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EU plans boost to competition for fiber optic networks


Agence France-Presse
First Posted 07:50:00 09/19/2008

Filed Under: Telecommunications Equipment, Technology (general)

BRUSSELS -- The European Commission said Thursday it aimed to prevent dominant telecommunications companies from recreating monopolies in next generation fiber-optic networks.

Operators are ploughing billions of euros into building fiber optic networks to replace copper lines in order to offer new broadband Internet services like online gaming, high-definition television and interactive applications.

The European Union's executive arm wants national regulators to "mandate access to the ducts of the dominant operators allowing competitors to roll out their own fiber."

It also recommended that operators should be given access to a dominant company's fibers when ducts are not available or when population density is too low to otherwise make it profitable.

The commission's proposal also includes plans for calculating fees to be paid to a dominant operator as well as a risk premium.

"The deployment of new fiber-networks will shape the competitive conditions of the future," EU Competition Commissioner Neelie Kroes said in a statement.

"We need an appropriate framework to give European companies fair access to the new networks," she added.

According to the commission, there are 220 million copper lines in the EU currently and only slightly more than one million fiber optic lines.

As copper networks are replaced by fiber optic lines, 20 billion euros is forecast to be spent on investments, the commission said.

However, the European Telecommunications Network Operator association, an industry lobby, voiced concern about the plans to force them share fiber optic networks with rivals, which it warned would discourage investment.

"Considering that Europe is currently lagging behind other regions in fiber deployment and that investment effort is slowing down, the key focus of the recommendation should be on how to boost risky investment," said ETNO director Michael Bartholomew.

"In its current form it may risk delaying further the NGA deployment to the detriment of consumers," he added.



Copyright 2011 Agence France-Presse. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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