Deutsche Telekom’s (DT’s) push for a regulatory moratorium for it...
Deutsche Telekom’s (DT’s) push for a regulatory moratorium for its new high speed network appears to be spilling into other EU countries, telecom lawyer Axel Spies said Wed. France Telecom (FT) was reported Tues. to be pressing the European…
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Commission to phase out current telecom regulations by 2012, limit regulation of fixed-line wholesale markets and revamp wholesale regulation of mobile markets to favor network operators rather than virtual operators. It’s unclear whether FT’s call came in a new document or the reports were referring to comments filed in Jan. in the Commission’s review of the EU’s new regulatory framework. There, FT said Europe “should take the risk of deregulation if it really believes in competition and wants to keep pace with modern economies.” It proposed that: (1) Regulation be ratcheted down 2006-2008 and retail markets be removed from the list of markets national regulators must analyze for competition problems. The Commission should also clarify that “emerging markets and the access to associated infrastructure will not be regulated.” (2) Obligations of the amended regulatory framework with regard to legacy infrastructures be gradually withdrawn 2009-2012, leading to complete deregulation eventually. (3) By 2012-2105, a new regulatory framework should have ended all sector-specific regulation, leaving the scope of EU telecom regulation limited to management of scarce resources such as spectrum, authorizations and rights of way. European incumbents “are pulling on the same rope -- with DT being the largest and most active force battling for immediate regulatory holidays,” Spies said. Incumbents want to get rid of regulation on the ground that it hampers new investment, he said, but that’s not true. Competitive telcos have spent and will spend a lot of money upgrading their networks and technologies to give consumers a choice. But legacy networks were built when the incumbents were monopolies and govts. owned large chunks of their shares, Spies said. Competitors need access to those networks at regulated rates that balance the playing field or competition won’t survive, he said. The fact that unbundling has become such a success story in France recently is due to pressure from the country’s telecom regulator, he added. DT, which is building a new VDSL network, wants a regulatory moratorium in exchange for its multibillion-euro investment. Legislation amending Germany’s telecom act to grant DT’s wish is pending. The Commission opposes the idea, but pressure remains on it to approve the regime, Spies said.