Bandwidth Banter

BANDWIDTH BANTER
[SOURCE: Financial Times, AUTHOR: Editorial staff]
[Commentary] European Union Media Commissioner Viviane Reding plans to open telecommunications markets by giving national authorities stronger powers and creating a new super-regulator. Member states, big industry operators, fellow commissioners and even the watchdogs themselves have problems with it. Their reaction, while overblown, is understandable. A shake-up of the rulebook is overdue. Telecoms has undergone a revolution over the past decade. The era of fixed-line telephony has given way to more versatile mobile phone technology and Internet-based services dependent on fast, reliable broadband access. Prices have fallen, benefiting consumers. But competition remains patchy. In some member states, where former state-owned providers dominate, smaller operators struggle. As a result, average EU broadband penetration is just 18 per cent. A workable alternative might be something closer to the Lamfalussy committees of national regulators that cover securities markets, banking and insurance. These bodies enable the regulators to offer legislative advice and co-ordinate action among member states. Ms Reding will need to compromise if she is to avoid a prolonged battle and win a much bigger prize for consumers.
http://www.ft.com/cms/s/7414a7a6-93b2-11dc-acd0-0000779fd2ac.html
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