ANACOM - SLRO enters into force within 10 working days - access demand is assessed three months later

The SLRO - Subscriber Line Resale Offer, which enables new operators to engage the PT network line, and thereafter to resale it to their clients, undertaking themselves the subscription and traffic billing task, is about to enter into force. ANACOM - National Communications Authority, has established a 10-working day deadline for the alteration of the offer by PT, following which this entity shall make it available to its competitors.

With the SLRO entry into force, Portugal joins a strict group of countries which are provided with this market liberalization instrument. In fact, only Ireland, Norway, Denmark and the United Kingdom are provided with the SLRO, an offer which increases competition in the market as it facilitates both the implementation of new operators before customers and the launching of innovative products an services.

The SLRO allows single bill cases to grow, this being an element which new operators have claimed to be one of the factors towards a higher market competition.

According to the regulator's determination, the companies of the PT Group may not charge above 10,75 euros as the monthly payment amount of the SLRO, which is 11,3% below the price proposed by the incumbent, and the activation price may not exceed the pre-selection activation maximum price, which is currently 5,6 euros.

The regulator aims with these prices to set the amount of the SLRO monthly price between the monthly subscription charged by PT to its customers, 12,66 euros - a higher price would deprive new operators from the margin to carry out the line resale to their customers - and the local loop price, in those cases where new operators engage in infrastructure investment - the regulator intends to encourage business models that favour investment.

The SLRO introduction in most countries wherein it already exists was rather slow, not only because it involves a technically complex procedure, but also on account of the fact that incumbents were not highly motivated to provide the line resale offer to their competitors. By comparison, the SLRO was swiftly introduced in Portugal, and encouragements were created in order to stimulate the incumbent to promote the SLRO, by making the launching of offers of the PT group which bundle access and traffic subject to the success of the SLRO introduction.

In fact, according to the regulator's decision, the companies of the PT Group are allowed to make available retail offers that bundle access and telephone traffic provided that the following requirements are cumulatively met: PT Group companies must effectively provide Basic and Primary ISDN accesses for activation of the SLRO; they must request the SLRO beneficiary companies to bill and collect all services provided over accesses activated for the SLRO, insofar as the billing and collecting price set by the beneficiary companies is reasonable; and they must provide a complete and effective introduction of the SLRO. This offer is deemed to be completely and effectively introduced when 150,000 accesses are activated, excluding the activations carried out by PT Group companies. When this threshold is reached, and provided the other two conditions have been fulfilled, the PT Group is entitled to launch bundled network line and traffic offerings. In case the number of SLRO accesses is not reached, three months after the introduction thereof, the regulator may reassess the situation, by analysing a set of parameters, and paving paths for the launch of bundled traffic and access offerings.

This reassessment aims to determine whether or not the lack of this minimum number of activated accesses to the SLRO is attributable to PT. If the answer is positive, the companies thereof shall be prevented from launching bundled network line and traffic offerings. In case the action of the companies of the PT Group is effective, yet no SLRO demand takes place, the regulator shall not oppose to the launching of bundled network line and traffic offerings, insofar as the regulatory framework in force is complied with.

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