Orange Belgium has expressed regret over proposals by the Conference of Belgian telecom regulators (CRC) for new wholesale cable tariffs.
In particular the telco is concerned over the cost recovery mechanism that it believes will significantly over-compensate the actual costs of the cable networks.
In a statement, Orange Belgium said in considered reasonable wholesale cable tariffs to be essential to guarantee a more sustainable internet and TV offer in the future.
Last July, a further decrease in the proposed charges were put forward, but subsequently draft proposals submitted to the European Commission have been amended by Belgian regulators.
Orange is concerned that operators might take a hit were cable networks to decide to upgrade their network. It argues the assets do not need to be renewed and the intention is to artificially inflate the tariffs beyond their value.
“Should the European Commission confirm this towards the final decision, this would result in the extension of an unjustified deadweight effect to the benefit of the cable owners. This monopoly rent will be paid at the end of the day by the Belgian customers,” says Orange.
The Commission has until May to decide if it wishes to accept the Belgian regulator’s proposals.
