Published on November 30, 2007
Broadband regulation in Slovenia: addressing key regulatory issues in a fast-developing environment: Broadband regulation in Slovenia: addressing key regulatory issues in a fast-developing environment Mag. Boštjan Makarovič, firstname.lastname@example.org Mag. Albin Poljanec, email@example.com Starting points for regulation by APEK: Starting points for regulation by APEK Primarily, under the EU and Slovenian regulatory framework, the contractual relationships among service providers and end-users are left to the market. However, there is ex ante regulation, limited mainly to the wholesale markets needed to provide essential inputs for the retail products such as broadband. European Commission decides upon the markets susceptible for ex ante regulation in a Recommendation. The Recommendation is followed by APEK. Recommendation includes market 12: wholesale broadband market that comprises of bitstream (ADSL or ADSL together with ATM/IP backhaul) and may potentially comprise of other equivalent wholesale broadband products (e.g. cable) In addition, market 11 comprises of wholesale access to the copper local loops (just PSTN, not cable or fibre loops!) that are used to provide wholesale services to end-users Broadband access market regulation : Broadband access market regulation APEK carried out the analysis of market 11and imposed the following obligations on Telekom Slovenije as an operator with significant market power (SMP) and the sole provider of copper local loops in Slovenia: obligation to grant access on non-discriminatory terms, cost accounting and accounting separation, cost-based prices and publication of the Reference Unbundling Offer APEK carried out the analysis of market 12 and imposed the following obligations on Telekom Slovenije as an operator with significant market power (SMP): obligation to grant access on non-discriminatory terms, cost accounting and accounting separation, cost-based prices and publication of the Reference Unbundling Offer The future of broadband regulation: The future of broadband regulation APEK estimates that the need for regulation will decrease in the future due to infrastructure competition (cable, WiMax). Nevertheless, cable is not a suitable wholesale substitute for Telekom Slovenije’s bitstream because cable networks are geographically limited and a suitable wholesale product comparable to bitstram does not exist. According to the ‘ladder of investment’ principle, some carriers in Slovenia (e.g. Voljatel) do climb up the ladder from wholesale broadband (market 12) to the unbundled local loops (market 11). Broadband penetration by technology: Broadband penetration by technology Penetration: 24,09% (subscriber lines per 100 household) ADSL access: 14,78%, cable access: 9,28%, Other types of access: 0,03% (okt/2005) Penetration: 9% (subscriber lines per 100 inabitants) ADSL access: 5,06%, cable access: 3,18%, other types of access: 0,01% (jan/2006) Trends in retail subscriber lines by technology: Trends in retail subscriber lines by technology Market shares (ADSL and cable): Market shares (ADSL and cable) Note: Incumbent (SiOL) offers BB based on ADSL Other operators offer BB based on ADSL and cable 01.01.2004 Incumbent (SiOL) : 64% Other operators: 36% Republic of Slovenia compared to EU: Republic of Slovenia compared to EU Remedies by decree (04/2006): obligation of transparency obligation to ensure equal treatment obligation of access to and use of specific network facilities price control and cost accounting obligation Information Society: Information Society Slovenia has adopted the Lisbon Agenda: Making Europe the most competitive and dynamic knowledge-based economy, capable of sustainable growth and witn improved employment and social cohesion by 2010 Establishment the Information Society Information Society (preliminary condition): Broadband access and exchange of information (voice, data, multimedia) Available independently of geographical location at an affordable price Intensive use of e-communications in all area of human activities: State administration services (e-government) Education (e-learning, e-training) Care and Health Services (e-health service, e-medicine) Business and Commerce (e-business, e-commerce) etc. Broadband Available affordable price in all area of human activities The Republic of Slovenia: The Republic of Slovenia Geografic charectiristics: largely mountainous country, almost half of it covered by forests Population density: more than 50% of the population lives in towns les than 100 inhabitants/km2 in avarage (low density) BB availability independant of geographical location Fixed Wireless Systems The Strategy of the Republic of Slovenia for the FWS in the frequency band 3.410 MHz to 3.600 MHz: The Strategy of the Republic of Slovenia for the FWS in the frequency band 3.410 MHz to 3.600 MHz Decision to introduce FWS (3,5 GHz) as the way: to cover rural areas with BB access: in 3 years: at least 60% of population, among these, at least 1/3 in the rural area to fill up a gap between LAN and WAN to offer a wireless alternative to cable and xDSL to offer a cost comparable technology to cable and xDSL access to offer fixed or nomadic wireless solution etc. Strategija Republike Slovenije za uvajanje fiksnih brezžičnih sistemov – FWS v frekvenčnem območju od 3410 MHz do 3600 MHz na ozemlju Republike Slovenije, Januar 2006 Analyses, estimations, requirements … : The market of FWS is attractiv for potential investors. At the moment, there are 6 operators (notified in Slovenia) that are capable to cover teritory of R Slovenia with FWA service. In cooperation with foreign investors, agency estimates there will be about 20 bidders. The radio frequency spectrum is a limited natural resource: The potential investors must get licence for efficient use of radio frequency spectrum Analyses, estimations, requirements … PUBLIC TENDER (10.03.2006) for 2 of 4 available frequency bands The Public tender : The Public tender The subject of tender: Two assigments of radiofrequency subbands for FWS for the period of 10 years (territory of the republic of Slovenia) Radio frequencies: 2 of 4 sub bands: (3.431 – 3.452 MHz) / (3.531-3.552 MHz) (3.473 – 3.494 MHz) / (3.573-3.594 MHz) Requirements: The bidder must offer the services in 3 years from the date of delivery of the licence in the area which covers at least 60% of population of the Republic Slovenia, among these, at least one third (1/3) in the rural area The bidder must offer roaming, passing over networks and interconnections between network providers The payment: The minimum fee for the efficient use of a limited natural resource amounts 40.000.000 SIT (1.666.917 EUR) Timing: Timing The Public tender: The deadline for offers: Agency has to decide on the offers in 8 months from the deadline for the offers: The bidder must offer the services in 3 years from the delivery of the licence: 10.03.2006 08.06.2006 08.02.2007 08.02.2010 Conclusion : Conclusion The main goals of the regulation: Market analyses and appropriate remedies to encourage and give opportnities other licenced operators to enter the (competitive) e-communication market. Encourage and support potential investors (and operators) to invest in e-communication, to create new markets through the development of interactive and multimedia applications and services Slide16: Thank you for your attention
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