Industry

Obligation regarding the cost-orientation of the tariffs for services of access to infrastructure elements

The market for services of access to infrastructure elements (market no. 3a), comprising services of local access provided at fixed locations, is included in the Commission Recommendation of 9 October 2014 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 communications networks and service.
 
In 2003, ANCOM identified the market for providing full or shared unbundled access to the local loop consisting of a twisted metallic pair, for the purpose of providing broadband electronic communications and publicly available electronic communications services as a relevant market. Following market analysis, the company Romtelecom (currently, Telekom Romania Communications S.A.)was designated as an operator with significant power in this market, being imposed obligations of transparency and non-discrimination, the obligation to allow access and use of specific infrastructure elements and network facilities, the obligation to keep separate accounts, as well as the tariff control obligation, including that of tariff cost-orientation. 
 
Following an analysis of the competition status in the market for services of access to infrastructure elements, Romtelecom was designated as having significant market power by Decision 626/2010, the tariff cost-orientation obligation being accompanied by the introduction of new tariffs, established according to Decision 653/2010 based on the efficient costs of service provision, calculated by ANCOM using LRAIC+.
 
Based on the established long-run incremental costing model for Romtelecom’s efficient provision of Ethernet backhaul services, new tariffs were imposed for these services (Decision 366/2014).
 
At present, following a review of the competition status on the relevant market in the electronic communications sector corresponding to services of access to infrastructure elements, ANCOM found that Telekom Romania Communications S.A. no longer holds significant market power. In this context, the existing obligations, including the obligation regarding tariffs, will be withdrawn after a transitional one-year period since the entry into force of Decision 1.145/2015 (respectively at end-2016). 
 
The tariffs of Romtelecom’s regulated local loop access services are available here.
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