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The Notification The Notification Procedure of national Procedure of national
telecoms marketstelecoms marketsPál BelényesiPál Belényesi
27 October 200627 October 2006
Starting pointStarting point
Commission’s Recommendation Commission’s Recommendation of February 2003 on the of February 2003 on the relevant markets in Telecomrelevant markets in Telecom
In accordance with the In accordance with the Framework DirectiveFramework Directive
These markets are susceptible These markets are susceptible to to ex anteex ante regulation regulation
How?How?
18 markets introduced in the 18 markets introduced in the Recommendation Recommendation
The analysis must be carried out on The analysis must be carried out on the basis of antitrust criteria as the basis of antitrust criteria as indicated in the Guidelines (on SMP indicated in the Guidelines (on SMP assesassesssment, 2002)ment, 2002)
The analysis must be assessThe analysis must be assesseded in a in a forward-looking basis forward-looking basis
The analysis must take into account The analysis must take into account the economical and technical the economical and technical development of the market development of the market
Legal backgroundLegal background
Article 7 of Framework Directive Article 7 of Framework Directive (Consultation Mechanism)(Consultation Mechanism)
National Regulatory Authority National Regulatory Authority (NRA) and the Commission (NRA) and the Commission togethertogether
On the basis of:On the basis of: Commission’s Recommendation Commission’s Recommendation
on relevant markets on relevant markets Guidelines on market analysis Guidelines on market analysis
Principles of the market Principles of the market analysisanalysis
Consultation procedure both at Consultation procedure both at national and community levelnational and community level
Commission has the final word Commission has the final word (Comments letter - No (Comments letter - No comments letter – Veto)comments letter – Veto)
The NRAs have to carry out the The NRAs have to carry out the analysis on the basis of national analysis on the basis of national circumstancescircumstances
NRAs „logic of working steps”NRAs „logic of working steps”
Define markets according to the Define markets according to the principles of Competition Law principles of Competition Law
If found not competitive – SMP If found not competitive – SMP designationdesignation
After the identification of SMP(s) After the identification of SMP(s) – impose obligations – impose obligations
Check-up – post-removal of Check-up – post-removal of obligationsobligations
What markets?What markets?
Retail marketsRetail markets
Access to the public telephone network at a fixed Access to the public telephone network at a fixed location for residential customers.location for residential customers.
Access to the public telephone network at a fixed Access to the public telephone network at a fixed location for non-residential customers.location for non-residential customers.
Publicly available local and/or national telephone Publicly available local and/or national telephone services provided at a fixed location for services provided at a fixed location for residential customers.residential customers.
Publicly available international telephone services Publicly available international telephone services provided at a fixed location for residential provided at a fixed location for residential customers.customers.
Publicly available local and/or national telephone Publicly available local and/or national telephone services provided at a fixed location for non-services provided at a fixed location for non-residential customers.residential customers.
Publicly available international telephone services Publicly available international telephone services provided at a fixed location for non-residential provided at a fixed location for non-residential customers.customers.
The minimum set of leased lines The minimum set of leased lines
Wholesale marketsWholesale markets 8. 8. Call origination on the public telephone network Call origination on the public telephone network
provided at a fixed location. provided at a fixed location. 9. Call termination on individual public telephone 9. Call termination on individual public telephone
networks at fixed location networks at fixed location 10. Transit services in the fixed public telephone 10. Transit services in the fixed public telephone
network. network. 11. Wholesale unbundled access to metallic loops and 11. Wholesale unbundled access to metallic loops and
sub-loops sub-loops 12. Wholesale broadband access.12. Wholesale broadband access. 13. Wholesale terminating segments of leased lines.13. Wholesale terminating segments of leased lines. 14. Wholesale trunk segments of leased lines.14. Wholesale trunk segments of leased lines. 15. Access and call origination on public mobile 15. Access and call origination on public mobile
telephone networks telephone networks 16. Voice call termination on individual mobile networks.16. Voice call termination on individual mobile networks. 17. National market for international roaming on public 17. National market for international roaming on public
mobile networks mobile networks 18. Broadcasting transmission services, to deliver 18. Broadcasting transmission services, to deliver
broadcast content to end usersbroadcast content to end users
Procedure of market analysis Procedure of market analysis I.I.1. 1. Market analysis must start with asking Market analysis must start with asking
operators to provide information. Request operators to provide information. Request forfor information must be proportionate, information must be proportionate, motivated, and business secrets must be motivated, and business secrets must be respected (confidential information);respected (confidential information);
2. 2. After having carried out the market After having carried out the market analysis, NRA shall analysis, NRA shall carry outcarry out a national a national consultation with all operators, which consultation with all operators, which have have 30 days30 days to submit comments in the to submit comments in the draft measuredraft measure proposed by the NRA proposed by the NRA..
3. 3. After this consultation, the draft measure After this consultation, the draft measure must be submitted to the National must be submitted to the National Competition Authority, which has Competition Authority, which has 45 45 daysdays to comment. to comment.
Procedure of market analysis Procedure of market analysis II.II.4. 4. National consultations over National consultations over →→ NRA must NRA must
submit the draft measure to the submit the draft measure to the Commission and Commission and to the to the other NRAs which other NRAs which have minimum have minimum 30 days30 days to comment to comment
5. If Commission finds out that the decision 5. If Commission finds out that the decision would create a would create a barrier to the single barrier to the single European marketEuropean market or Commission has or Commission has serious doubts as serious doubts as to the compatibility of to the compatibility of the draft measure with Community lawthe draft measure with Community law, the , the adoption of the measure must be adoption of the measure must be delayeddelayed by a maximum of an additional by a maximum of an additional two two monthsmonths
6. 6. Veto right for the CommissionVeto right for the Commission: market : market definition & SMP identification definition & SMP identification (Obligations: only comment)(Obligations: only comment)
Procedure of market analysis Procedure of market analysis IIIIII..7. 7. In exceptional circumstances, NRAs may act In exceptional circumstances, NRAs may act
urgently in order to urgently in order to safeguard competition and safeguard competition and protect the interest of usersprotect the interest of users. . But only:But only: proportionate and provisional measures without proportionate and provisional measures without consulting either interested parties. The consulting either interested parties. The Commission will verify the compatibility of those Commission will verify the compatibility of those measures with Community law and in particular measures with Community law and in particular will assess their proportionality in relation to the will assess their proportionality in relation to the policy objectives of Article 8 of the Framework policy objectives of Article 8 of the Framework Directive.Directive.
8. 8. If the NRA wishes to make the provisional measures If the NRA wishes to make the provisional measures permanent, or extends the time for which it is permanent, or extends the time for which it is applicable, the NRA must go through the normal applicable, the NRA must go through the normal consultation procedure set out above.) consultation procedure set out above.)
9. 9. Once an NRA's decision has become final, NRAs Once an NRA's decision has become final, NRAs should notify the Commission of the names of the should notify the Commission of the names of the undertakings that have been designated as undertakings that have been designated as having SMP and the obligations imposed on themhaving SMP and the obligations imposed on them
Examples of obligationsExamples of obligations
Wholesale markets (Access Wholesale markets (Access Directive)Directive) TransparencyTransparency Accounting separationAccounting separation Essential facilitiesEssential facilities
Retail markets (Universal Retail markets (Universal Service Directive)Service Directive) Carrier selection and pre-selectionCarrier selection and pre-selection
Statistics (March 2006)Statistics (March 2006)
Approx. 340 notifications Approx. 340 notifications received so farreceived so far
From 20 Member StatesFrom 20 Member States 112 comments letters112 comments letters 71 no comments letters71 no comments letters 4 veto decisions4 veto decisions
Thank you for your Thank you for your attentionattention