19.10.2020 

In the recent online meeting of the Consultative Council, ANCOM agreed with the electronic communications industry the draft position on reviewing the relevant markets in the electronic communications sector corresponding to the services of local access provided at a fixed location and of central access provided at a fixed location for mass-market products. The competition analysis carried out by the Authority revealed that the retail market for local access to broadband internet provided at a fixed location has remained competitive, therefore the corresponding wholesale markets need not be regulated.

ANCOM’s market analysis

The draft position was drawn up following a new market analysis, carried out in order to review and – where necessary – to strengthen competition in the retail market for services of broadband internet access provided at a fixed location by regulatory measures that could be imposed in the wholesale markets.

The analysis, having considered the market dynamics during 2015 – 2019, did not find any competitive problems that should be addressed by specific regulations to be imposed in the wholesale markets corresponding to the retail ones. The market for broadband internet access services provided at a fixed location remains competition-driven, whereas Romania registers insignificant use of the local loop at wholesale level, therefore ANCOM concludes that no regulations are required in the markets for local access provided at a fixed location and – respectively – for central access provided at a fixed location.

ANCOM carries out such analyses on a regular basis in order to ensure effective competition in the market, to the benefit of end-users.

The market for broadband internet access services provided at a fixed location in Romania

The retail market is dynamic, in ongoing expansion, while fixed internet tariffs are usually on a downward trend - especially for higher transmission speeds -, best-effort speeds are constantly improving, and end-users are satisfied with the affordability and quality of the services offered.

The high level of innovation, generating a wide range of products and a variety of high-quality offers at competitive prices, is another specific feature of the Romanian market. For example, the tariffs for broadband internet access connections provided at a fixed location, especially for connections ensuring transmission speeds of at least 100 Mbps, are among the lowest in the European Union.

Moreover, Romania features one of the highest levels of infrastructure-based competition compared to the other EU members states, with more than 480 fixed broadband internet access providers in 2019 and with a highly heterogeneous market structure.

The relatively low penetration rate of broadband internet access connections provided at a fixed location is due to drivers that are independent from the telecom market, such as the low number of personal computers, respectively of terminal devices that enable end-users to access the internet from home, at population level, the low degree of digital literacy, as well as the low average income per capita, especially in rural areas.

The European consultation

According to the European regulatory framework in the field, ANCOM is to notify the European Commission, the Body of European Regulators for Electronic Communications (BEREC) and the other national regulatory authorities in the European Union member states on the proposed measures. The European Commission, BEREC and the other regulatory authorities will be able to send their comments and suggestions to ANCOM throughout one month since the notification date.