Development of Retail broadband market

Report
Development of BB markets
Access markets (M4 & M5) and remedies applied
Linda Paršova
10TH BALTIC ELECTRONIC COMMUNICATIONS AND POSTAL
SERVICES REGULATORS’ MEETING
Mārciena, 30 August 2013
Topic of the presentation
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
Retail broadband market
Development of Retail broadband market (active broadband connections)
The retail broadband market (fixed and mobile) in Latvia has grown significantly in
the past six years.
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
1st and 2nd round of market 4 & 5 analysis
1st 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
2nd round of market analysis in 2009
No changes were proposed
3rd round of market analysis/ Retail and wholesale market
definition and geographical scope
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.
We propose to define the scope of wholesale market 4 as including copper-based and fibrebased local access at a fixed location and wholesale market 5 as including copper-based and
fibre based broadband access.
Market analysis and determination of SMP operator
Based on the analysis and evidence, we consider that Lattelecom enjoys SMP in market 4 and
5.
Demand for wholesale services
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.
Remedies proposed (Market 4)
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.
Access to civil engineering infrastructure (sub-ducts, ducts, manholes
and poles)
- 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 terminating segment in the case of FTTH/B
- 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
Co-investments
NRAs should assess the conditions of competition created by co-investments.
There are neither co-investments nor co-investment plans in near future in Latvia.
Unbundled access to the fibre loop in the case of FTTH
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 (GPON) and FTTB
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 FTTN
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.
Remedies proposed (Market 5)
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.
Conclusions
- 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
THANK YOU!
Linda Paršova
Market Analysis Division
Tel. +371 67097294
E-mail: [email protected]

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