The BIPT has opened a consultation until September 2019.
Background: Cable operators in Belgium have been subject to wholesale access obligations for some time. In the latest market review of June 2018, the regulator BIPT confirmed the obligations on Telenet, Brutélé, and Nethys, and extended them to standalone broadband services (previously they were in conjunction with TV services) so that competitive broadband-only offers could emerge at the retail level. Access had to be granted at ‘fair’ prices i.e. based on costs with a reasonable margin.
The new proposal lowers broadband access rates: This week, the BIPT published a draft decision proposing new tariffs, resulting from a recently adopted cost model based on the costs of an efficient operator while taking account of each operator’s economies of scale, investment history, or the characteristics of its coverage area. To safeguard investment incentives, the BIPT proposes a ‘reasonable margin’ (between 5% and 10%) to apply to wholesale rates for broadband above 200Mbps. The proposed rates involve a reduction in broadband only and broadband + TV products, whereas rates for TV-only access would increase.
Next steps: The proposal is subject to public consultation until 6 September 2019. The BIPT then aims to make a final decision by the end of this year; prices would apply for the period 2019–2023.
