Nkom has asked Telenor to provide better information about its retirement plans, and ensure adequate alternative wholesale products are available
Nkom stopped Telenor’s initial plan: Back in January 2019, Telenor announced it would retire its copper network by the end of 2022. The regulator Nkom expressed concerns, especially in view of Telenor’s intention to stop repairing faults on the copper network from May 2020, and called for a smooth transition. To minimise disruption for consumers and other operators, in 2020 Nkom required Telenor to provide copper access until September 2025, and included fixed-wireless access (FWA) among the wholesale services Telenor has to provide. In September 2021, Nkom concluded that it could not agree on a migration plan with Telenor, and that it should set new rules for how Telenor retires its copper network.
A more flexible wholesale access requirement: Nkom saw a loophole in the current rules, which would have allowed Telenor to invoke circumstances beyond its control to close copper exchanges. The new proposal limits the scope of this exception. Until September 2025, Telenor will have to offer replacement products that allow retailers to provide services comparable to their current copper ones, and to make similar profit margins. At the same time, Telenor will have some flexibility in which technologies it can use for wholesale access (e.g. fibre or FWA). Nkom believes these rules are more forward-looking than simply demanding copper access be continued, and that they provide better arrangements for the move to fibre.
Better communication with wholesale customers: The rules also foresee more involvement for wholesale customers, which have to be provided with sufficient and timely information on the closure of a copper exchange when circumstances beyond Telenor’s control arise. Nkom notes that currently Telenor provides very limited information and often notifies after the decision to close has already been made. Nkom proposes access seekers must be notified as early as possible, and to involve them in deciding which technology will replace their copper service. Nkom is also considering a compensation scheme for access seekers in the event of loss of access. Stakeholders can submit their comments until 6 December.
Similar challenges have emerged in other countries: The Norwegian case highlights the challenges that arise when an operator decides to retire its copper network. As we have recently noted, regulatory approaches have varied widely, but there has been emphasis on ensuring sufficient notice and the availability of adequate replacement products – something that was missing in Norway until now.
