Kroes said she would continue efforts to open up the sector and lower prices for consumers via regulations. Rolling back the clock to the time when incumbents monopolised networks and consumers were stuck with hefty charges is the wrong approach, she said on Thursday.

"Some have argued that for investment to happen we need to reverse the regulatory successes of the past decade. They claim we should grant operators a regulatory holiday," Kroes told a conference organised by Cable Europe.

"They want a holiday from the stress of innovating in a competitive market and a return to an idyllic business environment sheltered from real competition. This is not the right way forward," she said.

Her comments came after Vodafone Chief Executive Vittorio Colao last month said the European Commission had an "auto-pilot regulation mentality".

France Telecom CEO Stephane Richard also had urged a moratorium on revenue-hitting telecoms regulation.

Kroes said pro-competitive rules would not impede investment.

"The people who argue against this pro-competitive approach claim it would take away the incentives to invest in next generation networks. No, it wouldn't," she said.

Kroes said consumers would be willing to pay a fair price in open networks, which in turn would boost demand for enhanced services and sustain investment in the networks.

Bernstein Research analysts said the war of words between the EU telecoms chief and telecoms companies would benefit no one.

"We are most likely to witness a war of attrition and the gradual decline of this industry and Europe's infrastructure for two simple reasons - the European telco sector is unable to speak with one voice, and the EU wants to have its cake and eat it too," they wrote in a research note.

• A Permanent Economic Emergency