Telecoms seek to stall EU plans on routing fees

TOP TELECOM operators will meet the European Commission today in a last-ditch attempt to stall EU plans that would force them…

TOP TELECOM operators will meet the European Commission today in a last-ditch attempt to stall EU plans that would force them to cut call-routing fees by up to 70 per cent.

Deutsche Telekom, France Telecom, Telefonica, Vodafone, British Telecom and Telecom Italia will meet commission president José Manuel Barroso, telecoms commissioner Viviane Reding and competition commissioner Neelie Kroes, commission and industry officials said on condition of anonymity.

Ms Reding has proposed a recommendation or guidelines for the EU’s 27 national telecoms watchdogs for approving call routing fees, known as termination rates.

The commission is scheduled to adopt the guidelines in coming weeks. They would take full effect within three years.

READ MORE

Termination rates account for up to 20 per cent of some big operators’ revenues, but smaller new entrants pay large amounts in such fees due to their less extensive networks.

The fees kick in when one operator needs to use the network of another to complete a call. Ms Reding’s guidelines set out the methods operators can use to calculate “justified” termination rates, which she expects will be up to 70 per cent lower in some cases.

Big operators say the erosion of their revenues will put investments in new services at risk. But high termination rates discourage investment in high-speed, next-generation networks, Ms Reding’s spokesman said. – (Reuters)