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ETNO Statement following Commissioner Kroes speech "Delivering investment and effective competition in broadband markets

Date

01 Dec 2010

Sections

InfoSociety
Sustainable Dev.

Brussels, 30 November - ETNO, who represents the main investors in current and next generation access networks, shares the EU Commission’s concern about creating the right conditions for investment in next generation networks in Europe.

Ensuring that access prices for wholesale products are set at a level reflecting the underlying cost is an important element of a predictable regulatory framework that ensures operators’ capacity to invest in upgrading existing networks and deployment of next generation networks. As highlighted by Vice-President Kroes today there is a risk that artificially reduced wholesale charges for copper networks will erode the price level on broadband markets, making fibre products less attractive to invest in. A sustainable market development depends on a correct evaluation of the underlying costs. ETNO looks forward to contributing to future work by the Commission and BEREC on this issue.
 
The Italian decision is an appropriate implementation of the guidance provided at EU level following the notification procedure ex art. 7. As a matter of fact, the glide path recently notified is fully in line with the current EU level of pricing for ULL. In Italy for several years, access to ULL facilities was provided below LRIC level. The measure recently adopted is to be seen as a rebalancing decision to update copper prices at cost oriented level, also to the aim of providing the appropriate economic signal to foster new investments for fibre development.

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