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* European Commission to review price decision
* Will discuss proposal with watchdog AGCOM
* Commission opinion is not binding - operators
MILAN, Aug 12 (Reuters) - The European Commission has raisedquestions about the way Italian telecoms watchdog AGCOM arrivedat the changes it plans to make to wholesale broadband prices,claiming they could cramp the market's ability to decide pricesin Italy.
In a statement on Monday, the Commission said it has invokedthe EU's review mechanism, adding that it would discuss how toamend the proposal with AGCOM over the next three months.
In July, the Italian watchdog tentatively approved lower2013 fees for rivals who rent space on the fixed-line coppernetwork of former monopoly Telecom Italia SpA.
That move was cheered by Telecom's rivals, but drewcriticism from the company, which said it would reduce itsannual income by 110 million euros ($146.23 million).
Following the decision, Telecom Italia said it wanted favourable regulatory conditions before moving forward with aplan to spin off its fixed-line network.
In Monday's statement, the EU Commission said it wasconcerned that AGCOM had set prices based a market review thatwas not the most recent. Access prices for broadband servicesshould reflect the most recent information, it added.
"In departing from the approach announced last year forsetting access prices in the Italian broadband markets, AGCOMundermines the required regulatory certainty for all marketplayers," EU telecommunications chief Neelie Kroes said.
The Commission's opinion is not binding, telecom operatorsFastweb, Vodafone Group Plc and Wind said in a joint statement on Monday.
The three operators, which fully support the Italianregulator, said the Commission's opinion did not tally with someof its own previous positions.
AGCOM was not immediately available for a comment.
