Press Release: Telecoms: Commission accepts virtual unbundling of networks in Austria as temporary measure; criticises local access market definition

The European Commission decided on 18 June 2010 to accept a proposal of the Austrian telecoms regulator, Rundfunk und Telekom Regulierungs GmbH (RTR), to oblige Telekom Austria to provide 'virtual' access to its network to alternative operators via a virtual unbundling access product (vULL). This solution will, in the short term, encourage competition on the Austrian telecoms market by making it easier for other companies to offer their services. However, the Commission underlined that this should only be a transitional measure. Moreover, the Commission criticised the Austrian telecoms regulator for basing its analysis of the market for access to the local loop on an outdated market definition, which excludes the fastest type of network - optical fibre. In the medium to long term, the Commission fears that RTR's decision to exclude fibre will create obstacles to competition. It has therefore asked RTR to reconsider the market definition at the earliest opportunity and to ensure full fibre unbundling of the network of Telekom Austria (TA) as soon as this is technically and economically possible.