FICORA's supervision of local loop markets centred on the largest undertakings - lighter regulation for smaller ones

On 3 December 2012, FICORA issued decisions on the obligations to be imposed on telecoms operators with significant market power (SMP) in the local loop and wholesale broadband access markets. The opinions of the European Commission, the Body of Independent Regulators for Electronic Communication (BEREC), Finnish telecoms operators and other stakeholders on the regulatory needs of the markets have been taken into consideration in the decision-making.

Price cap regulation for major undertakings in the local loop market

By way of the new decisions, FICORA centres its SMP regulation in the local loop markets on the most relevant undertakings with regard to the markets. The eight most relevant SMP operators with regard to the markets - AinaCom Oy, Anvia Oyj, DNA Oy, Elisa Oyj, KYMP Oy, SSP Yhtiöt Oy, PPO-Yhtiöt Oy and TeliaSonera Finland Oyj - will face stricter regulation. Also, FICORA will shift from posteriori regulation of pricing to actual ex ante regulation. FICORA will impose eight undertakings an obligation to ensure cost-oriented, maximum prices with regard to monthly leases and installation charges of local loops. Operator-specific maximum prices in euros will be determined next year by virtue of separate decisions.

The decisions issued for the 19 SMP operators* with less significance for the markets entail significantly lighter regulation. Instead of the obligation to ensure cost-oriented pricing, the undertakings are only obliged to apply non-discriminatory pricing. According to it, undertakings must treat telecoms operators in similar situations equally and provide the service they use themselves at a similar price to competing telecoms operators as well.

Keikyän Puhelin Osuuskunta will no longer be regulated. It was no longer considered to have significant market power in the area where it offers broadband services.

Lighter regulation for the wholesale broadband access market

In the wholesale broadband access market, FICORA will apply lighter regulation to wholesale products with a connection speed of under 8 Mbit/s so that SMP operators will only be obliged to publish the tariff information and delivery terms of the wholesale products they offer. The obligations to lease out wholesale broadband services and ensure non-discriminatory pricing will remain in force for services with a connection speed of at least 8 Mbit/s.

Full deregulation in the wholesale broadband access market will be applied to TeliaSonera Finland Oyj in the municipalities of Kitee, Korsnäs, Laukaa, Närpiö and Polvijärvi. The same concerns Elisa Oyj in the municipalities of Espoo, Helsinki, Kauniainen and Vantaa. Deregulation will also be applied to Keikyän Puhelin Osuuskunta.

Entry into force of the decisions

The final decisions on the local loop and wholesale broadband markets enter into force on 1 March 2013. The local loop prices will be capped later, but before this, SMP operators must set the prices of their local loop products in a cost-oriented manner. For the decisions (in Finnish), go the FICORA's website at:

http://www.ficora.fi/index/saadokset/tulkinnat/hmvpaatokset/markkina4.html ja
http://www.ficora.fi/index/saadokset/tulkinnat/hmvpaatokset/koe.html

Further information:

Ms. Asta Sihvonen-Punkka, Director-General, tel. +358 50 573 9053
Ms. Johanna Juusela, Director, tel. +358 9 6966 878, +358 40 542 7132

* Alajärven Puhelinosuuskunta, Blue Lake Communications Oy, Etelä-Satakunnan Puhelin Oy, Eurajoen Puhelin Osk, Härkätien Puhelin Oy, Ikaalisten-Parkanon Puhelin Osakeyhtiö, Jakobstadsnejdens Telefon Ab, Kaisanet Oy, Karis Telefon Ab, Kimito Telefonaktiebolag, Laitilan Puhelin Osk, LPOnet Oy, Mariehamns Telefon Ab, Mikkelin Puhelin Oyj, Pargas Telefon Ab - Paraisten Puhelin Oy, Pohjois-Hämeen Puhelin Oy, Telekarelia Oy, Vakka-Suomen Puhelin Oy and Ålands Telefonandelslag.


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