European broadband cable TV industry association Cable Europe has made a statement responding to European Commissioner Neelie Kroes' incentives to invest in the future. Kroes, the European Commission's Vice President for the Digital Agenda, had said earlier this week that the commission is considering whether copper wire broadband prices could be increased to make fibre more competitive. In its statement, Cable Europe said that the commission is rightly looking at all options to get market players to invest in fibre for Europe's economic future. Focusing on twisted pair copper access pricing is short sighted, though, and overlooks the competitive dynamic at work and delivering in Europe. With solid competitive credentials and as a signed-up agent of the Digital Agenda, the cable industry is a good reminder that there are natural market forces already at play and pushing incumbents to invest in enhanced infrastructure. Cable Europe said every regulatory action has a consequence and some can be unforeseen or unintended. Any wash-over effect on the overall market risks distracting investors in other parts of this crucial marketplace. Cable Europe urges the commission to consider less intrusive regulation especially as regards costing methodologies. The current focus on the supply side now needs to be balanced with efforts to stimulate demand for the high performance networks that Europe needs to stay ahead.
