Telecoms Brace for Regulatory Changes in Europe
European telecom companies are preparing for a fierce battle against any measures that would require them to adhere to the same obligations as traditional telecom operators, reports 24brussels.
“The same service, same rules principle should be a no-brainer,” stated Alessandro Gropelli, head of the telecom trade group Connect Europe. He emphasized the importance of competitive equity, arguing that a level playing field is essential: “You cannot have competitiveness if one party is playing the game with their hand tied behind their back and the other party is playing the same game with both hands.”
Incumbents vs. Challengers
Brussels’ shift towards deregulation is intensifying divisions among Europe’s leading telecom providers and their challengers, with the latter praising the current regulatory framework that allows them to compete against established players.
“The Commission wants to deregulate dogmatically” to favor “the largest operators in Europe,” contended Luc Hindryckx, director general of the European Competitive Telecommunications Association, a trade organization. He added, “One way to do it is to weaken the competition to allow a few incumbents to make it through and pave the way for consolidation, because if the competitors are on the verge of bankruptcy, they will ask to be merged.”
This backlash from telecom challengers against the Commission’s strategy highlights concerns that lowering regulatory standards will enable legacy telecoms to limit market access. Such changes could restrict smaller competitors from gaining necessary access to vital infrastructure, such as ducts and fiber lines.
The European Commission is advocating a shift away from stringent regulations, favoring a model that relies on general law enforcement to curb the potential abuse of market dominance. It believes that while the existing framework initially promoted competition, it has now become outdated.