26.07.2022

The National Authority for Management and Regulation in Communications (ANCOM) has launched for public consultation its position regarding the review of the relevant market for wholesale high quality access services provided at fixed location. Based on the market analysis carried out between 2017 and 2021, ANCOM concludes that the retail market for high quality electronic communications services provided at fixed locations is competitive, in the absence of any regulations imposed at the level of the corresponding wholesale market.

ANCOM’s market analysis

The draft position was drawn up following a new round of market analyses, carried out to review and – where necessary – to strengthen competition in the retail market for high quality services, by regulatory measures that could be imposed in the wholesale markets. ANCOM carries out such analyses on a regular basis in order to ensure effective competition in the market, to the benefit of end-users.

The previous analysis, conducted in 2018 on the market for leased line terminal segments, revealed that Telekom Romania Communications S.A. no longer held significant market power. Thus, the specific obligations previously imposed on this operator were withdrawn.

This analysis, having considered the market dynamics during 2017 – 2021, did not find any competitive problems that should be addressed by specific regulations to be imposed in the corresponding wholesale market.

The market for high quality electronic communications services in Romania

The wholesale high quality access services provided at fixed location include both leased line services and any other access services with functionalities similar to leased line services and have an essential role in the provision of electronic communications services with a high quality level (capacities that are transparent, uninterrupted, not shared and symmetrical, at certain predefined quality parameters) to big and medium-sized private enterprises or to public institutions. Furthermore, such services may be used by certain providers to extend the coverage of their own networks, to areas outside the scope of these individual networks.

Currently, high quality electronic communications services provided at fixed location are generally offered through operators' own fibre optic networks and not by purchasing services on the wholesale market from other operators.

The competition analysis in the relevant retail market showed that, both in terms of volume and revenue, the individual market shares of the main operators were below 31%. Moreover, the Romanian market is dynamic, on a rising trend, with sales volumes for premium services increasing for all major providers, while alternative providers have invested significantly in fibre optic deployments and have available capacity to offer high quality services to third parties (both on the retail and wholesale market).

Barriers to entry and development in the analysed market are moderate, especially in urban and developed rural areas, where most of the demand in the retail market for high quality services originates. ANCOM does not expect this situation to change significantly during the review horizon of this market, reiterating the fact that 18 new suppliers entered the Romanian market in the period 2017-2020.

In the retail market for high quality services provided at fixed location, there is sufficient countervailing power on the part of users, for them to be able to counterbalance any abusive behaviour of a provider.

Since the analysis of the retail market for high quality electronic communications services provided at fixed location did not indicate any competition problems, the imposition of ex ante regulations at the level of the corresponding wholesale market is not justified.

Public consultation

ANCOM’s position on the review of the relevant market for wholesale high quality access services provided at fixed location is available, in Romanian, here. The interested persons are invited to submit their comments and suggestions by 26.08.2022.

Comments and suggestions may be sent to the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), by means of the Online Registry, or by means of the Authority’s regional divisions. Comments may also be sent by fax to +40 372 845 402 or by e-mail to consultare@ancom.ro.