Currently, the target for the time taken to repair faults defined in the RUO is as follows:
|
Indicator |
Objective |
Occurrence |
|
Maximum time for repair of loops (1) |
10 working hours |
90% of best observations |
(1) Time, in working hours, elapsing from the moment that the occurrence of a valid fault is reported until full restoration of the service. In the repairs of faults scheduled with the OSP, the scheduled date/time will be used as the basis for calculating the time.
For this indicator elapsed time which is attributable to the client will not be counted, referred to as ''client-related delay''. Faults whose causes are attributed to the client will not be included in this indicator. This indicator is calculated on a quarterly basis.
ICP-ANACOM, in line with the position advocated by the ERG 1, examines the suitability of the levels of quality of wholesale service, in particular taking into account:
(a) Retail services based on LLU and the needs of end-users;
(b) The objectives of quality of service reported by the companies of Grupo PT at retail level; and
(c) The objectives of quality of service established in the relevant wholesale offers.
Where relevant, the performance of PTC with respect to the various services mentioned above will also be taken into account.
Retail services based on the LLU and needs of end-users
The provision of retail services based on LLU began with voice services and broadband Internet access.
With the introduction of the IP-TV service in LLU-based retail offers, there was a significant increase in demand by end-users regarding the time taken for the repair of faults. This is because, on the one hand, since the television service is typically included in a bundle of services, the number of services provided increases and, on the other because of the social, cultural, educational and informative ends of the television activity itself 2.
Additionally, the provision of services to the business market and to the company itself represents an increase in demand compared to the provision of services to the residential market. This additional demand is especially significant, for example, in the provision of leased lines services over unbundled local loops.
It is concluded that the needs of various market players in relation to quality of service in the repair of faults in retail services based on the LLU have evolved with a significantly increased level of demand, whereby it is appropriate that wholesale conditions accompany this evolution.
Objectives of quality reported by the companies of Grupo PT at retail level
So that OSPs are able to compete at retail level with the SMP operator, the times taken to repair guaranteed services at wholesale level should be less than or equal to those guaranteed at retail level. This is because the time required for interaction between the beneficiary operator and the wholesale supplier must be added to the time guaranteed by the wholesale supplier. In certain services, additional activities, usually related to the preparation and final activation of the retail service, may also be necessary.
The companies of Grupo PT provide different types of services that can be used as a reference for the purposes of the present analysis.
In particular:
(a) The Fixed Telephone Service (FTS);
(b) The broadband Internet access service; and
(c) The IP-TV (Meo) service.
Relevant information on the levels of quality of service with respect to the repair of faults established and the practice of the companies of Grupo PT is available in Appendix 1.
Fixed telephone service
The repair times of the FTS (i.e., of the local loop provided by PTC at retail level) impact, from the outset, all supported services, including broadband and television (IP-TV) services. This is with the assumption that internally PTC does not have more demanding repair targets for loops that support broadband and television services compared to other loops.
With this premise, faults affecting the local loop will affect all services supported on it. Faults that affect only broadband services (e.g., malfunction of DSLAM equipment) can not be used as a benchmark for the times taken to repair faults in the local loop, since these services are not comparable 3.
From the information set out in Appendix 2 it can be seen that, in 2008, the figures calculated by PTC for the time taken to repair faults on the local access network were 74 and 139 hours elapsing respectively for the 80% and 95% percentile of the fastest repairs. The targets established for 2008 were 72 and 165 hours elapsing, respectively, for the 80% and 95% percentiles of the fastest repairs.
A direct comparison of these calculated values or targets and the targets currently established in the RUO is not immediate, since the percentiles 4, the notion of hours 5 and the methods of calculation 6 are different.
Even with all the limitations inherent in the estimation that follows, if it is assumed that the times taken to repair faults follow a lognormal distribution over the two times mentioned above (targets), it is estimated, in a rudimentary manner, that the average of this function for 90% of the cases is about 33 hours elapsing. If we assume that, on average, the number of hours elapsing in a week is about 4.2 times the number of working hours, then 33 hours elapsing is the equivalent to about 8 working hours. This value is similar, but less than, the target set in the RUO of 10 working hours, on average, for 90% of cases.
These levels of service will always be the minimum to be guaranteed, since PTC they are binding upon PTC pursuant to the universal service.
In any case it is natural that for certain some loops, particularly those with a greater number of associated services, there is greater incentive to make repairs more quickly.
Broadband Internet access and IP-TV service
As retail services based on LLU constitute, almost in their entirety, products which combine the voice service and the broadband Internet access service, and also increasingly, the IP-TV service, it is necessary to take account of the quality of service associated with the broadband Internet access services and with the Meo bundle (voice, broadband Internet and IP-TV).
The only values identified for this service are those given by PTC through its customer support line (16200).
For both services, the information given is that faults are repaired within a period of 48 elapsed hours (whereas it is not mentioned whether this is the average period or a period that is guaranteed in all situations - i.e. the maximum period in 100% of cases).
Accordingly, with regard to the retail services of PT that could serve as a reference in terms of quality of service, the following levels are found:
|
Service |
Target |
Measurement |
Percentage of |
Measurement |
|
Fixed telephone |
71 hours |
Consecutive |
80% of the |
Maximum |
|
162 hours |
95% of the |
Maximum |
||
|
Internet access |
48 hours |
Consecutive |
Not mentioned |
Not |
Leased circuits service
Since the LLU can also support leased circuits offers (including through SHDSL technology), this could also provide a reference, in theory, for the quality of service in the repair of faults in the leased circuits at retail level guaranteed by the companies of Grupo PT.
However, this reference is not the most appropriate since the provision of leased circuits by the companies of Grupo PT is mainly supported using PDH/SDH technologies with their own management and alarm systems, whereby it is not comparable with the provision of leased circuits over unbundled loops.
Quality of service targets defined in the relevant wholesale offers
The levels of quality of service defined at wholesale level are presented in Appendix 3.
RUO
Analyzing the performance of PTC in the provision of the LLU fault repair service, it is concluded that the practised level of quality of service is currently significantly higher than the quality of service target defined in the RUO.
Graph 1. Time taken in the repair of faults on the local loop - target level and performance (both are average values for 90% of cases)
According to the above conclusion, it is possible to improve the base level of quality and introduce premium levels of quality without this entailing a disproportionate burden for PTC. It is noted that any reduction in repair times for faults in this context constitutes no more than a better adaptation of the target to practice.
Rede ADSL PT
The target for the "standard" level of the "Rede ADSL PT" offer is 8 working hours, on average, for 100% of cases.
Again, this target is not directly comparable with the target of the RUO, since for "Rede ADSL PT" 100% cases are considered, whereas only 90% of cases are considered for the RUO. It is also noted "Rede ADSL PT" comprises a larger number of network elements which are the responsibility of PTC, in addition to the local loop, whereby some faults occurring on these network elements may be resolved more quickly.
Graph 2. Deadline for the repair of faults with respect to the ''Rede ADSL PT'' offer - target level and performance (both are average values for 100% of cases)
The "Rede ADSL PT" offer also establishes a maximum time for the repair of faults for 95% of cases, which is 28 working hours.
It is considered that the standard target for repairing faults established in the wholesale "Rede ADSL PT" offer constitutes an important reference to be considered by this Authority with respect to the redefinition of the standard target for the repair of faults for the LLU. This is because, in fact, the beneficiaries of the RUO compete at retail, taking into account the times for the repair of faults provided by PTC under this offer (albeit that PTC has not made internal use of the "Rede ADSL PT" offer for the provision of retail broadband services 7).
A particular aspect of the "Rede ADSL PT" offer is that PTC, on its own initiative, introduced 8 ''premium'' levels of service in this offer, setting an additional price for the OSP to be able to enjoy these levels of service.
That is, PTC itself considered that, taking the needs of end-users into account, the definition of ''premium'' levels of service was merited and would respond to the needs of users who are more demanding in terms of quality.
In this regard, the ERG argues that ''Different levels of service should be available, to reflect differences in customer demand'' and that ''there should be assurance that access products will be of reasonable quality and that service levels (e.g. connection times, repair times) will be reasonable and/or comparable with that provided to SMP player's own business'' 9.
In addition to a ''premium'' SLA, it is recognised that the existence of an Urgent SLA, as suggested by a number of OSPs, would ensure greater flexibility for the OSPs in dealing with certain faults 10, whereas the daily or weekly limits for urgent repair requests could reduce the demands and unpredictability faced by PTC.
The main distinction between a "premium" SLA and an Urgent SLA is that in the former the loops are identified a priori (i.e. there is a set of "premium" loops for which the beneficiary incurs an additional monthly fee to qualify for a higher level of quality) and, in the second, the loops are identified on a case by case basis, and at the time of failure, whereas the operator is charged a fee per intervention for ensuring that this intervention occurs within a shorter period of time.
Different levels of quality of service can be contracted and since it is possible that the quality of service of a loop can vary over time (e.g. the client may become more demanding or could subscribe to more services) a procedure should be available that allows an operator to indicate/change the level of quality to be applied to each loop. This procedure should be efficient and allow the point in time from which a specific level of quality of service is activated or deactivated to be clearly identifiable. It is only in this way that it will be possible to properly record the quality of service actually provided and the respective fee to be charged. In this respect, the "Rede ADSL PT" offer established the process of the MAX8HU and MAX12HL levels of service. The procedure to be adopted regarding the LLU should be as efficient as possible, at a minimum ensuring the efficiency of the procedure already in place under the "Rede ADSL PT" offer.
LLRO
Furthermore, with respect to the repair of faults, in the leased lines service of Grupo PT, a maximum time for the repair of leased lines (end-to-end and partial) is established for "standard contracts". This time is set at 6 consecutive hours for 80% of the best observations occurring each month. The targets for contracts covering the so-called "Grande Rede de Circuitos" (Large line network) are 4 and 12 consecutive hours respectively for 90% and 98% of occurrences.
However, as noted in relation to the retail offer, the use of the provisions of the LLRO as a reference for defining quality of service targets in the RUO may not be wholly appropriate, since the leased line service of the LLRO is mainly supported using PDH/SDH technologies with its own management and alarm systems, whereby it is not comparable with the provision of leased lines supported on unbundled loops.
Conclusion on the quality of service targets with respect to the repair of faults defined in the wholesale offers
In conclusion, and with regard to wholesale offers, the current quality of service targets are summarized in the following table:
|
Service |
Indicator |
Target level |
Comments |
|
LLU |
Time taken to |
10 working |
Average time for |
|
''Rede ADSL PT'' |
Restoration of |
8 working |
Average time for |
|
28 working |
Maximum time for |
||
|
Restoration of |
4 working |
Average time for |
|
|
8 working |
Maximum time for |
||
|
Restoration of |
6 consecutive |
Average time for |
|
|
12 consecutive |
Maximum time for |
||
|
LLRO (Base) |
Repair of |
6 consecutive |
Maximum time for |
|
LLRO |
Repair of |
4 consecutive |
Maximum time for |
|
12 consecutive |
Maximum time for |
Conclusion on the time taken to repair loops and implementation of premium levels
Although the quality of service levels of the different wholesale offers are not wholly and clearly comparable, the position is taken that, as the offer which most equates with the LLU in terms of retail products, the ''Rede ADSL PT'' offer should be used as a reference.
This offer establishes the following repair targets:
|
Service |
Defined level |
||
|
Normal |
MAX8HU |
MAX12HL |
|
|
Average time to repair faults (100% of occurrences) |
8 working |
4 working |
6 consecutive |
|
Maximum time to repair faults (95% of occurrences) |
28 working |
8 working |
12 consecutive |
The level currently established in the RUO of, on average, 10 working hours for 90% of occurrences is therefore clearly below the levels of the ''Rede ADSL PT" offer. Furthermore, as shown above, the performance levels actually presented by PTC for the RUO are significantly below the targets defined for the RUO. That is, the "Rede ADSL PT" offer constitutes a good reference for service levels, also allowing better approximation to the fault repair targets of the leased lines services and to the targets reported by PTC at retail level for broadband and Meo services. The targets of the "Rede ADSL PT" offer also have values which are comparable with the performance recorded in 2008 on the local network of the universal service provider (measured in consecutive hours). The times compare well in European terms, while it is noted that for both the normal service and the premium services, it was not considered necessary at this stage to establish maximum limits for 100% of cases, given the large number of situations involved and the operational reality. It is noted that in the United Kingdom, despite maximum values being stipulated in SLA, right to compensation is provided only in the event that there is failure to comply with the maximum values established (40 working hours for the normal level) in more than 5% of cases and in France compensation is only applied where there is failure to comply with the normal level in the best 85% of occurrences (maximum time is two working days, representing around 26 working hours). However, as good practice, the ERG recommends repair times of less than two working days 11 (without details given on whether maximum periods are used or if the entirety of occurrences are considered).
While there is certainly little incentive for PTC to extend the maximum period, given that these included in the average indicator, ICP-ANACOM will monitor such situations and PTC shall provide quarterly reports to this Authority on the maximum values recorded, in order to assess the need for specific action in this respect.
Consideration must also be given to the fact that there are clients and services with different needs in terms of availability and service restoration times, whereas less demanding clients should not be unduly burdened, whereby the introduction of premium services in the wholesale offers and, in particular, in the RUO, is deemed an appropriate solution to meet the different market requirements.
On the other hand, it is necessary to determine at this stage, maximum absolute value (for 100% of occurrences) given that the compensation scheme set forth and described below provides an incentive to avoid occurrences of very lengthy restoration time, since these are also reported in the average values, whereas in such situations operators may make use of the Urgent service (by intervention), as proposed below.
Accordingly, the repair targets set out in the "Rede ADSL PT" offer, including the premium levels of quality of service, should be included in the RUO, taking into account the needs of the market resulting from the introduction of broadband and IP-TV services in "triple-play" offers, with the requirements for service availability and resolution of faults which are far more demanding than those of conventional services. This certainly will be intensified with the development of NGA and cable distribution networks, with which LLU-based services will still have to compete within the limits permitted by the various applicable technologies. Moreover, at an enterprise level, account must be taken of the possibility of technological solutions based on LLU and the provision of leased lines and VPN services, likewise with other levels of demand.
It is recognised that a deadline is required for the implementation in the RUO of the quality levels established in "Rede ADSL PT" offer, including premium levels of service, whereby it is considered that a period of 3 months will be appropriate for the development and implementation associated with the modification of the IS supporting these offers.
With respect to prices, the position is taken that any differences between the additional prices applicable to the premium level in the RUO and those applicable under the "Rede ADSL PT" offer, should be duly justified in detail, including through a comparison between the costs of both offers and any additional activities or resources required of PTC in order to provide a similar level of quality.
It is noted that as good practice the ERG presents 12 consideration for the premium service of a maximum fault repair time of 8 working hours, although Spain and France makes services available with maximum time limits of 6 and 4 working hours, albeit with significantly higher costs than those provided for under the "Rede ADSL PT" offer, of 13 and 8 Euros per month respectively.
The reference for pricing should also be taken from the "Rede ADSL PT" offer, whose prices are shown in the following table:
|
Service |
Defined level |
|
|
MAX8HU |
MAX12HL |
|
|
Additional monthly fee |
€ 2.50 |
€ 5.00 |
|
Additional activation |
€ 12.47 |
€ 12.47 |
It is also recognized that the existence of an Urgent SLA (deployable on a case by case basis) would ensure greater flexibility on the part of OSPs in the handling of faults 13, whereas maximum daily or weekly limits on requests for urgent repair services could reduce the demands and unpredictability which PTC would face in terms of the provision of resources.
In this case, the view is taken that PTC must submit the conditions and any limitations applicable to putting the urgent level of service into operation, as well as a pricing proposal with detailed reasoning, to ICP-ANACOM, in addition to the pricing and conditions to be applied for the implementation of this services and any alternatives which could help reduce the costs of implementing this solution.
On the other hand, different levels of quality of service may be associated with a single loop and it is possible that the quality of service of a given loop might vary over time, whereby a procedure must be provided enabling operators to indicate/change the level of quality that should be applied to each loop. This procedure should be efficient and should allow the point in time from which a specific level of quality of service is activated or deactivated to be clearly identifiable. It is only in this way that it will be possible to properly record the quality of service actually provided. In this regard, ICP-ANACOM notes that in the "Rede ADSL PT" offer service processes are defined for the MAX8HU and MAX12HL levels of service. The procedure to be adopted regarding the RUO should be as efficient as possible, at a minimum, ensuring the efficiency of the procedure already in place under the "Rede ADSL PT" offer. It is acceptable that a minimum period of implementation be stipulated, along with a minimum period of application to prevent OSPs from making successive amendments. 4 working days is deemed reasonable for the minimum period of implementation. A minimum duration of application of 3 months is also deemed reasonable given the nature of the service.
It is further clarified that the premium level of service should not be enacted for a loop that is faulty (i.e., in a process of fault resolution).
Considering the analysis undertaken and taking into account:
(a) The principle of proportionality;
(b) The conditions applied under the ''Rede ADSL PT'' offer and the universal service and the need to ensure consistency between the various available offers;
(c) The need to ensure that OSPs have greater flexibility for the different handling of faults;
(d) The proposals advanced, in the past, by the alternative operators and by APRITEL;
(e) Statistical RUO data relating to the performance in repairing faults; and
(f) The positions taken by the ERG on the subject,
and with respect to the loop repair times and the implementation of premium deadlines, the position is taken that:
D1. PTC shall reproduce the normal and premium levels of quality of service provided for in the "Rede ADSL PT" offer in the RUO, which levels shall be operational and available to beneficiaries of the offer within 2 months from the date of notification of this determination. This 2 month period is extendable by up to a further 2 months with detailed justification and where accepted by ICP-ANACOM. Any differences between the additional charges applicable to the premium level in the RUO and those applicable under the "Rede ADSL PT" offer shall be duly justified in detail, including through a comparison between the costs of both offers and any additional activities or resources required of PTC in order to provide a similar level of quality.
D2. PTC shall submit to ICP-ANACOM, within 30 working days, the conditions applicable to an urgent service, with targets at least equal to those of the premium service, but where the maximum time is applicable to 100% of the cases, payable per intervention, whereas detailed justification shall be provided to ICP-ANACOM with respect to the prices to be applied and to any limitations which PTC deems should be established with respect to the implementation of this service and possible ways of reducing the cost of implementing this solution.
D3. PTC shall set out a procedure in the RUO which enables operators to indicate/change the level of quality to be applied to each loop, which procedure should be efficient and allow the point of time from which a determined level of quality service is activated or deactivated to be clearly identifiable. This procedure shall be at least as efficient as that provided for in the corresponding levels in the "Rede ADSL PT" wholesale offer, whereby a minimum execution period of 3 working days is established, along with a minimum period of application of 3 months.
The premium level may not be enacted for a loop that is faulty (i.e., in a process of fault resolution).
1 The ERG considers that the quality of service associated with wholesale services is a key issue for the efficient functioning of wholesale and associated retail and argues that:
(a) The levels of quality of wholesale service, including the time taken to repair faults, should be defined to ensure the competitiveness of the retail offers of alternative offers compared to the offers of operators with (SMP);
(b) Where appropriate, different levels of quality of service should be defined for the repair of faults, to reflect the different needs of different segments of end-users;
(c) The premium level of quality should reflect the demand of the business market and should be available, where requested by alternative operators, in return for appropriate remuneration;
(d) Additional premium levels of quality should be available depending on the capacity and practice of the SMP operator and be at least equivalent to the levels provided by the retail companies/divisions of the SMP operator;
(e) Mechanisms should be established to provide appropriate compensation in the event that the quality of the wholesale service falls below established levels;
(f) Compensation should cover all situations of non-compliance, while the value of compensation should be linked to the required level of quality that is established.
(g) Access should be provided based on technical reasons which make commercial sense and which maximize competition in retail markets. This will imply that the SMP operator will not be allowed to define the forms of access in an arbitrary manner or with unreasonable restrictions that hamper access by third parties, and shall, instead, maximize competition.
See for example ''ERG common position on best practice in wholesale unbundled Access (including shared Access) remedies imposed as a consequence of a position of significant market power in the relevant market - ERG (06) 70 Rev1'' - or ''Report on ERG best practices on regulatory regimes in wholesale unbundled access and bitstream access''.
2 See article 9 of the Television Law (Law No 27/2007 of 30 July).
3 While the figures obtained by PTC for the time taken to repair faults on the local access network were 74 and 139 hours elapsing, respectively, for the 80% and 95% percentiles of the fastest repairs, in case of other faults, these values were, respectively, 47 and 108 hours elapsing, significantly lower - see Appendix 1.
4 In the case of the FTS, the percentiles are 80% and 95%. In the case of the RUO, the percentile is 90%.
5 In the case of the FTS, these are elapsed hours. In the case of the RUO, these are working hours.
6 In the case of the FTS, it is the maximum value. In the case of RUO, it is the average value.
7 This is a situation which in future could lead to further review of RUO targets, in particular regarding their calculation in terms of the times taken by PTC as a result of the implementation of determination of 11.03.2009 on the publication of the levels of performance in the quality of service (QoS) of wholesale offers - see Levels of performance in the quality of service of wholesale offershttps://www.anacom.pt/render.jsp?contentId=885299.
8 On 23.08.2005.
9 See document ''ERG (06) 70 Rev 1 Common position on Wholesale local access'' available at ERG (06) 70 Rev1http://berec.europa.eu/doc/publications/erg_06_70_rev1_wla_cp_6_june_07.pdf.
10 In particular where they intend to ensure a better quality of service to certain more demanding customers (e.g. large corporate customers).
11 See ''Report on ERG best practices on regulatory regimes in wholesale unbundled access and bitstream access'', available at ERG (07) 53 WLA WBA BP final 080604http://www.berec.europa.eu/doc/publications/erg_07_53_wla_wba_bp_final_080604.pdf.
12 Idem.
13 In particular where they intend to ensure a better quality of service to certain more demanding customers (e.g. large corporate customers).
