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Belgacom complains about tariffs

New regulations make access to broadband one of the cheapest in Europe
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The new charges involve access to the superfast VDSL2 broadband network, offering download speeds of more than 20 megabytes a second, which Belgacom was obliged to open up to its competitors in 2008. The BIPT rejected Belgacom’s argument that open access would undermine the competitive edge the company expected to gain from developing the network and make their investment retroactively un-economic.

The main reduction comes in the cost of access to what is called “raw copper” – the physical infrastructure of the network, without bundled products or services such as telephony. That goes down from €9.29 to €7.57 per line per month. Belgacom claims this tariff is now one of the cheapest in Europe – and less than in any neighbouring country.

The company called the tariff “drastic” and claimed the BIPT’s measures would affect Belgacom negatively, while its main competitor Telenet, being a cable company, would not be affected.

For ADSL – the most common form of broadband access used in homes – the tariff falls from €14.32 to €12.51 per line per month. For the new VDSL2, meanwhile, the tariff will be €13.85. That cannot be compared to a previous official rate since there has so far been none applied, but it is cheaper for third parties than the slower ADSL line is now.

“The completion of the regulation of the VDSL2 offer gives new hope for more competition on the Belgian broadband market,” said Luc Hindryckx, chairman of the BIPT Council. “The operators now have all the elements they need to develop a product to offer to the market. The ball is in their court. Lower prices and a possibly larger offer will benefit the end-user."

Belgacom has not said yet whether it will appeal the tariffs.

(August 18, 2010)