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Image header Agence Europe
Europe Daily Bulletin No. 11195
Contents Publication in full By article 19 / 35
SECTORAL POLICIES / (ae) digital

BNetzA's arguments fail to convince Commission

Brussels, 12/11/2014 (Agence Europe) - The European Commission is not satisfied with the information sent it by the German telecommunication industry regulator, BNetzA, regarding mobile termination rates.

In a letter dated 6 November and sent to the president of BNetzA, Commission Vice President for the Single Digital Market, Andrus Ansip, explained the reasons why the European Commission still had “serious doubts” about the German authority's project (EUROPE 11180).

On 8 April 2013, the Commission expressed doubts about the methods used by Germany to calculate mobile phone termination rates and which are invoiced by the telecom networks for connecting calls from one network to another. These rates are based on a calculating method that is not included in the Commission's recommendations for working out these tariffs in 2009. This situation has ultimately led to bills that are more than 80% more than those in most other member states and the Commission, with the backing of the Office of the Body of European Regulators for Electronic Communications (BEREC), cannot accept this.

In its letter, the Commission explains that, “BNetzA did not present evidence that the LRAIC+ -long run average incremental costs - would achieve the policy objectives set out in Article 8 of the Framework Directive as it may lead to competitive distortions between operators with asymmetric market shares and traffic flows”. This is why it has again expressed, “serious doubts that BNetzA's proposal on fixed termination rates can be considered appropriate (…) and believe, at this stage, that the draft measure would create barriers to the internal market”. The Commission has published the letter on its website and has requested that third parties submit their observations to it on these “serious doubts” over the next ten days. (IL)

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