Feeds

Tiscali lobs LLU brickbats at EU

Broadband unbundling bungled

  • alert
  • submit to reddit

Top three mobile application threats

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

Top three mobile application threats

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.