Brussels, 18/06/2009 (Agence Europe) - The ECTA (European Competitive Telecommunications Association), which defends the interest of new operators, is not very pleased with the European Commission's proposals on broadband. In her revised draft for regulation of next generation access (NGA) networks, Viviane Reding, Commissioner for the information society and media, suggests that risks should be shared between the incumbent operators and new operators requesting access to the NGA networks, and that the regulatory obligations on dominant operators deploying fibre networks should be eased (EUROPE 9922). According to the ECTA, these suggestions would allow dominant firms to escape regulation, limiting choice in TV and broadband services, which would result in the creation of new monopolies. “We are surprised and disappointed that the European Commission, (…), appears to have compromised its strong stand against 'regulatory holidays' in the telecoms sector and appears to be condoning collusion”, said ECTA President Innocenzo Genna, who denounced the fact that “dominant firms (…) have lobbied the Commission at the highest level to relax EU regulatory rules”. The ECTA is in favour of risks and benefits being shared by operators investing together in a joint venture according to market rules, and of eradicating the existing rules if all members respect the rules of the game. “But we have seen no signs that incumbents are seriously interested in negotiating in good faith with their rivals, except as a means to delay and confuse the process”, said Mr Genna.
The Commission proposals are not, however, upheld by the incumbent European operators meeting within the ETNO (European Telecommunications Network Operators' Association), for reasons that are obviously different. In their view, the Commission's draft recommendation is still too binding and the conditions of access will not be remunerated at fair value, which will stifle rather than incentivise investment in NGAs. The possibilities considered by the Commission for the emergence of new price models based on risk-sharing comprise, moreover, severe restrictions that make practical application impossible. “The draft recommendation will discourage investors, whom the Commission proposes to bear onerous access and price control obligations. NGA require a more innovative and targeted regulatory approach, which encourages all players to invest and share risk, while keeping today's vibrant competition”, said ETNO President Michael Bartholomew. Furthermore, the proposals ignore the principle of technological neutrality and “underestimate the competitive development on today's markets”, ETNO added. (I.L./transl.jl)