What has changed and what needs to be modified in the Recommendation

1
What has changed and what needs to be modified
in the Recommendation

• DigiWorld Summit 06IDATE Foundation Seminar
  Review of the ReviewMontpellier, 14.11.2006
• Ulrich Stumpf

2
Overview

• Approach to identify markets
• List of recommended markets
• Deviations from Recommendation
• Outlook

3
Overview

• Approach to identify markets
• List of recommended markets
• Deviations from Recommendation
• Outlook

4
Approach to identify markets

• Now full fledged analysis for a representative
  Member State
• Sequencing and Greenfield assumptions clarified
• 3-criteria test maintained, including its
  vagueness
• Yes to set legal / regulatory barriers to entry
  at the lowest possible level before addressing
  need of ex ante regulation
• Criterion for emerging markets not very
  conclusive (markets where due to their novelty
  it is impossible to apply the 3 criteria)

5
Overview

• Approach to identify markets
• List of recommended markets
• Deviations from Recommendation
• Outlook

6
List of recommended markets
September 2006
SMP
No SMP
7
List of recommended markets

• Retail markets
• Yes to remove retail markets, except fixed
  narrowband access
• Barriers to entry mitigated through wholesale
  regulation
• FM substitution, Voice over Broadband
• Margin squeezes Need for a competition law
  strategy to deal with markets that leave ex
  ante regulation

8
List of recommended markets

• Wholesale markets related to core network
• No to maintain transit (inter-tandem part) -
  Wholesale leased lines remedy mitigate barriers
  to entry
• Yes to maintain wholesale trunk segments of
  leased lines
• Wholesale markets related to fixed access
  networks
• Yes (of course) to maintain ULL, WCA, WBA

9
List of recommended markets

• Wholesale termination of SMS
• Yes to include
• MACO
• Yes to remove
• Increase available spectrum through spectrum
  policy before imposing SMP regulation
• 3 or 4 infrastructure based competitors - Can
  there be joint dominance at wholesale level,
  while there is none at retail level?
• NCA in a better position to deal with joint
  dominance cases?

10
List of recommended markets

• Wholesale International Roaming
• Market to be removed following EU Regulation

11
List of recommended markets

• Broadcasting transmission
• Yes to remove, except analogue terrestrial TV
• Platform-specific markets (satellite, cable,
  terrestrial)
• Can there be market power at one side (vis-à-vis
  programme providers) while there is none at the
  other (vis-à-vis retail customers)?
• Large digital capacity (in particular, satellite
  and cable)
• Bidding for programmes and content (Must-have)
• Other instruments to ensure access (must-carry
  rules)

12
Overview

• Approach to identify markets
• List of recommended markets
• Deviations from Recommendation
• Outlook

13
Deviations from Recommendation

• More scope for NRAs applying the 3-criteria test
• Markets still in Recommendation (such as transit)
  ?
• Markets already removed from Recommendation (such
  as retail calls)
• Markets not yet in Recommendation ?
• but more guidance needed

14
Overview

• Approach to identify markets
• List of recommended markets
• Deviations from Recommendation
• Outlook

15
Outlook

• Lifetime of revised Recommendation 2-3 years
• Markets susceptible to ex ante regulation to
  remain a moving target
• 3rd Recommendation to take into account migration
  to NGN (including All-IP NGN)
• Phasing out of SMP wholesale products on legacy
  networks
• NGN wholesale products
• Two categories of Member States - Technologically
  advanced vs. less advanced ?

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Dr. Ulrich Stumpfwik-Consult GmbHPostfach
200053588 Bad HonnefTel 49-2224-9225-23eMail
u.stumpf_at_wik-consult.com