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EC halts CTU plan to regulate wholesale termination rates

12 Dec 2012

The European Commission (EC) has suspended the Czech telecoms watchdog, the Czech Telecommunications Office’s (CTU’s), proposal to implement regulation on wholesale termination rates, saying such a move would adversely affect consumers in the Czech Republic. Cellular-news writes that the Commission has reservations over the plan, arguing that the prices proposed by the CTU for certain termination rates a double those being levied in other countries where, in its opinion, appropriate price setting methodologies are properly applied. The sticking point apparently centres on the CTU’s decision to impose wholesale prices that do not take into consideration next generation network-based ‘efficient technologies’. The EC adjudges that the watchdog’s proposed pricing regulation is not in line with EU telecoms rules, principles and objectives, which require EU member states to promote competition and the interests of the end user across the continent. Further, the commission has criticised the CTU’s decision to regulate wholesale prices for fixed and mobile termination rates which apply to only one fixed line service provider and three out of the four mobile network operators. The EC says such a move would leave the other fixed and mobile players free from effective prices controls ‘without clear justification’.

EC vice president Neelie Kroes said: ‘The European Commission seeks fair regulation and is determined to ensure that the regulated termination rates are set at a proportionate level in all member states without any unnecessary delay.’

Czech Republic, Czech Telecommunication Office (CTU)

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