The European Commission (EC) has unveiled plans to boost the powers of national telecoms regulators to split up incumbent providers.

Under the proposals, watchdogs would gain the power to separate the business and network divisions of large service operators. Any decision to take such action would be monitored by a Brussels-based regulator, the European Telecom Market Authority (ETMA).

The Commission wants to create a single telecoms market for Europe to boost competition and provide consumers with a variety of cheap services.

“From today, a single market without borders for Europe’s telecoms operators and consumers is no longer only a dream,” said EC president José Manuel Barroso.

“Telecoms is a field where our single market can bring about very concrete results for every citizen in terms of more choice and lower prices, whether for mobile phones or for broadband internet connections.

“At the same time, a single market with 500 million consumers opens new opportunities for telecoms operators ­ if Europe helps to ensure effective competition and consistent rules of the game.”

Critics of the plans fear that giving watchdogs divisive powers might discourage operators from investing in new telecoms networks. The proposals are expected to be contested by Spain and by Germany, home of operator Deutsche Telekom.

But ETMA will ensure that the tactic of functional separation is used sparingly, said Ovum analyst Matthew Howett.

“The Commission has acknowledged that while it will be a useful remedy, it will not be right for every country, so it will reserve judgment on whether or not to use it,” he said.

“The proposal is an excellent example of the experience of the new authority, consisting of members who have already separated the access network, guiding the Commission into making the right decision.”