EC asks Germany to lower FTRs charged by smaller operators

18 Oct 2017

The EC has issued a second recommendation to Germany’s Federal Network Agency (FNA, known locally as the Bundesnetzagentur) to lower the fixed termination rates (FTRs) charged by smaller operators to competitive levels. While no longer using the previously criticised LRAIC+ methodology, the rates proposed by the FNA have been calculated based on an international benchmarking approach, despite the regulator having developed the recommended pure BU-LRIC cost model in line with the EU regulatory framework. According to the EC, the proposed rates would result in FTRs being over six times higher than the level calculated by the FNA using the pure BU-LRIC model (based on operators’ efficient costs), resulting in significantly higher prices for consumers.

The EC has requested the FNA withdraw or amend its proposal to bring the FTRs for smaller operators for the period of January 2017 to December 2018 in line with EU telecom rules. The German watchdog has been asked to communicate its decision to the EC by 11 December 2017.

Germany, Federal Network Agency (FNA)