Transcript Telecom regulation in the Netherlands

Telecom regulation in
the Netherlands
5 November 2014
1
Agenda
•
•
•
•
•
Introduction of ACM
Telecom trends and developments in NL
Telecom markets analysis
(Cable) television regulation in NL
Consuwijzer
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Introduction of ACM
3
Introduction of ACM
• Autonomous Administrative Authority
• Merged from 3 organisations in 2013
• Board of three:
– Chris Fonteijn (Chair)
– Antia Vegter
– Henk Don (telecom)
• ± 500 FTE
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Introduction of ACM
5
ACM Strategy
• “ACM aims to create opportunities and options for consumers
and businesses”
• Consumer welfare
• Consumer awareness
Core values:
• Independence
• Professionalism
• Openness
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Telecom-related activities
• Registration of public electronic communication service
operators, collecting fees
• Issuing phone number series
• Telecom-specific consumer protection laws
(net neutrality, contract clauses, transparency, USD)
• Dispute settlement (eg radio tower access, rights of way for
cable laying)
• Market Analyses: SMP and access / tariff regulation
Not:
• Frequency auctions,
• Technical oversight,
• Media act (any content)
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Telecom trends and developments in
NL
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Networks
• Mobile:
– Three 3G-networks
– Already two national 4G-networks, two others are being rolled out
• Fixed:
– 100% copper coverage: upgrading via pair bonding and vectoring
– 95% cable coverage (households)
– 30% FttH coverage (households)
Broadband: homes connected (FttH)
2.500
number of connections x 1,000
2.000
1.500
1.000
500
0
Homes co nnected (FttH)
30-6-2010
31-12-2010
30-6-2011
31-12-2011
30-6-2012
31-12-2012
30-6-2013
31-12-2013
30-6-2014
569
658
768
918
1.078
1.303
1.512
1.832
1.994
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UPC/Ziggo cable merger
European Commission recently approved merger, with some
content remedies
• UPC/Ziggo reaches 92% of NL households, significantly less
businesses
• Main competitor of KPN in most markets
• EC: any risk of joint dominance is not due to merger
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Access to broadband internet
High-speed and basic broadband
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Broadband internet
• Market positions of KPN and merged
UPC/Ziggo roughly similar
30-9-2012
CANALDIGITAAL
KPN
[40 - 45%]
TELE2
[5 - 10%]
T-MOBILE
[0 - 5%]
UPC
[15 - 20%]
ZIGGO
[25 - 30%]
Other
[5 - 10%]
31-12-2012 31-3-2013 30-6-2013
[40 - 45%] [40 - 45%] [40 - 45%]
[5 - 10%]
[5 - 10%]
[5 - 10%]
[0 - 5%]
[0 - 5%]
[0 - 5%]
[15 - 20%] [15 - 20%] [15 - 20%]
[25 - 30%] [25 - 30%] [25 - 30%]
[5 - 10%]
[5 - 10%]
[5 - 10%]
30-9-2013
[40 - 45%]
[5 - 10%]
[0 - 5%]
[15 - 20%]
[25 - 30%]
[0 - 5%]
31-12-2013
[40 - 45%]
[0 - 5%]
[0 - 5%]
[15 - 20%]
[25 - 30%]
[5 - 10%]
31-3-2014
[0 - 5%]
[40 - 45%]
[0 - 5%]
[15 - 20%]
[25 - 30%]
[5 - 10%]
30-6-2014
[0 - 5%]
[40 - 45%]
[0 - 5%]
[15 - 20%]
[25 - 30%]
[5 - 10%]
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Television
Television: digitization of subscriptions
60%
50%
Share of subscriptions
40%
30%
20%
10%
0%
30-9-2012
31-12-2012
31-3-2013
30-6-2013
30-9-2013
31-12-2013
31-3-2014
30-6-2014
Analogue only
19%
19%
17%
16%
15%
14%
14%
13%
Digital and analogue
48%
47%
48%
49%
49%
50%
50%
51%
Digital only
33%
34%
35%
35%
36%
36%
36%
36%
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Fixed telephony
Single calls (PSTN)
•
•
•
•
Two calls (ISDN2)
Migration from PSTN to
VoB expected to slow
down in 2015/2016
Ongoing migration from
ISDN2 to IP
Migration from ISDN30 to
IP just started
Decrease in market
volume dual and multiple
Multiple calls (ISDN30)
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Bundling
Multiplay: bundles offers based on multiple services billed together
7.000
Number of subscriptions with bundled offers (x 1,000)
6.000
5.000
4.000
3.000
2.000
1.000
0
30-6-2011
31-12-2011
30-6-2012
31-12-2012
30-6-2013
31-12-2013
30-6-2014
1.330
1.189
1.088
1.003
1.007
897
838
Dual play - Broadband and television
662
672
656
679
697
728
799
Dual play - Fixed telephony and television
89
105
90
98
99
101
91
Triple play + quadruple play
2.420
2.714
2.999
3.337
3.692
3.914
4.057
Total bundled subscriptions
4.500
4.680
4.833
5.118
5.496
5.640
5.785
Dual play - Broadband and fixed telephony
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Mobile market
Mobile: Volume retail minutes of traffic, data and sms (MNOs and MVNOs)
14
12
volume x 1,000,000,000
10
8
6
4
2
0
30-6-2012
30-9-2012
31-12-2012
31-3-2013
30-6-2013
30-9-2013
31-12-2013
Minutes of traffic (x 1,000)
5.634.160
5.363.795
5.760.782
5.686.770
5.853.737
5.582.763
6.224.566
31-3-2014
6.205.108
Data (x 1,000 MB)
5.331.243
5.932.102
6.749.284
7.215.930
7.761.576
8.727.345
10.274.603
11.588.649
SMS (x 1,000)
2.080.763
1.838.890
1.692.681
1.440.031
1.386.259
1.316.488
1.178.447
1.061.956
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Telecom markets analysis
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Market analysis
• Objectives:
– Foster competition and investments
– Promotion of consumer interest
– Creation of internal market
• Analysis of telecom markets:
– If SMP ACM imposes obligations:
• Access to least replicable network elements
– Process of market analysis:
• Draft consulted nationally
• Second draft notified with EC
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3rd round of market analysis
Regulated
Light regulation
wholesale
LQ WBA
downstream
Wholesale leased lines
and HQ WBA
ODF-FttO Access
Multiple
Calls
(ISDN 15>)
Two calls
(ISDN2)
Single calls
(PSTN)
Market 1&2:
fixed telephony
Business connectivity
services
retail
Market 4: LLU
ODF-FttH/MDF/SDF Access
Wholesale Fixed
telephony
WBT/ huurlijnen
Market 5&6:
WBA and WLL
Local loop unbundling
Not regulated
Internet
Mulitiple
Calls
(ISDN15>)
Two calls
(ISDN2)
Single calls
(PSTN)
Television
Fixed telephony
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LLU market analysis
• Retail markets:
– Risk on single SMP KPN on fixed telephony and business
connectivity serivies
– Risk on joint SMP KPN and UPC/Ziggo on internet
(including bundles)
• Wholesale market LLU:
– Copper and FttH-access belong to market
– Unbundled cable-access no substitute
– KPN is owner of copper- and FttH-network and has to grant
access (including non-discrimination and tariff regulation)
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(Cable) Television regulation in NL
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First & second TV analysis – regulation
• 2006:
– Separate market for cable TV
– SMP regional cable operators
– Access obligation for physical channel/frequency
• Not used: access seekers wanted cheap access to the
cable operators commercial package of channels, or
wanted to resell that package
• 2009:
– Broad market with analogue and digital cable,
ADSL, FttH, satellite, terrestrial
– Still SMP regional cable operators
– Access obligation to resale analogue package
• Annulled by court in 2010
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Third TV analysis – no regulation
• 2011: same broad retail TV market
• TV market no longer on EC list: three criteria
– High and non-transitory barriers to entry?
– No development toward competition?
– Other legislation will not solve problems?
• Conclusion: market does nog pass three
criteria test, so no ex-ante regulation
– Digital TV growing, making competition from other
infrastructures easier
– Entry possible on DSL, FttH, resale DVB-T, and
threat from OTT services
– KPN growing as strong competitor, cable shrinking
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Television distribution development NL
2006
80-85% cable
<1% IPTV-DSL
10-15% satellite
0-5% terrestrial
2014
60-65% cable
10-15% DSL-IPTV
5-10% satellite
5-10% terrestrial
5-10% FttH (IPTV, DVB-C,
analogue)
>40 cable networks
KPN starting <5%
±20 cable networks
KPN strong competitor 25-30%
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Current TV issues
• No new analysis, 2011 conclusion still holds
– UPC/Ziggo merger does not change this
– But politicians/competitors not happy, could request formal
analysis
• Discussions
– Some HBBtv signals blocked by (all) TV operators
– ‘Level playing field’ between OTT and broadcasting
services/providers
– Possible regulations for search portals, EPG’s
• 2015: analysis of IP interconnection (peering)
– The wholesale side of netneutrality
– Issue is cost of OTT video (that competes with TV operators)25
ConsuWijzer
Miranda Keijzer | November 2014
ConsuWijzer – how did we start?
• 2006: Start of the Consumer Authority
• Start of ConsuWijzer, as an Information service of 3 enforcement
agency’s
• Key to succes: Education & Insight in the markets
• 2008: switch to empowerment of consumers
• 2010: First Government website-of-the-year award
• 2013: merger of Nma, OPTA and CA to ACM
ConsuWijzer
• Two legs of consumer protection
– Enforcement
– Information Services
Organisation and ambition: two goals
Collecting
indications
ConusWijzer
Consumer
empowerment
Facts & Figures
2.000.000 site visits
70.000 requests & signals
Customer Satisfaction: 7.3
Readiness to take action: 46%
2014 ACM Conference – Innovation in Oversight, Oversight and Innovation
Empowerment
Key principles in empowerment:
•
Behavioral science
ConusWijzer
• Practical tools to reduce the barrier to
really take action.
24 January 2014
• We use easy-to-understand
communication and give practical advice.
Tone of voice
It is not about what we say.., It is about what they understand!
ConsuWijzer
• Clear and understandable advice, in plain
language
• To empower -> do it yourself
• All advice contains an action plan
• Do not pick a side!
Tools
ConsuWijzer
Webshop scan
Example letters
Checklists
Leaflets
Preparing
conversations
• Compare lists
• Travel prices check
• etc.
24 January 2014
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”if you snooze, you lose”
• If consumers were more active, competition would increase, new entrants
would be attracted, the increase in innovation would be supported, and
the need for regulatory oversight would be reduced.
• General interest was high, our campaign received positive and widespread
attention in major newspapers and on national television.
if you snooze, you lose
ConusWijzer
• In this campaign, we address and attempt to appeal to certain behavioral
biases people naturally have. Examples are:
– The Status quo bias
– Loss aversion bias
– Social preference
Best practices
• Combine consumer advice with
business intelligence
• Don’t think in legal areas but in
consumer problems
• It is not about what we say, it is
what they understand
ConsuWijzer
• Information services is an
integrated proces, be involved at
the start of an investigation
Questions?
Thank you for your attention
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