Regulating and Developing Broadband in Portugal

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Regulating and Developing Broadband in Portugal

• 2nd Black Sea and Caspian Regulatory Conference
• Istanbul June 22sd, 2007

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AGENDA

• ANACOMs Competences
• Market overview in Portugal
• Broadband Market
• Access to Ducts
• Results

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• 1. ANACOMS COMPETENCES

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ANACOMS COMPETENCES

• ANACOM was created in 1989, to
• Regulate postal and telecommunications activities
• Guarantee network access to all communications
  operators
• Promote competition and development in the
  communications markets
• Manage scarce resources (numbering and radio
  spectrum)
• Protect consumer interests and to contribute to
  the European Union internal market development

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2. THE MARKET IN PORTUGAL
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PENETRATION PER INHABITANT(1Q2007)

• Mobile Penetration 116.9
• Fixed Penetration 38.9
• Fixed Broadband Penetration 14.3
• Mobile Broadband 5.4
• Overall Broadband Penetration 19.7

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Telecommunications Revenues ( millions)
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3. BROADBAND MARKET
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Broadband coverage
ADSL
LLO
Cable
Population density
TV CABO
OTHER CABLE OPERATORS
1853 MDFs 100 of Population
191 MDFs 57 of FTS
Bidirectional Network 81 of Households
Values from the 1stT2007
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OTHER BROADBAND TECHNOLOGIES
3 HSPA networks increasing (5,4 penetration)
High potential (13 growth last quarter)
SATELLITE
Reduced utilization
WI-FI
Recent uptake increasing
DVB-T
Under evaluation
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Fixed Broadband Market Structure
gt1,5 million customers 1st quarter 2007
CABLE
ADSL
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WHOLESALE BROADBAND MARKETS

• Wholesale broadband access market (Market 12
  includes broadband access supported on PSTN and
  cable networks)

SMP Undertakings

• PT Group

Remedies

• Access to PSTN on several network points
• Non-discrimination
• Cost oriented prices and price control
• wholesale ADSL retail (ADSL Cable) cost
• Cost accounting and accounting separation
• To publish the Reference Offer
• Availability of accounting records

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FROM IP TO LLU
OLOs can make an efficient use of their networks
and differentiate their services
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Wholesale Broadband Markets

• Wholesale unbundled access market (Market 11)

• PT Group companies that work in this market

Remedies

• Access to local loops and sub-loops
• To publish a reference offer
• Non-discrimination
• Cost accounting and accounting separation
• Cost oriented prices
• Availability of accounting records

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LLU Interventions
Important reduction of supply-time
PRICES
Steady reduction of prices of several LLU services
SLAs
SLAs adjustments ensuring more accurate quality
of service
PROCESSES
Simplification of contract rescission and
co-location rules
Information
Comprehensive and timely data allowing close
market monitoring
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NUMBER OF UNBUNDLED ACCESSES
Enforcing Non discrimination Use it or lose it
Price reduction Comprehensive and timely
information
Processes and SLAs reviews
Supply time and Price reductions
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LLU PRICES
Monthly fee (Full Unbundling)
One-off charge
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FIXED BROADBAND HIGHER BIT RATES
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RETAIL PRICES (8 Mbps)

• Price Reduction - Voice and broadband offers
  supported on LLU (Nov. 2006)

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EVOLUTION OF FIXED BROADBAND
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EU PENETRATION COMPARISON
Broadband Penetration
EU15
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• 4. ACCESS TO DUCTS

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BACKGROUND (I)

• Promoting infrastrutcutre based competition,
  taking into account
• difficulties of alternative operators in
  constructing ducts in certain geographic
  areas, in an timely and economically efficient
  manner
• the need to avoid inefficient infrastructure
  duplication, and to increase global efficient
  investment of each undertaking.
• claims made by operators, related to (a)
  restrictions to the the use of the
  concessionaires infrastructures (namely in
  sub-ducts, pipe and visit chamber space)
  (b) discriminatory conditions or (c) excessive
  prices
• the need to promote transparency in the access
  conditions to ducts and associated
  infrastructures.

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BACKGROUND (II)

• PTC must offer, inter alia, access to ducts on
  terms established by ICP ANACOM, pursuant
  article 26th nr.4 of Electronic Communications
  Law (http//www.anacom.pt/template20.jsp?categoryI
  d103282contentId159011).
• ICP-ANACOM determined in mid 2004, a reference
  offer (R.O.) for access to ducts and related
  infrastructure of PTC (http//www.anacom.pt/templa
  te12.jsp?categoryId126439).

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GUIDING PRINCIPLES

• AREAS OF INTERVENTION
• Prices
• Parameters of QoS
• Planning
• Procedures

• PRINCIPLES
• Efficiency
• Cost Orientation
• Non Discrimination
• Transparency

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PROCEDURES (I)
Preventing this

• RO establishes efficient and effective
  procedures
• RO includes a handbook of procedures and
  efficient technical specifications (including
  procedures for the installation, intervention and
  removal of cables), which shall be followed by
  beneficiary entities

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PROCEDURES (II)
Promoting this

• Cleaning and preservation of infrastructures are
  incumbent upon the concessionaire.

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PROCEDURES (III)
..and this!

• Cables shall be identified in permanent manholes
  with a code enabling the identification of the
  respective owner.

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GENERAL ACCESS CONDITIONS

• Access to ducts and associated infrastructure of
  PTC, for installation, intervention or withdrawal
  of cables, or for the performance of any service
  governed by the R.O., shall be carried out by
  workers of the beneficiary (it may be extended to
  collaborators from subcontracting companies, who
  must be duly identified and accredited by PTC)
• PTC must inform beneficiaries of the
  construction of new ducts two months in advance
  of notification to the municipality.
• PTC shall (a) establish an accreditation system
  and (b) publish and keep updated, a list of
  bodies who have been accredited, in order to
  promote transparency.

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PRESENT STATUS

• 1. Issues addressed
• Access to critical infrastructure and guarantee
  of network security
• Establishment of the right price
• Planning specifications
• Technical and procedural issues (installation,
  removal, replacement, and maintenance of ducts
  and cables)
• Reservation of space
• Establishment of adequate quality of service
  levels.
• 2. The first orders under R.O. were placed in mid
  2006
• 3. Litigation between the historic operator and
  alternative operators decreased.

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• 5. Conclusion

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EVOLUTION OF FIXED BROADBAND
Other
Cable
ADSL
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TO SUM UP ...

• ANACOM has actively continuously ensured a level
  playing field enforcing
• Cost orientation
• Non-discrimination
• Transparency
• Access
• Broadband adoption depends on other key factors

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BROADBAND CONSUMPTION

• According to recent ANACOMs consumer enquiries
  broadband demand depends on
• Age
• Education level
• Occupation level
• Income
• Prices
• Personal computer ownership

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OTHER INITIATIVES (I)

• Government initiatives, promoting the Knowledge
  Society
• 100 Broadband connections on every school
• Tax incentives for acquisition of PCs by students
• E-School PC and broadband access in special
  conditions to students, teachers and trainees
  involved in qualification programs
• increase the number of public spaces with free
  broadband access

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OTHER INITIATIVES (II)

• establishemt of a protocol for the swift
  installation of broadband in remote areas which,
  although served by DSL central offices, require
  additional costs for providing broadband.
• E-Government initiatives
• Public e-Procurement
• Electronic Invoices in the Public Administration
• Public Administration services online (Citizen
  Portal)

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CONCLUSION

• Broadband development depends on several factors
• ANACOM has actively ensured a level playing field
• Cost orientation Non-discrimination
  Transparency Access.
• Prices Supply time Processes Information/
  Monitoring
• Competition is thriving
• Prices are decreasing
• Bit rate is increasing
• Penetration is increasing

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Thank you!joao.castro_at_anacom.pt