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Fixed

Vodafone CEO to warn Kroes over fibre pricing

Thursday 29 November 2012 | 09:35 CET | News
Vodafone CEO Vittorio Colao has warned his company will take legal action if the European Commission's proposal on wholesale fibre access pricing leads to a "remonopolisation" of the sector. In an interview with the Financial Times ahead of a meeting with commissioner Neelie Kroes, Colao said the former monopoly operators could take advantage of Kroes's recent proposal to give them freedom to set charges on the newer fibre networks. Colao supports the wording of Kroes's proposals but said that any interpretation of those rules that resulted in a squeeze of margins or closing of the network to competition would be detrimental to the market. "I am sure it's not the intention of the European Commission," he said. "If somebody instead is interpreting that this is a great way to have pro-investment conditions but restricting competition, then I can tell you that I will advise my son to be a lawyer as it will be years and years of good fees in our sector." Kroes outlined the proposal for flexible fibre pricing in July and is expected to come with a formal recommendation by the end of the year. Colao noted that the former monopolies still control 60-70 percent of the fixed market, and "they believe that this is the great opportunity to remonopolise the market".

Categories: Fixed
Companies: European Commission / Vodafone
Countries: Europe
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18,000+ KM
Eurofiber owns more than 18,000 km of optical fibre cable
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