The BIPT can now adopt the new rates, since the EC only made minor comments on the cost model.
Background: In Belgium, cable operators Brutélé, Nethys (now VOO), and Telenet are subject to ex-ante regulation in the wholesale broadband access market. In 2018, the regulator BIPT reviewed the market and found that each of those operators has a 100% market share in wholesale central access in the respective area of coverage. As a result, the BIPT required the three operators to provide access to their cable network at regulated rates, and set interim prices (€20.29 per month for speeds below 150Mbps, and €30.12 per month for speeds above 150Mbps) while a cost model was being developed.
The new rates are approved: The BIPT intends to impose prices through a fair-pricing regime, but still base them on a cost model to maintain a link with the underlying costs. It is a BU-LRIC+ cost model, based on current replacement costs and economic depreciation. This time, the BIPT has identified four tiers of speed, ranging from below 100Mbps to more than 400Mbps. These will change in 2022–23, to between less than 150Mbps and more than 600Mbps. The access charges for 2020 vary between €12.02 and €14.32 in the lowest tier, and €25.04 to €29.84 in the highest. From 2023, they will rise to €14.35–17.10, and €29.89–35.62.
The EC approves, with comments: On 11 May 2020, the BIPT announced that the EC approved the new rates, though it made two comments. Firstly, the EC sees a risk of excessive cost recovery by the cable operators, especially in the highest speed tiers. Secondly, it asks the BIPT to re-examine whether analogue TV should be included in a cost model that is based on an efficient operator, since operators are unlikely to offer that service throughout the regulatory period. The BIPT maintains it will issue a final statement by late May or early June.
