Telecommunication prices set to rise in the European UnionCreated: 4/29/2011 8:10:53 AMThe ultimate goal of many national broadband initiatives is to connect the majority of the country's residents to high-speed internet for cheap. However, it is impractical for telecommunications companies to operate at a loss, a fiscal downturn which causes service providers to adjust their rates accordingly.
In the European Union, the fee for local service providers to rent cable lines form larger organizations is expected to rise. According to the New York Times, the price increases are set to occur right before new legislation is presented through the European Union that will give it more power to regulate telecommunications among its member states.
Pricing rates and fees will be duties given to the supranational governing body, though currently their execution is reserved for the each state to regulate on its own. Thus, the media outlet states that many countries may be trying to protect their larger service providers, many of which are looking to install fiber-optic cable networks for their nations.
Europe is quickly catching up to the U.S. when it comes to fiber-optic connectivity. According to the Drum, the UK is set to receive an advanced fiber-optic network, which will be installed by Fujitsu and managed by its telecommunications providers.
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