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Commission queries Finnish telecoms regulator's plans not to impose strict price control for wholesale broadband markets

Press Releases: 19/06/2012
The European Commission has decided to further investigate whether the Finnish telecoms regulator, FICORA, should allow regional Finnish telecoms operators to give alternative operators access to their broadband networks without proper pricing regulation. The Commission has, inter alia, serious doubts whether FICORA's decision not to impose cost-oriented prices for access to fibre networks of dominant operators in Finland contravenes EU telecoms rules. In the Commission's view, FICORA's decision could have a negative effect on competition and the future development of fibre and copper networks. Current prices for fibre local loops are already high. This suggests that dominant operators, without proper regulation, are in a position to charge access rates at excessive levels. As a consequence of the proposed regulatory approach, those operators who would normally immediately obtain access to regulated fibre-based products, may have to open dispute settlement procedures (delaying the price implementation) or wait for FICORA's intervention. In both scenarios market entries may be significantly delayed. The Commission has therefore suspended UKE's plans and started a 3 month investigation.