2. Analysis


Taking into consideration the matters identified in the preceding section, the following analysis organizes the various issues as follows:

(a) Quality of service and compensation for non-compliance;

(b) Method of payment of compensation;

(c) Dependency between the payment of compensation and the sending of demand forecasts;

(d) Premium services;

(e) Backhaul and access to submarine cable landing points;

(f) CAM lines;

(g) Ethernet lines;

(h) Prices.

This analysis also takes into account, among others, the Common Position taken by ERG (European Regulators Group) - now BEREC1 - on best practice in remedies imposed as a consequence of a position of significant market power in the relevant markets for wholesale leased lines2. This common position refers that, as wholesale leased lines are key inputs for providing a wide range of electronic communications services (especially to companies), it is vital that, where they are not supplied under conditions of effective competition, they are regulated effectively. According to ERG, the regulation of wholesale leased lines will promote the competition and choice of businesses.

In this context, it should be noted, still according to that common position, that it is important to guarantee a balanced level of competitive conditions, and a reasonable certainty that alternative operators are able to compete on a level playing field with the operator holding significant market power (SMP). This implies that certain regulatory measures are effectively put in place, specifically in order to:

(a) Ensure that the SMP operator does not have an unfair and unmatchable advantage, (relatively to other operators) by virtue of its economies of scale and scope, especially if derived from its position of incumbency.

(b) Prohibit the SMP operator from discriminating in favour of its companies and services, either on price issues or other conditions.

(c) Effectively deter obstructive and foot-dragging behaviour.

(d) Ensure that policies adopted by the SMP operator towards the development of new infrastructure, required for provision of new retail services, provide all market operators with the same opportunity to compete in that scope.

Notes
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1 Body of European Regulators for Electronic Communications (BEREC).
2 ''ERG Common Position on best practice in remedies imposed as a consequence of a position of significant market power in the relevant markets for wholesale leased lines'': ERG (07) 54 finalhttp://www.berec.europa.eu/doc/publications/erg_07_54_wll_cp_final_080331.pdf.