Communication to the European Commission and other National Regulatory Authorities (‘NRAs’) of intended measures under Article 7(3) of the Framework Directive (Directive 2002/21/EC)
1. OFCOM is proposing to make modifications to an SMP services condition currently applying to BT, and to set a new SMP services condition on BT, for the purposes of regulating the charges BT may require from interconnecting communications providers for:
(a) policy, product management and planning (PPP) costs associated with providing interconnection services; and
(b) interconnection circuits.
2. These proposals are supplementary to the market analysis procedure and significant market power assessment undertaken by OFCOM (or, previously, the Director General of Telecommunications) in accordance with Article 16 of Directive 2002/21/EC for:
(a) the fixed narrowband wholesale exchange line, call origination, conveyance and transit marketsreview(Ref: UK/2003/0011-16); and
(b) the fixed geographic call termination review (Ref: UK/2003/0003)
and concern the setting of further remedies based on the outcomes of those market reviews.
3. OFCOM hereby notifies the European Commission and other NRAs of its intended measures in accordance with Article 7(3) of Directive 2002/21/EC. OFCOM’s proposed findings and measures are set out in the attached Summary Notification form and full details are set out in the attached Explanatory Statement.
5. OFCOM is also conducting a national consultation under Art 6 of Directive 2002/21/EC at the same time.
6. Responses to this consultation are invited and may be sent to Sheira Hamilton, International Policy Advisor, Ofcom at by 5 July 2004.
Stephen Unger
Ofcom
4 June 2004
Summary Notification Form
The proposed modifications to the SMP services condition AA4 and the new SMP services condition, as set out below, are made by reference to the following markets:
- call origination on fixed public narrowband networks;
- local-tandem conveyance and transit on fixed public narrowband networks;
- inter-tandem conveyance and transit on fixed public narrowband networks;
- single transit on fixed public narrowband networks; and
- fixed geographic call termination provided by BT.
These markets were defined and SMP designations made in the following reviews:
- the fixed narrowband wholesale exchange line, call origination, conveyance and transit marketsreview(Ref: UK/2003/0011-16); and
- the fixed geographic call termination review (Ref: UK/2003/0003).
Ofcom is not proposing to amend the market definitions and SMP designations as set out in these reviews.
1.Market definition
Please state where applicable:-
1.1 The affected relevant product/service market. Is this market mentioned in the Recommendation on relevant markets? /- call origination on fixed public narrowband networks;
- local-tandem conveyance and transit on fixed public narrowband networks;
- inter-tandem conveyance and transit on fixed public narrowband networks;
- single transit on fixed public narrowband networks; and
- fixed geographic call termination provided by BT.
1.2 The affected relevant geographic market / UK excluding the Hull Area. See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
1.3 A brief summary of the opinion of the National Competition Authority where provided. / n/a
1.4 A brief overview of the results of the public consultation to date on the proposed market definition (for example, how many comments were received, which respondents agreed with the proposed market definition, which respondents disagreed with it) / See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
1.5 Where the defined relevant market is different from those listed in the Recommendation on relevant markets, a summary of the main reasons which justified the proposed market definition by reference to Section 2 of the Commission’s Guidelines on the definition of the relevant market and the assessment of significant market power[1], and the three main criteria mentioned in Recitals (9) to (16) of the Recommendation on relevant markets and Section 3.2 of the accompanying Explanatory Memorandum[2]. / See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
- Designation of undertakings with SMP
Please state where applicable:-
2.1 The name(s) of the undertaking(s) designated as having individually or jointly significant market power.Where applicable, the name(s) of the undertaking(s) which is (are) considered to no longer have significant market power. / BT. See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
2.2 The criteria relied upon for deciding to designate or not an undertaking as having individually or jointly with others significant market power / See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
2.3 The name of the main undertakings (competitors) present / active in the relevant market / See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
2.4 The market shares of the undertakings mentioned above and the basis of their calculation (e.g., turnover, number of subscribers) / See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
Please provide a brief summary of:-
2.5 The opinion of the national competition authority where provided. / n/a2.6 The results of the public consultation to date on the proposed designation(s) as undertaking(s) having significant market power (e.g., total number of comments received, numbers agreeing/disagreeing) / See above and previous notifications UK/2003/0011-16 and UK/2003/0003.
- Regulatory obligations
Please state where applicable (for 3.2. and 3.3, it is sufficient to refer to the relevant section of the full notification):-
3.1 The legal basis for the obligations to be imposed, maintained, amended or withdrawn (Articles 9 to 13 of Directive 2002/19/EC (Access Directive)) / Pursuant to Article 13 of the Access Directive, the following charge controls are proposed:- modifications to current SMP services condition AA4 in respect of the current charge control for PPP FRIACO; and
- the setting of a new SMP services condition (PA1) which imposes a charge control on PPP ppm and interconnection circuits.
3.2 The reasons for which the imposition, maintenance or amendment of obligations on undertakings is considered proportional and justified in the light of the objectives laid down in Article 8 of Directive 2002/21/EC (Framework Directive). Alternatively, indicate the paragraphs, sections or pages of the draft measure where such information is to be found / The reasons are set out in Sections 6 and 7 of the attached consultation document.
3.3 If the remedies proposed are other than those set out in Articles 9 to 13 of Directive 2002/19/EC (Access Directive), please indicate which are the «exceptional circumstances» within the meaning of Article 8 (3) of thereof which justify the imposition of such remedies. Alternatively, indicate the paragraphs, sections or pages of the draft measure where such information is to be found / n/a
- Compliance with international obligations
In relation to the third intend of the first subparagraph of paragraph 3 of Article 8 of Directive 2002/19/EC (Access Directive), please state where applicable:-
4.1 Whether the proposed draft measure intends to impose, amend or withdraw obligations on market players as provided for in Article 8(5) of Directive 2002/19/EC (Access Directive) / n/a4.2 The name(s) of the undertaking(s) concerned / n/a
4.3 Which are the international commitments entered by the Community and its Member States that need to be respected / n/a
[1]Commission guidelines on market analysis and the assessment of significant market power under the Community regulatory framework for electronic communications and services, OJ C 165, 11.7.2002, p.6
[2]Commission Recommendation of 11.2.2003 on Relevant Product and Service Markets within the electronic communications sector susceptible to ex ante regulation in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communication networks and services, C (2003)497