EU seeks price caps on wholesale broadband access

EU states should cap the price at which phone lines are leased wholesale to broadband access providers, the European Commission urged today.

"The EU single market for electronic communication services is distorted by substantial variations in leased lines prices," the EU's executive said in a statement.

The price of the leased lines "should reflect the real cost of supplying them", it said.

Telephone lines are usually provided by incumbent telecom network operators. Other service providers with their own broadband networks mostly rely on the incumbent to connect their clients to their network.

"Competitive pricing of leased lines will expand the range and cut the costs of electronic communication services that are made available to business users and end-users across the EU," Information Society and Media Commissioner Viviane Reding said.

It will be up the national competition watchdogs to adopt price ceilings recommended by the Commission.