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Information relating to Decision No. 109/14.03.2019

CRC adopted by Decision No.109/14.03.2019  a Draft Decision on analysis of the wholesale market of local access at a fixed location. The draft is concerning a review of the obligations imposed on BTC on the wholesale access services market (physical and virtual) in order to provide services to end users.

The market is identified and analyzed by CRC according to the EU Regulatory Framework and the Law on Electronic Communications (LEC). The European framework allows ex ante regulation only if an undertaking is designated as having significant market power. According to the Draft Decision there is no undertaking with such quality on the respective analyzed market. In this case, Directive 2002/21/ЕC and LEC oblige the regulator to withdraw all specific obligations imposed earlier.

CRC started work in the third round of the analysis of the market as early as the end of 2017 and all actions of the regulator have been publicly available and transparent through the respective publications on the CRC web site. The term provided for consultation on the Draft Decision exceeds the minimum one identified by the Law. The submitted comments have been thoroughly analyzed. The Commission expressed position on all arguments, part of the Draft Market Analysis. The expert assessment of CRC on the presence of effective competition on the market under study is based on data, provided by the undertakings in the sector for the period 2014 – 2017. This assessment is also supported by the Commission for Protection of Competition. It is the competitive market environment which is the prerequisite for the provision of quality services at competitive prices.

Furthermore, the new Law on Electronic Communications Networks and Physical Infrastructure (LECNPI) is substantially extending the scope of undertakings, having the obligation to provide access to their infrastructure (ducts, poles, masts, etc.) in favor of the internet access and cable television providers. Persons obliged by LECNPI are all communications operators, including BTC, as well as utility providers, transport operators, etc. According to the Law access should be provided under General Conditions published in advance and fair prices. In case of any dispute CRC can give mandatory prescriptions. In such a way LECNPI creates conditions for reduction of the costs of providers, which should not cause increase of the prices for providing services to the end users.

The CRC Draft Decision has been sent to the European Commission (EC) and the other regulators for checking the compliance with the European legislation. This is the procedure for a common and coordinated adoption of regulatory decisions with the participation of all national regulators and EC. The one month term within which EC can support or comment on the CRC Draft Decision has still not expired.

The Draft Decision prepared by the independent regulatory authority meets the obligation for a periodic markets review in compliance with the harmonized European Framework. CRC shall continue monitoring both the retail market for Internet access and the wholesale services development, including the access to the duct network.