EU: Interconnection Charges

The Commission has approved a recommendation on interconnection charges for telecom operators after liberalisation of the market on 1 January 1998. These charges constitute the largest cost item for new entrants to the market and the recommendation seeks to reduce the charges in order to ensure fair competition. The recommendation establishes reference tariffs at three levels, for local, metropolitan and national interconnection. The tariffs are not binding, but they are intended to assist the national regulatory authorities responsible for monitoring rates. The Commission asks the authorities to investigate where a network operator charges prices in excess of these guidelines. If the operator is unable fully to justify the charges then the national authority can impose retrospective adjustments.