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EU blocks German plan for higher fixed phone rates

Mon, 08th Apr 2013 17:10

BRUSSELS, April 8 (Reuters) - The European Commissionblocked plans by Germany to raise the fees operators such asDeutsche Telekom and Vodafone charge eachother to connect fixed-line phone calls, in a sign of howBrussels is seeking to influence telecoms policy.

The German telecoms regulator (BNetzA) proposed raising thetermination fees to three times the average rates in many partsof Europe to compensate for steadily declining revenues in thesector.

But the Commission is seeking to harmonise such calltermination rates across Europe, which are ultimately passed onto consumers, to create a single market for telecoms.

"My job is to deliver a single market for telecoms for allEU citizens," the EU Commissioner for telecoms Neelie Kroes said on Monday.

"I urge BNetzA to bring forward a new proposal thatdelivers lower consumer prices and helps us build a telecomssingle market," she added.

The German regulator said it planned to raise rates to0.0036 euros per minute at peak times and 0.0025 euros perminute at off-peak times. Operators following the Commission'sstance charge on average 0.001 euros per minute.

The German regulator and the EU will now negotiate for athree-month period to seek a compromise solution, the Commissionsaid.

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