Margin squeeze assessment of broadband offers provided by the PT Group


ANACOM approved, on 6 June 2007, a draft decision on the method for the assessment of margin squeezes in broadband offers provided by the PT Group - 1:50 contention offers.

According to this determination, prices of broadband Internet access offers provided by the PT Group, with maximum 1:50 contention, are subject to a price control obligation, based on a ''retail-minus'' rule, whether they are supported on a public switched telephone network or on a cable distribution network. In this context, the method to render this rule operational has been defined. After the final decision is adopted, the ''retail-minus'' rule included in ANACOM's determination of 25 June 2003, concerning the ''PT ADSL Network'' wholesale offer provided by PT Comunicações, shall be repealed.

Moreover, it is also provided that the companies of the PT Group must inform ANACOM of conditions to be applied at retail level, including any discounts, ahead of the date of their entry into force.

This determination has been submitted to the prior hearing of interested parties, pursuant to the Code of Administrative Procedure, a deadline of twenty working days having been established for the purpose.


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