Effective competition on Slovak telecommunication market – transition from “old” to “new” regulatory framework
Pavol Gerhat
Telecommunications Office of the
Slovak republic
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Slovak republic – market information
• 1.1.1998 data services liberalization
• 1.1.2003 fixed voice service liberalization
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Slovak republic – market information II.
• Incumbent Slovak Telecom – 51 % Deutsche Telecom,
49 % state
• 2 GSM operators
EuroTel Bratislava – 51 % Slovak Telecom, 49% Atlantic
West B.V.
Orange Slovensko – 64 % Orange S.A., individual investors, EBRD
• 2 UMTS licences from 3 possible issued
• 2 FWA 26 GHz operators
• 20 “alternative” operators with licence/registration for fixed voice service
• many ISP’s
• tender process for FWA 3,5 GHz – 4 licences planned
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Transition from “old” to “new” regulatory framework
• act no. 195/2000 on telecommunications transposition of “98” regulatory framework
– in power since 1.july 2000
• act no.610/2003 on electronic communications – transposition of “The New regulatory framework”
– in power since 1.january 2004
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• established Telecommunications Office of the
Slovak republic as independent regulatory body in telecommunications
• telecommunications services and networks provision based on individual licences
• 31.12.2002 – end of legal monopoly of Slovak
Telecom in fixed voice services
• SMP based on 25% criteria
• price regulation allowed only to SMP or dominant operators
• decision on fixed voice service price regulation based on
“Price cap”
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Act no 195/2000 – transposition of
“98” regulatory framework, but
• unclear definition of relevant market
• NRA without competence to define relevant market
• NRA without competence to intervene into interconnection negotiations
• no obligation for incumbent to publish RIO
• no unbundling obligation
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• services and networks provision based on notification to the Office
• issuing of generally binding legal regulations
• imposition of obligations based on market analysis
• power to intervene into access, interconnection and infrastructure sharing negotiations
• out of court dispute resolution
• publishing of the Official Journal
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• services and networks provision must be in accordance with the general authorization
– registration needed when number of customers exceeds 200 and annual turnover exceeds 2 mil. SKK
– individual authorization required for frequencies and numbers
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• Definition of relevant markets
• General authorization
• Regulation on professional qualification on selected radio facilities
• Regulation on fees for the right to use frequencies
• Regulation on fees for the right to use numbers
• Regulation public pay phones and services for disabled
• Regulation on the quality of the universal service
• Others under preparation
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Imposition of obligation based on market analysis
• definition of relevant markets – markets subject of regulation
• market analysis
• identification of SMP operator
• imposition of obligation (-s)
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Definition of relevant markets
• Definition of relevant markets – no later than 2 months after act came into force, taking into account recommendation of EC
• 7 retail markets, 11 wholesale markets
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• First analysis of all relevant markets no later than 6 months after the act came into force
• Further analysis at least every two years
• aim of the analysis – investigate whether there is a competition on the market e.g. whether there is one or more companies having SMP
• SMP operator – operator not subject of effective competition
• 13 criteria based on EC guidelines – more complicated process, tailored to countries with developed competition
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• Data collection in 2 levels
– 1.level – get overview of services provided
– 2.level – detailed financial and quantitative information
• Result – published analysis (market definition, SMP operator determination, intended reasonable obligation (s),
• National consultations (companies touched, NCA)
• EC consultations – approval of EC or real doubts
• SMP and obligation (-s) imposition by administrative procedure
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• until now 4 analysis published
– fixed origination, termination, unbundling, mobile termination
• national consultations in 3 markets has finished
• processing of comments
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Power to intervene into access, interconnection and infrastructure sharing negotiations
• Decision on conditions of incumbent’s interconnection contract proposal issued last week
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pavol.gerhat@teleoff.gov.sk
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