We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

EC may extend competition rules to cable companies

Telcos want rivals to face same fair-play regulations

The European Commission is considering extending the reach of rules to ensure fair competition among high-speed internet providers to include cable companies as well as the large former telco monopolies.

"The Commission is working on a draft recommendation to help national regulatory authorities establish whether individual companies are dominant or not," said Per Haugaard, spokesman on information society matters.

Until now special rules were deemed necessary only for those telcos that had public monopoly status prior to the market liberalisation, introduced in 1998.

These companies are considered to have had a headstart in the market for broadband internet access, and Commission competition officials are concerned that some incumbents might be abusing that advantage.

According to Commission figures, 6.34 million out of a total 10.8 million high-speed internet subscribers are connected via the incumbent telco operators.

But the Commission is looking ahead to a potential situation where cable companies rival the telcos' lead.

"At the moment it isn't clear whether the special rules would apply to cable companies," Haugaard said. He added that including cable companies would fit in with new EU telco rules that will come into force in the summer.

"The new telecom legislation is technology neutral in order to boost competition between platforms," he said. "We have to look at it from the consumer's point of view: what are the viable alternatives for broadband access and who has significant market power in broadband access, regardless of what platform they use?"

Dominant telco operators have been putting pressure on the Commission to scrap special rules for new emerging markets. They argue that they have faced huge costs as a result of separate liberalisation legislation, which forces them to open their local networks to competitors.

Some have conceded defeat in that lobbying battle and are instead now calling on the special rules to apply to all high-speed internet service providers, such as cable companies, as well as themselves.

UK-based Telewest, one of the largest cable companies in the EU, still makes only a small fraction of its revenues from offering high-speed internet. During the first three quarters of last year, its internet division accounted for just five percent of its £1.5bn total sales.

Haugaard said the special rules, known as ex-ante regulations, are only seen as a short-term phenomenon to help manage the transition to a normal, competitive marketplace. "In the medium- to long-term, these rules won't be needed as the markets become more competitive; at that point these rules would be rolled back," he said.

The wording of the recommendation under discussion in Brussels has not been finalised yet, Haugaard said. It may be completed in the coming weeks, he said.


IDG UK Sites

Nokia branding killed in place of 'Microsoft Lumia': Windows Phone moves into new era

IDG UK Sites

Why you shouldn't buy the iPad mini 3: No wonder Apple gave it 10 seconds of stage time

IDG UK Sites

Halloween Photoshop tutorials: 13 masterclasses for horrifying art, designs and type

IDG UK Sites

Should you update your iPhone or iPad to iOS 8? iOS 8.1 brings back Camera Roll, adds Apple Pay in...