ECTA slams new EU broadband proposals

The European Competitive Telecommunications Association (ECTA) has condemned proposals from the European Commission for very high speed broadband networks.

ECTA says that the regulations could allow dominant firms to escape regulation, limiting choice in TV and broadband services.

The commission revised its propsals on dividing the investment risk for building new high speed networks between network owners and network operators. The changes made it easier for firms that build the physical networks to get a return on their money.

ECTA said the changes were likely to limit consumer choice and lead to anti-competitive practices. "Not only does this mean new services may not be developed, it also risks jeopardising the business case for fibre access lines," it said in a statement.

EU competition commissioner Neelie Kroes said the EU needed common regulations for consumers and businesses to benefit from competitive very high speed broadband services. He said the consultation would help to ensure that the final recommendation gave the legal certainty to encourage large scale investment in new fibre networks while safeguarding effective access to them for competitors.

ECTA warned that unless many companies could innovate in providing high speed services, not enough consumers would sign up to pay for them.

ECTA chairman Innocenzo Genna said, "Dominant firms such as Deutsche Telekom have lobbied the commission at the highest level to relax EU regulatory rules, but that is even more reason for the Commission to remain robust."

He claimed competitors across Europe stand to lose investments worth billions of euros and could be forced to out of the market if the rules for next generation access do not support competition.

Genna said that if competition and choice for consumers and businesses were guaranteed then regulation could be removed. "But we have seen no signs that incumbents are seriously interested in negotiating in good faith with their rivals, except as a means to delay and confuse the process," he said.