TELECOMMUNICATIONS : ULTRA-FAST MARKET NOT VERY COMPETITIVE, STUDY SAYS.
The absence of real openness of next generation access (NGA) networks to competition in most European countries could seriously jeopardise the European Commission's target for ultra-fast access for 2020, according to a study by WIK Consult, published on 6 March(1). The study reviews implementation of the Commission's September 2010 recommendation on "regulated access to next generation access networks"(2), which requires dominant firms to open up their networks to competitors.
It calls for much stricter application of this recommendation and highlights the need to reduce copper network access charges to promote investments in NGA networks. The Commission formulated this proposal in its recent consultation on cost methodologies for access to telecommunications networks, which is expected to result in a new recommendation. Defended by alternative operators (see box), the proposal angers the dominant operators, which call for a reasonable increase in these prices to restore investors' confidence.
The study, funded by the European Competitive Telecommunications Association (ECTA), more specifically assesses implementation of the NGA recommendation in 17 European countries.
The findings suggest that many approaches by regulators to access to networks based on FTTH (fibre-to-the-home) are not in line with the NGA recommendation. The study nonetheless notes that regulators have applied the recommendation more closely with regard to FTTN (fibre-to-the neighbourhood)/VDSL (use of copper) solutions.
But even though access obligations have been imposed, "wholesale access to NGA is not a market reality at present," reads the study.
This situation particularly hinders the development of competition on the very high-speed broadband market, at the expense of alternative operators. Although these operators are developing their own networks, the level of competition is far below the level observed...
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