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Europe Daily Bulletin No. 8251
Contents Publication in full By article 25 / 34
GENERAL NEWS / (eu) eu/competition

Mr Monti thinks results of enquiry into local loop unbundling are still disappointing

Brussels, 09/07/2002 (Agence Europe) - At the public hearing sector enquiry into local loop unbundling on 8 July, Commissioner Mario Monti pointed out that, "The results of local loop unbundling throughout Europe are extremely disappointing at this point in time. Fewer than 900 000 lines are unbundled. Even in those countries where figures could seem encouraging, we have received strong signs of discontent on the conditions offered by the incumbent. In many countries unbundling has not gone beyond a merely experimental stage". The objective of the hearing was to present the results of the sector enquiry launched in July 2000 on local loop unbundling and identify the difficulties involved in loop unbundling, necessary since December 2000. The Commission identified two major difficulties: price distortions, which undermine the effectiveness of competition in local access and discriminatory practices by established operators against market newcomers which are often vertically integrated structures providing both the wholesale input and the retail product. Mr Monti pointed out that, "unbundling is not an objective in itself, but rather a tool. What we are trying to achieve is a viable range of competitive telecom providers and ISPs, freedom of choice for consumers, and rapid technical progress." The Commissioner also highlighted that his services and DG Information Society, the latter under the authority of Commissioner Erkki would do everything within their powers to foster effective access to the local loop. So far, the Commission has focussed on the rights of access and price distortions but it would also be quite likely that the Commission focused on discriminatory practices. Infringement proceedings have been taken against Germany, France, Ireland and the Netherlands for not respecting the regulation, while proceeding against Portugal and Greece have been concluded.

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