Examination of Witnesses (Questions 218-219)
Mr Frank Krüger
27 FEBRUARY 2007
Present:
Eccles of Moulton, B
Freeman, L (Chairman)
Geddes, LLee of Trafford, L
Mitchell, L
Q218 Chairman:
Mr Krüger, it would be helpful if you could start off by
briefly summarising where the German Presidency is at the moment.
Mr Krüger: As you know, we have already
had seven or eight meetings within the Council working party.
As I see it, we have made a lot of progress; we agree on a lot
of principles and are discussing more and more details. We already
agree that there is the need for wholesale regulation in all institutions.
I think that is quite clear. We are following very strictly the
principle of better regulation. We are trying to make it as easy
as possible but, on the other hand, as effective as possible.
We have therefore proposed at the wholesale level to reduce the
complication of the Commission's proposal. We have said that it
is sufficient to fix the MTR once at the very beginning and to
use this as a basis for the retail price, for receiving calls.
On the other hand, we would like to have only one instead of two
levels for a maximum wholesale charge for making calls. We think
it must be an absolute figure, because we think that everybody—whether
it is multiple, whether it is MTR, or whatever—is thinking
about an absolute figure at the end, and to fix the multiple that
way, so that it comes to the desired absolute figure. Therefore
we think that it might be more useful to use this absolute figure,
which can be well explained. We therefore will provide an explanation
at the next group on Thursday. We already have agreement on the
wholesale level, therefore. We think this absolute figure of 30¢
which we have proposed and which we are still discussing could
be the figure agreed upon at the very end, and we think that it
must be possible between two operators to differentiate between
off-peak and peak, because we think that has been and is still
a methodology to use networks efficiently—differentiating
between peak and off-peak. This is briefly where we are on wholesale.
Q219 Chairman: That implies that the
operators can average, in order to meet the target.
Mr Krüger: Yes. The highest possible target
is 30¢ and you can differentiate between off-peak and peak,
let us say 25 or 35, but only between two operators. You cannot
make an average on all operators of all 27 Member States and say,
"Okay, for this one we charge only an average of 10¢,
and for this one we charge 40¢ or 50¢". We think
that that must not be possible but, between two operators, it
must be possible to have an average.
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