14.05.2018

 

The National Authority for Management and Regulation in Communications (ANCOM) launched for public consultation its intention to withdraw the obligations imposed on Telekom Romania Communications S.A. in the market of leased lines - terminating segments enabling up to (including) 2Mbps. This intended measure is the result of a periodical review of the markets susceptible to ex-ante regulation in the communications sector, one of the most important regulatory instruments for ensuring competition, created by the European regulatory framework and implemented in Romania by ANCOM.

Review of the market of leased lines - terminating segments enabling speeds up to (including) 2 Mbps

The market for the provision of leased lines - terminating segments enabling speeds up to (including) 2 Mbps was identified by the Authority as relevant and was analysed during 2010. Currently, this market corresponds to the wholesale high-quality access provided at a fixed location (market 4 of the Annex to the European Commission Recommendation 2014/710/EU^[1]).

The document under public consultation is aimed at reviewing the definition of the relevant market identified in 2010, the competitive status and the specific obligations imposed on this market, as well as at assessing the need to define new relevant markets, in order to maintain, withdraw or amend the obligations in force or to impose new remedies, taking into account the changes in the Commission Recommendation 2014/710/EU.

Wholesale high-quality access provided at a fixed location refer to both leased line services and to any other access services with leased line functionality and play an essential role in the provision of electronic communications services in the retail market (particularly leased line services and VPN services) to medium and large private companies or to public institutions, being also used by some providers to extend coverage in areas beyond their network roll-out.

Market analysis results

In order to determine the relevant market, assess the competitive status, and establish the most appropriate ex ante regulatory instruments, ANCOM analysed a series of (economic, technical, statistical) indicators and relevant criteria in this respect.

The application of these criteria revealed that the identified relevant market includes leased line - terminating segments services with traditional interfaces (analogue and traditional digital ones), leased line - terminating segments services with alternative interfaces (mainly Ethernet), and services of dedicated, transparent, and symmetric access - terminating segments for the provisions of VPN services.

The competitive analysis on the market thus identified shows that no provider has significant power on the high quality access market, while alternative providers, benefiting from currently regulated traditional interface access services enabling up to (including) 2Mbps, have access to alternative solutions on the market.

Thus, the Authority proposes that the regulatory measures previously imposed on Telekom Romania Communications S.A. should be withdrawn. Furthermore, in order to ensure a transitional period for other operators, as purchasers of services from Telekom Romania Communications S.A., the Authority proposes that the obligation to allow access to and use of specific network elements and associated infrastructure, as well as the obligations of transparency, non-discrimination and pricing control should be maintained for a transitional period of 1 year from the date of entry into force of this decision. ANCOM also proposes the withdrawal of the separate accounting obligation, starting with the financial year 2018.

Public consultation

The draft decision on identifying the relevant market corresponding to high-quality access services provided at a fixed location is available – in Romanian – on ANCOM’s website, here. The interested persons are invited to submit their comments and suggestions, by 11.06.2018, at the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), directly to the ANCOM Registry Office or by means of the ANCOM regional divisions. Comments may also be sent by fax to +40 372 845 402 or by e-mail to consultare@ancom.org.ro.