26.01.2009

FICORA to issue new proposal on broadband market regulation in Finland

FICORA will abandon its effort to ease wholesale broadband access regulation due to opposition from the European Commission.

FICORA proposed de-regulation e.g. because the retail and wholesale charges for broadband services in several speed categories in major Finnish cities are lower than the Finnish average. In addition to the local telecoms operators, at least two competing telecoms operators with own equipment for providing broadband access have activities in the area.

In the European Commission's view, the traditional operators' market share was too high in order that regulation be removed. According to the Commission, a wholesale market share of more than 50% is in itself a clear proof of inefficient competition. The Commission maintains that broadband connections provided via cable television network do not create enough competition for broadband connections provided in the traditional telephone network.

In the weeks to come, FICORA will prepare a new proposal on the regulation of broadband markets in the largest cities to the Commission. The proposal will be sent for comments to telecoms operators before submitting it to the Commission.

FICORA must analyse the markets in order to establish the competitive situation

According to the Communications Market Act, at regular intervals, the Finnish Communications Regulatory Authority shall perform a market analysis of relevant wholesale and retail markets determined by the European Commission in order to establish the competitive situation. On the basis of the market analysis, FICORA will present its view on the necessity of ex-ante regulation.

The Commission's opinion and FICORA's draft decision on the wholesale broadband service market are available on the European Commission's website at:

http://circa.europa.eu/Public/irc/infso/ecctf/library?l=/suomifinland/registeredsnotifications/fi20080848&vm=detailed&sb=Title

Further information:
Jukka-Pekka Juutinen, Communications Market Specialist, tel. +358 9 6966 433, +358 40 359 1091
Päivi Peltola-Ojala, Communications Market Specialist, tel. +358 9 6966 732, +358 40 719 7039