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Consultation on the draft decision of the BIPT Council on radio interfaces B01 (9, 19, 35, 37 and 38), B04-15, B06-24, B07-04, B16-01 and B17 (04 and 05) and the abolition of radio interface B12-05

Communication by the BIPT Council of 27 December 2017 regarding the monitoring of the universal telecommunications service 2016-2017

The Act of 21 March 1991 on the reform of some economic public companies tasks BIPT with the publication of a yearly report of the actions it has undertaken in order to verify that postal service providers abide by their obligations. However, considering the limited impact on the postal market of the infractions possibly recorded during monitoring, BIPT decided to cease systematically monitoring the postal service providers and to proceed to monitoring only when a complaint has been submitted. BIPT believes it would be disproportionate to commit resources to monitoring while it has not received any breach notification and consumers do not complain about the situation. Given that BIPT did not receive any complaint in 2016 about omissions or infringements of Article 148bis, §2, of the Act of 21 March 1991 on the reform of some economic public companies, BIPT did not carry out any monitoring in 2016.

This draft decision regards the analysis of the market for fixed termination. BIPT submits for consultation its analysis as well as the appropriate remedies.Addition of IP NEXIA NV as an SMP operatorThe fixed numbers of operator IP NEXIA have recently been activated, which means that this operator now provides call termination services at a fixed location. Therefore, BIPT considers that this operator has significant market power in the same way as the other operators providing call termination services at a fixed location.The draft decision has been amended so that IP NEXIA is included in the list of operators with a significant market power in the fixed termination market (see paragraphs 113.2.3, 204, 263 692.2). In addition we remind you that the draft decision lays down in paragraph 263 that “If, by the end of this study, new players provide fixed call termination services over their fixed public telephone networks, BIPT will examine their position in their respective market and will take, where applicable, any appropriate decision in regard to them.”

BIPT defines new guidelines specifying the principles according to which it assesses the effects of price squeeze.

This market analysis relates to the retail market for fixed telephony access on the one hand and to the wholesale market for call origination on the other. This draft decision proposes a deregulation of both markets and thereby follows the European Commission, which had not included those markets in its most recent list of relevant markets (2014 recommendation) anymore.

The 694-790 MHz band will no longer be available for wireless microphones. A possible auction of this band will probably take place during the period from the end of 2018 until the beginning of 2019. At this moment BIPT assumes that this band will no longer be available for the use by wireless microphones as of the end of 2019. BIPT wishes to anticipate the future clearance of the 700 MHz band today. For a timely informative communication destined to all PMSE users is necessary.

Margin squeeze possibly constitutes a threat to competition on the electronic communications markets, especially as regards broadband Internet access and leased lines. Margin squeeze occurs when a vertically integrated operator with significant market power (SMP) at wholesale level positions his retail prices in such a manner that the margin between the costs of the wholesale input and the retail prices is insufficient to enable a competitor to offer similar retail products. In order to address the competition issues, the CRC and BIPT prohibited the SMP operators to apply a margin squeeze in the framework of several decisions. In order to materialise the prohibition to apply a margin squeeze, as can be imposed based on a market analysis procedure, BIPT publishes this document containing its guidelines for the implementation of margin squeeze tests. These clarify the principles according to which BIPT shall examine a margin squeeze. Earlier guidelines regarding the assessment of price squeeze laid down in its decision of 11 July 2007, shall be abolished by BIPT.

This decision aims to enable BIPT to publish a modified and updated price squeeze test (also called margin squeeze test) allowing it to perform tests based on the market analyses prohibiting price squeeze. In order to achieve said goal the BIPT Council Decision of 11 July 2007 on the guidelines regarding the evaluation of price squeeze needs to be abolished.

BIPT publishes a cartography of Belgium’s postal points.