Brussels, 09/04/2013 (Agence Europe) - On 8 April, the European Commission blocked a proposal by the German Telecoms Regulator (BNetzA) to set fixed termination rates three times (300%) higher than the average of countries which follow the recommended approach set out in EU telecoms rules. Termination rates are the rates telecoms networks charge each other to deliver calls between networks, and each operator has market power over access to customers on its own network. These costs are ultimately passed on to consumers and businesses as the operators include these prices in their customers' bills. European Commissioner Neelie Kroes (Digital Strategy) stated that all EU countries - big and small - have signed up to the rules governing the European telecommunications market and no country can be allowed to divert from this goal and urged “BNetzA to bring forward a new proposal that delivers lower consumer prices and helps us build a telecoms Single Market”.
Under BNetzA's proposal, fixed termination rates would range from €0.0036/minute (peak) to €0.0025/minute (off-peak). Operators in countries which follow the EC's recommended approach pay on average €0.001/minute. Following the “serious doubts” letter sent by the Commission, BNetzA now has three months to work with the Commission and the body of European telecoms regulators (BEREC) on a solution to this case. In the meantime, implementation of the proposal has been suspended. At the beginning of February 2013, BNetzA informed the Commission of its plans to regulate fixed termination markets based on a method of calculation different to that set out in the Commission's recommendation on termination rates. This is not the first time that the Commission has disagreed with Germany on its manner of implementing termination rates. On 1 March, the Commission also opposed a BNetzA proposal on mobile phone call termination rates (see EUROPE 10797). (IL/transl.fl)