09.03.2010
ANCOM launches for public consultation the document that reviews the regulatory measures on the market for the provision of full or shared unbundled access to the local loop. The local loop is the physical circuit between an end-user and the main distribution frame of a fixed public telephone network or the equivalent element of a public electronic communications network. The local loop may be used to provide both telephone services at fixed locations and broadband electronic communications services.
Given Romtelecom’s 69% share on the relevant market for services of access to infrastructure elements (including unbundled access to the local loop), its network, which is difficult to replicate, and the unavailability of viable, nationwide alternative access solutions for the alternative providers (alternative access networks), ANCOM considers that Romtelecom has significant power on this market and proposes upholding the obligations currently in force:
– the obligation to allow access to and the use of specific infrastructure elements, including unbundled access to the main distribution frame, to the street cabinets, as well as to provide ancillary services, such as collocation and backhaul;
– the obligation of transparency, by publishing a reference offer for unbundled access to the local loop (RUO);
– the obligation of non-discrimination;
– the obligation of accounting separation;
– the obligation of cost-orienting the tariffs for full or unbundled access to the local loop, i.e. the tariff the alternative operators owe to Romtelecom for using this operator’s connection of access to the end-users.
As regards the cost-orientation obligation, following the establishment of a bottom-up LRIC costing model for Romtelecom’s access network, ANCOM proposes a tariff of EUR 6.67/month, compared to the current tariff of EUR 8.37/month, for full access to the local loop, starting from the first day of the month after the entry into force of the decision, and EUR 1.14/month for shared access to the local loop, compared to the current tariff of EUR 4.20/month, starting from 1 July 2011. In order to enable a gradual adjustment of Romtelecom’s business plans, the tariff for the shared access to the local loop will decrease in three stages, as follows: starting from the first day of the month after the entry into force of the decision, this tariff will be EUR 3.18/month, then, from 1 January 2011, EUR 2.16/month and, from 1 July 2011, EUR 1.14/month.
”Setting the tariffs for access to the local loop at the level resulted from the calculation of the costs of providing this resource is meant to stimulate the effective use of Romtelecom’s infrastructure by the alternative operators, for the provision of broadband services. Along with the CDMA licence granted by ANCOM in 2008 and the liberalisation of the frequency spectrum in the 900 and 1800 MHz bands, regulating the market for access to the local loop is part of the measures of promoting broadband electronic communications in Romania”, the ANCOM President, Mr. Catalin Marinescu, declared.
Furthermore, during this process of reviewing the relevant markets in the electronic communications sector, ANCOM reassessed the necessity to define and regulate ex ante the relevant wholesale market for providing access to broadband electronic communications services (including bit stream access to the local loop). Taking into account the high level of infrastructure-based competition (based on the providers’ own access networks) in the retail market, the availability of the unbundled access to the local loop, as well as the positive impact expected after the introduction of cost-oriented tariffs for unbundled access to the local loop, ANCOM considers that the establishment of additional ex ante regulations regarding the wholesale broadband access services is neither necessary, nor justified.
After the closing of the public consultation and analysing the comments and suggestions received, in accordance with the rules of the common regulatory framework in the field, applicable once with Romania’s accession to the European Union, ANCOM is to notify the set of draft measures to the European Commission and to the national regulatory authorities of the other EU member states. This set will include the definitions of the identified relevant markets, the designation of the providers with significant market power, as well as the obligations the Authority intends to impose in the analysed markets, along with the reasons therefor. The European Commission and the other regulatory authorities may send ANCOM comments and suggestions within one month from the notification date.
The draft decision is available for consultation on the ANCOM website, here. The interested persons are invited to submit their comments and suggestions, by 09.04.2010, at the ANCOM headquarters in 2 Delea Noua Street, Bucharest 3, directly to the Registry or by means of the Authority’s regional divisions. Comments and recommendations may also be sent by fax to +40 732 845 404 or by e-mail to consultare@ancom.org.ro.