Brussels, 28/01/2009 (Agence Europe) - In a letter published on Wednesday 28 January, the European Commission asked Italian telecoms regulator AGCOM not to allow Telecom Italia to increase the prices it charges competitors to access its telephone network (the so-called local loop unbundling fees) until audited data justifying an increase in costs is available. According to AGCOM, the proposed price increase is to better reflect actual cost. The Commission takes the view that the costing methodology used by regulators is a very important factor in determining the price of wholesale charges between operators. The Commission therefore calls on AGCOM to base the regulation of this price on audited data. Furthermore, the Commission invites telecoms regulators in the EU to work with it to develop a consistent approach as regards the calculation of the prices for the access to the local loops of incumbent operators.
The Commission's letter is a response to notification from AGCOM, received on 23 December 2008, of changes to prices for wholesale access to local loops (such services allow competing operators to provide broadband and fixed telephony services to consumers). It was sent under the procedure contained in the framework directive on EU telecoms rules. This procedure leaves considerable scope for national telecoms regulators to achieve effective competition, but requires them to inform the Commission of their regulatory measures to ensure consistency of telecoms regulation in the single market.
In its letter, the Commission says that, to increase legal certainty, national regulatory authorities should base these prices on recently audited data on actual costs. This, according to Competition Commissioner Neelie Kroes is something that did not happen in this instance. She says that “AGCOM should therefore be cautious when allowing the incumbent operator to increase its access prices and make sure that such price increases are justified by costs and not based on figures which have not been audited”. The Commission has asked AGCOM to wait until it has this information before changing the price that competitors pay for access to Telecom Italia's network. The Commission also proposes that AGCOM discusses with other national regulators and with the Commission the best way to have more consistent EU-wide methods of calculating costs and prices that incumbents can charge when giving alternative operators access to their local loops. It believes that the use of an appropriated cost method for setting these prices is key to competition in the high-speed Internet access markets in Europe. “Otherwise, divergences in regulatory methodology risk distorting competition between operators from different member states,” said EU Telecoms Commissioner Viviane Reding. (O.L./transl.rt)