EU threatens broadband showdown

The European Union (EU) may decide to regulate the broadband market to speed rollout and bring down charges, after claims that newcomers are being blocked from entering the market by entrenched telcos.

Competition Commissioner Mario Monti said in a statement that progress on telecoms deregulation in Europe remains "extremely disappointing".

Unless something is done quickly the Competition Commission may soon "expand its field of action" to investigate new complaints and "ensure a level playing field".

Deutsche Telekom has already fallen foul of EU regulators using such powers. Last May a formal investigation accused the telco of trying to force new companies out of the market with "unfair pricing practices" for access to local fixed lines.

France Telecom's Wanadoo unit is under investigation for allegedly undercutting its competitors, and BT's reputation when it comes to aiding the local loop unbundling process is not exactly spotless.

Monti explained that the latest complaints are "not so much about prices, but more about the conditions in which new entrants are allowed to install equipment in the premises of current dominant players.

"We have received strong signs of discontent on the conditions offered by the incumbents to companies trying to access local telephone exchanges."

EU officials see the deregulation of the 'last mile' of wire connecting homes and businesses as crucial to bringing down Europe's relatively high telephone charges and promoting broadband access to the internet.