CEOs urge Commissioner Reding to keep promoting competition in the EU's telecom markets
Brussels, April 23, 2007
Viviane Reding, the EU's Telecom Commissioner met with CEOs of a number of Europe's leading competitive telecom operators, who push for a rethink of emerging Commission proposals to remove sector-specific competition rules from key areas of the market. The operators, all members of the European Competitive Telecommunications Association (ECTA), believe that additional time is required to allow the remaining barriers to competition in Europe's fragmented telecom market to be broken down. Tamás Polgár GTS CE CEO was a member of the ECTA delegation.
Evidence shows that many telecom markets are still dominated by incumbents and ECTA members fear that proposals to restrict radically the areas where regulators can intervene, is premature and risks a re-emergence of monopolies. In addition, the pro-competition organisation is seeking tough action to address bottlenecks that are threatening the broad emergence of high-speed services in particular.
Having already invested billions of euros installing competitive networks, ECTA members are concerned that, if regulation is removed before the market is working properly or is future-proofed, that dominant telcos will use their newfound freedom to squeeze competitors out of the market, reinstate their monopolistic position and restrict consumer choice. And this could affect not just existing services, but extend into the future, hampering Europe's drive to become a leader on fast fibre access for example.
The CEOs' meeting with Commissioner Reding came at a critical time as the Commission is putting the finishing touches to the Review of the Communications Framework, which is now expected to be issued after summer.
Innocenzo Genna, ECTA Chairman and head of the CEO delegation, said, "The Commission's recently released Implementation Report - backed up by ECTA's Regulatory Scorecard - shows that, even though a lot of progress in introducing competition into European markets has been made, there is still some way to go".
Genna added, "The ongoing debate about 'more' or 'less' regulation misses the point. What Europe needs is 'better' regulation to ensure fair and sustainable competition, a prerequisite to the development of electronic communications services in Europe and of a competitive economy. The key message we want to give the Commissioner is that regulators must first enforce the existing Framework effectively - only when that has happened should any wide-spread rolling back of market regulation be considered."
Tamás Polgár, CEO of GTS Central Europe, the leading alternative telecom service provider of the region emphasised still existing difficulties in competing with ex-monopolist carriers. "We are convinced that in the midst of liberalisation the battle for the enhancement of competition may be more effective jointly with the support of the Commission than through the isolated efforts of each national authorities" he said. "We expect the Commissioner's help mostly in enforcing more effective local loop unbundling regulation" he added.
About GTS
GTS Central Europe is a leading provider of integrated telecommunications services in Central and Eastern Europe. GTS owns and operates an extensive fiber optic and data center network throughout the region. In the Czech Republic, Hungary, Poland, Romania and Slovakia, the company combines its regional footprint with deep local networks to deliver a broad range of services. From basic voice and data to complex virtual private networks and managed data center services, GTS assembles the latest technology with its extensive network to provide industry-leading customer solutions. Wit a rich operating history of nearly 20 years in CEE, the company is committed to providing service excellence and value to its 30,000 government, carrier and business customers. GTS is owned by a consortium of leading international private equity firms with extensive experience in the communications and technology industries. For more information, please visit us at www.gtsce.com.
