In order to serve the residential and small business market segments alternative operators use offers that belong to the product market of central wholesale broadband access (bitstream xDSL, bitstream Fiber PON and cable access), which are offered by operators having significant market power (hereinafter: SMP operators).

In the CRC Decision of 29 June 2018 on the analysis of the broadband and television broadcasting markets a ban to practise margin squeeze was imposed on the SMP operators (Proximus, Telenet and VOO). We talk of price squeeze or margin squeeze when the margin between all relevant revenues and the wholesale costs is not sufficient to cover the proper network and retail costs, including a reasonable return on capital. Margin squeeze can severely disrupt competition, jeopardising the possibilities of choice for the end-customer in the end.

In this communication the results of the most recent margin squeeze tests are reported on. The tests took place in the second and third quarter of 2023 in collaboration with the SMP operators and they are an update of the previous portfolio test carried out in 2021.

Based on this test the BIPT has not detected any margin squeeze practices at the portfolio level on the basis of the SMP operators’ own costs. When certain adaptations are made to the scale and efficiency of the SMP operators, only in 1 scenario for 1 operator a slight margin squeeze is detected at the portfolio level, without considering this result to be problematic.

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