Feeds

Tiscali lobs LLU brickbats at EU

Broadband unbundling bungled

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

European Union reforms designed to extend the availability of ADSL and consumer choice through Local Loop Unbundling are failing.

That's the stark conclusion of Renato Soru, chief executive of Tiscali, who plans to tell a Brussels meeting today that Local Loop Unbundling (LLU) legislation has failed to create healthy competition between new entrants and incumbent carriers.

Soru argues that it is too expensive for competitive carriers to install their own hardware in exchanges, a necessary part of LLU. Tiscali, which has laid 40,000km of fibre optic cables in Western Europe, wants the EU to do more to free up the wholesale market.

"Local loop unbundling doesn't make economic sense," Soru told the FT. "It will cause a lot of disasters in this industry."

Last month, BT complained that LLU unbundling cost it "million of pounds" of infrastructure work despite only limited demand. In February, BT announced that there were 200 unbundled phone lines in Britain.

BT's criticism can be seen as a reflection of fears that its prized asset is been taken out of its control, but complaints from the likes of Tiscali might prove harder to dismiss.

The European Commission, however, remains unmoved by these criticism and maintains that LLU is a needed to give consumers a wider choice of broadband services.

The telecomms sector has been particularly hard hit by the current economic downturn, and there are calls to relax regulations because of these financial pressures or to allow freer competition.

Describing EU regulations as a "bottleneck for broadband investment", Telekom Austria CEO
Heinz Sundt warns that the current regime is failing to encourage innovation and investment in broadband infrastructure, which will leave Europe lagging behind the US.

"To achieve this the EU's strategy should be to regulate those markets where competition does not exist and phase-out regulation where competition works well," said Sundt. Specifically Sundt believes that regulation governing interconnection charges - FL-LRAIC pricing rule (Forward Looking Long Run Average Incremental Costs) - is wrong because it allows new entrants to offer the same series as incumbents without having to invest in building infrastructures.

However the FT reports that EU competition commissioner, Mario Monti, is unlikely to relax competition regulations, despite these lobbying efforts by carriers. ®

Related Stories

Easynet flies LLU flag
LLU hits 200 milestone
Bulldog calls for LLU cost cuts
Britain avoids LLU crisis
Local loop charges below EU average, says Oftel

Secure remote control for conventional and virtual desktops

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?