Brussels, 21/08/2012 (Agence Europe) - On 13 August, the European Commission ruled that the Czech telecommunications regulator authority (CTU) should withdraw its plans to include wholesale broadband services based on cable and Wi-Fi platforms in its definition of the wholesale broadband access product market.
In its veto decision, the European Commission considers that the CTU failed to provide sufficient evidence that cable and Wi-Fi platforms, over which no wholesale offers exist, would be substitutes of the prevalent copper and fibre technologies on the wholesale market. Furthermore, the Commission does not accept CTU's geographic market definition, which is based on its product market definition and results in two separate geographic markets.
The Commission's decision means CTU must withdraw its proposed measure and may not implement its plans, which would result, in some cases, in the lifting of obligations (including wholesale broadband access) on the main Czech telecoms operator Telefónica. This Commission action will “protect consumers against a likelihood of paying higher prices for higher speed internet connections”, a Commission press release states.
The Commission has not, however, ruled out the possibility of geographically differentiated remedies that reflect the different conditions of competition across the Czech market. If CTU wishes to pursue this option, it must produce a revised analysis based on a new product and geographic market definition, the Commission states. (OL/transl.jl)