PUBLIC UTILITIES COMMISSION OF LATVIA Broadband wholesale: first steps in Latvia Laura Juhansone - Daugule Expert of Authorisation Division, Electronic Communications and Post Department, Public Utilities Commission, Latvia Copenhagen, September , 2009.

The broadband wholesale is one of shared use of infrastructure ways THE BASIC POINT

The problem is how do we understand the term “infrastructure”? The history of shared use of infrastructure including broadband wholesale and legislation practice in Latvia is too short BACKGROUND OF THE PROBLEM

WHAT IS THE INFRASTRUCTURE IN ELECTRONIC COMMUNICATION NETWORKS? Is it a part of the electronic communications network? Is it an active or passive part of the network? Is it an associated facility? Is it the core or the access network?

DIFFERENT TYPES OF INFRASTRUCTURE ELECTRONIC COMMUNICATION NETWORK INFRASTRUCTURE PASSIVE PART OF INFRASTRUCTURE ACTIVE PART OF INFRASTRUCTURE

THE PASSIVE PART OF INFRASTRUCTURE Associated facilities: Towers Masts Cable ducts Cable manholes Cable chambers Cable cabinets and racks Technical premises

THE ACTIVE PART OF INFRASTRUCTURE Facilities, which transmit or/and switch (route) the signal: Symmetrical, coaxial and fiber cables Switches and routers Transmitters Receivers Antennas Modems Converters

SHARED USE OF INFRASTRUCTURE – WHOLESALE SERVICE Three different levels of the shared use of infrastructure Level 1: shared use of the associated facilities Level 2 : shared use of the active part of infrastructure Level 3 : another way how to realize the shared use of the active part of infrastructure – shared use of the frequency range

SHARED USE OF INFRASTRUCTURE – WHOLESALE SERVICE Three different levels of the shared use of infrastructure Level 1: shared use of the associated facilities Level 2 : shared use of the active part of infrastructure Level 3 : another way how to realize the shared use of the active part of infrastructure – shared use of the frequency range

SHARED USE OF INFRASTRUCTURE – WHOLESALE SERVICE (1) Typical examples for the Level 1 : Shared use of cable ducts or shared use of the towers for antennas and transmitters

SHARED USE OF INFRASTRUCTURE – WHOLESALE SERVICE Three different levels of the shared use of infrastructure Level 1: shared use of the associated facilities Level 2 : shared use of the active part of infrastructure Level 3 : another way how to realize the shared use of the active part of infrastructure – shared use of the frequency range

SHARED USE OF INFRASTRUCTURE – WHOLESALE SERVICE (2) Typical example for the Level 2: Shared use of cable, “dark” fiber or shared use of the telephone switch

SHARED USE OF INFRASTRUCTURE – WHOLESALE SERVICE Three different levels of the shared use of infrastructure Level 1: shared use of the associated facilities Level 2 : shared use of the active part of infrastructure Level 3 : another way how to realize the shared use of the active part of infrastructure – shared use of the frequency range

SHARED USE OF INFRASTRUCTURE – WHOLESALE SERVICE (3) Typical example for the Level 3: Unbundled access to local loop or open access network

BROADBAND WHOLESALE EXPERIENCE IN LATVIA Open access network – new service on the Latvian market Contradictional legislative framework on the shared use of infrastructure

THE UNDERSTANDING OF THE OPEN ACCESS NETWORK Open Access Network (OAN) refers to horizontally layered network architectures. OAN business model separates physical access to the network from the electronic communications services provisioning to the end users OAN service is the broadband access to the access network. The fiber is used to provide this service, but coaxes or wireless solutions are possible as well OAN service is one of the Next Generation Access (NGA) realizations

OPEN ACCESS NETWORK – NEW SERVICE ON THE LATVIAN MARKET (1) Providers There are two companies providing the OAN service on the Latvian market: The Latvenergo AS is an energy power supply company which additionally provides the electronic communication services. Latvenergo develops infrastructure for OAN, using cable ducts which belong to them The MWTV is a merchant which provides electronic communication services using overhead cables in the new districts installing cable from the roof to the roof

OPEN ACCESS NETWORK – NEW SERVICE ON THE LATVIAN MARKET (2) The technological solution Both companies use the same technological solution – fiber to the home, installing GPON modems near by the apartments doors. The same technology also uses the incumbent - Lattelecom, but in this case OAN is not a subject for the wholesale service

THE ACTUAL LATVIAN LEGISLATION ABOUT THE SHARED USE OF INFRASTRUCTURE The contradictions concerning the infrastructure regulation between Electronic Communications Law and Law On Regulators of Public Utilities are noticed: According to the Law On Regulators of Public Utilities the provision of services and provision of infrastructure (technical infrastructure in combination with corresponding resources or use of an implemented technical solution used for manufacture of goods or provision of services) are regulated in accordance with industry specific legislation. This point is in force from The industry specific legislation - the Electronic Communications Law, regulates the shared use of infrastructure as remedies for merchants with a significant market power

FUTURE ACTIVITIES Some changes in Electronic Communications Law have to be done. The aims of such changes are: a. The symmetrical regulation at least for shared use of the passive part of infrastructure (especially for ducting) has to be established; b. The secondary legislation for shared use of infrastructure will be developed. c. We shall follow the situation around the NGA including OAN and some regulatory tools will be found. d. The adoption of the recommendation on NGA will accelerate this process

THANK YOU FOR ATTENTION!