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Broadband network rent cut wouldn't boost investment -EU official

Thu, 12th Jul 2012 12:14

BRUSSELS, July 12 (Reuters) - Large European telecoms companies will not be asked to lower the

rents they charge for use of their legacy copper networks, an EU Commission official said on Thursday, dashing expectations by up to 100 companies renting such lines of lower fees in future.

'Ultimately we do not consider that a regulatory downward push on copper prices would favour investment incentives,' the official said.

After liberalisation of the copper networks which carry the Internet, former state monopoly telecom firms in many cases retained the infrastructure that had been put in place before privatisation.

Smaller broadband providers rent network space from these companies and had hoped for lower prices to better compete with their bigger rivals.

(Reporting by Claire Davenport; editing by Rex Merrifield) Keywords: TELECOMS EU/REGULATIONS

(brussels.newsroom@thomsonreuters.com)(+32-2-287-6830)

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