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ANCOM deregulates the market for services of access to infrastructure elements

5.01.2016
 
The Romanian National Authority for Management and Regulation in Communications (ANCOM) adopted the decision on the deregulation of the wholesale market for services of access to infrastructure elements corresponding to the retail market of fixed broadband Internet access services. ANCOM’s Decision comes as a result of the favourable opinion issued by the European Commission at the end of last year, confirming the conclusions of the ANCOM analysis which revealed thatthe Romanian retail market of fixed broadband Internet access services is one of the most competitive markets in Europe. Therefore, ex ante remedies in the corresponding wholesale market are no longer necessary.
In the document available here, the European Commission supports ANCOM’s conclusions on the fact that the national circumstances of the Romanian market for services of access to infrastructure elements are significantly different from the ones in other EU Member States. The retail market is characterised by a very dynamic competitive environment, Romania featuring the highest degree of infrastructure competition in the European Union. The average broadband connection speed is among the highest in the EU (over 60% of the access connections enabling 30 Mbps and more), while the prices charged to end-users are among the lowest in the European Union. Moreover, the document supports ANCOM’s conclusion that no operator individually holds significant power in the wholesale market for services of access to infrastructure elements. Thus, ANCOM has withdrawn the obligations previously imposed on Telekom Romania Communications.
 
Romania becomes the only country in the European Union that eliminates all regulatory measures for services of access to infrastructure elements to end-users for the provision of Internet access services in unguaranteed band, considering that the retail market is efficient through its own mechanisms. Ex ante regulatory intervention in the wholesale market is necessary and justified only to the extent that it would bring about actual benefits for the users.
The decision adopted by ANCOM is the result of a regular process of reviewing the markets susceptible to ex ante regulation in the communications field, which is one of the most important instruments for ensuring competition, created by the European regulatory framework and implemented in Romania by ANCOM. The measure is part of ANCOM’s strategy for promoting infrastructure-based competition and for fostering investment in the communications infrastructure, and observes the principles of opportunity and proportionality.
ANCOM’s Decision entered into force on 29 December 2015, which is the publication date in the Romanian Official Journal, Part I, no. 973. Transitionally, for ongoing contracts, the obligations currently imposed to Telekom Romania Communications will be maintained for one year from this date, while the obligation to keep separate accounts will be withdrawn starting with the financial statements for 2015.
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