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Image header Agence Europe
Europe Daily Bulletin No. 10267
Contents Publication in full By article 27 / 41
GENERAL NEWS / (eu) eu/telecoms

Commission wants to beef up market supervision

Brussels, 30/11/2010 (Agence Europe) - The European Commission will not hesitate to use its new powers to ensure that there is competition in member states, as it has the authority to do under the new European telecoms framework. It has the right to intervene in proceedings engaged by national regulatory authorities to impose or overturn decisions applied to operators, in close cooperation with BEREC, the new telecoms authority. In her speech on 30 November to the European Competitive Telecommunications Association (ECTA), which represents new operators, at its annual conference (29 November - 2 December), Digital Agenda Commissioner Neelie Kroes warned that she would use the powers the Commission now enjoys to “crack down if some choose to mess up the playing field for others”. To clarify the situation and avoid any misunderstandings, the Commission will, next year, issue guidelines on the application of non-discriminatory practices and costing methodologies which are designed to ensure that dominant telecoms operators do not obstruct competition on national telecoms markets, she announced. The commissioner wants a consistent regulatory approach, an approach which she believes to be absolutely necessary: “We are kidding ourselves if we think that non-discrimination remedies have fully eradicated the discriminatory behaviour of dominant operators. If given the opportunity, dominant firms have the short-term incentive to discriminate against their competitors,” she said. Kroes calls on national authorities not to hesitate to take action when and where necessary. She is unhappy, however, about the different approaches taken by member states to address a similar problem on national markets. Similar challenges have to be met with similar tough rules and remedies in all member states, she argues. “This is not about creating a 'one-size-fits-all' approach, it is simply saying that '27 sizes-do-not-fit-Europe',” she said.

ECTA welcomed Kroes' proposals, in particular, the need to monitor the wholesale prices applied by dominant operators, which often do not reflect the reality of the situation. “It's time for a reality check on regulated prices. It is important for regulators to understand what the actual costs are, and not to accept a theoretical price if that allows supernormal profits on networks that have already been funded by taxpayers long ago. Equally, regulators should be checking carefully if investments in fibre are as risky as incumbents claim,” said ECTA Director Ilsa Godlovitch. (I.L./transl.rt)

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