Second warning for FNA over FTR proposal

12 Aug 2013

Following a three-month investigation, the European Commission (EC) has once again requested that German telecoms regulator the Federal Network Agency (FNA, also known as BNetzA) amend or withdraw its proposal to set fixed termination rates (FTRs). According to the EC, the termination rates proposed by Germany are three times higher than the average of countries which follow the recommended approach set out in European Union (EU) telecom rules, but after a three-month investigation, the FNA has ‘failed to provide convincing reasons for its proposal’. Under the FNA’s plan, FTRs would range from EUR0.0025 (USD0.033) per minute (off-peak) to EUR0.0036 per minute (peak), while operators in countries that follow the EC’s recommended approach pay on average EUR0.001 per minute. The commission said it believes that the FNA will create barriers to the internal market if it does not follow the recommended calculation method. ‘EU telecoms rules require member states to promote competition, protect EU consumers’ interests and further the Single Market. I cannot accept an approach to setting termination rates which goes against these principles and objectives,’ said EC vice president Neelie Kroes.

Germany, Federal Network Agency (FNA)