EC opens another investigation into German FTRs

20 Mar 2015

The European Commission (EC) has opened an in-depth investigation into the pricing of fixed termination rates (FTRs) for alternative operators by Germany’s telecoms regulator, the Federal Network Agency (FNA, also known as BNetzA). According to Brussels, the German proposal does not follow the recommended EU approach for calculating FTRs, and if adopted would have a negative impact on competition and consumers. It adds that the new rates, which would be in place retrospectively from 1 December 2014 until the end of 2016, would be over 200% higher than the rates in the vast majority of member states that follow the recommended approach. The EC now has three months to discuss the case with the FNA, in cooperation with the body of European regulators (BEREC), to make it compliant with EU law. During this period, the FNA may not adopt the proposed measures; at the end of the investigation period, the EC may either lift its reservations or demand that the German watchdog withdraws or amends the proposed measure.

Germany, Federal Network Agency (FNA)