RD187 - ETNO Reflection Document commenting on possible revision of the Commission Recommendation on the provision of leased lines in the European Union, Part II – Pricing of wholesale leased line part circuits

ETNO operators are concerned with the proposed recommendation for several reasons: (1) When remedy price control is needed the Recommendation and the use of benchmarks may in practice replace the application of targeted 'cost orientation' obligations based on a specific market analysis which has to follow under the new regulatory framework.

Price control in the form of cost orientation will not be based on factual data as those provided by the accounting systems which are formally requested by the Access Directive. (2) The definition of 'leased lines circuit' opens for a too wide application of the benchmarks. (3) The methodology applied to get the benchmark prices does not reflect differences in national markets nor the approach taken by NRAs so far. ETNO questions the usefulness of the proposed Recommendation, but at least substantial modifications are required.