The European Commission (EC) launched a new round of infringement...
The European Commission (EC) launched a new round of infringement proceedings against European Union states for violating telecommunications rules. The Commission referred four cases to the European Court of Justice, citing Poland for not defining subscribers according to the…
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regulatory framework and Portugal for lack of comprehensive directory services. Also in court is Germany, which refused to remove new provisions in its telecommunications law granting “regulatory holidays” to incumbent Deutsche Telekom (DT) while it builds a new fiber network. The EC has taken a hard line on the new measure, charging it jeopardizes DT rivals and makes it harder for new providers to enter the market. The law also attempts to limit the discretion granted to regulator BNetzA, the EC said. DT competitors have always opposed the concept of regulatory moratoria, German attorney Axel Spies said on behalf of the German Competitive Carriers Association (VATM). In the fledgling broadband market especially, he said, new monopolies are dangerous and will harm consumers. A recent argument in an expert opinion to the German Federal Ministry of Finance that regulation in this sector harms DT’s share price is “absurd” because the government is DT’s largest shareholder, Spies said. The EC litigation creates uncertainty in the German markets that may stifle investment in new networks and services, he added. Separately, the EC opened an infringement case against Poland for lack of market analysis to support price regulations for retail broadband services, and Spain, for not designating a universal service provider. “Reasoned opinions,” the second stage of infringement proceedings, went to Latvia (regulatory notification mechanism), Poland (independence of the national regulator), Sweden (appeal rights), Belgium (special tariffs). Germany (must-carry regime), Cyprus (rights of way), the U.K. (lack of comprehensive directory services) and Poland (caller location for the emergency 112 number).