SABIEDRISKO PAKALPOJUMU REGULESANAS KOMISIJA
Fixed telecommunications market of Latvia:
analysis one year after liberalisation
Andrejs Dombrovskis
Expert
Telecommunications and Postal Department
Public Utilities Commission
Seminar on Economic Dynamics of Newly Liberalized Telecommunication Markets
in CEE countries and Baltic States, Vilnius, Lithuania, - 5-7 October 2004
telecommunications | electronic communications (I)
TELECOMMUNICATIONS
? Telecommunication market open for competition since 1 January
2003
? Transposition of EU 1998 legal framework for telecommunications
completed (approx. 30 legislative enactments issued by PUC)
ended in November 2003
? More than 200 individual licences and general authorisations
issued
? More than 40 interconnection agreements signed between
network operators, 12 with fixed incumbent
? More than 10% of numbering resources allocated to new entrants
2
telecommunications | electronic communications (ii)
market regulation prerequisites according to the 2001 law On
Telecommunications:
? procedure for designation of undertakings as having significant
market power
? market “setting”
? special requirements for undertakings designated as having
significant market power
3
fixed lines penetration (%)
25
25
26
27
1990
1991
1992
1993
28
1994
29
30
30
1995
1996
1997
31
1998
30
1999
31
2000
31
2001
30
2002
28
2003
4
fixed voice telephony market breakdown (I)
percentage of revenues as of January 2004
All fixed calls including calls to Internet
94.2
All fixed phone calls excluding calls to Internet
94.1
International calls
81.4
National calls including internet
97.6
National phone calls excluding internet
97.5
Calls to mobile
96.3
Long-distance calls
Local calls
Local phone calls only
Local calls to Internet
99.6
98.1
98.0
99.5
5
fixed voice telephony market breakdown (II)
percentage of minutes as of January 2004
All fixed calls including calls to Internet
97.2
All fixed phone calls excluding calls to Internet
97.1
International calls
71.4
National calls including internet
98.1
National phone calls excluding internet
98.1
Calls to mobile
Long-distance calls
Local calls
Local phone calls only
Local calls to Internet
94.4
99.7
98.3
98.3
98.9
6
leased lines services market breakdown
as of January 2004 (revenues)
Latvenergo
LVRTC
Latvijas Dzelzcelš
Lattelekom SIA
Microlink Latvia
TeliaSonera
International
Carrier
7
telecommunications | electronic communications (iii)
electronic communications
? transposition of eu 2002 regulatory framework for electronic
communications in process starting from 1 may 2004
? at least 30 regulatory acts to be drafted during the transition
period by november this year
? more than 50 new general authorisations already registered
? strengthened regulation for access and interconnection
8
telecommunications | electronic communications (iv)
Licensing and
allocation of
scarce
resources
Markets
and
SMP
Access,
interconnection,
facility sharing
and leased lines
REGULATIONS
Tariff and cost
allocation
methodologies
Universal
service
QoS
requirements
and testing
Dispute
resolution
and
complaints
road ahead:
market analysis procedures according to 2004 law
? procedure and criteria for designating of undertakings as having
significant market power [Art.8, p.9)].
? regulation on special requirements (remedies) for undertakings
designated as having significant market power in relevant markets
[Art.8, p.9)].
? regulation on consultations with market participants on relevant
market definition [30.p.(2)].
? regulation on information to provided for market analysis and on
provision of this information [Art.31, p.(1)].
? regulation on imposing, maintaining, amending or withdrawal of
special requirements (obligations) for undertakings designated as
having significant market power [Art.31, p.(2)].
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SABIEDRISKO PAKALPOJUMU REGULESANAS KOMISIJA
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