The European Commission points the risk of unjustified overcompensation of the costs of the cable network operators, to the detriment of the Belgian customers. Orange Belgium urges the regulators to adjust these charges downwards, and to avoid further significant increase that would lead to unjustified price increases for the Belgian customers.
Following the notification to the EC of the draft wholesale price decisions for access to the cable networks by the CRC early April 2020, Orange Belgium had expressed its strong concerns with the proposed draft decision, which clearly contained elements leading to an overcompensation of the cable network operators when considering their incurred costs, to the detriment of the Belgian customers.
The comments that have just been published by the EC go in the same direction, pointing a high risk that the cable network operators are overcompensated. The EC refers in particular to the high cumulated mark-ups and additional margin, as well as to the high price per Mbps in peak which also have a clear inflationary effect over time. In addition, the EC challenges the inclusion of analogue TV costs in the cost model based on an efficient operator. These excessive charges would mean that in the end, the Belgian customers would pay an unjustified high price for its broadband and TV offers, with continuous price increases over time.
Orange Belgium calls upon the regulators now to take these comments into account urgently and improve their proposal by lowering the charges to avoid any overcompensation of the costs and unjustified increase over time, to the detriment of the customers.