Open access to communications networks

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Open access to communications networks

• Ensuring competition in the provision of services
• Anil Patel

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Topics

• Definition of open access
• Purpose of open access
• Three tests for opening access
• The tests applied to cable operators
• Conclusions

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What is open access?

• An open access obligation allows companies which
  wish to offer communication services to consumers
  to do so via the network of another company
• For example, indirect access allows BT customers
  to obtain telephony services from a number of
  competing service providers

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Purpose of open access

• Consumers are able to purchase communications
  services from a number of different service
  providers over the same communications network
• Can help promote greater competition
• Resulting benefits choice, quality and value for
  money

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Purpose of open access

• OFTEL is seeking the benefits of effective
  competition, not competition for its own sake
• New regulation will only be introduced if it is
  absolutely necessary for the promotion of
  effective competition and for the protection of
  consumers, and if these aims cannot be achieved
  in any other way.

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Three tests for opening access

• (1) Does the operator of the network in question
  possess market power in the relevant market?
• (2) Are the expected benefits from mandating open
  access sufficient to justify the costs?
• (3) Is open access an effective and proportionate
  regulatory instrument to tackle the obstacle to
  effective competition which has been identified?

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The tests applied to cable operators

• Regulation to require open access is not
  justified at present
• Cable operators do not have market power in the
  relevant markets
• Nor is there a sufficient competition distortion
  resulting from local-loop unbundling which would
  warrant a reciprocal right of access to cable
  networks

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Conclusions

• No conclusions as yet.OFTEL is inviting comments
  on the tests for open access and their
  application to cable operators
• In a converging and fast-moving market the three
  tests are significant hurdles
• Quasi-open access may well emerge without
  regulation