European Commission urges Estonian regulator to withdraw broadband wholesale fees proposal

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The European Commission has requested the Estonian telecoms regulator (ECA) to withdraw its proposal for calculating regulated fees which the dominant operator, Elion Ettevoted AS, can charge other operators to use its broadband infrastructure.  The Commission’s request follows a three month investigation, during which BEREC, the body of European Telecoms Regulators, expressed its support for the Commission’s serious doubts. The Commission therefore requires the Estonian regulator to withdraw its proposal in order to bring it in line with the approach recommended by the Commission. Should ECA fail to follow the Commission’s recommendation, the Commission will consider any appropriate legal steps.

ECA failed to provide evidence with the level of detail required by both the Commission and BEREC during the investigation, which began last July (see IP/13/539), as to why its proposal would comply with EU law including its principles and policy objectives such as to promote competition and efficient investments in NGA networks in Estonia.  ECA has not demonstrated that valuing the assets at their initial historical cost rather than their current cost can achieve price stability in the Estonian markets, or whether ECA’s proposed measure will help Estonia sustain the objectives of the Digital Agenda for Europe in terms of speed, coverage and penetration. Here to read more.

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