The European Commission (EC) and national regulatory authorities should cut...

in the EU telecom sector declined by 1.4 percent in 2010 and 2 percent in 2011, it said. Revenue is estimated to fall by 1.8 percent per year until 2015 unless operators change their business models to generate new revenue streams, it said. “Excessively intrusive regulation” too often blocks innovation in Europe, said Luigi Gambardella, ETNO executive board chairman. Innovation drives competition in the U.S. and Asia, he said. Hampering innovation in Europe impedes competition, he said. European rules don’t allow operators to innovate, he said. The EC and national regulatory authorities must review policies to account for “current and foreseen market conditions,” Gambardella said. The EC review next year of the list of relevant markets is an opportunity “to take a bold step towards de-regulation,” ETNO said. It’s important to reduce the scope of regulation, give more guidance on geographic market definition, encourage deregulation in cases where platform competition is a reality and limit remedies to identified essential market failures, ETNO said. Operators should have flexibility in setting the price of access to fiber and engage in risk-sharing agreements, ETNO said. Regulated prices on copper networks should remain stable and be allowed to rise where costs increase so it can provide “continuous support” for investment, it said. Europe’s telecom sector is at a “crossroads,” said Daniel Pataki, ETNO director. Operators must move from voice- to data-driven business models to “reverse the declining revenue trend,” he said. The time to assess whether regulatory rules are adapted to new realities is now, he said. All players in the EU telecom sector must benefit from more flexibility to develop new business models and applications to meet consumer needs, Pataki said.