MILAN Aug 12 The European Commission said on
Monday it had questioned the Italian telecommunications watchdog
AGCOM on the way it regulated prices for broadband services.
In a note the Commission said it had invoked the EU review
mechanism over plans by AGCOM to change current wholesale
broadband prices saying that such a move would negatively impact
operators' ability to plan their prices in Italy.
The EU Commission's telecoms chief, Neelie Kroes, said: "In
departing from the approach announced last year for setting
access prices in the Italian broadband markets, AGCOM undermines
the required regulatory certainty for all market players."
In July AGCOM tentatively approved lower fees for rivals who
rent space on the fixed-line copper network of Telecom Italia
- a move that Telecom Italia said would reduce its
annual income by 110 million euros.
After that decision Telecom Italia said it wanted to secure
favourable regulatory conditions before taking any steps forward
in its plan to spin off its fixed-line network.
(Reporting by Stephen Jewkes, editing by Silvia Aloisi)