EC questions Agcom over broadband prices

14 Aug 2013

The European Commission (EC) has raised questions over the handling of broadband pricing methodology in Italy by telecoms watchdog the Autorita per le Garanzie nelle Comunicazioni (Agcom), claiming that the current figures are outdated and could cramp the market’s ability to decide prices in the local telecoms sector. In a statement released earlier this week, the EC said it had invoked the European Union’s (EU’s) review mechanism, adding that it intends to discuss how to amend the proposal with Agcom over the next three months.

In July, the Italian watchdog tentatively approved lower 2013 fees for rivals who rent space on the fixed line copper network of former monopoly Telecom Italia (TI). The move was cheered by the telco’s rivals, but drew sharp criticism from TI, which said it would reduce its annual income by EUR110.0 million (USD146.2 million). Following the decision, TI said it wanted favourable regulatory conditions before moving forward with a previously announced plan to spin off its fixed line network.