SUMMARY NOTIFICATION FORM – MARKET 2(second edition of the Recommendation)

SECTION 1

Market definition

Please state where applicable:

1.1. The relevant product/service market. Is this market mentioned in the recommendation on relevant markets? /
  • Call origination on the public telephone network provided at a fixed location
The market is mentioned in the original Recommendation on relevant markets (market 8) and also in the amended version of the Recommendation (market 2). The first notification to the Commission was completed in December 2004 (cases PT/2004/0060).
1.2. The relevant geographic market; / The geographic market corresponds to the national territory.
1.3. A brief summary of the opinion of the national competition authority where provided; / The National Competition Authority has agreed with the draft market review and considers that the analysis is consistentwith competition law.
1.4. A brief overview of the results of the public consultation to date on the proposed market definition (e.g. how many comments were received, which respondents agreed with the proposed market definition, which respondents disagreed with it); /
  • Four entities answered the public consultation (three groups of operators and one consumer association).
All the respondents agreed, in general terms, with the proposed product market definition.Although not questioning the rational that led to it, GRUPO PT does not endorse ICP-ANACOM conclusion regarding specifically the substitutabilityanalysis on the direct access.
1.5. Where the relevant market is different from those listed in the Recommendation onrelevant markets, a summary of the main reasons justifying the proposed market definition byreference to Section 2 of the Commission guidelines on market analysis and the assessment ofsignificant market power under the Community regulatory framework for electroniccommunications and services[1], and the three main criteria mentioned in recitals 5 to 13 of theRecommendation on relevant markets and Section 2.2 of the accompanying ExplanatoryNote[2]. / Not applicable.

SECTION 2

Designation of undertakings with significant market power

Please state where applicable:

2.1. The name of the undertakings designated as having, individually or jointly, significantmarket power.
Where applicable, the name of the undertakings considered no longer to have significantmarket power. /
  • PT Group (PT Comunicações, S.A. and MEO – Serviços de Comunicações e Multimédia, S.A.)

2.2.The criteria used to designate an undertaking as having significant market power,individually or jointly, or not. /
  • Markets shares;
  • Price trends and pricing behaviour;
  • Barriers to entry;
  • Countervailing buyers’ power.

2.3. The name of the main undertakings (competitors) active in the relevant market. / ZON OPTIMUS SGPS, S.A. (formerZON TV Cabo Portugal, S.A. and Optimus, Comunicações, S.A., whichmergedinto NOS– Comunicações S.A.)
2.4. The market shares of the undertakings mentioned above and the basis for calculationof market share (e.g. turnover, number of subscribers). / The market share of the undertaking designated as having SMP (PT Group)is 53% and the main competitor has a market share of [30-40%] – see exact figure in table 4, subsection 4.1.1.1.

Please provide a brief summary of:

2.5. The opinion of the national competition, authority where provided. / The National Competition Authority agreeswith ICP-ANACOM’s analysis.
2.6. The results of the public consultation to date on the proposed designation(s) asundertakings having significant market power (e.g. total number of comments received,numbers agreeing/disagreeing). /
  • Four entities answered the public consultation (three groups of operators and one consumer association).
All but one respondent (Group PT) agreed in general terms with the competition assessment and its conclusions.

SECTION 3

Regulatory obligations

Please state where applicable:

3.1. The legal basis for the obligations to be imposed, maintained, amended or withdrawn
(Articles 9 to 13 of Directive 2002/19/EC). / Articles 9to 13 of Directive 2002/19/EC.
3.2. The reasons for which the imposition, maintenance or amendment of obligations onundertakings is considered proportional and justified in the light of the objectives laid down in
Article 8 of Directive 2002/21/EC. Alternatively, indicate the paragraphs, sections or pages ofthe draft measure where such information is to be found. / Pleaserefer to Section 5 ofthe “Projeto de Decisão Final a notificar à Comissão Europeia - MERCADO GROSSISTA DE ORIGINAÇÃO DE CHAMADAS NA REDE TELEFÓNICA PÚBLICA NUM LOCAL FIXO - Definição dos mercados do produto e mercados geográficos, avaliação de PMS e imposição, manutenção, alteração ou supressão de obrigações regulamentares”. In particular:
  • Subsection 5.1. addresses the competition issues that require regulatory intervention;
  • Subsection 5.3. goes through each obligation currently in force and accesses the need for it to be maintained, modified or suppressed.

3.3. Where the remedies proposed are other than those set out in Articles 9 to 13 ofDirective 2002/19/EC, please indicate what "exceptional circumstances" within the meaningof Article 8 (3) of that directive justify the imposition of such remedies. Alternatively,indicate the paragraphs, sections or pages of the draft measure where such information is to befound. / Not applicable.

SECTION 4

Compliance with international obligations

In relation to the third indent of the first subparagraph of Article 8(3) of Directive 2002/19/EC (Access Directive), pleasestate where applicable:

4.1. Whether the proposed draft measure intends to impose, amend or withdraw obligationson market players as provided for in Article 8(5) of Directive 2002/19/EC. / Not applicable.
4.2. The name of the undertakings concerned. / Not applicable.
4.3. What international commitments entered into by the Community and the MemberStates are to be met. / Not applicable.

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[1] OJ C 165, 11.7.2002, p. 6.

[2] Explanatory Note accompanying the Commission Recommendation of 17.12.2007 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 (2007)5406 published at