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EU Commission accepts that Denmark regulates the incumbent operator TDC's wholesale broadband, including the latter’s cable network

Date

13 Mar 2009

Sections

InfoSociety

For Immediate Release – 12 March 2009

We understand the Commission has concluded its analysis of the Danish wholesale broadband access market.

The Commission allows the Danish Regulator (NITA) to regulate the incumbent operator TDC, including the latter’s cable network, for wholesale broadband
access primarily to address the unique situation in Europe in which the telecom incumbent operator owns and operates both the fixed telecom and cable networks, Caroline van Weede, Managing Director of Cable Europe, said:
‘These measures appear to meet presumptions by the regulator about the absence of investment by the incumbent operator in its fixed network, and to improve competition in markets where there is common ownership of the
incumbent and the cable network.

However, the Commission expresses its doubt whether cable is in the same market of DSL for wholesale broadband and the Commission request further investigation of economical feasibility of providing wholesale broadband access.
Cable companies remain unconvinced regulation of the cable network for broadband is economically attractive or commerically viable for the access seeker
across Europe. Besides the issue of economical viability, cable technology does not allow the same functionalities as the DSL networks, cannot support multiple
competitors, and has only limited territorial coverage.
Cable Europe believes the shortcomings of NITA’s regulation will become clear during implementation. Regulation of the incumbent DSL network remains the
most effective way of promoting broadband competition.

-- End Of Press Release

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