Deregulation in difficulties - BEREC is also against the removal of ex ante regulation in the wholesale market for call termination on fixed networks
BEREC, Body of European Regulators for Electronic Communications, has issued its opinion on the necessity of ex ante regulation in the market for call termination on fixed networks in Finland*. BEREC gives full support to the opinions of the European Commission. According to the Commission and BEREC, the Finnish Communications Regulatory Authority (FICORA) did not provide sufficient numerical evidence for the removal of ex ante regulation.
On 2 September 2013, FICORA proposed that ex ante regulation be removed in the market for call termination on fixed telephone networks in Finland. FICORA's market analysis showed that mobile network call services are substitutes to fixed network call services. In the market for call termination on fixed telephone networks, telecoms operators' market power is restricted by the availability and general use of mobile network services.
FICORA's proposal to lighten regulation would be the first of its kind in Europe. In Commission's view, deregulation is not possible even though there are less and less end users who make calls to and from the fixed telephone network.
The investigation launched by the Commission that was initiated in October will last for a total of two months. The European Commission must issue a final decision by early December. The Commission possesses a right of veto over the conclusions about the removal of ex ante regulation presented by FICORA, and a possibility to refer the matter back to FICORA.
Earlier news on the same topic:
Jukka-Pekka Juutinen, Chief, Steering group, tel. +358 295 390 523
Tuukka Lehtiniemi, Communications Market Specialist, tel. +358 295 390 527
* A call made from a mobile or fixed telephone network is directed from the network determined by the caller's telecoms operator to the fixed telephone network determined by the recipient's telecoms operator. In this case, the telecoms operator whose subscriber the recipient is, charges the caller's telecoms operator for call termination on its network. The charge is called a charge for call termination on the fixed telephone network or fixed call termination charge.