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Fixed broadband internet access services remain a competitive market, no regulations needed in corresponding wholesale markets

11.06.2020

The National Authority for Management and Regulation in Communications (ANCOM) has launched for public consultation its position on the review of the relevant wholesale markets, corresponding to local fixed access services and, respectively, central fixed access services, for services intended for the general public. Based on the competition analysis performed, ANCOM considers that the retail market for broadband internet access services provided at fixed locations is competitive, in the absence of any regulations imposed at the level of the corresponding wholesale markets.
ANCOM’s market analysis
The document launched for public consultation is the result of a new round of market analyses, carried out with a view to re-assessing and – if deemed necessary – intensifying competition in the retail market for fixed broadband internet access services, through subsequent regulatory steps on wholesale markets. ANCOM regularly conducts such analyses in order to ensure effective competition in the market, which brings about benefits for end-users.
The previous analysis, conducted in 2015 on the market for services of access to infrastructure elements, which included services of total or shared access to the local twisted pair copper loop or sub-loop, showed that Telekom Romania Communications S.A. no longer had significant power in this market. Thus, the specific obligations previously imposed were withdrawn from the operator.
The latest analysis, taking into account the changes in the market during 2015-2019, has not revealed competition problems that would justify the imposition of specific regulations, at the level of the corresponding wholesale or retail markets. Both currently and in the time horizon of the analysis, the market for broadband internet access services at fixed points remains competitive, due to the insignificant use of the local loop at wholesale level in Romania, ANCOM concluding that it is not necessary to impose regulations on the markets for local fixed access services and, respectively, for central fixed access services.
The market for fixed broadband internet access services in Romania
The analysed retail market is dynamic and steadily growing, fixed internet tariffs are usually declining, especially for higher transmission speeds, while "best-effort" transmission speeds are constantly improving, and the end-users are satisfied with the accessibility and quality of the services offered.
Another feature of the Romanian market is the high degree of innovation that generates a wide range of products and various price offers, at a competitive level. For example, the tariffs for fixed broadband internet access connections - especially for those with transmission speeds of at least 100 Mbps - are among the lowest in the European Union.
Moreover, Romania boasts one of the highest degrees of competition in terms of infrastructure, compared to the situation in the other member states of the European Union, with over 480 providers of fixed broadband internet access services in 2019 and a very heterogeneous market structure.
Although the penetration rate of fixed broadband internet access connections is relatively low, this is caused by factors outside the telecom market, such as the small number of personal computers and terminals that allow internet access in households, at the population level, poor digital literacy, as well as the low level of average per capita income, especially in rural areas.
Public consultation

 

The Draft ANCOM Position on the review of the relevant wholesale markets, corresponding to local fixed access services and, respectively, central fixed access services, for services intended for the general publicis available, in Romanian, here. The interested persons are invited to submit their comments and suggestions, by 13 July 2020, at the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), using the Authority’s online Registry Office or by means of ANCOM’s regional divisions. Comments may also be sent by fax to +40 372 845 402 or by e-mail to consultare@ancom.org.ro.  
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