Brussels, 12/12/2002 (Agence Europe) - The European Commission decided on Wednesday to close its inquiry into the pricing of leased lines in the telecommunications sector, due to the sharp cut in prices since 1999. In its initial conclusions, the Commission had placed stress on the excessive level of prices and differences in pricing policies implemented in Member States and that could not justify the differences in cost. In three years, the European Executive notes, the inquiry (initiated in July 1999) has considerably helped in reducing leased international lines throughout the EU: since its instigation on 29 July 1999, price for 2Mbps leased lines, the most commonly used bandwidth, have decreased, on average, by 30% to 40%.
Leased lines are a very important component of the liberalised telecommunications environment. They provide a vital link between businesses that wish to have a direct and high bandwidth connection. Furthermore, the provide companies, for example Internet service operators, to expand and improve their services more quickly than would be possible by installing their own infrastructure. Moreover, leased lines are essential building blocks for the provision of telecommunications services, both fixed and mobile. Thanks to the fall in prices of leased lines, consumers will have cheaper access to telecommunications services and the Internet, as provided for by the eEurope initiative. The Commission stresses that lower prices for access should also provide a competitive edge to businesses across Europe and that the inquiry ha led to a pro-active stance of the national regulatory authorities (NRAs) with respect to both pricing and the provision of leased lines. NRAs have adopted a number of measures, such as wholesale offers to competitors, which enhance and maintain competition at the retail level, says a Commission press release.