Under ANACOM’s decision on the analysis of the wholesale market for high-quality electronic communications at a fixed location (access and trunk segments)1, published on 01.09.2016, MEO was required to amend LLRO2 and RELLO3, within 30 days, and to publish a new Ethernet offer at layer 2 of the OSI model (or adapted RELLO offer), within 90 days from notification of the final decision.
In summary, according to that decision:
(a) Obligations on terminating segments of leased lines in C Routes are withdrawn, following a transitional period of 18 months.
(b) Obligations on trunk segments in new C Routes are withdrawn following a transitional period of 6 months.
(c) Obligations on analogue lines and on new requests for digital lines in the scope of LLRO with higher speed (34 Mbps and 155 Mbps) are immediately withdrawn4.
(d) The obligation to establish cost-oriented prices is withdrawn in CNC Areas5, although the price control obligation is maintained in these areas6.
(e) MEO is required to amend RELLO within 30 calendar days, defining prices of non-secured Ethernet MAM and inter-island lines and of lines for access to international submarine cables (backhaul) as specified in the referred analysis7.
(f) MEO is required to decrease by at least 66% the price of MAM lines up to 2 Mbps, inclusively, provided in the scope of LLRO, within 30 calendar days.
(g) MEO is required to publish a new fibre-based Ethernet offer at layer 2 of the OSI model8 with limited contention and with symmetric or asymmetric speed (namely including accesses at 10 Mbps, 100 Mbps e 1 Gbps, on the downstream, in the case of asymmetric accesses), and allowing local and central access, within 90 calendar days from notification of the final decision on the referred market analysis, according to obligations imposed, including (cost-oriented) prices of high-quality access in NC Areas9, and with the negotiation of technical conditions with operators who have expressed visible interest.
In conformity therewith, MEO:
(a) Published new versions of LLRO and RELLO10.
(b) Submitted to ANACOM, on 03.10.2016, a proposal of prices applying to LLRO and RELLO for the backhaul line service, as well as the respective grounds.
(c) Published11 a new RELLO version12 that integrates a new layer 2 Ethernet connectivity service.
Meanwhile, ONI, by letter of 04.10.2016, informed ANACOM of the contribution sent to MEO which included technical and operational proposals for the definition of the fibre-based layer 2 Ethernet offer.
In 2014, ONI13 and Vodafone14 had already submitted to ANACOM proposals for amendments to, among other offers, LLRO and RELLO, having Vodafone restated these proposals in 201515, and insisted on these same proposals in 2016, in the scope of the response to the public consultation to the Analysis of Market 416. On its turn, NOS submitted to ANACOM, in 2012 and 2013, its main concerns as far as wholesale line offers are concerned17.
Without prejudice to the above-mentioned proposals, on 24.10.2016, ANACOM sought, from all beneficiaries of LLRO and RELLO, specific proposals for improvement of the referred offers, duly substantiated in the light of the drop in demand for leased lines which has been registered, and of the fact that such demand is more meaningful in remote and/or less densely populated areas, indicating whether such proposals had already been negotiated with MEO. ANACOM received responses18 from:
(a) AR Telecom, which informed that letters had been exchanged with MEO on contributions for the wholesale layer 2 Ethernet offer.
(b) ONI, which informed that most proposals for amendments to LLRO and RELLO submitted in January 2014 remain valid, except for some specific proposals for which the respective revision was submitted.
(c) VODAFONE informed that none of the amendments introduced by MEO to LLRO and RELLO includes changes required to provide the market with greater competitiveness and improved operational efficiency of use, thus it fully restated the proposals for amendments to LLRO and RELLO submitted in September 2014 to ANACOM.
(d) NOS considered ANACOM’s initiative to promote the update of LLRO and RELLO to be positive, and submitted its contributions for analysis in the scope of the revision of those offers.
By determination of 23.03.2017, ANACOM decided to submit the draft decision19 on amendments to LLRO and RELLO to the prior hearing of stakeholders and to the general consultation procedure, which ran up to 04.05.201720. Comments received, the respective analysis and grounds for the decision are set out in the “Report of the public consultation and prior hearing on amendments to the Leased Lines Reference Offer (LLRO) and Reference Ethernet Leased Lines Offer (RELLO)”, which is deemed to be an integral part hereof.
The draft final decision was notified on 01.09.2017 to the Commission, BEREC and NRA of other Member States, under paragraph 1 of article 57 of ECL and for the purpose of article 7 of the Framework Directive. On 12.09.2017, the Commission sent a request for information to ANACOM, which was replied to on 15.09.2017. Finally, under paragraph 3 of article 7 of the Framework Directive, on 28.09.2017, the Commission reported that, having examined notifications, it had no comments, thus the Authority was entitled to approve the draft decision.
This document analyses the most recent versions of LLRO and RELLO, bearing in mind the proposals made by stakeholders, as well as the responses submitted in the scope of the prior hearing.
1 Referred to as Market 4 in Commission Recommendation of October 2014 on relevant product and service markets within the electronic communications sector susceptible to ex ante regulation. This decision is hereinafter referred to as 'Analysis of Market 4'. Vide Final decision of 01.09.2016https://www.anacom.pt/render.jsp?contentId=1395261.
2 Leased Lines Reference Offer - version 19.
3 Reference Ethernet Leased Lines Offer - version 14.
4 Except for lines for access to international submarine cables.
5 Currently Not-Competitive Areas.
6 MEO not being allowed to define wholesale prices that lead to a margin squeeze on the downstream.
7 MEO is also required to submit to ANACOM, within the same deadline, grounds for prices of lines for access to international submarine cables.
8 Or to adapt RELLO so as to include that service.
9 And to submit to ANACOM grounds for these prices within the same deadline.
10 On 03.10.2016 at its wholesale portal.
11 On 02.12.2016 at its wholesale portal.
12 Version 15.
13 By letter of 15.01.2014, with reference 004/ GRL/2014.
14 By letter of 15.09.2014 with reference 20140915_Alt_OR.
15 By letter of 16.12.2015, with reference 20150409_Alt_OR_II.
16 Vide
17 By letters of 01.10.2012 and 24.04.2013.
18 All responses were received by email of 15.11.2016, except for NOS' response which was received on 07.12.2016.
19 Vide Consultation on amendments to the LLRO and the RELLOhttps://www.anacom.pt/render.jsp?contentId=1409126.
20 On 20.04.2017, and at the request of stakeholders, ANACOM determined an extension by 5 working days to the period for sending comments in the scope of the prior hearing and consultation to which the DD had been submitted.
