Friday, February 01, 2008

Europe - efficient markets

Why Europe needs even more efficient telecommunications markets in order to be competitive. by Viviane Reding (Member of the European Commission responsible for Information Society and Media).

Lower prices are the main benefits of increased competition. We have seen this in fixed and mobile voice calls and also in broadband. We can see a slow emergence of triple and quadruple play services that bundle fixed and mobile voice, internet and television into flat rate packages. This should drive forward broadband connections, but will only work over the longer term if regulators are vigilant on making sure that these bundles are not squeezing out competition.

The nature of competition is important. The more we can promote infrastructure competition, the more robust will be the competition allowing regulators to adopt a lighter touch.

We have seen it time and again, effective infrastructure competition has been one of
the main factors contributing to broadband rollout. Countries such as the
Netherlands and Denmark, that have the highest broadband penetration levels in
the world ahead of Korea and Japan, are those that have a real choice of

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