14.03.2025

The National Authority for Management and Regulation in Communications (ANCOM) has identified Digi Romania as a provider with significant market power in 6,288 localities in Romania, following the analysis of the market for local access services provided at a fixed location, at the level of localities. ANCOM proposes a series of obligations to be imposed on the operator, in order to ensure efficient competition in these localities.

Wholesale market regulation

Fixed internet access networks in Romania rely heavily on fiber optic infrastructure. In mid-2023, 95% of households in Romania were covered with Fiber to the Home (FTTH) networks, our country ranking third in the EU in terms of household penetration rate of high-speed fixed internet access connections (at least 100 Mbps).

Wholesale local access provided at a fixed location are wholesale services that enable the provision of broadband internet access services on the retail market. Obligations on a wholesale market must be imposed when the corresponding retail market has no prospect of becoming competitive in the absence of such obligations.

Thus, ANCOM's analysis started from the retail market of fixed internet access services and showed that, in over 6,200 localities, Digi Romania S.A. is either the exclusive provider or the dominant player - with a market share exceeding 70% -, which raises concerns about potential misuse of its significant marker power. 99% of these localities lie in rural areas, 5,702 have a single provider (Digi Romania), 522 have two providers, and only 64 have at least three providers. These localities span a population of 5.3 million inhabitants living in 2.02 million households.

Moreover, the technical and economic barriers in these localities are sufficiently high, leading the Authority to the conclusion that there are no nearby competitors that could potentially enter the market and challenge this dominant position, within the time horizon of the market analysis.

Subsequently, ANCOM's analysis showed that the main competition issues that may arise in the absence of regulation on the corresponding wholesale market include the refusal of the provider with significant power to grant access to their network, thus preventing users to choose from the offers made available by a variety of provides on the retail market, or the possibility that tariffs could increase above the competitive level.

Therefore, ANCOM proposes the designation of Digi Romania S.A. as a provider with significant power on the market of local access services provided at fixed locations corresponding to the 6,288 localities and the imposition of proportionate and justified obligations on this provider:

• to allow third party access to its infrastructure, under fair and non-discriminatory conditions;
• to publish a reference offer for access to the local loop and equivalent services (Virtual Unbundled Local Access - VULA);
• to set fair tariffs for access to its network, in order to ensure a balanced competition environment.

ANCOM analysis

ANCOM's analysis is based on the legal obligations established by EU Directive 2018/1972, GEO no. 111/2011 and the European Commission’s recommendations, which highlight the importance of analysing the market for local access services provided at fixed locations in order to ensure effective competition in the retail market.

Based on the data collected from both end users and providers, as well as on best practices at European level, ANCOM analysed, for the period 2019 – 2023, the evolution of the technologies used (FTTH, VDSL, cable, radio, satellite), competition between providers and the structure of the retail and wholesale market, the tariffs charged, the penetration rate and the situation in other EU states.

This analysis envisages a five-year horizon.

Public consultation process

The draft decision on the identification of the relevant market in the electronic communications sector corresponding to local access services provided at fixed locations, as well as the draft decision on the designation of "Digi Romania" – S.A. as a provider with significant power on the market of local access services provided at fixed locations and the imposition of obligations on this provider, are available, in Romanian, here. Interested persons are invited to submit comments and proposals by 14.04.2025, to the ANCOM's headquarters (2 Delea Noua Street, 3^rd District, Bucharest), through the Online Registry or by means of the regional divisions of the Authority. Comments can also be sent by fax to +40 372 845 402 or by e-mail to consultare@ancom.ro.