EU demands changes

21 Oct 2005

The Portuguese government has been told by an EU court that it should not be providing former monopoly telco Portugal Telecom with free access to public telephone networks. In what has been seen as a test case for other markets in the region, the European Court of Justice has ruled that authorities must charge PT the same taxes and fees for rolling out telephone lines as they levy on alternative operators. Portugal’s government argues that PT is performing a public service by building and maintaining the country’s wireline networks, but the court says PT must be treated the same as its competitors.