21.01.2019

ANCOM has launched for public consultation the results of the review of the wholesale market for switched transit services provided on the public telephony networks, on which Telekom Communications Romania held significant power, according to the market analysis of 2013. ANCOM’s latest analysis shows that the competitive situation in this market has changed since the adoption of the preceding regulatory measures, and the market tends toward effective competition in the analysis horizon.

ANCOM’s proposal

The analysis conducted by ANCOM in the wholesale market of for national switched transit services provided on the public telephony networks reveals that, although the barriers to market entry are still in place, but of lower impact, as there are viable alternatives to the services of national transit offered by Telekom. At the end of 2017, there were 8 active providers of national transit services.

Moreover, from the market dynamics perspective, the very small market volume (168 million minutes), decreasing by 12.5% during 2013 – 2017, its heterogeneous structure, the operators’ diminishing demand for such services, correlated with the high number of direct interconnection contracts concluded between the public networks operators in Romania (276 such contracts, at the end of 2017), drove to the conclusion that the market tends towards effective competition.

In this context, the Authority proposes withdrawing the obligations currently incumbent on Telekom Communications Romania, i.e. the obligation to allow access to and the use of specific networks elements and associated facilities, the obligation to set cost-oriented tariffs, the transparency and the non-discrimination obligations, and provides a transition period of one year since the entry into force of the decision. This transition enables the providers that are currently buying switched transit services from the incumbent to negotiate and implement direct interconnection agreements, using the IP technology, with the providers with which they have been indirectly interconnected, by transit through Telekom’s network.

According to the available data, on 31 December 2017, there were 8 operators that provided national switched transit services in Romania: Telekom Romania Communications, GTS Telecom, Digital Cable Systems, Net-Connect Communications, Media Sat, Prime Telecom, Trans Tel Services and Nooh Media.

Public consultation

The Draft Decision on the withdrawal of the obligations imposed on the wholesale market for switched transit services is available, in Romanian, here. The interested persons are invited to submit their comments and suggestions, by 20.02.2019, 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.