Europe-wide telecoms strategy attacked by operators

Major telecoms operators across Europe have criticised European Union plans for a pan-European regulator, and Europe-wide rules which could force companies to change their operational strategy.

The European Union media commissioner, Viviane Reding, is proposing the changes in order to increase broadband competition and encourage the development of a consistent approach and more pan-European services.

However telecoms operators are concerned that the proposals would fail to benefit consumers in the long term.

They are particularly concerned about proposals to strengthen the powers of national regulators, so that they could order companies to split their network and services divisions if this is considered essential to promote competition.

Etno, a lobby group representing telecoms companies, claims that this would be costly and intrusive, and would reduce the incentive for operators to invest in building new high-speed broadband networks.

Newer operators, who are struggling to compete with former state-run monopolies, have welcomed the EU’s proposals and Ecta, a lobby group for companies such as Tiscali and Virgin Media, supports the EU’s view that the new rules would speed broadband development.