Cable Europe critical of TDC decision

Cable Europe has criticised a European Commission decision that allows direct regulatory control over the incumbent operator TDC, its cable network YouSee, and wholesale broadband access.

The regulatory powers are designed to address the situation where an incumbent telecom incumbent operator owns and operates both the fixed telecom and cable networks.

Caroline van Weede, MD of Cable Europe, said in a statement: “these measures appear to meet presumptions by the regulator about the absence of investment by the incumbent operator in its fixed network, and to improve competition in markets where there is common ownership of the incumbent and the cable network.”

The criticism focuses on the fact that the Danish regulator is planning for third party access to the operator’s cable network and not just its fixed telecom network.

The Cable Europe statement continues: “cable companies remain unconvinced regulation of the cable network for broadband is economically attractive or commercially viable for the access seeker across Europe. Besides the issue of economical viability, cable technology does not allow the same functionalities as the DSL networks, cannot support multiple competitors, and has only limited territorial coverage. Cable Europe believes the shortcomings of NITA’s regulation will become clear during implementation. Regulation of the incumbent DSL network remains the
most effective way of promoting broadband competition.”