Brussels backs down on telecoms pricing Neelie Kroes, Europe's digital commissioner, will give large European telecoms groups a major boost after agreeing to back down on a threat to regulate pricing of their networks in order to encourage investment in European infrastructure. In recommendations to be published later on Thursday, Ms Kroes is expected to say that the pricing of access to the ageing copper-based networks will not be forced lower, while operators will have freedom to set charges on newer fibre networks that are gradually being built across the region. There will also be a recommendation to impose strict non-discrimination on access to networks that will ensure that smaller telecoms groups can provide the same level of competition. She is expected to say that these recommendations will take effect until 2020. The move is likely to be welcomed by Europe's largest telecom groups, such as Telecom Italia, Telefónica, Deutsche Telekom and France Telecom, which own most of their respective country's copper infrastructure. An official confirmed to the Financial Times that the European Commission will make a series of recommendations to boost the investment in fibre networks for fast internet connections by allowing incumbent telecom groups to charge more for granting access to their existing copper infrastructure. "We believe this is the best solution to push incumbent [telecom groups] to invest in fibre," the EU official said. The higher returns coming from renting the old copper infrastructure is hoped to allow large telecom groups in Europe, which own these lines, to invest in more expensive new technology. However the official added that the executive arm of the EU would enforce the tougher non-discrimination rules, which will force the incumbents to give greater access to their fibre and copper infrastructure to other groups. "The Commission will make sure that the incumbents will allow access to new players, it's going to become much tougher to block new entrants," the EU official said. Ms Kroes estimated that €270bn needs to be spent on fibre networks in Europe, which has fallen behind the US and parts of Asia in providing high speed broadband. She had suggested that this could be done by forcing pricing down on copper networks, and potentially pushing operators to invest in new fibre lines, but a six-month review has concluded that the operators would be better served by being able to subsidise their fibre rollout by maintaining or raising copper prices. The move will be welcomed by the investors in the large telecoms groups. There had been fears over further pressure on revenues already in a long-term decline even as the groups need to spend more on fibre networks. One plan considered by Ms Kroes was to impose extra regulations on the owners of copper networks, but one source with knowledge of the proposals said that she had come to the opinion that this was the best compromise in ensuring confidence among companies and their investors that revenues would not be artificially lowered as they sought to roll out fibre networks.