EU signals intent to overhaul telephone market

28 June 2006

The European Commissioner for the telecoms industry, Viviane Reding, has said that reform of the telecoms industry is long over due and suggested a Europe-wide regulator.

Speaking ahead of an official announcement of reform plans, Ms Reding said that a union wide regulator was needed to counter the regional variations in regulation that benefit some countries and companies and harm others.

"On the telecom markets, the Commission is concerned about obstacles to competition, whether today, tomorrow or in the long-term," she said.

"We therefore do not accept monopolistic situations even if we are promised that they would 'only' last four or five years."

She claimed that competition had already been successful and on average, for the same telecoms services, consumers spent about 30% less of their income in 2002 than they did 1996.

Since 2000 the EU weighted average charge of a 3 minute call has fallen by 65% and the cost of a 10 minute call by 74%.

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