Ein Netzwerkpartner des FEEI 30.05.2005 1 The state of implementation of the Electronic Communications package in Austria Achim Kaspar Association of Alternative.

Ein Netzwerkpartner des FEEI 30.05.2005 1

The state of implementation of the Electronic Communications package in Austria

Achim KasparAssociation of Alternative Telecommunications Operators

Ein Netzwerkpartner des FEEI 30.05.2005 2

• founded in 1997 when the Liberalisation started in

Austria• platform for new operators • members are fixed-line and mobile operators

– 1,7 Bill. € revenue/year

– 6.000 people employed

– 3,5 Bill. € investment in infrastructure between 1998 and 2001

Association of Alternative Telecommunications Operators ("VAT")

Ein Netzwerkpartner des FEEI 30.05.2005 3

Ein Netzwerkpartner des FEEI 30.05.2005 4

Telecommunication market inAustria

revenue 2003 *

fixed line (voice) 1.627 37,5%

mobile 2.319 53,4%

broadband 279 6,4%

leased lines 117 2,7%

TOTAL 4.342

fixed line customers: approx. 3,8 Mio.

mobile customers: approx. 7 Mio.

* amounts in € Mio

Ein Netzwerkpartner des FEEI 30.05.2005 5

Implementation of NRF

• Aug.2003: Telecommunications Act 2003 (TKG 2003)• Oct.2003: market definition ordinance (TKMVO 2003)

defines 16 markets (+ broadcast market)• data collection, market analysis, draft decisions and

consultation procedures for 14 markets until now• TA is deemed to have SMP in 10 of 13 possible

markets; • ANB and mobile operators are deemed to have SMP in

individual wholesale termination markets

Ein Netzwerkpartner des FEEI 30.05.2005 6

Pending issues

• broadband market• unbundling fee• wholesale line rental fee• transit market• trunk segments of leased lines

Ein Netzwerkpartner des FEEI 30.05.2005 7

Wholesale broadband access

• wholesale broadband access market (market #12) was

not defined in market definition ordinance• consultation on market definition started in March 2005• market definition enacted in May 2005• market analysis is pending, no SMP declared,

no obligations imposed

TA-market share on

DSL-Retail market is 67% TA

ANB

Ein Netzwerkpartner des FEEI 30.05.2005 8

Broadband access lines

eoy 2004

Broadband penetration: >25% (households)

DSL access is growing faster than CATV access

35,7% ADSL TA-Retail 298.400

10,2% ADSL TA-Wholesale 85.200

7,0% DSL Unbundling 58.476

39,8% CATV-Retail 332.500

5,7% CATV-Wholesale 47.500

0,4% powerline 3.600

1,2% W-LAN 10.000

Total 835.676

Ein Netzwerkpartner des FEEI 30.05.2005 9

Wholesale broadband access

concerns of ANO:• this most strategic market with the highest growth-rates

was defined at the latest date and after all other

markets, no decision on SMP-status• nationwide wholesale offer of one single supplier must

be imposed• technological neutrality must be ensured in state-aid

financial programs

fair competition must be ensured

Ein Netzwerkpartner des FEEI 30.05.2005 10

• 2,5% of all access lines of TA are unbundled• TA market share on retail access market is 95%;• TA market share on wholesale unbundled access

market (market #11) is 100%• unbundling fee: € 10,90.--*,

cheapest TA subscription fee: € 13,31.--*• margin between wholesale offer and retail price is

insufficient for successful business models* amounts excl. VAT

Wholesale unbundled access

unbundling fee must be decreased

Ein Netzwerkpartner des FEEI 30.05.2005 11

Wholesale line rental

• access to the public telephone network at a fixed location

for residential / non-residental customers • TA is deemed to have SMP on retail markets #1 and #2• NRA imposed obligation on TA to offer wholesale line rental• price calculation is based on average of residential and non-

residential market, prohibitive up-front costs– non-compliance with Art. 7 procedure– non-compliance with EC-market recommendation– commission will come back on our concerns

competitive offer must be made

Ein Netzwerkpartner des FEEI 30.05.2005 12

Transit services

• wholesale market for transit services in the fixed public

telephone network (market #10)• NRA declared "effective competition" in its draft measure• "veto decision" of the European Commission in Oct. 2004

– insufficient green field analysis– substitutes must be truly available

• NRA must modify the result of the market analysis and is

still thinking about filing a complaint at ECJ

time limit must be defined

Ein Netzwerkpartner des FEEI 30.05.2005 13

Trunk segments

• wholesale market for trunk segments of leased lines

(market #14)• NRA declared effective competition on this market

although TA is the only supplier in 5 out of 28 access

points (cities)• cities are important for nationwide infrastructure

coverage• risk of bundled offers and risk of disadvantages of

ANO in tender procedures

fair competition must be ensured