Brussels, 12/12/2013 (Agence Europe) - On 12 December, the European Commission formally requested the Italian telecoms regulator (AGCOM) withdraw or amend its proposal for the prices applicable to wholesale broadband access throughout 2013. These access prices are the fees that the dominant operator, Telecom Italia, can charge other operators who want to sell broadband services based on Telecom Italia's copper access network. Last August, the Commission expressed doubts about AGCOM's intentions of changing the wholesale broadband prices (see EUROPE 10904). After three months of analysis, the Commission still considers that AGCOM has set these fees on the basis of inappropriate data and that the way they are calculated has the potential to harm broadband investment incentives for both Telecom Italia and other operators. Neelie Kroes, European Commissioner for the Digital Strategy, said that “regulation which does not allow the regulated operator a return on investment will certainly not help deliver modern networks to EU citizens. Regulation needs to be based on sound economic methods, up to date data and reflective of market developments to ensure that both regulated and alternative operators have the right incentives to invest in new technology and competition is not distorted”.
The Commission therefore recommends that AGCOM update its fee calculations in a way that more accuratelyreflects persistent market developments affecting the risk-free (sovereign) rate and equity risks and, more generally, the need for stable, transparent and predictable wholesale broadband access prices over time, avoiding significant fluctuations and shocks. (IL/transl.fl)