Broadband Investment: Non-discrimination, Price Control and Cost Accounting (Recommendation)
The EU Commission wants to promote investment in NGA networks and maintain effective competition on the broadband market. It wants to do this by stricter non-discrimination obligations, greater clarity as to when obligations on price control for NGA networks should be removed and by imposing a standard costing methodology.
The EoI approach is suitable for avoiding distortions of competition. Whether the EoI approach is proportionate should, however, be determined by the national regulation authorities (NRA). The ability of NRAs to remove price controls increases scope for stimulating demand for fast broadband services by way of a dynamic pricing policy. NRAs should remove access controls where "effective competition" by way of alternative infrastructures is possible. Establishing an EU-standard costing methodology whilst simultaneously pre-empting the results of its use, casts doubt on NRA independence which is mandatory under EU law. The Recommendation is in breach of the principle of subsidiarity.