ICP-ANACOM has decided to increase penalties to PT Comunicações for repeated non-fulfillment of regulator-defined deadlines for its Reference Unbundling Offer, which has negative impacts upon the activities of other operators and end users. PTC's systematic non-fulfillment of agreed service quality levels has led the regulator to conclude that current compensatory fines specified in the RUO are not sufficiently compelling and must be changed so as not to compromise the goals of ICP-ANACOM's interventions in the broadband market, which are aimed at developing competition, reinforcing alternative operator investments and safeguarding user interests.
Thus, to prevent such situations from reoccurring, the regulator will be increasing the level of compensation given to service providers by PT Comunicações for non-fulfillment of service quality levels, with the daily compensation amount rising from 7.5 to 38 euros. In the event that a user's service is completely stopped, compensation will be based on hours of service interruption to encourage reconnection in the shortest time possible.
In the event of loop transfer delays or when users are unable to make or receive calls, compensation limits will be eliminated. For delays in services associated with exchange areas, compensation for an average-sized exchange may be as high as 75 thousand euros.
ICP-ANACOM believes this intervention will promote a decline in the problems identified in this offer along with faster problem resolution, as well as contribute to a higher number of unbundled loops, with clear benefits for the competition and end users.
ICP-ANACOM will continue to monitor this issue, and does not rule out the possibility, if and when necessary, of future interventions with regard to LLU. This measure is part of a framework of gradual, balanced interventions which ICP-ANACOM is currently promoting.
In the past few months, the regulator has carried out a series of interventions aimed at improving competitive conditions in Portugal's broadband market, both in terms of the local loop (since the loop is the twisted copper wire pair which links PTC's exchanges to end-user households and gives new operators greater flexibility and control in offering innovative services) as well as the 'PT ADSL Network' wholesale offer. Moreover, these interventions - which included reducing prices for both local loop installation and monthly payments, putting Portugal in line with European best practices, simplifying processes and reducing deadlines - have already led to an increased rate of loop unbundling, ultimately giving rise to more and better products and services at lower prices, with positive repercussions on the number of broadband users.
Further improvements could be made to the status quo by eliminating certain PTC current practices, particularly with regard to deadlines, which have been detrimental to operators and end users.
Among other things, the regulator has identified cases of improper loop unbundling (which is harmful to end users, who are blocked from accessing services and receiving calls), delays in loop unbundling (postponing services from new operators to various customers) and delays in services to various exchange areas. This postpones, from the outset, services from new operators to all customers located under the exchange area.
Consult:
- Conditions for the deployment of Local Loop Unbundling (LLU) https://www.anacom.pt/render.jsp?contentId=419300
