STANDARD NOTIFICATION FORM
Notification of Draft Measures According to Article 7 of Directive 2002/21EC (Framework Directive)
Under the obligation in Article 16 of the Framework Directive 2002/21/EC, the Post and Electronic Communications Agency of the Republic of Slovenia (APEK) has conducted an analysis of the market “Wholesale (physical) network infrastructure access (including shared or fully unbundled access) at a fixed location” (Market 4 according to the Commission Recommendation 200/879/EC). APEK hereby notifies the Commission of its proposed remedies and obligations consistent with Article 7 of the Framework Directive 2002/21/EC.
Section1
Market Definition
1.1 The affected relevant product/service market. Is this market mentioned in the Recommendation on relevant markets?
The relevant product/service market is the market “Wholesale (physical) network infrastructure access (including shared or fully unbundled access) at a fixed location” (Market 4 according to the Commission Recommendation 200/879/EC). Included on the product market are the following services necessary for an operator’s use of loops and sub-loops:
-fully unbundled access to the local loop: the provision of operator access to the copper or optical loop or sub-loop of an existing operator by approving the use of the whole frequency spectrum of the twisted copper pair or optical fibre;
-shared access to the local loop: the provision of operator access by approving the use of the frequency spectrum of the twisted copper pair for the non-voice band, while the existing operator continues to employ the local loop for the provision of publicly available telephone services;
-the shared use of facilities or the provision of the physical space and technical capabilities necessary for the primary set-up and connection of the appropriate equipment (collocation).
Consequently included on the relevant market is self-supply, as well as the provision of access for providers of services on the whole of the Republic of Slovenia.
The relevant product market is in accordance with the Commission’s Recommendation on relevant markets (2007/879/EC).
1.2 The affected relevant geographic market
The affected relevant geographic market is the national territory of the Republic of Slovenia.
1.3. A brief summary of the opinion of the national competition authority
The National Competition Authority supports the approach and findings of this market analysis.
1.4 A brief overview of the results of the public consultation to date on the proposedmarket definition (e.g. how many comments were received, which respondents agreed with the proposed market definition, which respondents disagreed with it).
A national consultation is running in parallel and will last for one month from the publication of the analysis.
Section 2
Designation of undertakings with significant market power
2.1 Undertaking designated as having, individually or jointly, significant market power
The company Telekom Slovenije d.d is designated as having significant market power on the relevant market.
2.2 The criteria used to designate an undertaking as having significant market power, individually or jointly, or not.
The company Telekom Slovenije d.d. has significant market power on the relevant market “Wholesale (physical) network infrastructure access (including shared or fully unbundled access) at a fixed location”. In addition to barriers to entry on the market, the level of vertical integration and the existence of economies of scale and scope that make it difficult for potential competition to enter the market, Telekom Slovenije’s significant market power can be seen also in the high, 91% market share of the company.
2.3 The name of the main undertakings (competitors) active in the relevant market.
Operator1. / T-2 d.o.o.
2. / Telekom Slovenije d.d.
2.4 The market shares of the undertakings mentioned above and the basis of their calculation (e.g., turnover, number of subscribers)
Picture 1: Wholesale market shares of companies
Source: APEK data as of 30 September 2008
2006/1 / 2006/2 / 2006/3 / 2006/4q / 2007/1q / 2007/2q / 2007/3q / 2007/4q / 2008/1q / 2008/2q / 2008/3qTelekom Slovenije d.d. / 100,0 / 99,6 / 98,9 / 98,5 / 97,7 / 97,8 / 97,2 / 96,2 / 94,1 / 92,2 / 91,0
T-2 d.o.o. / 0,0 / 0,4 / 1,1 / 1,5 / 2,3 / 2,2 / 2,8 / 3,8 / 5,9 / 7,8 / 9,0
100,0 / 100,0 / 100,0 / 100,0 / 100,0 / 100,0 / 100,0 / 100,0 / 100,0 / 100,0 / 100,0
Section 3
Regulatory obligations
3.1 Legal basis for the obligations to be imposed, maintained, amended or withdrawn (Articles 9 to 13 of Directive 2002/19/EC).
Imposed on the company Telekom Slovenije d.d. are the following obligations:
-access to and use of specific network facilities – Article 12 of the Access Directive (section 8.1);
-obligation of non-discrimination – Article 10 of the Access Directive (section 8.2);
-obligation of transparency – Article 9 of the Access Directive (section 8.3);
-obligation of price control and cost accounting – Article 13 of the Access Directive (section 8.4);
-obligation of accounting separation – Article 11 of the Access Directive (section 8.5).
3.2 The reasons for which the imposition, maintenance or amendment of obligations onundertakings is considered proportional and justified in the light of the objectives laid down in Article 8 of Directive 2002/21/EC.
The information in question can be found in Chapters 4, 5 and 6. These chapters illustrate that the imposition of the specified obligations is proportionate, appropriate and justified, as it is necessary to remedy competition issuesidentified in the analysis of the relevant market.
Section 4
Compliance with international obligations
There are no international commitments with regard to the proposed draft measures that need to be met.
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