CRC experience on market analysis, imposed remedies and result achieved after their imposition

October 2012

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Relevant markets in accordance of Commission recommendation 2007/879/EC

Markets for access to the public telephone network at a fixed location for residential and non-residential customers Market for call origination on the public telephone network provided at a fixed location Market for call termination on individual public telephone networks provided at a fixed location Market for wholesale (physical) network infrastructure access (including shared or fully unbundled access) at a fixed location Market for wholesale broadband access (WBA) Market for wholesale terminating segments of leased lines, irrespective of the technology used to provide leased or dedicated capacity Market for voice call termination on individual mobile networks

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Markets for access to the public telephone network at a fixed location for residential and non-residential customers

Round status – first round of market analysis covering the period between 2005 and 2007 Market definition – access services that are provided by Public Switched Telephone Networks (PSTN), Integrated Services Digital Networks (ISDN), cable networks (Coaxial Networks and Hybrid Fibre-Coaxial Networks) and wireless networks (fixed access provided by Public Land Mobile Network (PLMN) operators and Broadband Wireless Access (BWA) / Fixed Wireless Access (FWA)) SMP on the relevant market – Bulgarian Telecommunications Company Imposed wholesale level remedies – requirement to provide Carrier Selection (CS) and Carrier Pre-Selection (CPS) and requirement to provide Wholesale Line Rental (WLR), obligation of non-discrimination, transparency and price-control (cost orientation for the prices of CS and CPS services and retail-minus for the WLR services) Imposed retail level remedies – obligation of non-discrimination, transparency and price-control (requirement of cost oriented tariffs, price cap and requirement to provide information on price changes of the access price one month in advance)

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Market for call origination on the public telephone network provided at a fixed location

Round status – second round of market analysis covering the period between 2008 and 2010 Market definition – the services for call conveyance from a fixed location on the network of the undertaking of the calling subscriber through the infrastructure of the same undertaking to a point of interconnection where the call is transferred into the network of another undertaking for transit and/or termination SMP on the relevant market – Bulgarian Telecommunications Company Imposed remedies – obligation of access to, and use of specific network facilities (includes reducing to two interconnection levels - local and national segments, and specific obligations concerning IP interconnection), transparency, non-discrimination, publication of a Reference Interconnection Offer, price-control (includes glide path for local and national segment call origination with prices set as of 1 July 2012, and 1 January 2013 respectively and implementation of pure BU-LRIC after 1 July 2013) and cost accounting

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Market for call termination on individual public telephone networks provided at a fixed location

Round status – second round of market analysis covering the period between 2008 and 2010 Market definition – the services whereby each operator terminates on its own fixed network a voice call originating from another operator's fixed or mobile network SMP on the relevant markets – all twenty undertakings (BTC and 19 alternative operators) Imposed remedies – obligation of access to and use of specific network facilities (includes reducing to two interconnection levels - local and national segments and obligation of IP interconnection), transparency, non discrimination, and price-control (includes glide path for local and national segment call termination with prices set as of 1 July 2012, and 1 January 2013 respectively and implementation of pure BU-LRIC after 1 July 2013) Imposed additional obligations on BTC - obligation of publication of Reference Interconnection Offer and obligation of accounting separation

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Market for wholesale (physical) network infrastructure access (including shared or fully unbundled access) at a fixed location

Round status – first round of market analysis covering the period between 2005 and 2007 Market definition – all services related to the provision of shared or fully unbundled access to the local loop, supplied to third parties via the existing PSTN/ISDN network (includes FTTC/FTTN infrastructure). Access based on Local Area Networks (LAN), cable networks (CaTV) and Fibre To The Home (FTTH) is not part of the relevant market.

SMP on the relevant markets – Bulgarian Telecommunications Company Imposed remedies – obligation of access to and use of certain network elements and associated infrastructure (includes collocation, backhaul, access to dark fibre , access to operational support systems and access to ducts), transparency (includes the obligation for publication of a Reference Offers and the regular provision of information on the migration towards NGN/NGA), non-discrimination and price-control under which BTC is required to apply cost-oriented tariffs, according to LRIC model

Market for wholesale broadband access (WBA)

• • • • Round status – first round of market analysis covering the period between 2005 and 2007 Market definition – xDSL-based and FTTC/FTTN-based wholesale broadband access including bitstream access. WBA provided through Local Area Networks (LAN), cable networks (CaTV) and Fibre To The Home (FTTH) is not part of the relevant market.

SMP on the relevant markets – Bulgarian Telecommunications Company Imposed remedies – the obligations of access, transparency, non discrimination and price-control (retail minus)

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Market for wholesale terminating segments of leased lines, irrespective of the technology used to provide leased or dedicated capacity

Round status – first round of market analysis covering the period between 2008 and 2010

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Market definition – all wholesale terminating segments of leased lines, irrespective of the technology used to provide leased or dedicated capacity including: the two end points of which are located within only one settlement (local leased lines)

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the first end point is located within the administrative centre of a district and the second end point is located within any different settlements situated on the territory of the same district the two end points of which are located within any two different settlements, other than the administrative centre of a district, which are situated on the territory of that district

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Submarkets for wholesale terminating segments of leased lines:

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submarket for wholesale terminating segments of leased lines with speeds of up to and including 8 Mbit/s SMP on the relevant submarket – Bulgarian Telecommunications Company Imposed remedies – obligation of access to and use of, specific network facilities, transparency, non-discrimination and price-control (retail minus)

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and submarket for wholesale terminating segments of leased lines with speeds of above 8 Mbit/s - defined as not susceptible to ex-ante regulation

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Market for voice call termination on individual mobile networks

Round status – second round of market analysis covering the period between 2008 and 2010 Market definition – all calls terminated on individual mobile networks, irrespective of the technology used SMP on the relevant markets – all mobile network operators (Mobiltel, Cosmo Bulgaria Mobile and BTC) Imposed remedies – obligations of access to and use of specific network facilities (irrespective of the origination of the call), transparency, non discrimination and price-control (glide path for call termination on individual mobile networks with prices set as of 1 July 2012, and 1 January 2013 respectively (irrespective of the type of network originating the call - national or international) and implementation of pure BU-LRIC after 1 July 2013) Imposed additional obligations on Mobiltel and Cosmo Bulgaria Mobile accounting separation

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CRC experience on NGN regulation and net neutrality

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Migration of incumbent core network to IP-based core network: Development of IP-based core network, connecting points of presence in all 27 administrative district centres Replacement of existing traditional transit exchanges with 3 Softswitches respectively 3 Signalling Gateways, located in the biggest cities in the country (Sofia, Plovdiv and Varna) Using of Universal Media Gateway for connection between IP-based core network and existing local digital exchanges and for interconnection with other public fixed and mobile telephone networks - BTC still uses Common Chanel Signaling (CCS7) for interconnection with other public telephone networks

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Replacement of the existing local digital exchanges with Multi-Service Access Nodes (MSAN) Reduction of the minimum number of points of interconnection by the use of which can be achieved interconnection on national level – from 12 (corresponding to transit digital exchanges) to 3 (corresponding to Softswitches located in Sofia, Plovdiv and Varna) Use of IP-based interconnection between public telephone networks of alternative operators - used SIP and H.323 signaling protocols Providing of IP-based telephone access services to end users

CRC experience on NGN regulation and net neutrality

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Imposed remedies concerning IP-based interconnection: Reduction of hierarchical interconnection levels – two levels of interconnection (local and national segments) Requirement for provision of detailed technical information about systems in incumbent network Establishment of a consultative working group on IP interconnection, which activity should be completed up to 1 September 2013

Thank you for your attention!

Danail Nikolov

State expert Coordination and Planning Department

E-mail: [email protected]