Brussels backs down on telecoms pricing

Neelie Kroes, Europe’s digital commissioner, will give large European telecoms groups a major boost after agreeing to back down on a threat to regulate pricing of their networks in order to encourage investment in European infrastructure.

In recommendations to be published on July 12, Commissioner Kroes is expected to say that the pricing of access to the ageing copper-based networks will not be forced lower, while operators will have freedom to set charges on newer fiber networks that are gradually being built across the region. There will also be a recommendation to impose strict non-discrimination on access to networks that will ensure that smaller telecoms groups can provide the same level of competition. She is expected to say that these recommendations will take effect until 2020. The move is likely to be welcomed by Europe’s largest telecom groups, such as Telecom Italia, Telefónica, Deutsche Telekom and France Telecom, which own most of their respective country’s copper infrastructure.