A coalition of smaller telecom providers is warning of a “re-monopolization” of the European telecom market. Vodafone, Iliad, and 1&1 argue that EU plans for more flexible regulations will distort competition.
The outcome of this debate will have direct consequences for consumers across Europe. Softer regulations could lead to higher prices and fewer choices. At the same time, proponents argue that less stringent rules will stimulate investment in new technology.
The European Commission faces a difficult balancing act between promoting competition and supporting innovation. The coming months will reveal the direction EU regulations will take and how this will affect the telecommunications market.
Fight against regulation
The European Commission’s proposals are a “step backwards” and, according to the signatories of the open letter, are at odds with EU competition principles. They fear that the plans will hinder the rollout of fiber optic broadband.
The coalition is insisting that the current law be maintained. This requires market leaders (such as Deutsche Telekom in Germany) to give competitors access to their infrastructure under fixed conditions.
The expansion of fiber-optic networks remains a contentious topic. Smaller telecom companies feel disadvantaged by market leaders. These companies have existing infrastructure and extensive networks, which give them an advantage when it comes to new investments.
Tip: Europe to launch its own security database following CVE uncertainty