20.01.2004

The EU Commission to give its first opinions on FICORA's SMP decisions

In December, the Commission gave four opinions and one notification on the Finnish Communications Regulatory Authority’s (FICORA) draft decisions on significant market power (SMP). FICORA notified the Commission and other Member State authorities of its first SMP draft decisions (320 pcs.) on November 21, 2003.

FICORA must analyse in all 18 product and service markets in accordance with the European Commission recommendation of February 2003. The authority must also assess on which of these markets it is necessary to designate SMP operators in order to safeguard competition and impose the necessary obligations on operators to open competition.

The new Communications Market Act provides that FICORA consults the European Commission and the other countries' regulatory authorities about the draft decisions before making the final decisions. During this international consultation, the European Commission has the opportunity to hold FICORA's decision by using its veto right when it comes to a market definition deviating from the Commission recommendation and designation of an SMP operator. The Commission has one month to give its opinion on the draft decisions. If the Commission maintains that some of the draft decisions contain problems, it has the opportunity for a two month's further hearing.

The four opinions given by the Commission concerned international telephone services provided for residential and non-residential customers, markets for fixed telephone subscriptions, local telephone services and local loops, markets for call origination and termination and the market for call termination on individual mobile networks.

The majority of the Commission's comments concerned the SMP obligations proposed by FICORA. The Commission is among other things concerned that each telecommunications operator is, according to the Communications Market Act, allowed to choose themselves the cost-accounting procedures they wish to use. The Commission maintains that this kind of an approach limits the obligation's contribution to consumer benefit, the enhancement of competition and the development of the internal market. The Commission also thinks that in some cases the pricing obligations suggested for small companies are lighter than the ones for larger companies and therefore need to be sufficiently explained. The Commission maintains that FICORA should also follow the pricing of such small companies by for example comparing prices with the prices of such companies that have obligations regarding cost-oriented pricing. The Commission recommends that FICORA consider imposing further obligations on SMP operators on markets for fixed telephone subscriptions and local calls.

In its decision regarding call termination on individual mobile networks, the Commission comments extensively on that the pricing obligations on these markets imposed on SMP operators by FICORA concern merely traffic between mobile networks or international traffic terminating on mobile networks. This results from the Communications Market Act, whereby it is not necessary to set a separate price for traffic terminated on a mobile network when the connection is made from a fixed network to a mobile network. The Commission considers that this kind of limitation is against the Communications Directives.

The notification given by the European Commission concerned draft decisions on the market for international telephone services. In addition to commenting, the Commission informed that it would not adopt the draft measures for a further two months. The reason behind this is that the Commission does not see a reason for FICORA's suggestion of not designating SMP operators on the market for international telephone services.

The Commission has today on January 9, 2004 launched a circulation for comment during which anyone can give its opinion on the Commission's comments on the market for international telephone services.

At the beginning of the year, FICORA will give its final SMP decisions and will take the Commission's comments into consideration. However, FICORA cannot finish the draft decisions regarding the market for international telephone services until the Commission has made its final decision on the case.

Further information:

Mrs Rauni Hagman, Director-General tel. +358 9 6966 401, mobile +358 40 561 3499,
Mrs Johanna Juusela, Head of Economic Regulation tel. +358 9 6966 878, mobile +358 40 542 7132

All the draft decisions sent to the Commission are available on FICORA's web pages.

The Commission's opinions are available in English on the Commission's website at the following address http://forum.europa.eu.int/Public/irc/infso/ecctf/library . Then, please follow this path:

-> Suomi/Finland
-> Registered Notifications
-> FI/2003/0020
-> EC’s comments pursuant to Article 7(3) of Directive 2002/21/EC - SG(2003)D/233788 - FI/2003/0020-0021-0022-0025-0030

-> Suomi/Finland
-> Registered Notifications
-> FI/2003/0023
-> EC’s comments pursuant to Article 7(3) of Directive 2002/21/EC - SG(2003)D/233785 - FI/2003/0023-0026785 - FI/2003/0023-0026

-> Suomi/Finland
-> Registered Notifications
-> FI/2003/0028
-> EC’s comments pursuant to Article 7(3) of Directive 2002/21/EC - SG(2003) D/233786 - FI/2003/0028-0029

-> Suomi/Finland
-> Registered Notifications
-> FI/2003/0031
-> EC’s comments pursuant to Article 7(3) of Directive 2002/21/EC - SG(2003) D/233787 - FI/2003/0031

The Commission's notification is available on the Commission's website at the address http://forum.europa.eu.int/Public/irc/infso/ecctf/library. Then, please follow this path:
-> Commission Decisions
-> EC's opening of Phase II investigation pursuant to Article 7(4) of Directive 2002/21/EC - SG(2003)D/233817

The Commission's comments are available on the Commission's website at the address http://forum.europa.eu.int/Public/irc/infso/ecctf/library. Then, please follow this path.
-> Second Phase : Invitation to submit observations
-> FI/2003/0024-0027