Leased lines are a fundamental tool for the development of markets for electronic communications services, stimulating to a large extent the development of transport and access networks throughout the national territory.
The Leased Lines Reference Offer (LLRO) provided by PT Comunicações, S. A. (PTC), the first version of which was published in 2006, supports a significant proportion of leased lines, especially in terminating segments and in a significant share of trunk segments, and, as such, it is a relevant factor for the promotion of sustained competition in the markets for electronic communications networks and services.
The decision of ICP - Autoridade Nacional das Comunicações (ICP-ANACOM) taken on 28 September 20101, on the definition of product and geographic market, assessment of significant market power (SMP) and imposition, maintenance, amendment or withdrawal of regulatory obligations in the retail market and wholesale markets of terminating and trunk segments of leased lines (hereinafter referred to as "market analysis") maintained for the Grupo PT the obligation to publish a leased lines reference offer and all associated obligations, except for trunk segments in the so-called "competitive routes" ("Routes C").
In the scope of the "market analysis", ICP-ANACOM specifically:
(a) Imposed the broadening of the scope of the reference offer to encompass the offer of access to lines supported using Ethernet technologies.
(b) Decided to conduct a separate analysis on the possibility of imposing access (collocation) to submarine cable stations.
(c) Acknowledged that there are some aspects of the LLRO which warrant a revision or update, in order to better align them with the interests of the market, with particular attention to access to CAM2 lines (and to other matters, such as operator interconnection, levels of quality of service - line supply times or Premium levels - or compensation for failures to comply with levels of quality of service, which would be detailed under a specific determination to be submitted to public consultation).
These issued are specified and analysed below.
However, as regards point (a) above, it should be taken into account that, still in the scope of the "market analysis", ICP-ANACOM admitted that Ethernet lines could be considered in a reference offer other than the LLRO. In this case, PTC, no later than two months following the final decision, would be required to publish an updated version of the LLRO with the inclusion of Ethernet lines or a specific offer of Ethernet-supported leased lines (hereinafter referred to as Ethernet line offer - RELLO), submitting previously to ICP-ANACOM - not later than 1 month prior to this publication - the reasoned basis for its various components.
Further to the referred determination, PTC published the reference Ethernet leased lines offer (RELLO) in December 2010, establishing the characteristics as well as technical and commercial conditions for the provision of Ethernet lines by PTC in wholesale markets.
By determination of 17 November 2011, the Management Board of ICP-ANACOM decided to conduct the prior hearing of interested parties and to launch the general consultation procedure on a draft decision it intended to take on amendments to LLRO and RELLO, which took place between 30 November 2011 and 13 January 20123. Comments received, the respective analysis and grounds for the decision are included in the "Report of the prior hearing and general consultation procedure on the draft decision on amendments to the leased lines reference offer (LLRO) and the reference Ethernet leased lines offer (RELLO)", which is deemed to be an integral part hereof.
Subsequently, by determination of 30 April 2012, the Management Board of ICP-ANACOM approved:
(a) The report of the prior hearing and public consultation procedures and the draft decision for notification to the European Commission, BEREC, and NRA of other Member States on amendments to LLRO and RELLO.
(b) The notification of the draft decision to the European Commission, BEREC, and NRA of other Member States, pursuant to paragraph 1 of article 57 of Law No 5/2004, of 10 February, as amended by Law No 51/2011, of 13.09, in line with Commission Recommendation C(2008) 5925, of 15 October.
The European Commission provided its response on 4 June 2012, making no comments on the matter.
1 Vide Reanalysis of the retail and wholesale leased lines marketshttps://www.anacom.pt/render.jsp?contentId=1000059.
2 Leased lines between the mainland and the Autonomous Regions of the Azores and Madeira.
3 The initial deadline for receiving comments from interested parties was 30 December 2011. Later, by determination of the Management Board of ICP-ANACOM taken on 9 December 2011, an extension by 10 working days was provided for interested parties to respond in respect of the prior hearing and general consultation procedure to which the DD had been submitted.
