Notification of a Draft Measure Pursuant to Article 7, para. 3, of the Framework Directive 2002/21/EC

SUMMARY

of Public Utilities Commission

Draft Decision concerning

Call termination on individual public telephone networks provided at a fixed location

(„Market 3”)

Section 1

Market definition

1.1 Relevant product / service market

1) Call termination on individual public telephone networks provided at a fixed location. This market has been included in the Commission’s recommendation on relevant markets as market no.3.

1.2 Relevant geographic market

The relevant geographic market for the above mentioned market is the territory of the Republic of Latvia.

1.3 Summary of the opinion of the Latvian Competition Authority

National competition authority – the Competition Council – concludes that it fully supports the market definition (letter of Competition Council enclosed)

1.4 Results of the public consultation

Public Utilities Commission received two submissions from network operators (SIA “Lattelecom”, SIA “Latvijas Mobilais Telefons”).

Operators have submitted comments about the consultation document (letters with comments and Public Utilities Commission’s response enclosed).

1.5 Defined relevant market different from those listed in the Recommendation on relevant markets

The market has been included in the Commission’s recommendation on relevant markets.

Section 2

Designation of Undertakings with SMP

2.1 Undertaking(s) designated as having SMP

1) Altogether 42 undertakings are designated as operators having SMP in the call termination on individual public telephone networks provided at a fixed location market - market 3. In this round of market analysis 12 new undertakings are designated as operators having SMP in market 3 and 10 undertakings have had their designation as operators having SMP in market 3 withdrawn.

SMP operators in market 3:

AD Forte
Advem
Amber Telecom
AUGSTCELTNE
BALTCOM TV
BALTICOM
CSC TELECOM
Datagrupa.lv
DATU TEHNOLOĢIJU GRUPA
DAUTKOM TV
D-COM
ECO Networks
Fastnets
Fixed Lines
iLink
INTELLICA
INTERNETA PASAULE
IT GROUP
IZZI
Lattelecom
Latvenergo
Latvijas dzelzceļš
Latvijas Mobilais Telefons
MEGATEL
MPE NETS
MWTV
OPTRON
PREMIATEL
Radio Telecommunications Network
Rigatta
SIGIS
Smart Telecom
SOTUS
Stream Networks
TELEGLOBAL
Telegrupa Baltijā
Telekom Baltija
Telenet
Telia Latvija
TG Transit
Tivi
UNISTARS

2.2 Criteria for SMP designation

·  Significant size of the undertaking

·  Market shares

·  Barriers to market entry

·  Lack or low level of countervailing buying power

2.3 Main undertakings (competitors) present / active in the relevant market

SIA Lattelecom

SIA Baltcom TV

SIA CSC Telecom

VAS Latvijas Dzelzceļš

AS Telekom Baltija

2.4 Market shares of the undertakings

SIA Lattelecom >70%

SIA Baltcom TV <10%

SIA CSC Telecom <5%

VAS Latvijas Dzelzceļš <5%

AS Telekom Baltija <5%

2.5 Opinion of the National Competition Authority

National competition authority – the Competition Council – concludes that it fully supports results of market analysis (letter of Competition Council enclosed)

2.6 Results of the public consultation

Public Utilities Commission received two submissions from network operators (SIA “Lattelecom”, SIA “Latvijas Mobilais Telefons”).

Operators have submitted comments about the consultation document (letters with comments and Public Utilities Commission’s response enclosed).

Section 3

Regulatory obligations

3.1 Legal basis for the obligations

The following obligations are proposed:

Markets 3)

SIA “Lattelecom”

• Obligations of access to, and use of, specific network facilities and services (Art. 12, Access Directive)

• Obligation of non-discrimination (Article 10, Access Directive)

• Transparency Obligation (Article 9, Access Directive): requirement to publish reference offers for call termination on own fixed network

• Price control and cost accounting obligations (Article 13, Access Directive)

• Obligation of accounting separation (Article 13, Access Directive)

All other undertakings

• Obligations of access to, and use of, specific network facilities and services (Art. 12, Access Directive)

• Transparency Obligation (Article 9, Access Directive): requirement to publish tariffs for call termination on own fixed network

• Price control obligations (Article 13, Access Directive)

3.2 Reasons for the imposition, amendment or withdrawal of obligations

See chapters 7 & 8 of the draft notifications.

3.3 Exceptional circumstances

Not applicable

Section 4

Compliance with international obligations

4.1 Imposition, amendment or withdrawal of obligations provided for in Article 8(5) of Directive 2002/19/EC (Access Directive)

Not applicable

4.2 Name(s) of undertaking(s) concerned

Not applicable

4.3 International commitments that need to be respected

Not applicable