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Telecoms: Commission Asks German Regulator to Lower Mobile Call Tariffs for the Fifth Time
[October 21, 2014]

Telecoms: Commission Asks German Regulator to Lower Mobile Call Tariffs for the Fifth Time


(Targeted News Service Via Acquire Media NewsEdge) BRUSSELS, Oct. 20 -- The European Commission issued the following news release: The European Commission has requested the German telecoms regulator (Bundesnetzagentur - BNetzA) to amend or withdraw its proposal on mobile termination rates (MTRs) for the fifth time. BNetzA proposed to introduce MTRs for operator sipgate Wireless, which are up to 80% higher than in most other EU Member States; costs which ultimately mobile phone users would pay.



European Commission Vice President @NeelieKroesEU stated: "I am very concerned by the fact that Germany continues to ignore the reasonable demands of the European Commission - setting it apart from all other Member States. Its approach towards mobile termination rates flies in the face of the internal market, and is detrimental to consumers." Termination rates are the rates telecoms networks charge each other to deliver calls between networks, and each operator has market power over access to customers on its own network. These costs are ultimately included in call prices paid by consumers and businesses.

The investigation started in May 2014. The German regulator failed to provide justified reasons during the investigation (see statement), as to why it should be granted special treatment and be exempt from following the method calculating MTRs set out in the EU telecoms rules (see IP/09/710 and MEMO/09/222). The body of European Telecoms Regulators (BEREC) expressed its full support for the Commission's position.


This Recommendation requires the German regulator to either withdraw or amend the proposal. The German rules on MTRs must be in line with the EC recommendation. Should BNetzA continue its approach and fail to comply with the Commission's recommendation, the Commission will undertake appropriate legal steps.

The Commission already issued a recommendation on 7 April 2014 requesting Bnetza to withdraw or amend its measure where it set the methodology to set price caps for sipgate Wireless as it deviated from the Commission recommended methodology.

Background EU telecoms rules require Member States to promote competition and the interests of consumers in the EU, as well as the development of the Single Market.

Article 7 of the Telecoms Framework Directive requires national telecoms regulators to notify the Commission, BEREC and telecoms regulators in other EU countries, of the measures they plan to introduce to solve market problems.

Where the Commission has concerns as to the compatibility of the proposals with EU law, it can open an in-depth, or so-called Phase II, investigation, under the powers of Articles 7a of the Framework Directive. It then has three months to discuss with the relevant regulator, in close cooperation with BEREC, how to amend its proposal in order to make it compliant with EU law. If, at the end of this investigation, divergences in the regulatory approaches of national regulators for remedies persist, the Commission may adopt further harmonisation measures in the form of recommendations, in which the Commission can require the national regulator in question to amend or withdraw its proposed measure.

TNS 30FurigayJane-141021-4906021 30FurigayJane (c) 2014 Targeted News Service

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