Archive for June, 2006

A third way for local telecom initiatives?

Cable companies are trying to hamper the development of the Amsterdam glass fiber network! (see TelecomPaper) As UPC considers the Amsterdam initiative as anti-competitive (Fax sent on 19 May 2006), the company threathens to ligitate local authorities if they do not stop immediately with the the roll-out of their glass fiber network. The local authorities responded on 24 May 2006 in demonstrating that the claim of UPC has no legal basis as the initiatives are in line with EU Article 87 (State Aid). Amsterdam applies successfully the “market investor” principle, i.e. it undertook the investment in a similar manner like a private company would do, and even collected some private investors and housing organizations to join in a consortium. In fact, I think even UPC is aware that the “market investor” principle is in line with current EU legislation…. Anyway, most local initiatives in the Netherland use this principle or act as a cooperative community (e.g. Nuenen). But there also is third legal way to foster the growth of local glas fiber networks as used in France (Pyrénées-Atlantiques, Limousin), just consider these networks as Service of General Economic Interest (SGEI) (see ITS2006_paper_0150_v2.pdf).