Berec disagrees with EC call on Czech fixed termination fees

Tuesday 29 January 2013 | 13:12 CET | News
The Bureau of European Regulators for Electronic Communications (Berec) thinks that the doubts expressed by the European Commission on the Czech regulator CTU's draft decision on market 3 are not justified. In November 2012 CTU notified the EC of its draft measure on market 3, for call termination on fixed networks. In December 2012, the EC issued its opinion on the draft, saying it would create a barrier to the internal market and may be incompatible with EU law. As part of the EC's phase II investigation, Berec issued its own opinion on the Czech regulator's proposal. Berec argues that the resulting price levels themselves cannot be a reason for the EC's doubts, as the CTU used the EU's recommended model for calculating fixed termination rates. Berec also disagrees with the EC that the modeled network was not entirely IP-based. The third issue is the EC's doubts over whether the costs in the model are based on an efficient operator. Berec recommends that these three elements of the methodology are more closely examined by the EC and CTU before a final decision is taken.

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