The latest market reviews in France, Ireland and Portugal seek to clear the way for faster fibre rollouts while preserving competitive markets
ComReg adjusts Eircom’s SMP designation in light of fibre developments
On 15 December 2023, ComReg announced that the EC had cleared its plan for regulating wholesale fixed broadband markets in Ireland. The regulator continued to identify Eircom as having SMP in two relevant markets: a geographically-designated segment of the wholesale local access (WLA) market and the physical infrastructure access (PIA) market. Specifically, Eircom is designated with SMP for the market for fibre-based WLA that falls outside the underserved area targeted by the National Broadband Plan. As a result, the firm will be subject to additional regulatory obligations, including access, non-discrimination and transparency, as well as a pricing framework. ComReg has imposed similar obligations on Eircom in the PIA market, with the regulator highlighting Eircom’s access to “ubiquitous” physical infrastructure via Fibre Networks Ireland – its joint venture with InfraVia. ComReg notes, however, that the WLA pricing framework has been made more flexible to encourage continued network investment. The regulator also stated that ex-ante regulation of the copper-based WLA market as well as the wholesale central access (WCA) market was no longer necessary, as ComReg looks ahead to the further deployment of fibre across the country. The regulator will finalise these items in a set of decisions expected in Q1 2024.
ANACOM deregulates leased lines while holding Altice in check
In Portugal, ANACOM has also received EC approval of its plans for wholesale broadband regulation for the next five years, releasing a final set of decisions in late December 2023. Altice and its flagship MEO brand were designated with SMP in a number of markets, including WLA, PIA, and some geographically-designated portions of the WCA market. In the identified non-competitive geographic regions, the operator will be required to prepare and present a reference offer for unbundled fibre access to ANACOM within six months of its decision. ANACOM has also moved to fully deregulate the wholesale market for trunk segments of leased lines, which comes some time after the EC removed it from the 2007 Recommendation on markets susceptible to ex-ante regulation. Greece and Malta and the UK now remain the only European countries that regulate this market in some capacity, with peers long-considering it competitive at the national level and without an operator with SMP.
Arcep finalises its decisions, addressing uncertainty in the WCA market
Following commentary from the EC on the regulator’s decision to delay publication of the market review for WCA in France, Arcep has clarified the continuing obligations assigned to Orange in the interim period. While Arcep finalised much of its review for the 2024-2028 period in a set of decisions in December 2023, the regulator will extend its work on the WCA market for an additional year. The delay is due to the October 2022 announcement of a new wholesale fibre proposition from Orange, which the regulator notes will help grow the number of wholesale offerings in the relatively underdeveloped market and may justify a future deregulation of the market. To address the EC’s concerns regarding the status of SMP regulation currently imposed on Orange in this market, Arcep clarified that, by notifying the EC of the delay in advance, it met the requirements to extend any existing obligations for a period of one year given the exceptional circumstances. Like its peers, Arcep appears intent on striking a careful regulatory balance between maximising fibre investment while maintaining a competitive market – even if it means extending its review into 2024.
