Translation of Dutch net neutralit...

Net neutrality in Europe: Bits of Freedom translation of Dutch net neutralit...: "Despite some obfuscation (and the need for the Senate to undo the messy ideological filtering amendment which confused MPs voted for !), the..."

"Every other European digital"? New scorecard data...

Net neutrality in Europe: "Every other European digital"? New scorecard data...: "The EC has made a classic centralised targeting mistake - it wants every European to be able to access 2Mbps broadband by 2013 . Only one a..."

Ofcom changes general conditions and universal service conditions

25 May - another response to the need to put in place amendments to the EComms framework went ahead following a statutory consultation. It changes consumer contract requirements, as well as the USO conditions on BT and Kingston.

Ofcom issues new EComms dispute guidelines for 2011

Following changes to the Authorisation Directive in EC/2009/136, Ofcom has very substantially toughened and streamlined its own dispute powers following a consultation with stakeholders. Examples are rapid dispute settlement procedures and a maximum fine for lack of required telco data increased from £50,000 to £2,000,000.

NZ: fibre wholesaler to be TelecomNZ - with regulator holiday for rest of decade?

This is what you call deregulation (well, there's a price cap), from the country that for a decade until 2001 pretended it did not need a telecoms regulator. Well, they barely have broadband unbundled and no cable to speak of, so perhaps their conservative government thinks it has to roll over and beg? "Telecommunications (TSO, Broadband, and Other Matters) Bill and recommended it become law, if several changes are made. The bill paves the way for the Government's $1.35 billion ultra-fast broadband scheme, which plans to lay fibre internet cables across 75 per cent of New Zealand over the next 10 years...the law would remove the Commerce Commission's ability to regulate price on the broadband network until December 31, 2019. The committee made its decision on advice from Crown officials that the forbearance would result in lower wholesale and retail prices "by removing the risk premium" for investors." No kidding it removes risk...competition...progress...
UPDATE: The indigenous Maori Party (which represents rural constituencies in the main) slammed a couple of torpedoes into the regulatory holiday in debate on 17 May - so it's not going to be allowed, thankfully for NZ consumers.

Incumbents' views: Telefonica exceptions in Article 102 are wrong

Well-written and well-argued but ultimately unconvincing view taken from the law'n'economics mainstream on competition law.

Case C‑52/09, Konkurrensverket v TeliaSonera AB: margin squeeze under Art.102

Note - this refers to conduct dating to April 2000! Court (First Chamber) hereby rules:

In the absence of any objective justification, the fact that a vertically integrated undertaking, holding a dominant position on the wholesale market in asymmetric digital subscriber line input services, applies a pricing practice of such a kind that the spread between the prices applied on that market and those applied in the retail market for broadband connection services to end users is not sufficient to cover the specific costs which that undertaking must incur in order to gain access to that retail market may constitute an abuse within the meaning of Article 102 TFEU.

When assessing whether such a practice is abusive, all of the circumstances of each individual case should be taken into consideration. In particular:

–        as a general rule, primarily the prices and costs of the undertaking concerned on the retail services market should be taken into consideration. Only where it is not possible, in particular circumstances, to refer to those prices and costs should those of competitors on the same market be examined, and

–        it is necessary to demonstrate that, taking particular account of whether the wholesale product is indispensable, that practice produces an anti-competitive effect, at least potentially, on the retail market, and that the practice is not in any way economically justified.

The following factors are, as a general rule, not relevant to such an assessment:

–        the absence of any regulatory obligation on the undertaking concerned to supply asymmetric digital subscriber line input services on the wholesale market in which it holds a dominant position;

–        the degree of dominance held by that undertaking in that market;

–        the fact that that undertaking does not also hold a dominant position in the retail market for broadband connection services to end users;

–        whether the customers to whom such a pricing practice is applied are new or existing customers of the undertaking concerned;

–        the fact that the dominant undertaking is unable to recoup any losses which the establishment of such a pricing practice might cause, or

–        the extent to which the markets concerned are mature markets and whether they involve new technology, requiring high levels of investment.

Ofcom settles and closes case brought against BT in March 2002

Which means that this was brewing up in late 2001 - before I joined WorldCom (which feels several centuries ago) - when BT had a joint venture with Yahoo!  and an appalling content portal called Openworld (known as Open Woe). To claim they were not price squeezing shows that Oftel and then Ofcom could not work out BT's accounting properly.

BEREC publish about 50 documents

You wait all year for a document then fifty turn up at once! Note net neutrality consultation response and draft work programme for 2011.

ITU useful stats: 2billion web users, 5.3billion mobiles

More stats in their ICT2010 document: "subscriptions to IMT2000/3G services have increased from 72 million in 2005 to 940 million in 2010. As many as 143 countries are offering IMT2000/3G services commercially, up from 95 countries in 2007. Over the past year, mobile broadband has experienced steep growth, especially in Europe and the United States, and some countries have started to offer commercial services at even higher broadband speeds, moving to next generation wireless platforms. The trend from voice to (mobile) data applications is reflected in the growing number of SMS, or text messages sent, which tripled over the past three years to reach a staggering 6.1 trillion in 2010. In other words, close to 200 000 text messages are sent every second. Overall, the price of ICT services is falling, but high-speed Internet access remains prohibitively expensive, especially in low-income developing countries. In 2009, an entry-level fixed (wired) broadband connection cost on average 190 PPP$ (Purchasing power parity in USD) per month in developing countries, compared to only 28 PPP$ in developed countries. Mobile cellular services are much more affordable, with an average monthly cost of 15 PPP$ in developing countries compared to around 18 PPP$ in developed countries. The relative price for ICT services (especially broadband) is highest in Africa, the region with the lowest income levels. The region lags behind when it comes to broadband access. Although subscriptions are increasing, a penetration rate of less than 1 per cent for fixed broadband illustrates the huge challenges that persist to increase access to high-speed, high-capacity Internet."

Competition Commission judges on LLU - latest of 5 appeals in two years

The CC has delivered a 513-page judgment on Carphone Warehouse (now TalkTalk) in its appeal against the Competition Appeal Tribunal (CAT) decision in LLU - and has decided that it needs to review its procedures now that it has had to rule on its fifth price control appeal in two years.

Kenyan mobile: textbook example of using interconnection and on-off-net parity

Very interesting case study of a country with an operator taking 80% market share - and how to stop it undercutting rivals.

Forthcoming ECJ cases

Contentandcarrier keeps its excellent analysis coming.

CEPS study on Turkish telecoms and EC accession

Does anyone know who funded this research? Lots of interesting analysis packaged as an Impact Assessment.

Ed Richards (Ofcom CEO) on ex ante/ex post approaches and review of Ofcom decisions

A very thoughtful and considered speech on how Ofcom uses its powers and the benefits of static versus dynamic assessments of competition.

2010 update: freely available materials

For those who cannot afford £80 for publicly available materials, they are also freely available in:

this EC document (updated February 2010): 

and on the following websites:

1. BEREC/ERG common positions:

2. Article 7 proceedings

3. EC caselaw (updated February 2010) (right side)

Ofcom to cut mobile termination rates to 0.5p/min by 2014

Good news for consumers and fixed line operators - though mobiles will appeal to the CAT.

Polish regulator over-eager to regulate Internet exchanges

The EC has just made its first Article 7 decision since Neelie Kroes became INFSO Commissioner - that Poland's regulator misregulated in designating the incumbent as dominant in IP transit and interconnect. Its an important case, because of this reasoning.

Universal service and Directory Inquiries - complex UK reference to ECJ

Its here - and focuses on whether Ofcom was right to interpret universal service for number listing as an obligation at wholesale level on BT. The European Court will consider it in 2010.

Broadband mobile roaming in Europe

Here's the link the 2009 EC Decision on roaming.