The European Commission (EC) isn’t weighing broadband price contr...
The European Commission (EC) isn’t weighing broadband price controls despite a news report to that effect, a spokesman for Information Society and Media Commission Viviane Reding said Friday. In an Oct. 15 report, the EC said that some EU…
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members lead the world in broadband access but the best and worst performers are on either side of a growing gap that it will address in coming recommendations to the e-communications regulatory framework. The IDG News Service reported that Reding is eyeing price regulation such as was imposed earlier this year on international mobile roaming rates. In terms of intervention by Reding, her spokesman was quoted as saying that while prices figure strongly in broadband access, price caps should “be a last resort only.” The quote was incomplete, the spokesman told us. The “full answer was ‘No,'” he said. Prices play a key role but price regulation should be a “last resort only in a market economy,” he said. The EC believes that the best way to cut broadband prices is competition, the spokesman said. Reding said lack of competition and regulatory weaknesses are slowing broadband growth and that “Europe must act now to get its broadband house in order.” Proposals for doing so will be part of the regulatory package unveiled November 13, Reding added. Those proposals relate to use of spectrum freed by digital switchover to boost wireless broadband, her spokesman said.