ANACOM assesses the market on ''Naked DSL''


ANACOM - Autoridade Nacional de Comunicações (National Communications Authority) has decided to assess the market to determine whether there is any interest in a wholesale ''Naked DSL'' offer (NDSL), a wholesale offer that enables the provision of an ADSL service to the end-user, who is not required to engage or maintain a fixed telephone service. The public consultation will run until 23 May.

Being incumbent upon ANACOM to protect the interests of citizens and to ensure that users derive maximum benefit as regards choice, price, and quality, it is clear that measures that promote the reduction of total costs borne by the end user in the scope of broadband Internet access, such as NDSL, shall affect the penetration of this service, contributing towards the development of the market, social inclusion and welfare, and allowing people who wish to enjoy broadband Internet access services, but who choose not to, as they are not interested in FTS and/or are not willing to pay the monthly charge for that service, namely in areas not covered by the local loop unbundling, to do so.

The NDSL (Naked DSL) will contribute towards the increase of competition, as operators are provided with more choice and flexibility alternatives to develop their retail offers, which may lead to winning back, attracting or maintaining customers with a potential interest in broadband Internet access services, but do not wish to enjoy a fixed telephone service. It will also enable innovation by promoting conditions that favour fixed and mobile communications packages (increasing the potential of MVNO market at national level) and triple or quadruple play, which shall ultimately contribute towards the promotion of penetration of broadband Internet access services in Portugal.

It is true that operators may nowadays provide the end-user with broadband Internet access services without requiring of the latter the engagement of PTC's fixed telephone service. The end-user must invest on its own network or resort to the Local Loop Unbundling. However, there are geographical areas, outside major cities and coastlines, where network investment and local loop unbundling are not economically efficient. The NDSL will overcome these difficulties, promoting a broadband offer in conditions other than those currently provided for.

The provision of a wholesale NDSL service does not give rise to significant questions of a technical or operational nature. This service is to be provided together with the ''PT ADSL Network'' offer, and in all cases, the incumbent operator shall be due payment for the incurred local loop/subscriber line costs.

Overall, it is deemed that the NDSL implementation in Portugal will bring about benefits to end users, who may subscribe broadband Internet access services at lower costs, in case they do not wish to enjoy a fixed telephone service; to alternative operators, who are granted a new option as regards the provision of retail services; and possibly to PTC, who will likely expand the market and maintain or attract users and additional revenues.

Following regulatory intervention or the initiative of incumbent operators, the NDSL has been determined and/or has been made available in several Member-States, such as Austria, Belgium, Denmark, France, Ireland, Italy, the Netherlands, Sweden or the United Kingdom.


Consult: