Brussels, 31/03/2011 (Agence Europe) - The ECTA (European Competitive Telecommunications Association), which defends the interests of new operators, considers it necessary to structurally separate new internet networks in order to stimulate competition and prevent dominance by older, incumbent operators. The association calls on the European Commission and national regulators to “focus on making the economics work for fibre roll-out and avoid political deals with dominant firms”. Commissioner Neelie Kroes has called on operators to give their opinion on what would be the most appropriate approach for promoting the development of new generation fibre networks in Europe. The Commission's conclusions are due on 13 July.
On 30 March, ECTA met officials from the Commission and finance sector in order to hold a roundtable on the conditions that must be met for setting up new generation networks. This comes at a crucial time as the Commission is exploring ways to deliver the Digital Agenda target of 50% of consumers using 100Mbit/s by 2020. According to ECTA, there is now the possibility of creating new open models within which fibre networks may be managed separately from retail broadband services. ECTA President Tom Ruhan took the view that incumbent operators have hitherto gained advantages arising from the fact that they are incumbents “but now is the time to wean them from relying forever on the networks they inherited from the days of public ownership”, he said. Ruhan considers that the Commission should shed light on the fact that the time of “supernormal profits for copper is over”, and that “it is time for incumbents to work with others and invest for the future”. ECTA is aware, moreover, that dominant operators will claim they no longer have sufficient financial incentives for investment. The new operators suggest that political decision-makers should stimulate investment by pursuing an approach aimed at regulating wholesale prices. They also encourage them to attract consumers to the fibre networks by using strategies likely to make them give up copper networks, by promoting effective commercial models through adapted financial instruments. (I.L./transl.jl)