" ITREALMS: Bassanini says wholesale divestiture delivers non-discriminatory access

Monday, April 03, 2017

Bassanini says wholesale divestiture delivers non-discriminatory access

The President Open Fiber, Mr. Franco Bassanini, has said that only divestiture of the wholesale operation can deliver non-discriminatory access to the end-users, reports ITRealms.

Bassanini was speaking weekend, at the Digital Regulation Forum in London, said that boosting growth and competitiveness through digitalization, would require a model and role of the wholesale only fiber companies.

According to him, the recent step by the regulator in London, OFCOM which he described as courageous initiative, with regards to public funding investment into the sector.

He also said that OFCOM took into account the current regulatory framework, stressing, however, that “only divestiture of the wholesale operation can deliver both non-discriminatory access and long term investment incentives.”

For him, the reason why whole-sale only fiber company model works is that it has many advantages and produces many benefits in terms of public policies.

“It allows regulators to better ensure open competition among telecommunications service providers, to ensure that the playing field is indeed level. It favors long-term investments in the construction of new generation infrastructure (FTTH and 5G),” he said.

Bassanini pointed out that these are key factors for the growth and competitiveness of European economies, and makes it easier for governments putting in place market friendly incentives.

The European Commission, he noted, also seems to share this approach, just as the Commission highlighted that network owners “that do not have retail market activities and whose business model is therefore limited to the provision of wholesale services to others, can be beneficial to the creation of a thriving wholesale market, with positive effects on retail competition downstream.”

He maintained that the business model could be attractive to potential financial investors in less volatile infrastructure assets and with longer term perspectives on deployment of very high capacity networks

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