EU to encourage next-generation spending
News Article - Tuesday, July 1, 2008 09:20
Filed under: Internet Access & Connectivity
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A new ruling from the European Union may force broadband operators to invest in next-generation infrastructure, improving managed bandwidth services.
Viviane Reding, the European telecommunications commissioner, said the new laws will be proposed which will encourage operators to invest more in high-speed networks.
The commissioner said the moves to install new networks should be overseen by national telecom regulators and that any dominant company creating the network should be scrutinised, as they would in any other market.
But, Ms Reding said these firms which invest in infrastructure to improve managed bandwidth services should be able to charge other operators a premium, of 15 per cent.
The European commission is expected to issue the formal recommendation before the end of July and will attempt to get it adopted by next autumn.
A survey from Quocirca recently revealed small to medium businesses are not happy with the managed bandwidth services they are receiving.
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