Development of BB markets Access markets (M4 & M5) and remedies applied

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12 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Development of BB markets

Access markets (M4 & M5) and remedies applied






Linda Paršova



10
TH

BALTIC ELECTRONIC COMMUNICATIONS AND POSTAL
SERVICES REGULATORS’ MEETING



Mārciena, 30 August 2013

1. Retail Broadband market:


-

development of fixed and mobile broadband

-

technology market shares and available speeds


-

deployment of NGA


2. Wholesale markets 4 & 5:


-

market definition


-

SMP


-

remedies applied



Topic of the presentation

Retail broadband market

The

retail

broadband

market

(fixed

and

mobile)

in

Latvia

has

grown

significantly

in

the

past

six

years
.

Development of Retail broadband market (active broadband connections)

Technology market shares (Fixed + Mobile active broadband connections)

Technology market shares (Fixed) and available speeds (1 July 2013)

Is the deployment of NGA in the EU still at a relatively early stage of
development?


Source
:

Communications

Committee

Wholesale markets 4 & 5

1
st

round

of

market

analysis

in

2006

For

wholesale

unbundled

access

to

metallic

loops

and

sub
-
loops

and

for

wholesale

broadband

access

over

copper

following

obligations

were

imposed

on

Lattelecom
:



access

obligation
;


non
-
discrimination

obligation
;


transparency

obligation
;


price

control

and

cost

accounting
;


accounting

separation



2
nd

round

of

market

analysis

in

2009

No

changes

were

proposed

1
st

and 2
nd

round of market 4 & 5 analysis

According

to

the

analysis

carried

out,

the

retail

market

definition

includes
:


cable,

xDSL
,

FTTx
,

Ethernet

and

FWA
.


Geographic

scope

of

market

4

&

5

is

determined

as

national
.


W
e

propose

to

define

the

scope

of

wholesale

market

4

as

including

copper
-
based

and

fibre
-
based

local

access

at

a

fixed

location

and

wholesale

market

5

as

including

copper
-
based

and

fibre

based

broadband

access
.

3rd round of market analysis
/

Retail and wholesale market
definition and geographical scope

Based

on

the

analysis

and

evidence,

we

consider

that

Lattelecom

enjoys

SMP

in

market

4

and

5
.

Market analysis and determination of SMP operator

There

is

no

demand

for

market

4

services

but

demand

for

market

5

services

is

weak
:




The

number

of

fully

unbundled

lines

and

shared

access

lines

supplied

by

incumbent

to

new

entrants

is

zero
;




~

200

bitstream

access

lines

are

supplied

to

alternative

operators
.


Demand for wholesale services

In

addition

to

obligations

already

imposed

on

Lattelecom
,


Access

obligation
;


Non
-
discrimination

obligation
;


Transparency

obligation
;


Price

control

and

cost

accounting
;


Accounting

separation


are

proposed

in

the

territory

of

Latvia

concerning

following

services
:



Access

to

civil

engineering

infrastructure
;


Access

to

the

terminating

segment

in

the

case

of

FTTH/B
;


Unbundled

access

to

the

fibre

loop

in

the

case

of

FTTH/B
;


Access

obligations

in

the

case

of

FTTN
.


Remedies

proposed

reflect

an

application

of

the

ladder

of

investment

principle

and

are

in

line

with

the

NGA

Recommendation

except

deployment

of

multiple

fibre

lines

in

the

terminating

segment
.


Remedies proposed (Market 4)


-

Symmetrical

regulation???


Where

capacity

is

available,

access

to

civil

engineering

infrastructure

is

proposed
:



-

access

should

be

provided

on

a

strictly

equivalent

basis

(

principle

of

equivalence

)



-

Database

(the

geographical

location

of

ducts,

poles

and

other

physical

assets

should

be

provided,

as

well

as

the

available

space

in

ducts
)
;



-

Reference

offer,

SLA

and

KPIs

are

pointed

out

as

instruments

to

ensure

proper

application

of

the


principle

of

equivalence




-

persons

involved

in

the

retail

arm

activities

of

the

SMP

operator

do

not

participate

in

company

structures

of

the

incumbent

responsible,

directly

or

indirectly,

for

managing

access

to

civil

engineering

infrastructure
.

Access to civil engineering infrastructure (sub
-
ducts, ducts, manholes
and poles)


-

Access

to

the

terminating

segment

includes

co
-
location
.



-

Principle

of

equivalence



-

Database

(the

geographical

location

of

distribution

points

of

terminating

segments

and

a

list

of

connected

buildings

should

be

provided)



-

Reference

offer


Access to terminating segment in the case of FTTH/B

NRAs

should

assess

the

conditions

of

competition

created

b
y

co
-
investments
.


There

are

neither

co
-
investments

nor

co
-
investment

plans

in

near

future

in

Latvia
.

Co
-
investments

Where

point
-
to
-
point

fibre

technology

is

chosen,

full

unbundling

of

the

loop

is

proposed

from

the

ODF
.






-

Co
-
location

at

the

ODF

location




-

Ancillary

services

-

backhaul

should

be

made

available

to

alternative

operators

to

reach

the

access

point

Unbundled access to the fibre loop in the case of FTTH

Share

of

Lattelecom

s

GPON

topology

is

97
.
68
%

of

all

Lattelecom

s

NGA

lines
.



As

physical

unbundling

of

fibre

loop

could

be

applied

at

the

last

passive

optical

splitter

only

and

NRAs

should

be

able

to

adopt

measures

for

a

transitional

period

mandating

alternative

access

products

which

offer

the

nearest

equivalent

to

physical

unbundling,

possible

solution

-

VULA


VULA

is

proposed

for

FTTB

scenario
.

Unbundled access to the fibre loop in the case of FTTH (GPON) and FTTB

Although

available,

in

several

countries

cabinet

unbundling

is

not

widely

and

hardly

used

at

all
.


Cabinet

unbundling

is

proposed

from

the

street

cabinet
.



-

Cabinet

unbundling

includes

co
-
location

(or

in

their

absence,

equivalent

co
-
location
)

and

backhaul
.



-

Reference

offer


Lattelecom

does

not

deploy

vectoring
.


Unbundled access to the fibre loop in the case of FTTN

In

addition

to

obligations

already

imposed

on

Lattelecom,



Access

obligation
;


Non
-
discrimination

obligation

including

Refference

offer
;


Transparency

obligation
;


Price

control

and

cost

accounting
;


Accounting

separation


are

proposed

in

the

territory

of

Latvia

concerning

non
-
physical

access

at

all

access

levels



ensuring

wholesale

broadband

access

at

the

level

of

DSLAM/MSAN/OLT,

ATM

or

Ethernet

level

and

IP

level

over

copper
-
based

and

fibre
-
based

infrastructures


-

collocation

at

the

handover

point
;


-

backhaul

from

handover

point

to

a

higher

network

level
.


Remedies

are

in

line

with

the

NGA

Recommendation

except

obligation

to

make

new

wholesale

broadband

access

products

available

at

least

6

months

before

its

own

corresponding

NGA

retail

services
.



Remedies proposed (Market
5
)

-

Remedies

proposed

in

line

with

current

NGA

Recommendation


-

Final

decisions

soon


-

Necessity

for

regulation

in

accordance

with

Draft

Recommendation

on

non
-
discrimination

and

cost

accounting






Conclusions







THANK YOU!




Linda Paršova

Market Analysis Division

Tel. +371 67097294

E
-
mail: linda.parsova@sprk.gov.lv