Belgian operator Belgacom has joined the growing list of European incumbent telcos that have run afoul of regulatory bodies over the pricing of consumer internet access. The company, 50.1% owned by the state, said Monday it will appeal against a court ruling that will force it to suspend its new pricing scheme after complaints from competitors.
In April, Belgacom introduced a single national internet access number at a reduced per-minute rate, with larger splits going to the telco, but the complainants argued that the firm was using its ex-monopoly position to stifle competition. They said the deal would force other ISPs to follow suit, resulting in costly and unnecessary technological changes that would pump up consumer prices. The court agreed, and ordered Belgacom to suspend the service, pending the outcome of a Competition Commission investigation. The incumbent will have to pay a fine of almost $130,000 for every day the service remains in use.
Ironically, one of the complainants was British Telecommunications Plc, which itself frequently comes under fire for abusing its dominant position in the growing internet market. Deutsche Telekom AG and France Telecom SA have also been criticized recently, as the former state-owned European telcos all battle for as large a share as possible of the growing consumer access market.
