EU Asks Greece To Explain Telecom Policy Or Face Fines

BRUSSELS -(Dow Jones)- The European Commission Monday asked the Greek government to explain why its telecommunications sector hasn't been liberalized in accordance with European law.

The Commission said it would take Greece to court for a second time -and seek fines -if the country's telecommunications sector isn't opened to more competition.

Greece has until February 20 to respond to the Commission's inquiry.

"Greece must implement this (law) immediately to ensure that Greek businesses and households are no longer denied the benefits enjoyed in other member states in terms of lower-priced and better-quality fixed (telephone lines) and access to new broadband services," European Union antirust chief Neelie Kroes said in a statement.

Of the E.U.'s 15 older member states, Greece alone has failed to liberalize its telecommunications sector in keeping with a 2002 law. In an October study, the penetration of retail broadband services in Greece was around 1%, the lowest level among the 15 countries.

Last April, the Commission took Greece to the European Court of Justice in Luxembourg for failing to comply with E.U. telecommunications rules. The court ordered Greece to follow the law.

"If Greece does not inform the Commission that it has complied with the court ruling, the Commission may refer Greece to the court for a second time and request (fines)," the Commission said in a statement.

-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 23rd January 2006