Remarks of the European Commission to the notifications of ANACOM

Published on 11.10.2004

The European Commission has made known its remarks to the notifications submitted by ANACOM on 21 July, regarding the imposition of obligations in the area of narrowband retail markets and in wholesale markets for call origination and termination in the public telephone network at a fixed location. These remarks concern mainly the wholesale line rental (SLRO - subscriber line resale offer) and the asymmetrical application of remedial action.

The Commission has generally agreed that the SLRO may be a good solution as regards the combat against the lack of competition in the relevant retail markets, taking also the view that the need of market parties to depend on inputs such as the SLRO shall decrease over time, as the investment in their network infrastructure increases. On the other hand, the Commission has restated that obligations imposed pursuant to the Access Directive (Directive 2002/19/EC of the European Parliament and of the Council, of 7 March) shall be based on the nature of the problem identified and be proportionate and justified.

The Commission referred also that ANACOM shall follow closely the development of cost structures of operators upon whom the obligation of charging “fair and reasonable prices” is imposed and assess whether their present criteria for the determination of such prices remain appropriate in the course of the period of market analysis.

According to the European Commission, ANACOM shall have in consideration these remarks as well as other comments submitted by national regulatory authorities of other Member States, and is empowered to adopt the subsequent draft measure and to notify the Commission thereof at a later stage.

In parallel, the consultation concerning the obligations in the referred markets, launched by ANACOM last June, came to an end on the 10th September.