European Commission reduces the scope of telecoms regulation
9 October 2014
Schellion Horn, competition director at Deloitte said: “Today the European Commission decided that two telecom markets should no longer be subject to regulation in Europe, the retail market for access to fixed telephony and the wholesale market for fixed call origination.
“Many European regulators have already removed regulations from these markets, but those yet to do so will be expected to follow. The change will give incumbent operators more pricing flexibility and allow them to use the opportunity to create more innovative pricing for voice, broadband and television packages. Furthermore, it will provide them with significantly more discretion in the way they develop their networks and transition to new technologies.
“The Commission will also redefine two wholesale broadband markets in an attempt to limit regulatory burdens to what is strictly necessary for competitive broadband access and investment. In recent years, European operators have diverged significantly in the network technologies they have implemented. The Commission has also seen a number of retail broadband providers successfully enter the market.
“This market redefinition recognises these technological and market developments. It provides operators and regulators with additional flexibility for agreeing the regulatory solution that is most appropriate in each Member State. It also acknowledges the importance of encouraging investment in underlying infrastructure and promoting the development of high speed networks that are necessary for economic growth.
“The challenge for regulatory authorities is to ensure that pricing remedies applied to these broadband markets foster retail competition and provides sufficient incentives for the existing operators to invest. Striking this balance, in a market with significant uncertainties around demand and technological change, will be difficult. Yet this is crucial if countries are to benefit from increased access to high speed broadband.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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