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EC mulls cut in telco regulation - report

Price controls have worked, apparently

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The European Commission (EC) is due to publish proposals next week that could free Europe's incumbent telcos from price controls and other forms of regulation.

Draft proposals seen by the Financial Times talk of cutting regulation in seven of 18 telecoms markets.

The proposals suggest price controls and other forms of regulation that have stopped incumbent telcos from abusing their market dominance have worked, and that these telcos are now under pressure from rivals.

The proposals are due to be published next week by EU commissioner for Information Society and Media Viviane Reding, the paper reports.

Yet only last week Reding was talking tough about the "lack of competition in the German end-user market for access to the public telephone network", and how it needed "more effective regulatory obligations".

Reding said in a statement: "In Europe's telecom markets, remedies need to be clear and effective in order to improve the competitive situation and to safeguard the interests of consumers." ®

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