NOTIFICATION OF DRAFT MEASURES PURSUANT TO ARTICLE 7(3) OF DIRECTIVE 2002/21/EC FOR

Transcription

1 NOTIFICATION OF DRAFT MEASURES PURSUANT TO ARTICLE 7(3) OF DIRECTIVE 2002/21/EC FOR Wholesale call termination on individual public telephone networks provided at a fixed location Under Article 16 of Directive 2002/21/EC, as amended by Directive 2009/140/CE of the European Parliament and of the Council (the Framework Directive), the Communications Regulation Commission (CRC) conducted an analysis of the market for Wholesale call termination on individual public telephone networks provided at a fixed location. On 7 April 2016 CRC reached its preliminary conclusions on the relevant market definition, the state of competition on the market, the designation of undertakings having significant market power and the regulatory obligations to be imposed. CRC hereby notifies the European Commission, the Body of European Regulators for Electronic Communications (BEREC) and the National Regulatory Authorities of the Member States of its proposed regulatory measures in accordance with Article 7(3) of the Framework Directive. These draft measures are set out in the attached Summary notification form and elaborated in detail in the enclosed draft analysis annexed to the draft decision. Under Article 6 of the Framework Directive and according to the national procedures, CRC carried out two national consultations. The first national consultation started on 13 August 2015 and ended on 12 September The second national consultation ran from 5 February 2016 until 7 March The draft measure takes into account all comments of the interested parties received during the two public consultations and the opinion of the National Competition Authority. 1

2 STANDARD NOTIFICATION OF DRAFT MEASURES PURSUANT TO ARTICLE 7 OF DIRECTIVE 2002/21/EC Section 1 Market definition 1.1 The relevant product/service market. Is this market mentioned in the Recommendation on relevant markets? (Section VI, Chapter 1.2., p ) On the basis of demand and supply substitution analysis, CRC concluded that the relevant product market is the market for Wholesale call termination on individual public telephone networks provided at a fixed location. The relevant product market corresponds to that listed the 2014 Recommendation on relevant product and service markets as Market 1, respectively to Market 3 listed in the Annex to the 2007 Recommendation. 1.2 The relevant geographic market. (Section VI, Chapter 1.3., p. 144) The relevant market is defined by the geographic coverage of each network on the territory of the Republic of Bulgaria. 1.3 A brief summary of the opinion of the National Competition Authority, where provided. (Section II, p and p ) The National Competition Authority stated that CRC has defined the market subject to ex ante regulation in compliance with the criteria and principles of competition law. 1.4 A brief overview of the results of the public consultation to date on the proposed market definition (e.g. how many comments were received, which respondents agreed with the proposed market definition, which respondents disagreed with it). (Section II, p. 13- p. 78) Responses from four stakeholders (three undertakings and one society) were received during the first public consultations and from three undertakings during the second one. In its opinion expressed during the first public consultations Telenor Bulgaria EAD states that the product scope of the market is correctly defined. There were no comments on the market definition during the first and second public consultation from the other stakeholders. 1.5 Where the relevant market is different from those listed in the Recommendation on relevant markets, a summary of the main reasons justifying the proposed market definition by reference to Section 2 of the Commission guidelines on market analysis and the assessment of significant market power under the Community regulatory framework for electronic communications and services 1, and the three main criteria mentioned in recitals 5 to 13 of the Recommendation on relevant markets and Section 2.2 of the accompanying Explanatory Note. 2 1 OJ C 165, , p Explanatory Note accompanying the Commission Recommendation of on Relevant Product and Service Markets within the electronic communications sector susceptible to ex ante regulation in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communication networks and services, C (2007)5406 published at 83_2.pdf 2

3 Section 2 Designation of undertakings with significant market power 2.1 The name of the undertakings designated as having, individually or jointly, significant market power. (Section VI, Chapter 3, p ). CRC concluded that all undertakings providing wholesale call termination at a fixed location have SMP on the market for Wholesale call termination on individual public telephone networks provided at a fixed location, namely: - Bulgarian Telecommunications Company EAD ( Българска телекомуникационна компания ЕАД); - Blizoo Media and Broadband EAD ( Близу Медиа Енд Броудбенд ЕАД); - Bulsatcom EAD ( Булсатком ЕАД); - Varna Net OOD ( Варна Нет ООД); - Vestitel BG AD ( Вестител БГ АД); - Vimobile AD ( Вимобайл АД); - Global Communication Net AD ( Глобъл Комюникейшън Нет АД); - Gold Telecom Bulgaria AD ( Голд Телеком България АД) - Escom OOD ( Еском ООД) 3 ; - Eastern Telecommunication Company AD ( Източна телекомуникационна компания АД); - Interoute EAD ( Интеруут България ЕАД); - Cabel Sat Zapad OOD ( Кабел Сат Запад ООД); - Coolbox AD ( Кулбокс АД), transferee of ITD Network AD ( Ай Ти Ди Нетуърк АД) since 19 October Mobiltel ЕАD ( Мобилтел ЕАД); - Net 1 EOOD ( Нет 1 ЕООД); - Net Is Sat EOOD ( Нет Ис Сат ЕООД); - Netfinity EAD ( Нетфинити ЕAД); - Теlеcом 1 OOD ( Телеком 1 ООД); - Telecomunikacionna Compania Varna EAD ( Телекомуникационна компания Варна ЕАД); - Telenor Bulgaria EAD ( Теленор България ЕАД); - Premium Net International S.R.L. Where applicable, the names of the undertakings considered no longer to have significant market power: - Voxbone S.A./N.V; - Interbild OOD ( Интербилд ООД); - Nexcom Bulgaria EAD ( Некском България ЕАД); - Orbitel EAD ( Орбител ЕАД); - Skat TV OOD ( Скат ТВ ООД); - Spectrum Net EAD ( Спектър Нет ЕАД). 2.2 The criteria used to designate an undertaking as having significant market power, individually or jointly, or not (Section VI, Chapter 2.2., p ): - Market share; - Barriers to entry and expansion on the relevant market; - Absence of or low countervailing buying power. 3 ЕИК

4 2.3 The name of the main undertakings (competitors) active in the relevant market (Section VI, Chapter 3, p ). The name of the undertakings active in the relevant market is listed in section 2.1 above. 2.4 The market shares of the undertakings mentioned above and the basis for calculation of market share (e.g. turnover, number of subscribers). (Section VI, Chapter , p. 148) Each network provider as above listed in p has a 100 % market share. 2.5 The opinion of the national competition authority where provided. (Section II, p and p ) The National Competition Authority agrees with the conclusions of CRC about the undertakings that should be designated as having significant market power on the relevant markets. 2.6 The results of the public consultation to date on the proposed designation(s) as undertakings having significant market power (e.g. total number of comments received, numbers agreeing/disagreeing). (Section II, p. 24 and p. 63) During the first and second public consultation the Bulgarian Telecommunications Company EAD and Telenor Bulgaria EAD expressed their views that the undertakings with granted permits for scarce resources numbers from National Numbering Plan, should be included as participants on the relevant market and designated as having significant market power even if they do not provide services yet, claiming that such undertakings have the opportunity to start activity in the next three years period. The opinion of CRC on the above issue is presented in Section II (p. 21, 22 and p. 66). 4

5 Section 3 Regulatory obligations 3.1 The legal basis for the obligations to be imposed, maintained, amended or withdrawn (Articles 9 to 13 of Directive 2002/19/EC). (Section VIII, Chapter 1, p. 161) On the Bulgarian Telecommunications Company EAD: - Access to and use of specific network facilities (art. 12 of Directive 2002/19/EC; art. 166, par. 2, item 4, art. 173 and art. 174, par. 1, items 1, 2, 3, 5 и 9 and par. 2 of the Law on Electronic Communications (LEC)); - Transparency (art. 9 of Directive 2002/19/EC; art. 166, par. 2, item 1 and art. 167, par. 1 of - Requirement to publish a reference offer (Art. 9 of Directive 2002/19/EC; Art. 166, par. 3 of - Non-discrimination (art. 10 of Directive 2002/19/EC; art. 166, par. 2, item 2 and art. 168 of - Accounting separation (art. 11 of Directive 2002/19/EC; art. 166, par. 2, item 3 and art. 169 of - Price control (art. 13 of Directive 2002/19/EC; art. 166, par. 2, item 5, art. 170 and art. 220 of LEC). On the rest of the undertakings listed in p above, which are designated as having SMP on the relevant markets: - Obligations of access to, and use of, specific network facilities (Art. 12 of Directive 2002/19/EC; Art. 166, par. 2, item 4; Art. 173; Art. 174, par. 1, items 2, 3, 5 and 6 and par. 2 of - Transparency (Art. 9 of Directive 2002/19/EC; art. 166, par. 2, item 1 and Art. 167, par. 1 of - Obligation of non-discrimination (Art. 10 of Directive 2002/19/EC; Art. 166, par. 2, item 2 and Art. 168 of - Price control (Art. 13 of Directive 2002/19/EC; Art. 166, par. 2, item 5; Art. 170 and Art. 220 of LEC). All undertakings designated as having SMP on the respective relevant markets are obliged to apply, as of 1 July 2016, cost-oriented call termination rates. The call termination rates will be set on the basis of costs incurred by an efficient operator and determined under the updated BU- LRIC model developed by CRC in compliance with Commission Recommendation 2009/396/EC on the Regulatory Treatment of Fixed and Mobile Termination Rates in the EU. Until the effective implementation of the above-mentioned cost-oriented rates for termination of calls at a fixed location (FTRs), all SMP operators shall apply cost-oriented termination rates as determined by CRC s Decision 134/ , equal to BGN 0,005. The price control remedy applies to regulated calls (originated in national networks and in EU/EEA Member States). As a supplementary remedy that gives an opportunity for monitoring of the market developments, an obligation for the provision of information about SMP`s traffic and revenues for every six months period is imposed. 5

6 3.2 The reasons for which the imposition, maintenance or amendment of obligations on undertakings is considered proportional and justified in the light of the objectives laid down in Article 8 of Directive 2002/21/EC. Alternatively, indicate the paragraphs, sections or pages of the draft measure where such information is to be found. See Section VIII, Chapter 4, p. 180 and Chapter 5, p Where the remedies proposed are other than those set out in Articles 9 to 13 of Directive 2002/19/EC, please indicate what "exceptional circumstances" within the meaning of Article 8 (3) of that directive justify the imposition of such remedies. Alternatively, indicate the paragraphs, sections or pages of the draft measure where such information is to be found. Section 4 Compliance with international obligations 4.1 Whether the proposed draft measure intends to impose, amend or withdraw obligations on market players as provided for in Article 8(5) of Directive 2002/19/EC. 4.2 The name of the undertakings concerned. 4.3 What international commitments entered into by the Community and the Member States are to be met. 6