Minister Elio di Rupo surpass his competences as a federal minister by these three Royal Decrees where he suggests that schools, hospitals and libraries should get a fast ISDN and Internet connection at sharply reduced prices, but he went ahead in spite of a negative advice by the Inspection of Finances, whereas the State Council will almost certainly object to it and the European Commission surely will give a negative advice too.
The three Royal Decrees weren't enacted after a lot of protest, but sent out to a special task group.