European broadband networks (III)

European broadband networks (III)

Talks between the EU Commission and major European incumbents are going on. Germany is on the forefront as is Cabinet has already approved a new telecom bill that allows Deutsche Telekom to keep rivals off its €3bn broadband network project. E.U. Commissioner recently warned Germany of potential lawsuit if the bill was passed at the Parliament. Under the bill, DT' s new fiber optic network would be exempt from regulation and price capping for the provision of lines to competition. DT wants to protect some ROI (return on investment)from new advanced services. It seems now that the German side is more confident on finding some arrangement with the EU Commission. A similar case is raised by the French FT. Its CEO has been backed by the French government on a FT' s project to build a fiber optic network across France in coming years. As in Germany, France' s government is likely supporting the idea that the operator taking the risk of investing huge amount of money in new technologies should be protected and exempt of total regulation. “Regulation should not block innovation” said François Loos, French Industry minister. The idea is gradually taking its way in European minds, but the French regulator is still to be convinced.