Fostering Broadband Access
through ex-ante Regulations
Chisinau, 20-22 May 2014
Vladimir VOZIAN
National Regulatory Agency for Electronic
Communications and Information
Technology, Republic of Moldova
Overview
•
•
•
•
•
•
•
•
•
•
Electronic communications market overview
Wired and wireless Broadband access
About ANRCETI
Legal and regulatory framework
Market analysis cycle
Regulatory framework. Market analysis
Regulatory framework. Markets 4&5
Why regulating infrastructure access ex-ante? Asymmetric vs
symmetric
Regulation of Markets 4 and 5. Ex-ante remedies
Ex-ante provisions related to infrastructure access
ANRCETI. 2014
2
Electronic communications market of Moldova
Penetration
(%)
Revenue
(mil.EUR)
ARPU
(EUR)
Mobile telephony
124,5
188,7
3,7
200 (MoU)
Fixed telephony
34,3
60,2
4,1
301 (MoU)
Fixed broadband
13,2
47,5
8,1
-
Pay TV
8,1
18,8
2,6
-
Mobile broadband
7,3
14,0
5,3
7,9 GB (AUPU)
TOTAL
Other
330
3 - mobile operators, 2 of them operate LTE
network;
28 – fixed telephony operators;
58 – fixed broadband operators;
130 – cable TV, IPTV (2 of them) and
broadcasting operators.
ANRCETI. 2014
3
Wired and Wireless Broadband access
The share of broadband subscribers by Internet access contracted speed
100,0%
90,0%
80,0%
70,0%
60,0%
0,4%
2,0%
27,3%
27,7%
14,7%
18,6%
50,0%
40,0%
30,0%
44,2%
39,5%
20,0%
10,0%
13,4%
12,3%
2012
2013
0,0%
< 2 Mbps
2 - 10 Mbps
10 - 30 Mpbs
ANRCETI. 2014
30 - 100 Mbps
> 100 Mbps
4
Wired and Wireless Broadband access
Technologies share in fixed broadband access
100%
0,37%
4,35%
0,63%
2,80%
0,35%
4,58%
0,32%
5,63%
0,49%
6,05%
61,2%
55,4%
48,7%
44,5%
35,4%
39,7%
45,4%
49,0%
2010
2011
2012
2013
80%
60%
71,2%
40%
20%
24,1%
0%
2009
FTTx
xDSL
coax
other technologies
ANRCETI. 2014
5
Wired and Wireless Broadband access
Market shares of the biggest fixed broadband operators by subscribers
Other operators
ANRCETI. 2014
6
Wired and Wireless Broadband access
Subscribers of the mobile broadband datacard subscriptions
140000
300000
259 613
120000
250000
100000
200000
178 459
2009
2010
2011
Orange Moldova
Moldcell
ANRCETI. 2014
100000
60 204
82 884
116 525
150000
34 857
57 021
23 781
21 818
86 581
79 214
9 063
6 145
0
24 230
20000
79 795
49 420
40000
124 813
40 788
60000
121 599
71 748
80000
50000
0
2012
Moldtelecom
2013
Total
7
About ANRCETI
ANRCETI – National Regulatory Agency for Electronic Communications and
Information Technology in The Republic of Moldova
Key regulatory issues:
1. Market analysis and ex-ante remedies:
a.
b.
c.
d.
2.
3.
4.
5.
6.
Access to essential facilities and interconnection
Cost modeling and tariff setting(MTR/FTR)
Accounting separation & Regulatory audit
Public reference offers
Universal service provision
Broadband, NGA/NGN development
Frequency licensing for mobile networks
Digital switchover process
Customer protection & Quality of Service
ANRCETI. 2014
8
Legal and regulatory framework
The Law nr.241 of 2007 on electronic communications creates the legal
framework of regulating the electronic communications sector
The Law and the subsequent regulations adopted by ANRCETI transpose into
the national legislation the EU common framework:
• Directive 21/2002/EC (Framework Directive)
• Directive 19/2002/EC (Access Directive)
• Directive 20/2002/EC (Authorization Directive)
• Directive 22/2002/EC (Universal Service Directive)
• Commission guidelines on market analysis 2002/C165/03
• Recommendation 2003/311/EC (relevant products and services)
• Recommendation 2007/879/EC (relevant products and services)
ANRCETI and MTIC consider revision of the law to adapt it to the 2009 EU
framework (Directive 140/2009/EC “Better regulation directive”, Directive
136/2009/EC “Citizens rights directive”)
ANRCETI. 2014
9
Regulatory framework. Market analysis
Market
Identification
A
Market
Review
E
B
Market
analysis
Obligations
imposition
C
D
In-depth Market
Analysis
SMP
designation
Since 2010, ANRCETI has undergone 2 cycles of markets analysis.
ANRCETI. 2014
10
Regulatory framework. Markets 4&5
Market 4 – Wholesale
access to network
infrastructure at a
fixed location
Market 5 – Wholesale
access to broadband
communications
Physical infrastructure
access
upstream
Access to local loop
(copper/fiber)
Bitstream access
Broadband retail
ANRCETI. 2014
downstream
11
Why regulating IA ex-ante? Asymmetric vs symmetric
Legend:
(S) Cross-sectors
infrastracture acces
regulation
(S) Telecoms
infrastracture access
regulation
(A) Ex-ante remedies
on SMP operator
ANRCETI. 2014
12
Why regulating IA ex-ante? Asymmetric vs symmetric
Ex-ante mandated
access to physical
infrastructure
Symmetric access
to telecoms
infrastructure
Cross-sectorial
infrastructure access
Suitable
infrastructure
Perfect
Potentially perfect
Depending on type of
infrastructure
Strength of the
measure
Strong
Slighter
The slightest
Fast
Longer time for
negotiations
Longer time for
negotiations
Timeliness
Legal aspect
Needs only
regulatory powers
for ex-ante
Needs certain legal
Needs cross-sectorial
provisions. Implies legal provisions. Might
telecom regulator imply several regulators
Changes
Relatively easy to
implement
Often might need
legislation changes
Needs legislation
changes
Most frequent
costing method
LRIC+, LRAIC, FAC
Negotiated or own
operator’s method
Negotiated
Enforcement
Strong if enough
powers and strong
Usually slight
Weak
ANRCETI. 2014
13
Regulation of Markets 4 and 5. Ex-ante remedies
On the both markets 4 and 5 the incumbent operator Moldtelecom was
designated with SMP and ex-ante remedies were imposed.
The following obligations have been imposed:
• Access to, and use of, specific network facilities. It implies not only
provision of access to local copper/fiber loops or bitstream services, but
also physical infrastructure access (ducts, poles)
• Transparency. Reference offers should be published
• Non-discrimination. The SMP operator has to provide access in the same
terms to competitors as it provides to its own services
• Price control and costing accounting. Costing method to be used – LRIC+
• Accounting separation
ANRCETI. 2014
14
Ex-ante provisions related to infrastructure access
 Shared access to infrastructure was mandated based on SMP on M4
 SMP operator shall provide access to ducts, poles and other relevant
infrastructure all across its network infrastructure, irrespective of the
intended use
 The SMP operator has to open up its plans when building new
segments of infrastructure; has to envisage the requests of the
operators for sufficient capacities
 A reference offer for access to ducts and poles is required
 The access services provision should be based on equal input principle;
this means access services should be provided externally by the same
means, people, in the same terms, by using the same IT systems and
procedures as those used for internal provision
 The tariffs must be oriented to LRIC+ cost levels
ANRCETI. 2014
15
Thank you!
Vladimir Vozian
Regulations Development Department
Deputy-chief
E-mail: vladimir.vozian@anrceti.md
Tel: +373 22 25 13 37
Mob: +373 79 60 66 55
www.anrceti.md
ANRCETI. 2014
16