1. The Notification Procedure of national telecoms markets Pál Belényesi 27 October 2006

2. Starting point Commission’s Recommendation of February 2003 on the relevant markets in Telecom Commission’s Recommendation of February 2003 on the relevant markets in Telecom In accordance with the Framework Directive In accordance with the Framework Directive These markets are susceptible to ex ante regulation These markets are susceptible to ex ante regulation

3. How? 18 markets introduced in the Recommendation 18 markets introduced in the Recommendation The analysis must be carried out on the basis of antitrust criteria as indicated in the Guidelines (on SMP assessment, 2002) The analysis must be carried out on the basis of antitrust criteria as indicated in the Guidelines (on SMP assessment, 2002) The analysis must be assessed in a forward-looking basis The analysis must be assessed in a forward-looking basis The analysis must take into account the economical and technical development of the market The analysis must take into account the economical and technical development of the market

4. Legal background Article 7 of Framework Directive (Consultation Mechanism) Article 7 of Framework Directive (Consultation Mechanism) National Regulatory Authority (NRA) and the Commission together National Regulatory Authority (NRA) and the Commission together On the basis of: On the basis of: Commission’s Recommendation on relevant markets Commission’s Recommendation on relevant markets Guidelines on market analysis Guidelines on market analysis

5. Principles of the market analysis Consultation procedure both at national and community level Consultation procedure both at national and community level Commission has the final word (Comments letter - No comments letter – Veto) Commission has the final word (Comments letter - No comments letter – Veto) The NRAs have to carry out the analysis on the basis of national circumstances The NRAs have to carry out the analysis on the basis of national circumstances

6. NRAs „logic of working steps” Define markets according to the principles of Competition Law Define markets according to the principles of Competition Law If found not competitive – SMP designation If found not competitive – SMP designation After the identification of SMP(s) – impose obligations After the identification of SMP(s) – impose obligations Check-up – post-removal of obligations Check-up – post-removal of obligations

7. What markets?

8. Retail markets Access to the public telephone network at a fixed location for residential customers. Access to the public telephone network at a fixed location for residential customers. Access to the public telephone network at a fixed location for non-residential customers. Access to the public telephone network at a fixed location for non-residential customers. Publicly available local and/or national telephone services provided at a fixed location for residential customers. Publicly available local and/or national telephone services provided at a fixed location for residential customers. Publicly available international telephone services provided at a fixed location for residential customers. Publicly available international telephone services provided at a fixed location for residential customers. Publicly available local and/or national telephone services provided at a fixed location for non- residential customers. Publicly available local and/or national telephone services provided at a fixed location for non- residential customers. Publicly available international telephone services provided at a fixed location for non-residential customers. Publicly available international telephone services provided at a fixed location for non-residential customers. The minimum set of leased lines The minimum set of leased lines

9. Wholesale markets 8. Call origination on the public telephone network provided at a fixed location. 8. Call origination on the public telephone network provided at a fixed location. 9. Call termination on individual public telephone networks at fixed location 9. Call termination on individual public telephone networks at fixed location 10. Transit services in the fixed public telephone network. 10. Transit services in the fixed public telephone network. 11. Wholesale unbundled access to metallic loops and sub-loops 11. Wholesale unbundled access to metallic loops and sub-loops 12. Wholesale broadband access. 12. Wholesale broadband access. 13. Wholesale terminating segments of leased lines. 13. Wholesale terminating segments of leased lines. 14. Wholesale trunk segments of leased lines. 14. Wholesale trunk segments of leased lines. 15. Access and call origination on public mobile telephone networks 15. Access and call origination on public mobile telephone networks 16. Voice call termination on individual mobile networks. 16. Voice call termination on individual mobile networks. 17. National market for international roaming on public mobile networks 17. National market for international roaming on public mobile networks 18. Broadcasting transmission services, to deliver broadcast content to end users 18. Broadcasting transmission services, to deliver broadcast content to end users

10. Procedure of market analysis I. 1. Market analysis must start with asking operators to provide information. Request for information must be proportionate, motivated, and business secrets must be respected (confidential information); 2. After having carried out the market analysis, NRA shall carry out a national consultation with all operators, which have 30 days to submit comments in the draft measure proposed by the NRA. 3. After this consultation, the draft measure must be submitted to the National Competition Authority, which has 45 days to comment.

11. Procedure of market analysis II. 4. National consultations over → NRA must submit the draft measure to the Commission and to the other NRAs which have minimum 30 days to comment 5. If Commission finds out that the decision would create a barrier to the single European market or Commission has serious doubts as to the compatibility of the draft measure with Community law, the adoption of the measure must be delayed by a maximum of an additional two months 6. Veto right for the Commission: market definition & SMP identification (Obligations: only comment)

12. Procedure of market analysis III. 7. In exceptional circumstances, NRAs may act urgently in order to safeguard competition and protect the interest of users. But only: proportionate and provisional measures without consulting either interested parties. The Commission will verify the compatibility of those measures with Community law and in particular will assess their proportionality in relation to the policy objectives of Article 8 of the Framework Directive. 8. If the NRA wishes to make the provisional measures permanent, or extends the time for which it is applicable, the NRA must go through the normal consultation procedure set out above.) 9. Once an NRA's decision has become final, NRAs should notify the Commission of the names of the undertakings that have been designated as having SMP and the obligations imposed on them

13. Examples of obligations Wholesale markets (Access Directive) Wholesale markets (Access Directive) Transparency Transparency Accounting separation Accounting separation Essential facilities Essential facilities Retail markets (Universal Service Directive) Retail markets (Universal Service Directive) Carrier selection and pre-selection Carrier selection and pre-selection

14. Statistics (March 2006) Approx. 340 notifications received so far Approx. 340 notifications received so far From 20 Member States From 20 Member States 112 comments letters 112 comments letters 71 no comments letters 71 no comments letters 4 veto decisions 4 veto decisions

15. Thank you for your attention