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Regulation by the BIPT

The Belgian telecoms market is regulated, the BIPT being the regulatory body. The BIPT performs market analyses in which competition in the market is analysed. When there is insufficient competition, obligations can be imposed on dominant operators, such as the obligation to open up their networks to other operators.

The BIPT imposes obligations only for wholesale offers, i.e. services offered to other operators. Even though the BIPT analyses the retail markets (i.e. services provided to end-users) it usually does not impose any obligations for the retail markets in its market analyses. As for fibre the BIPT has carried out market analyses for the following two markets:

In the following section a short explanation is given about the obligations imposed in both market analysis decisions.

The broadband market

Picture of a broadband user

The broadband market is discussed in the CRC Decision of 29 June 2018 on the analysis of the broadband and television broadcasting markets. In that decision Proximus is designated as an operator having significant market power (SMP) for the services it provides over its copper and FTTH networks. In that capacity Proximus is subject to a number of obligations on two markets: the local access market (market 3a) and the central access/bitstream market (market 3b1).

Below the obligations imposed on Proximus are sketched in broad outlines as far as its FTTH network is concerned. Further details can be found in Chapter 19 of the decision for market 3a and Chapter 30 of the decision for market 3b1.

The access obligation:

  • Proximus has to provide access to its fibre network.
  • As for local access (market 3a) this means:
    • access to (parts of) ducts in case the end-user is connected from end-to-end by means of ducts;
    • access to a wavelength pair (so-called wavelength unbundling);
    • virtual local access (VULA)
  • As for central access (market 3b1) this means access to bitstream services and the multicast functionality.
  • In addition Proximus also has to provide access to associated facilities such as collocation, operational support systems, certain quality of service levels and so on.

The non-discrimination obligation:

  • Proximus has to apply equivalent conditions in equivalent circumstances. Proximus has to provide access to comparable wholesale input in terms of functionalities and prices to other operators, as it does internally to its own retail division.
  • Proximus has to enable the technical replicability of its offer by other operators and apply structural barriers between its wholesale division and its commercial divisions (“Chinese walls”).

The transparency obligation:

  • Proximus has to draw up a reference offer. This reference offer is a public document in which the elements of the offer, the terms and conditions, as well as the corresponding tariffs are described. More information about the Proximus reference offers can be found on the BIPT website on the page for new operators and on the website of Proximus Wholesale.
  • Proximus has to publish key performance indicators (KPIs) on a regular basis and give sufficient information about evolutions in its network.

The obligation regarding price control and cost accounting:

  • Proximus has to set fair prices for access to the fibre network: this means tariffs related to costs, but which may nevertheless include a reasonable margin. On 9 March 2021, the BIPT adopted a tariff decision about the monthly wholesale tariffs applied by Proximus on its own FTTH GPON network, in which it approves the tariffs proposed by Proximus.
  • It is forbidden for Proximus to apply margin squeeze: Proximus is not allowed to apply wholesale tariffs that could lead to a margin too low for another operator to provide his own services.

The obligations are reduced in areas where three sufficiently independent NGA operators compete with one another, or in case investments are made in areas with no more than 1 NGA infrastructure. NGA means Next-Generation Access, a network able to offer minimum speeds of 30 Mbps.

In this market access to ducts is also imposed (under certain conditions). The reference offer for that type of access has not been approved by the BIPT yet. If you should be interested in this type of access to the Proximus ducts, please contact the BIPT.

The high-quality access market or business connectivity

picture high-quality connectivity

The high-quality access market (connectivity for businesses where quality demands are higher than for broadband access) is treated in the BIPT Decision of 13 December 2019 on the analysis of the high-quality access market. In that decision Proximus is designated as an operator having significant market power for the services it provides over its EFM (copper) and FTTO networks, and in that capacity Proximus is subject to a number of obligations.

Below the obligations imposed on Proximus are sketched in broad outlines as far as its FTTO network is concerned. Further details can be found in Chapter 21 of the decision.

The access obligation:

  • Proximus has to provide access to active high-quality services. This access can be situated at a single national interconnection point.
  • Proximus has to provide access to the (parts of) fibre ducts.
  • In addition Proximus also has to provide access to associated facilities, such as collocation, operational support systems, certain quality of service levels and so on.

The non-discrimination obligation:

  • Proximus has to apply equivalent conditions in equivalent circumstances.
  • Proximus has to enable technical replicability of its offer by other operators and apply structural barriers between its wholesale division and its commercial divisions (“Chinese walls”).

The transparency obligation:

  • Proximus has to draw up a reference offer. This reference offer is a public document in which the elements of the offer, the terms and conditions, as well as the corresponding tariffs are described. More information about the Proximus reference offers can be found on the BIPT website on the page for new operators and on the website of Proximus Wholesale. Active high-quality access is treated in the BROTSoLL reference offer.
  • Proximus has to give sufficient information about evolutions in its network.

The obligation regarding price control and cost accounting:

  • Proximus has to set fair prices: this means tariffs related to costs, but which may nevertheless include a reasonable margin. Regarding the active high-quality access the BIPT has judged in the decision that the existing tariffs met that condition, taking account of the implementation of the national interconnection point.
  • It is forbidden for Proximus to apply margin squeeze: Proximus is not allowed to apply wholesale tariffs that could lead to a margin too low for another operator to provide his own services.

The obligations are reduced in areas where two other operators are sufficiently present with their own point-to-point fibre infrastructure. In those areas the tariff obligations (non-discrimination regarding tariffs, fair access prices, ban on margin squeeze) do not apply.

In this market access to ducts is also imposed. The reference offer for that type of access has not been approved by the BIPT yet. If you should be interested in this type of access to the Proximus ducts, please contact the BIPT.

 

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