Relations between operators

The purpose was to explore the importance of interconnection between the networks of competing operators and how these relations should be governed.

The terms “access”, “interconnection”, “local loop” and “reference offer” are the new vocabulary for this field. EU policy is to be found in the Access Directive which deals with the relations between operators. As far as possible, commercial negotiation should prevail but regulation may be needed and must be possible. Transparency, non-discrimination and cost-orientation of prices are vital principles where operators enjoy market power. Regulators must take care to avoid over regulation and discouraging investment. Where necessary for effective competition, mandatory access can be granted to networks and services and also to buildings, ducts and masts and other associated facilities.

This Directive strongly encourages operators to conclude all of their access agreements by negotiation and, as far as possible to standardise their terms in published “reference offers”. The aim is to minimise the aspects where agreement cannot be reached and where ex ante regulatory intervention might therefore be needed. Regulators are however given strong powers and operators are reminded about the ex post competition rules.

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