New European telecoms plans criticised

15 November 2007

Competition in the European telecoms markets could soon improve, should new European Commission reforms be passed.

A Europe-wide communications watchdog to ensure good practice, which would be empowered to force phone and broadband firms to split their network and services operations, would be set up by 2010 under the plans.

The new organisation would also be given the power to overrule national telecoms watchdogs.

Speaking to the BBC, Telecoms Analyst at finance firm Dresdner Kleinwort John Davies anticipated opposition to the proposals from EU governments.

"There is scope for the final version [of the plans] to be quite a lot different," he said.

Indeed, two of the largest EU member states have already criticised the proposed reforms, with German Economy Minister Bernd Pfaffenbach describing them as "self important" in attempting to override the "undisputed expertise" of national regulators.

Head of Arcep - France's equivalent of telecoms watchdog Ofcom - Paul Champsaur also called the plans "negative".

The commission's proposals will now be debated in the European Parliament.