The EU institutions have reached a compromise on a proposal to relax regulations for operators that co-invest in new broadband networks, people familiar with the matter told Reuters. The deal was reached in the latest trilogue between the European Parliament, Commission and Council on the new Electronic Communications Code covering telecom regulation.
The draft deal defines co-investment models as "co-ownership of network assets or long-term risk sharing through co-financing or through purchase agreements." The wording could still change as it is being refined. So-called purchase agreements must entail the acquisition of "specific rights to capacity of a structural character", and should not consist of simple deals whereby one operator rents capacity from another, the text says.
If approved, this means alternative operators would not have to come up with capital to finance new networks with incumbents, but could still benefit by agreeing to take long-term services over the new networks. The authors of the compromise believe this would reduce the risk for operators investing in new fibre networks, encouraging them to move ahead faster with roll-outs if they have guaranteed wholesale customers.
The Parliament had initially balked at the inclusion of purchase agreements as co-investment types, fearing this could harm competition, but gave way when stricter conditions were set on what types of purchase agreements could benefit from softer regulation, according to the Reuters report.
The text is expected to be finalised at a meeting between the Commission, European Parliament and member states on 05 June.
