EU Telecom CEOs Call For End Of Special EU Regulations

BRUSSELS -(Dow Jones)- The European Commission should move to accept the phasing-out of special controls on Europe's incumbent telecommunications giants, the chief executives of leading telecommunications companies said Wednesday.

More than 25 telecom company CEOs gathered in Brussels Wednesday for meetings with two European commissioners, media chief Viviane Reding and antitrust leader Neelie Kroes. The two commissioners are conducting a review of telecom regulation and are scheduled to make proposals by the end of June.

The telecom company executives were lobbying for a phasing-out of the regulations forcing them to share their infrastructure with upstart rivals or provide wholesale connections at a low price. Instead, they want the commission to determine that the telecom market can be governed by antitrust law.

"We have asked Mrs. Reding to have courage," said Michael Bartholomew, director of the The European Telecommunications Network Operators' Association, which represents 40 incumbent telecom firms in 34 European countries, including France Telecom, TeliaSonera and Belgacom. She must "adopt and embrace a deregulatory agenda to enable (our members) to compete on a global scale."

One particularly contentious issue concerns broadband infrastructure. Eircom Group's Chief Executive Philip Nolan called for governments to put in place new fiscal incentives for fast-speed Internet services.

Several of the telecom companies, most notably Deutsche Telekom, want to built out their broadband infrastructure and keep it to themselves, while the commission wants them to share it with competitors.

Another tense issue concerns extending regulations on television advertising to broadband video-on-demand services. The CEOs fear such controls will kill the budding market.

-By William Echikson, Dow Jones Newswires; 32-2-741-1480; william.echikson@dowjones.com

(Juliane von Reppert-Bismarck contributed to this story.)

(END) Dow Jones Newswires "

Posted to the site on 7th June 2006