Report on the general consultation procedure and prior hearing of interested parties in respect of the draft decision to amend the Right of use of frequencies allocated to Onitelecom-Infocomunicações,S.A. to operate the fixed wireless access (FWA)

Introduction

Comments received and the position taken by ICP-ANACOM

Conclusion

Introduction

By determination of the Management Board of ICP-Autoridade Nacional de Comunicações (ANACOM) of 3 March 2011, approval was given to the draft decision (DD) on the amendment of the right of use frequencies allocated to Onitelecom - Infocomunicações SA to operate the fixed wireless access (FWA) system and it was further determined thereunder to make the draft decision subject, for a period of 20 working days, to the prior hearing of interested parties (in accordance with articles 100 and 101 of the CPA - Código do Procedimento Administrativo (Administrative Proceeding Code)) and the general consultation procedure (pursuant to article 8 of law no. 5/2004 of 10 February - LCE).

Notified ¹ for this purpose, Oni responded, prior to the established deadline, by letter ² received at ICP-ANACOM on 25 March.

Prior to the closing date for receipt of comments (06.04.2011), a response was also received from Vodafone Portugal, Comunicações Pessoais, SA ³ (hereinafter Vodafone) to the present general consultation procedure.

Upon conclusion of the hearing and general consultation procedure, and in advancing with approval of the final decision, it is incumbent upon ICP-ANACOM to analyse all responses and issue a final document containing a reference to all responses received and a general assessment which reflects the view taken by this Authority in respect of said responses ⁴.

Given that this report provides a summary only, its analysis does not substitute consultation of the responses, which will be made available on ICP-ANACOM's website, along with this document.

The present report constitutes an integral part of the decision to amend the right of use of frequencies allocated to Oni for the operation of the fixed wireless access (FWA) system.

Comments received and the position taken by ICP-ANACOM

In respect of the prior hearing, Oni makes no statement in opposition to the content of the draft decision. Nevertheless, it takes the opportunity to clarify that customers supported over the FWA network will be migrated to other supporting technologies, enabling them to maintain their services, and that they will be given notice of this network migration, in accordance with legal requirements.

Meanwhile, Vodafone, in light of the grounds provided by Oni to justify the request for deactivation of the network, claims that it has no knowledge of the specific infrastructure acquired and used by the applicant, nor in relation to its technological capacity, and therefore has no comment to make.

Regarding the suitability of the submitted deactivation plan, Vodafone considers that its analysis falls to ICP-ANACOM.

That said, and given this opportunity, the respondent chooses to share its experience as a holder of a right of use of frequencies for the operation of FWA systems.

It thereby considers that there can be no dispute that the importance and use of the FWA system currently falls short of expectations. Vodafone submits that the initial expectation was that this system would allow deployment of a communications network with wide reach and high capacity, covering a large number of users with a lower level of investment compared to other existing technologies.

It resulted, however, in its opinion, that the technology contains certain limitations that restrict its take-up. And in this context, Vodafone reports that the requirements of the electronic communications market, coupled with the capacity limitations of FWA technology, have naturally limited and restricted take-up of this technology for the provision of high speed transmission electronic communications, leading to demand for alternative means to meet the expectations and needs of consumers. In the respondent’s case, the option taken was to develop optical fibre.

Therefore, Vodafone has no objection to Oni's intention to abandon the use of FWA technology, provided that the rights of consumers, as enshrined in the Law, are safeguarded.

Position of ICP-ANACOM
 
ICP-ANACOM notes Oni's intention to comply with the notice obligations set forth by the LCE, informing customers in a timely manner as to the cessation of the offer and as to the possibility of migrating to an alternative infrastructure.
 
With respect to Vodafone's comments regarding FWA technology and the difficulties inherent in its deployment, ICP-ANACOM recalls that in 2004, whereas it was recognised that the progress in the implementation of these systems had fallen short of the forecast made in 1999 when the tender was launched, the operating model was subject to a substantial redefinition, enacted by Administrative Rule no 1062/2004 of 25 August.
 
To date, the holders of licenses allocated under the public tender to allocate licenses of national scope for the use of frequencies for fixed wireless access could, given the new framework, redefine their business model. In Vodafone's case, this redefinition is embodied in the allocation of the right of use frequencies ICP-ANACOM no. 09/2006 - FWA.
 
In the absence of any objections to the draft decision and respective grounds therefor, ICP-ANACOM maintains its decision.

Conclusion

In light of the above, ICP-ANACOM maintains its decision.