Consequences arising from any removal of the obligation and conclusions

In order to check compliance with the obligations set out above, namely the obligations of transparency, non-discrimination, separation of accounts and cost accounting, and in accordance with paragraph 3 of Article 71 of Law no. 5/2004, the company with SMP shall make their accounting records, including data on revenue from third parties, available to ICP- ANACOM

Accordingly, if there is no obligation of financial reporting, the effectiveness of the above obligations would be undermined, leading to significant adverse impacts on the wholesale market for the supply of unbundled access and related markets.

In line with the analysis undertaken in 2005, the position is taken that the accounting records which are needed for proper compliance with the obligation of financial reporting comprise the analytical accounting system which should be submitted in the terms defined specifically in this respect.

8.2.6.2. Conclusions

It is concluded that maintaining the obligation of financial reporting is necessary, appropriate and proportionate.

8.3. Conclusion

For the purposes of ex-ante regulation and in accordance with the principles of competition law, the following wholesale market has been identified as relevant:

5-NC) Wholesale broadband access provision in “NC areas”

Having analysed this market and taking maximum account of the Guidelines, ICP- ANACOM concludes that PT Group has SMP in the identified relevant market and therefore that obligations should be imposed as set out in Table 34(all obligations are grounded in Article 66 of Law no. 5/2004, given that there is no effective competition in this market)).

Table 34 – Obligations to be imposed on companies with SMP in the relevant market

Obligation Wholesale broadband access provision in “NC areas”

Access to and use of specific resources networks

 Access to PSTN at different points

 Negotiate in good faith with companies requesting access

 Not withdraw access already granted to determined resources

 Provide access to the naked digital subscriber line wholesale offer ("Naked DSL")

 Possibility of imposing obligations on access to fibre optic, following the evolution to next generation access networks, by way of specific decision.

Transparency in the publication of information, including reference offers

 Publication of the broadband access reference offer ("Rede ADSL PT"), with clear identification of amendments enacted between versions, with inclusion of SLAs and compensation for non-compliance

 Submit information on maximum, average deadlines for the delivery and repair of faults and the degree of availability (broken down by type of installation and operator)

 Itemise the information sent by the different modes of the “Rede ADSL PT” offer – IP, ATM, “Naked DSL”.

Non-discrimination in the provision of access and interconnection and

in the provision of the respective information

 No undue discrimination in providing network access188

 30 days notice of alterations to wholesale offers – extended to 2 months for significant changes

 Launch of retail offers influenced by the existence of equivalent wholesale offers in the “Rede ADSL PT”

Separation of accounts for specific activities related to access

and / or interconnection

 Costing system and accounting separation

Price control and cost accounting

 Price control (“retail-minus”)

 Where necessary and appropriate to ensure price consistency which encourage competition and efficient investment;

 Control of the pricing of the "Naked DSL" wholesale offer, based on the principle of cost orientation of prices189.



Financial reporting  Provision of accounting records (AAS) including data on _{revenue from third parties}

ICP-ANACOM considers that the established obligations may require further detail, specification or clarification with regard to their implementation, which will be provided in separate documents, subject to the consultation process.

Table 35 sets out a comparison between the obligations imposed in the analysis carried out in 2005 and the present analysis.

188

Including geographic price differentiation.

189

Table 35 – Comparison of obligations imposed in 2005 with the obligations set out in the present analysis of the

market - Wholesale provision of broadband access in “NC areas”

Wholesale broadband access provision in “NC areas” Decision of 30 March 2005

Current market analysis

Scope of geographic market National Sub-national

Obligation

Access  

 Access to PSTN at different points  

 Negotiate in good faith with companies requesting access  

 Not withdraw access already granted to determined resources  

 Provide access to the naked digital subscriber line wholesale offer

("Naked DSL") (1) 

 Possibility of imposing obligations on access to fibre optic, following the evolution to next generation access networks, by way of specific decision.

 (3)

Transparency and non-discrimination  

 Publication of the broadband access reference offer ("Rede ADSL PT"), with clear identification of amendments enacted between versions, with inclusion of SLAs and compensation for non-compliance

 

 Submit information on maximum, average deadlines for the delivery and repair of faults and the degree of availability (broken down by type of installation and operator)

 

 Itemise the information sent by the different modes of the “Rede ADSL

PT” offer – IP, ATM, “Naked DSL”. 

 Provision and publication of indicators and performance levels in respect

of quality of service in wholesaler offers 

 No undue discrimination in providing network access  

 30 days notice of alterations to wholesale offers – extended to 2 months

for significant changes  

 Launch of retail offers influenced by the existence of equivalent

wholesale offers in the “Rede ADSL PT”  

 Control ex ante of competition conditions  (2) 

Separation of accounts  

 Costing system and accounting separation  

Price control and cost accounting  

 Setting cost oriented prices   (4)

 Price control (“retail-minus”)  

 Where necessary and appropriate to ensure price consistency (particularly for LLU prices) which encourage competition and efficient investment;

 

 Control of the pricing of the "Naked DSL" wholesale offer, based

on the principle of cost orientation of prices. 

Financial reporting  

 Provision of accounting records (AAS) including data on revenue

from third parties  

- Obligation exists.

(1) – PTC currently provides an NDSL offer following a recommendation from ICP-ANACOM.

(2) – Implemented by the decision of 03.10.2007.

(3) – Via specific decision taken in the context of a market consultation process. (4) – Possibility.