FACTBOX-Draft plan for overhaul of EU telecoms rules

Sept 25 (Reuters) - The European Commission is preparing controversial changes to the European Union's telecoms rules, with proposals set to be published on Nov.13.

An internal row has erupted in the Commission over a draft prepared by EU Telecoms Commissioner Viviane Reding.

Here are the key issues:

WHY CHANGE?

- The EU Commission says reform is needed because of technological advances, wider competition, problems in key markets such as broadband and differing regulations among the 27 EU states.

KEY POINTS OF THE DRAFT - Allow national regulators to force separation of the network and service divisions of a telecoms operator, without divestiture of assets, in case of serious competition problems.

- Create a new European Electronic Communications Market Authority to advise the European Commission, including on how to fix competition problems. It would bring together the 27 national regulators.