European Telecoms Warn of ‘Re-Monopolisation’ as EU Proposes Softer Fixed Network Rules

A coalition of European telecommunications companies has voiced strong opposition to proposed European Union (EU) changes that would ease regulations in the fixed network sector. In an open letter published on Thursday, companies including Vodafone, Iliad, and 1&1 warned that loosening rules for dominant players in individual markets could reverse years of competitive progress.

The group contends that the European Commission’s proposal undermines EU competition policies and risks triggering a “re-monopolisation” of the telecom sector. According to the letter, such regulatory rollbacks would favor former monopolists, such as Deutsche Telekom in Germany, to the detriment of smaller players striving to grow their market share.

The crux of the disagreement lies in infrastructure access. Current regulations require dominant operators to offer network access to competitors under defined conditions. This framework, the signatories argue, has been essential in promoting fair competition and enabling the broader rollout of fibre optic broadband across Europe.

In contrast, the EU’s proposed changes are seen as a step backwards. Smaller telecom companies argue that easing obligations on incumbents would not only shrink market competition but also slow down infrastructure development, particularly in underserved or rural areas where investment costs are higher.

The dispute comes amid broader efforts across Europe to expand high-speed internet access. Just this month, Germany’s Bundestag passed new legislation aimed at accelerating fibre optic and mobile network expansion. While the law is intended to boost connectivity, smaller players fear that without balanced regulations, it may only deepen the market dominance of existing giants.

Source: Reuters