EC says online phone calls ‘must be regulated’

Date: 17/03/05

Businesses offering 'Voice over the Internet Protocol' services (VOIP), such as cheap phone calls, warn of greater regulation following a preliminary decision by the European Commission.

The EU executive told the German national regulatory authority that it must regulate alternative network operators, as it does not agree with the assessment that these companies do not have enough market power to warrant regulation.

The Germans have two months to appeal. If the Commission upholds its view, "it would set a precedent that European regulators have to control all telephone service providers, including VOIP," said one internet industry lobbyist. A Commission spokesman said the move was consistent with policy in several other member states, including the UK and Austria.

The European Commission took a preliminary decision telling the German national regulatory authority (Bundeskartellamt) that it had to regulate alternative network operators offering 'Voice over the Internet Protocol' services (VOIP), such as cheap phone calls. The Bundeslartellamt did not agree with the assessment that these companies did not have enough market power to warrant regulation.