1.1. Analyze the relevant markets susceptible to ex-ante regulation
1.2. Review relevant wholesale offers in the electronic communications sector
1.4. Analyse and audit the results of regulatory costing systems and promote improvement
1.7. Establish appropriate conditions for the management and allocation of numbering
1.1. Analyze the relevant markets susceptible to ex-ante regulation
Analyses are conducted periodically pursuant to the EU and national regulatory frameworks governing electronic communications, to identify potentially uncompetitive markets and fitting regulatory measures to remedy respective flaws.
These analyses entail the review and update of previous analyses, taking into account the latest and foreseeable evolution in the markets concerned; they include definition of relevant markets, the identification of entities with significant market power and determination of the maintenance, imposition, amendment or withdrawal of regulatory obligations to which these entities are subject.
As a result of these analyses, which assess the level of competition in each relevant market, there may be situations where certain markets are totally or partially deregulated; situations of geographic differentiation due to distinct competitive conditions in different regions of the national territory; and/or the withdrawal, modification or strengthening of regulatory measures.
The following analyses are due to be concluded over the course of 2013:
- retail markets of telephone accesses and services at a fixed location (market 1 of the current EC Recommendation, markets 2-6 of the previous EC Recommendation)1;
- wholesale markets of call origination and termination on fixed networks and termination on mobile electronic communication networks (markets 2, 3 and 7 of the current EC Recommendation);
- wholesale leased lines market (market 6 of the current EC Recommendation );
- television signal distribution and broadcasting market (former market 18 of the previous EC Recommendation).
It is expected that, in 2014, analysis of markets 4 and 5 of the current EC Recommendation will commence and that in 2015 a further review of the market 1 of the current EC Recommendation may be concluded, along with markets 2-6 of the previous EC Recommendation and in addition to initiating a new review of market 7 of the current EC Recommendation, with possible instigation of a new review of mobile termination rates.
Meanwhile, in the specific context of the provisions established in the regulation governing the multiband auction, a review of the electronic mobile communications market will commence in 20132, in order to ascertain the existence of any distortions to competition and any need to adopt appropriate measures as required to eliminate or mitigate such distortions.
1.2. Review relevant wholesale offers in the electronic communications sector
Subsequent to the market analyses and based on the respective conclusions, or occasionally in parallel, reviews are conducted of relevant wholesale offers which govern conditions of access to networks and services of the operator with significant market power by alternative operators in circumstances that provide for sustained competition in downstream retail markets.
This ensures the transparency of technical and commercial information, non-discrimination, price control and appropriate levels of QoS, so that reference offers might constitute an essential instrument to achieve practical and effective implementation of the obligations defined in a more general manner in the market analyses.
The activities included in this area are essentially aimed at reviewing the reference offers in the light of current data, particularly in terms of costing and QoS, in terms of experience gained and of contributions received from the market, and may result in changes to procedures (including those associated with service delivery and fault repair), changes to QoS objectives and non-compliance compensation and tariffs, in order to ensure the effective and concrete accomplishment of the general obligations established in the market analysis. In this context, and notwithstanding other actions as may be deemed necessary in the meantime, the following analyses are scheduled for 2013:
- analysis of the wholesale offer of access to optical fibre networks, of bitstream (virtual network access) Asymmetric Digital Subscriber Line (ADSL);
- analysis of the mobile termination prices established based on the costing model adopted in 2012.
In addition, a further analysis is due to begin in 2012 to review the Leased Lines Reference Offer (LLRO) and the Reference Ethernet Leased Lines Offer (RELLO).
As regards the reference interconnection offer, the reference unbundling offer and subscriber line resale offer - due to a combination of factors such as the relatively recent review of these wholesale offers, the fact that these offers have stabilized and the trend of use by network operators and providers of communications services is declining - analysis of any specific and one-off developments in these wholesale offers is not considered a priority activity, and is incorporated under ICP-ANACOM's current activities.
1.3. Oversee access to the postal network and access to infrastructure components of the universal postal service provider
As part of ICP-ANACOM's intervention, following the recent full liberalization of the postal sector, an analysis is scheduled, covering the reported evolution and to gauge the need for intervention by this Authority.
Intervention may proceed as regards conditions governing access to the postal network and infrastructure components of the universal postal service provider where considered necessary.
1.4. Analyse and audit the results of the regulatory costing systems and promote improvement
This area of activity includes analysis of the results and auditing of the SCA - Sistemas de contabilidade analítica (Analytical Accounting System) used by the relevant operators, as well as the development of new regulatory costing systems, with recognition of their importance in establishing the pricing of wholesale offers and in the analysis of compliance of pricing of certain retail prices with the applicable regime.
To this purpose, ICP-ANACOM's intervention in 2013 will entail the following initiatives:
- development and establishment of new costing models (already begun in 2012), particularly for certain services normally associated with the reference interconnection offer (portability, pre-selection and billing, and collection on behalf of other parties) and with terminations on fixed networks (in this case, to comply with EC Recommendation on termination rates3, which was the basis of the model established in 2012 for mobile terminations);
- analysis of the current costing systems and consideration of possible structural alterations to the SCA - sistema de contabilidade analítica (Analytical Accounting System) used by PT Comunicações, S.A. (PTC) and by CTT - Correios de Portugal, S. A. (CTT);
- development and completion of auditing of the annual results of the regulatory costings of PTC (from 2010, combined with the audits of the CLSU - custos líquidos decorrentes da prestação do serviço universal (net costs of universal service provision) of electronic communications) and of CTT.
In addition to declarations of conformity, to be issued in accordance with applicable legislation and European guidelines, these actions will also result in determinations and recommendations with respect to the current systems, with a view to perfecting and improving the quality and reliability of results. These results are especially important for the regulation of prices on the basis of cost orientation, for the determination of the CLSU and the establishment of new cost models for certain services in order to obviate the limitations of the current systems.
1.5. Define the conditions governing compensation of net costs of universal postal service and the methodology to be used for calculating such costs
As occurred in 2011 with respect to electronic communications, the definition of unfair financial burden will be concluded in 2013 for the universal postal service provider, whose verification will determine the allocation of any associated net costs and which should be calculated based on the methodology established by ICP-ANACOM.
This is to ensure the suitability and predictability of conditions governing compensation of CLSU of the postal sector and avoid or minimize any market distortions as might arise as a result of the compensation.
1.6. Define and distribute the values of the net costs of universal service among eligible operators
It is incumbent on ICP-ANACOM to submit the values presented by the universal service providers to audits conducted by independent bodies to assess their conformity as regards the defined calculation methodology and to approve the final values of the CLSU, including also the values referring to the net costs associated with benefits provided to retirees and pensioners.
Under the legally established terms governing the financing of the CLSU of electronic communications, ICP-ANACOM will also be responsible for defining the distribution of these costs among the various operators eligible for that purpose, and manage the process of collecting the various contributions and reimbursing the universal service provider(s); This process may also involve auditing the turnover values reported by the operators eligible for universal service financing.
The following initiatives are scheduled for 2013:
- final determination of the net costs of PTC in the 2007-2009 period;
- beginning of the process for the 2010-2012 period which involves analysis of the costing system used by PTC as regards the respective allocation factors (drivers), crucial to estimate the net costs.
1.7. Establish appropriate conditions in terms of numbering management
With the establishment of appropriate conditions in respect of numbering management, ICP-ANACOM aims to ensure conditions of effective competition, in particular by reducing technical barriers to operator switching and facilitating the development of new services and applications with value to the end-user.
In this context two actions are planned for 2013 related to the allocation of:
- Mobile Network Codes (MNC) and
- conditions governing use of geographic numbers, particularly in situations of user mobility.
These actions follow on from initiatives in 2012 seeking, respectively, to facilitate the mass migration of numbers between mobile operators in 'machine to machine' applications and to allow the use of geographic numbers for services and applications associated with mobile users and/or using different types of technology platforms, safeguarding important conditions, including those related to calls made to access emergency services.
Strategic Priority 2: Ensure the efficient management of public resources
Another of the responsibilities assigned to ICP-ANACOM is to ensure efficient management of scarce public resources such as the radio spectrum, numbering or ducts suitable for the installation of electronic communications networks. ICP-ANACOM has broad scope for intervention in this area, ranging from planning to the allocation of spectrum, from station and network licensing to on-the-ground inspections and enforcement, in cooperation with all international organizations with similar remits and with national users of the spectrum for security and national defence purposes. The rapid changes in technology and increasing application of the principles of neutrality, as well as new potential opened up by the digital dividend, have made the global activity of spectrum management increasingly important.
ICP-ANACOM's responsibility in terms of providing effective management of numbering resources on a transparent and non-discriminatory basis is equally important in light of their scarcity and indispensability to the provision of electronic communications services.
ICP-ANACOM will also continue to intervene, where necessary, in terms of ensuring non-discriminatory access to ducts, poles and associated infrastructure, an area where ICP-ANACOM has, in many ways, been a pioneer of regulatory activity. In this context, ICP-ANACOM will continue to develop all the activities necessary to the exercise of powers which are legally assigned to it.
1 Two recommendations were published by the EC on relevant product and service markets within the electronic communications sector susceptible to ex ante regulation, in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services.
The first recommendation dated 11 February 2003 is available at Recomendação da Comissão (2003/311/CE), de 11.2.2003https://www.anacom.pt/render.jsp?contentId=971374.
The second EC Recommendation of 17 December 2007 is available at Commission Recommendation 2007/879/EC, of 17.12.2007https://www.anacom.pt/render.jsp?contentId=984081.
2 Article 39 of the Auction Regulation.
3 Recommendation 2009/396/EC of 07.05.2009 on the regulatory treatment of fixed and mobile termination rates in the European Union (EU).
