The European Commission disagrees with a distinction made by the Lithuanian telecoms regulator between old copper networks and new optical fibre networks for telecoms and internet services, it announced, on 11 March. Under EU law, the executive can force a regulator to withdraw its measure when it concerns a market definition, as is the case here.

The Lithuanian regulator RTT defined two separate markets for access to networks close to the consumer (known as the ‘last mile’ or ‘local loop’), one for the old copper networks and the other for the new optical fibre networks. According to the Commission, “this approach could restrict competition by discouraging the incumbent operator and its competitors from investing in new networks,” which in time could “lead to higher prices and lower quality services for customers”.

Digital Agenda Commissioner Neelie Kroes has said that the new-generation networks “are crucial to Europe’s sustainable economic recovery and to giving customers access to innovative services”.

In short, the Commission argues that copper and optical fibre networks should “both be included in the same relevant market because of their similar technical characteristics”.

RECOMMENDATIONS DUE IN JUNE

The EU executive concludes: “The prices consumers pay for internet access appear to be equivalent, irrespective of whether services are provided through fibre or copper loops”.

In June, the Commission will publish recommendations on regulating the new-generation networks.