Brussels, 12/06/2012 (Agence Europe) - On Tuesday 12 June, the European Commission decided to further investigate the proposal by the Czech telecoms regulator (CTU) to partially lift obligations on the main Czech telecoms operator, Telefonica, to give alternative operators access to its infrastructure, so they can also offer broadband. The Commission has serious doubts whether CTU's proposal not to impose regulation on wholesale broadband access in municipalities where Telefonica allegedly faces more intense competition from alternative infrastructures is compatible with EU telecoms rules. Neelie Kroes, European Commissioner for the Digital Agenda, said: “We need to ensure competition for companies offering broadband services. Czech consumers should not miss out on the opportunities provided by more competitive markets in broadband, including high-speed networks.”
In practical terms, CTU has proposed to deregulate access to broadband in those municipalities where Telefonica allegedly faces competition from alternative cable or fibre operators, as well as Wi-Fi operators, and where its retail market share does not exceed 40%. As well as leading to insufficient competition, the CTU plans could also have an impact on the EU's overall trade because the internet service cost proposed by other operators in other member states can be determined by Telefonica's copper and fibre optic network conditions in the Czech Republic. The Commission has therefore suspended the CTU projects and opened a second phase in the investigation, whilst awaiting additional information from the Czech regulator. (IL/transl.fl)