Next Generation Access Networks:  The EC Recommendation should primarily focus on how to encourage all operators to invest in new networks

BRUSSELS – Simply extending current access rules defined for legacy copper-based networks to new high speed networks will not accelerate risky investment in the new access networks, says ETNO following the launch today of a consultation on the EC draft recommendation on next generation access networks.  The recommendation as it stands seems to underestimate the risk that investments in the new networks entail and to assume that fibre roll-out to the homes of EU citizens is a ‘done deal’.

“Considering that Europe is currently lagging behind other regions in fibre deployment and that investment effort is slowing down, the key focus of the recommendation should be on how to boost risky investment by all operators and accelerate network deployment. In its current form it may risks delaying further the NGA deployment to the detriment of consumers”, says Michael Bartholomew, ETNO Director.

ETNO welcomes the declared objective of the Commission to encourage end-to-end infrastructure competition as the most appropriate means to achieve sustainable competition and innovation in telecoms markets. Yet, obligations for multiple accesses to new networks and new pricing methodologies proposed in the draft that put the long-term maintenance and upgrading of networks at risk would undermine this goal.

ETNO regrets that the concrete proposals made by the EP Industry Committee last July to improve conditions for investment have not been taken into consideration in the current draft. ETNO supports a more targeted regulatory approach which would encourage the deployment of alternative and new networks wherever possible, through a geographical segmentation of markets, symmetric access to basic facilities such as ducts and a fair risk-sharing between the investor and companies seeking access to the new networks.

New access networks require investments of up to 300 billions ? for the EU and rely on a new technology, offering new packages of services for which demand is still uncertain. A risk premium alone, as envisaged by the draft recommendation, would not cover these risks but should be accompanied by new forms of risk sharing.

ETNO looks forward to participating in to the debate on this key topic for EU competitiveness.

For more information or to obtain a copy of the brochure, please consult www.etno.be or contact Thierry Dieu, ETNO Communications Manager (dieu@etno.be or 32 2 227 10 82)

* ETNO’s 41 member companies from 34 European countries represent a significant part of total ICT activity in Europe. They account for an aggregate annual turnover of more than 250 billion Euros and employ over one million people across Europe. ETNO companies are the main drivers of broadband and are committed to its continual growth in Europe.