EC asks Germany to amend FTR proposal

Following a three-month in-depth investigation, the European Commission (EC) has recommended that the German telecoms regulator, the Federal Network Agency (FNA), amend or withdraw its proposal for fixed termination rates (FTRs), claiming that the planned fees would be over 200% higher than FTRs in the vast majority of other member states which follow the recommended methodology. According to the EC, the FNA proposes to set FTRs for 19 alternative operators based on the methodology previously applied to fixed line incumbent Deutsche Telekom (DT), which is contrary to EU regulatory framework. The EC states that these costs are ultimately included in call prices paid by consumers and businesses, and has requested the German watchdog to withdraw its proposal or to amend it so that the FTRs for the 19 operators are in line with EU telecom rules. If the FNA does not decide to amend its draft proposal, it has to provide a valid justification.