Financial Times FT.com

Bandwidth banter

Published: November 15 2007 20:27 | Last updated: November 15 2007 20:27

Even by her standards, Viviane Reding, the European Union’s combative media commissioner, has picked a fight. Her plan to prise open telecommunications markets by giving national authorities stronger powers and creating a new super-regulator has irked almost everyone. Member states, big industry operators, fellow commissioners and even the watchdogs themselves have problems with it. Their reaction, while overblown, is understandable.

A shake-up of the rulebook is overdue. Telecoms has undergone a revolution over the past decade. The era of fixed-line telephony has given way to more versatile mobile phone technology and internet-based services dependent on fast, reliable broadband access. Prices have fallen, benefiting consumers. But competition remains patchy. In some member states, where former state-owned providers dominate, smaller operators struggle. As a result, average EU broadband penetration is just 18 per cent.

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