Access Prices and NGA Networks (Consultation)

The Commission is initiating a consultation with the aim to (at first) adopt a non-binding recommendation. The recommendation is to serve as guidance to national regulatory authorities for fixing access prices during the transition phase between copper networks and fibre glass networks.  This approach is to create incentives for investments in ultra-fast NGA networks.

cepPolicyBrief

The Commission’s plans challenge the independence of national regulatory authorities. There are no convincing economic arguments justifying the Commission’s intention. In principle, the markets should decide on investment volumes and also on the concrete technological type of ultra-fast networks. “Glide paths” models unnecessarily introduce political motives into regulated prices. It is questionable whether the Commission has the legislative competency to adopt a binding resolution on the harmonization of cost models for access prices.