Mar 31st 2005
By: monica
By: monica
European Commission suggests price caps for broadband internet access
In a recommendation sent yesterday to national telecommunications regulators the European Commission suggested the introduction of price ceilings on broadband internet access for business users (wholesale leased lines).
The Commission does not like the fact that �for a 2 Mbit/s line, 5 km long, the price in the most expensive Member State is seven times higher than in the cheapest� and does not believe that this can be explained by reference to �underlying costs�.
It is yet to be seen to what extent Ofcom and other European regulators will follow the Commission�s advice, but this is certainly an unpleasant blow for the major telcos. Even more so because, earlier this month they had asked the Commission to shift its regulatory policy. In short, they wanted the Commission to stop encouraging entry by new players and to focus on ensuring that investments in new networks are rewarded. Fair call?
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