On Tuesday, September 16, 2003, the National Regulatory Authority for Communications (ANRC) published on its website the results of the market study conducted on the wholesale electronic communications markets to identify the relevant markets for the access to the local loop, to leased lines, and to the associated facilities. The study was conducted between February 20, 2003 – March 24, 2003, based on the information collected from the public electronic communications networks and services providers that had notified ANRC by February 1, 2003.
The purpose of this study was to gather information on the parameters representative for the definition of the above-mentioned markets. These parameters refer, among others, to the main operators and their market quotas, the possibility to substitute demand and offer, the market entry barriers, the market dynamics, the providers’ importance, the diversity degree of the services provided a.s.o. The analyses of the above mentioned indicators and of other specific indicators, led to a coherent and correct view on the degree of actual and prospective competition on these markets. Based on the results, ANRC will identify operators likely to be designated as having significant market power.
The study comprises information and data on the number and evolution of the Internet dedicated connections from the point of view of the access technologies, as well as on the market presence and dynamics of the providers operating their own access networks.
With regard to the market for access to the local loop, the study reveals the fact that the highest market quota is held by Romtelecom, with a percentage of 99.39%. The second place is held by Telecomunicatii CFR, with 0.52%, followed by Compania Nationala Administratia Porturilor Maritime Constanta, with 0.09% of the total number of connections. The other operators which own a broadband access network cover 0.01% of the market. Nonetheless, the study reveals that currently 63% of the notified operators have their own broadband connections for access to the end users. 63.09% of the operators which answered the questionnaire think that the decision of building their own access network is significantly influenced by financial and economic factors and 39.91% consider the market demand as another important factor. The competition degree (22.32%) and the legislative framework (12.02%) were also mentioned as important factors.
Similar analyses were conducted on the market for the provision of leased lines services. According to the results, the main provider on this market is Romtelecom that held a market quota of 90.72% in 2001 and of 73.87% in 2002, respectively. With respect to the provision of leased lines services, data transmission and Internet access services provided through private virtual circuits, Romtelecom held a market quota of 88.78% in 2001 and of 68.22% in 2002. Of the total of 387 respondents, only 28 own an access network which allows the provision of leased lines services and 3 of these can provide national leased lines services. Among the main factors that influence the expansion of the access networks and, consequently, the development of the retail market for the provision of leased lines services, there were identified: the network expansion investments (50%), the costs of equipment and other materials (31%), authorization procedures (31%), the designing, building and testing of the network (19%) and the market demand level (13%).
The data comprised in the study conducted by ANRC was collected from all 494 providers authorized by ANRC at that time.
This data, together with the detailed results of the study are public on the National Regulatory Authority for Communications website.