The conclusions of the last market analysis

By determination of 8 July 2005, the Management Board of ICP-ANACOM adopted a decision on the definition of product and geographic markets, assessment of significant market power (SMP) and the imposition, amendment or withdrawal of regulatory obligations concerning the retail market for leased lines and wholesale markets for terminating and trunk segments of leased lines ¹.

In this analysis, ICP-ANACOM identified the following markets as relevant for the purposes of ex ante regulation:

retail market of analogue and digital leased lines up to 2 Mbps (inclusive), covering the entire national territory;
wholesale market of analogue and digital terminating segments, irrespective of capacity, covering the entire national territory;
wholesale market of analogue and digital trunk segments, irrespective of capacity, covering the entire national territory.

With analysis made of the above markets ², ICP-ANACOM concluded that Grupo PT had SMP in the relevant markets identified and consequently imposed on the undertakings comprising Grupo PT the obligations which are set out in Table 1 and Table 2, at retail and wholesale level respectively.

**Table 1 - Obligations imposed on undertakings identified as having SMP in the relevant retail market**
Obligations	Retail market of analogue and digital leased lines up to and including 2 Mbps
Non-discrimination in the offer of access and interconnection and in the respective disclosure of information	The application of similar conditions in similar circumstances to their corporate end-users and, where applicable, to offer retail customers leased lines of the same quality and under the same conditions as those which they make available to their own services or partners.
Transparency in the disclosure of information	Disclosure of the following information about the minimum set of leased lines: (a) Technical characteristics, including physical and electrical characteristics, as well as the technical and performance specifications applicable to the network termination point; (b) Prices, including initial connection charges, the periodic rental charges and other charges, whereas it must be indicated whenever prices are differentiated (including discounts); (c) Conditions of supply, including, in particular, and by obligation, the ordering procedure, the normal period of delivery, contract period, the typical repair time and degree of availability, and refund procedure, if any.
Price control and cost accounting	Develop and implement an appropriate cost accounting system. Set cost-oriented prices.

**Table 2 - Obligations imposed on undertakings identified as having SMP in the relevant wholesale markets**
Obligations	Wholesale markets of terminating segments and trunk segments
Access to and use of specific network resources	Respond to reasonable requests for access, according to transparent, fair and non discriminatory conditions. Provision for co-location on the undertaking's premises ³. Negotiate in good faith with undertakings requesting access. Do not remove access which has already been granted to determined resources.
Non-discrimination in the offer of access and interconnection and in the respective provision of information	Provide alternative operator with information, resources and services with a level of timeliness, with a base and a quality that should be at least as good as those offered to the retail departments and companies of Grupo PT. The contractual times taken for delivery and for the repair of faults applied to the wholesale supply of leased lines (including leased line part circuits) should be no less than the times taken for delivery which are observed in the retail markets. Do not provide any discounts for loyalty and/or for quantity and/or capacity. Any proposal in this respect must be duly substantiated and justified and previously submitted to ICP-ANACOM. Send, on a quarterly basis, information regarding times taken for delivery and the repair of faults and the degree of availability, disaggregated by capacity and by operator ⁴.
Transparency in the publication of information, including reference proposals	Publish ⁵ a reference offer of analogue and digital leased lines up to 155 Mbps (inclusive), including leased line part circuits (and interconnection support components), supplied to wholesale customers, including: (a) the technical characteristics and performance characteristics of the different types of leased lines segments; (b) the prices, appropriately separated by component; (c) Binding SLAs, including the conditions governing delivery and migration, notification and repair of faults, and the respective penalties in the event of non-compliance; (d) specific conditions associated with the routes, the CAM circuits, the service of leased lines part circuits (and support components for interconnection), the service of access to submarine cables and the offer of symmetric xDSL technologies (if and when made available at retail level or to the companies of Grupo PT).
Separation of accounts for specific activities related to access and/or interconnection	Cost accounting system and accounting separation.
Price control and cost accounting	Set cost-oriented prices. Price control - the minimum difference between the wholesale pricing of leased lines and the pricing of the relevant leased lines at retail level, as practiced by the companies of Grupo PT, shall be 26%.
Financial Reporting	Provide accounting records (AAS), including data on revenues from third parties.

In accordance with the obligations imposed, PT Comunicações, S.A. (PTC) has published and maintains the Leased Lines Reference Offer (LLRO), wherein the characteristics and technical and commercial conditions associated with the provision of wholesale leased lines by the company are established ⁶.

Notes

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¹ Markets 7, 13 and 14 of European Commission Recommendation 2003/311/EC of 11 February 2003.
² Taking utmost account of the Guidelines of the European Commission on market analysis and SMP assessment in the context of the EU regulatory framework for electronic communications networks and services.
³ In line with the RUO and RIO wholesale offers.
⁴ Delivery time for 95% of cases (in days), repair times for 80% of cases (in hours) and availability disaggregated by type of line: analogue and digital - 64 kbps / n×64 kbps / 2 Mbps / 34 Mbps / 155 Mbps.
⁵ Within a period of 30 days following notification of the final decision.
⁶ See Oferta de Referência de Circuitos Alugados (ORCA)http://ptwholesale.telecom.pt/GSW/PT/Canais/ProdutosServicos/OfertasReferencia/ORCA/ORCA.htm of PT Comunicações.