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The state of implementation of the Electronic Communications package in Austria. Achim Kaspar Association of Alternative Telecommunications Operators. Association of Alternative Telecommunications Operators ("VAT"). founded in 1997 when the Liberalisation started in Austria
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The state of implementation of the Electronic Communications package in Austria Achim Kaspar Association of Alternative Telecommunications Operators
Association of Alternative Telecommunications Operators ("VAT") • founded in 1997 when the Liberalisation started in Austria • platform for new operators • members are fixed-line and mobile operators • 1,7 Bill. € revenue/year • 6.000 people employed • 3,5 Bill. € investment in infrastructure between 1998 and 2001
Telecommunication market inAustria * amounts in € Mio
Implementation of NRF • Aug.2003: Telecommunications Act 2003 (TKG 2003) • Oct.2003: market definition ordinance (TKMVO 2003) defines 16 markets (+ broadcast market) • data collection, market analysis, draft decisions and consultation procedures for 14 markets until now • TA is deemed to have SMP in 10 of 13 possible markets; • ANB and mobile operators are deemed to have SMP in individual wholesale termination markets
Pending issues • broadband market • unbundling fee • wholesale line rental fee • transit market • trunk segments of leased lines
Wholesale broadband access • wholesale broadband access market (market #12) was not defined in market definition ordinance • consultation on market definition started in March 2005 • market definition enacted in May 2005 • market analysis is pending, no SMP declared, no obligations imposed • TA-market share on DSL-Retail market is 67% ANB TA
Broadband access lines • eoy 2004 • Broadband penetration: >25% (households) • DSL access is growing faster than CATV access
fair competition must be ensured Wholesale broadband access • concerns of ANO: • this most strategic market with the highest growth-rates was defined at the latest date and after all other markets, no decision on SMP-status • nationwide wholesale offer of one single supplier must be imposed • technological neutrality must be ensured in state-aid financial programs
unbundling fee must be decreased Wholesale unbundled access • 2,5% of all access lines of TA are unbundled • TA market share on retail access market is 95%; • TA market share on wholesale unbundled access market (market #11) is 100% • unbundling fee: € 10,90.--*, cheapest TA subscription fee: € 13,31.--* • margin between wholesale offer and retail price is insufficient for successful business models * amounts excl. VAT
competitive offer must be made Wholesale line rental • access to the public telephone network at a fixed location for residential / non-residental customers • TA is deemed to have SMP on retail markets #1 and #2 • NRA imposed obligation on TA to offer wholesale line rental • price calculation is based on average of residential and non-residential market, prohibitive up-front costs • non-compliance with Art. 7 procedure • non-compliance with EC-market recommendation • commission will come back on our concerns
time limit must be defined Transit services • wholesale market for transit services in the fixed public telephone network (market #10) • NRA declared "effective competition" in its draft measure • "veto decision" of the European Commission in Oct. 2004 • insufficient green field analysis • substitutes must be truly available • NRA must modify the result of the market analysis and is still thinking about filing a complaint at ECJ
fair competition must be ensured Trunk segments • wholesale market for trunk segments of leased lines (market #14) • NRA declared effective competition on this market although TA is the only supplier in 5 out of 28 access points (cities) • cities are important for nationwide infrastructure coverage • risk of bundled offersand risk of disadvantages of ANO in tender procedures