Post on 06-Oct-2020
Regulatory keystones of the
deployment of high speed
electronic communications
networks in Greece
Olga S. Nodarou
Legal Expert Head of Legal Department of EETT
ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
EC targets on NGA deployment
EC has set ambitious targets regarding broadband coverage:
• 2013 to 2020:
“Europe needs download rates of 30 Mbps for all of its citizens and at least
50% of European households subscribing to internet connections above
100 Mbps by 2020”
• By 2025
“ …Finally, all European households (rural or urban) should have
access to Internet download speeds of at least 100 Mbps, with a
possibility of upgrade to Gigabit speeds.”
European Commission Connectivity package "Connectivity for a
Competitive Digital Single Market - Towards a European Gigabit Society",
COM(2016) 587 final, 14 September 2016
2 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Measuring the performance of broadband markets
Factors Quantified Targets
proposed by the EC
Main Indicators
proposed by the EC
Penetration of
broadband services
Policy Initiatives (DAE
2020, Connected Continent
package, etc.)
DESI (Digital Economy
and Society Index)
Competition
General references in the
framework
Affordability
General references in the
framework
NGA coverage and
investments
Policy Initiatives (DAE
2020, Connected Continent
package, etc.)
DESI
NGA take-up
Policy Initiatives (DAE
2020, Connected Continent
package, etc.)
Some of the DESI
parameters relate
3 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
DESI ratings for Greece: not particularly encouraging…
4 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
1. Connectivity [25%]
Fixed BB coverage
Fixed BBFi Take up
Mobile BB Rake up
Spectrum
NGA coverage
Subscriptions to fast BB
Fixed BB price
2. Human Capital [25%]
Internet users
Basic Digital Skills
ICT specialists
STEM graduates
4. Integration of Digital technology [20%]
Electronic Information sharing
RFID
Social Media
E-invoices
Cloud services
SMEs selling online
E-commerce turnover
Selling online cross border
5. Digital Public Services [15%]
e-Government users
Pre-filled forms
On-line service completion
Open data
Medical data exchange
e-prescription
3. Use of Internet [15%]
News
Music, video & Games
Video on Demand
IPTV
Video Calls
Social Networks
Banking
Shopping
European Indicators:
DESI (Digital Economy and Society Index)
5 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Broadband markets and connectivity in Greece
Snapshot prior to EETT’s market analysis of 2016
Access infrastructure :
The only access network infrastructure for the provision of broadband services was
(and still is) the incumbent’s (OTE) copper access network:
• OTE since 2012 has been upgrading its network by deploying an FTTC
architecture
• The alternative operators (OLOs) provide retail services mainly over LLU
• OLOs have been offering retail VDSL services either from the LEX or via a VULA-
type virtual product offered by OTE (VPU)
• There is only limited deployment of other technologies/architectures (mainly
FTTH) in the access network in specific areas
• ADSL is still the main technology used by the consumers
• At the end of 2016 the penetration of VDSL was still very low (<10%)
The main characteristic of the NGA network in Greece was asymmetry
6 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Performance of broadband markets in Greece (1/3):
The Greek retail broadband market
2.4642.560
2.6892.797
2.9133.027
3.1563.331
3.4273.521
3.617
0
1.000
2.000
3.000
4.000Δ
εκ-2011
Ιουν-2012
Δεκ-2012
Ιουν-2013
Δεκ-2013
Ιουν-2014
Δεκ-2014
Ιουν-2015
Δεκ-2015
Ιουν-2016
Δεκ-2016
Αρ
ιθμ
ός ε
υρ
υζω
νικ
ών γ
ρα
μμ
ών (χ
ιλιά
δες
)
Εξέλιξη ευρυζωνικών γραμμών
Πηγή: ΕΕΤΤ, βάσει στοιχείων των αδειοδοτημένων Source: EETT
Evolution of broadband lines
Num
be
r o
f b
roa
db
an
d li
ne
s (
tho
usa
nd
s)
7 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Performance of broadband markets in Greece (2/3):
ADSL is still the main technology used!
ADSL lines VDSL lines
Broadband access lines
Alternative Operators
8 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Performance of broadband markets in Greece (2/2)
2%
10%
80%
8%
2 Mbps 2-10 Mbps 10-30 Mbps >=30 Mbps
9 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Fixed
broadband
access
speeds (by
nominal BB
speed) - end
of 2016
Bundling : Only 3,5 % of the broadband connections are not part of a bundle
BUT
during the first 6 months of 2017 a significant uptake for VDSL connections is
observed...
Relation of the wholesale and retail markets
of the draft measure for markets 3a and 3b
Wholesale Local Access Market (WLA)
Wholesale
Central Access
Market (WCA)
Retail Broadband
Market
Retail Access to
the Public
Telephone
Network Market
10 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Wholesale Local Access Market:
Definition, Analysis (1)
• According to EETT’s assessment, the WLA market includes both
copper and fiber optics access networks
• The geographical scope of the market is national
• The incumbent’s market share is approx. 100%
• There are high barriers to entry, especially due to the sunk costs of
the deployment of a new access network
• There is no countervailing buyer’s power due to the lack of alternative
infrastructure
• In many cases, the incumbent has adopted practices that harm the
competition
• EETT reached the initial conclusion that OTE (the incumbent) holds a
SMP (Significant Market Power) position in the local access
market
11 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Wholesale Local Access Market:
Remedies (1/3)
Access obligations :
• Full access to Local Loops
• Access to virtual wholesale products (Virtual Partial Unbundling, VPU,
VPU Light)
• Backhaul services
• Access to essential facilities including collocation
• Introduction of Vectoring (or any other NGA technology (FttB/FttH))
• Full access to local sub-loops (in areas where vectoring is not
implemented)
• Access to technical interfaces and protocols
• Access to passive infrastructure (ducts, sub-ducts, manholes, etc.)
• Service Level Agreements (SLAs)
12 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Wholesale Local Access Market:
Remedies (2/3)
• Non-discrimination obligations:
According to the Greek Telecom Law 4070/2012 and the NGA
Recommendation:
Non discrimination at a technical level among the OLOs and between
OTE’s retail arm and the OLOs
Non discrimination regarding pricing: ex-ante control of OTE’s retail
offers
According to the Non-Discrimination Recommendation:
Imposition of Equivalence of output (EoO)
Technical replicability
13 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Wholesale Local Access Market:
Remedies (3/3)
• Obligation of accounting separation
• Obligations of price control and cost accounting:
Implementation of a bottom-up model by EETT for determining the
monthly and the connection fees and use of OTE’s bottom-up models for
backhaul services and essential facilities
Not to engage in margin squeeze between wholesale and retail prices
(complementary to the relative Non-Discrimination obligation)
• Transparency obligations:
Publication of a Reference Unbundled Offer
Publication of Key Performance Indicators (KPIs)
In advance notification by OTE on significant changes in its network
14 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Regulation of Deployment of NGA networks
through Wholesale Local Access Market in Greece
What is different in our case?
• EETT recently (end of 2016) introduced a new procedure in order to
regulate the deployment of NGA access networks.
• EETT took into account:
• The asymmetry in favor of OTE regarding the deployment of NGA at
that point in time
• OTE’s declared intention to upgrade its VDSL network to vectoring
• The lack of other than the copper physical media in the access
network
• The OLO’s intention to invest in the access network
• The OLO’s intention to roll-out fiber up to the end-user
15 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Key points of the procedure (1/3)
• An allocation procedure for areas/LEXs has been consulted and proposed
concerning NGA deployment. Areas are allocated initially to OTE and then
“bidding” OLOs mainly based on NGA rollout parameters
• There is a FIRST allocation procedure, separated in three phases (A,B & C),
followed by an ANNUAL procedure
• The first allocation procedure aims at lifting the asymmetry in the access
network, while the annual procedure is fully symmetrical
• As a first step (phase A) OTE is given the opportunity to deploy VDSL
vectoring, or any other NGA technology providing access lines with capacity
greater that 100 Mbps, to the areas (LEXs) that OTE has deployed FTTC at a
percentage greater that 80%. In this phase, OTE may finish any “Work In
Progress” deployment within 8 months.
• At the second phase (phase B) of the first allocation, the alternative operators
may request areas in order to deploy NGA networks in LEXs that have not been
already allocated to OTE during phase A
16 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Key points of the procedure (2/3)
• In case an OLO intends to deploy NGA in an outdoor cabinet that OTE or
another OLO has already deployed VDSL, the former is obliged to choose a
technology compatible with VDSL
The first allocation is concluded with a symmetrical third phase (phase C), in
which both OTE and the OLOs may request LEXs for deploying NGA
In this phase the allocation threshold is further reduced to the deployment of
NGA in at least 30% of the outdoor cabinets of the LEX
At this point, unallocated outdoor cabinets in LEX’s that have been allocated
during the first allocation procedure, may be requested
If an operator, at any point in time, submits enough evidence that it is possible to
implement Multi-operator Vectoring, the operator that has deployed vectoring
is obliged to cooperate in order to implement a mutually acceptable scheme
17 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Key points of the procedure (3/3)
• EETT’s measure aims at:
• Preserving the already made investments
• Giving space to all market players in order to implement viable
business plans in any technology
• Fostering innovation in the access network
18 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
The procedure fully supports
technological neutrality…
“it is not picking the winners in the
competition between technologies”
Allocation of areas following the WLA market
analysis decision
Phase 1
OTE applies for LEX’s in which it has
already deployed VDSL in more than
80% of the outdoor cabinets. OTE is
given 8 months to conclude any WIPs.
OLOs apply for unallocated LEX’s, in
which they intend to deploy NGA
network in more than 50% of the
outdoor cabinets. They are obliged to
deploy a VDSL compatible
technology in case OTE or any other
OLO has already deployed VDSL. At
the same time, the operator that has
deployed VDSL cannot upgrade its
VDSL cabinets to vectoring.
OTE and the OLOs apply for
unallocated LEX’s in which they intend
to deploy NGA network in more than
30% of the outdoor cabinets
26 months
31 months
Phase 3
Phase 2
ΟΤΕ and the OLOs apply for LEX’s
without any coverage threshold. In
this allocation procedure, they may
request for the free parts of the LEX’s
that have been already allocated
during the first allocation.
12 months
FIRST
ALLOCATION
ANNUAL
ALLOCATION
28 months
19 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Allocation prerequisites and initial
conditions…
• Timely availability of detailed information of OTE’s access network
• Offering of the wholesale product VLU (a VULA type of service) from
the operator that implements vectoring or any other
technology/architecture at the access network- Wholesale obligation
• No technical restriction on the ADSL services (usage of appropriate
masks)
• Exclusion of all outdoor cabinets in an area of about 500 m around
OTE’s LEX. In this area vectoring will not be provided (all operators
offer VDSL services from the LEX)
20 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Expected status of the access network
according to allocation phases A & B in 2019
131.521 3% 108.739
3%
2.136.739 48%
2.053.067 46%
Expected Status of the Access Network by the end of 2019 according to the allocation statements of the
operators
FTTH Vectoring G.Fast Vectoring None
21 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Useful Remarks…
22 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
• The idea of LEX areas being allocated to “bidding” operators and not only
the incumbent is the outcome of a lengthy technical cooperation between
EETT and all of the operators including the incumbent (about two years
of technical and market discussions)
• Wholesale obligation for all of the “bidders” (symmetrical):
– Availability of the wholesale product VLU (a VULA type of service)
from the operator that implements vectoring or any other
technology/architecture at the access network
• Vivid example of promoting technology neutrality in practice (vectoring,
G.Fast, FttH)
Towards a more Cost Efficient network deployment …
Broadband Cost Reduction Directive (1/5)
23 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Directive 2014/61/EU of the EUROPEAN PARLIAMENT AND OF THE COUNCIL of
15 May 2014 on measures to reduce the cost of deploying high-speed electronic
communications networks:
• aims at facilitating and incentivizing the roll-out of high speed electronic
communications networks by:
• promoting the joint use of existing physical infrastructure and
• enabling a more efficient deployment of new physical infrastructure so that
such networks can be rolled out at lower cost
Member States were required to adopt and publish the laws, regulations and administrative
provisions necessary to comply with the BCRD by 1 January 2016 and to apply those
measures from 1 July 2016
Towards a more cost efficient network deployment …
Broadband Cost Reduction Directive (2/5)
BCRD in particular contains rules with regard to:
• Access to existing physical infrastructure (e.g. ducts, poles
and masts) including those belonging to energy and other
utilities, for operators willing to deploy high speed broadband
networks.
• Faster, simpler and more transparent permit-granting
procedure
• Equipment to new buildings and major renovations with high-
speed physical infrastructures and access to in-building
infrastructure.
• 24 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Towards a more cost efficient network deployment …
Broadband Cost Reduction Directive (3/5)
• Efficient coordination of civil works
• Tasks for a national dispute settlement body (DSB)
• A single information point (SIP) including information
regarding permit-granting procedures
NRA may be involved in the implementation of the BCRD in the
role of the DSB and/or the SIP
25 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Towards a more cost efficient network deployment …
Broadband Cost Reduction Directive (4/5)
BCRD defines the following tasks of the DSB, which is the National
Dispute Settling Body with regard to:
• access to existing physical infrastructure (Art. 3.4 and 3.5);
• transparency concerning physical infrastructure (Art. 4.6);
• coordination of civil works (Art. 5.3 and 5.4);
• transparency concerning planned civil works (Art. 6.4); and
• access to in-building physical infrastructure (Art. 9.3).
26 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Towards a more cost efficient network deployment …
Broadband Cost Reduction Directive (5/5)
BCRD defines tasks of the SIP with regard to the following
topics:
• transparency concerning physical infrastructure (Art. 4);
• transparency concerning planned civil works (Art. 6); and
• permit-granting procedure (Art. 7).
27 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Broadband Cost Reduction Directive
Challenges of DSB implementation
DSB
In the 7 countries, out of the 28 EU, in which the NRA already
resolved disputes with a binding decision, the topics of the most
difficult challenge the NRAs were faced with were:
-“setting the price for access to existing physical infrastructure”
(Art. 3) (4 countries)
- “refusal of access to existing physical infrastructure” (Art. 3)
(2 countries)
- “setting the price for coordination of civil works” (Art. 5) (1
country) and
- “relation between BCRD and national law” (1 country)
28 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Broadband Cost Reduction Directive
Challenges of SIP implementation
SIP
• The topics of the most difficult challenge the NRAs were
faced with were:
– “information which has to be provided to the SIP” (4 countries) and
– “increase the use of the SIP” and “critical infrastructure” each in only
one country.
Source: “Implementation of the Broadband Cost Reduction Directive”, BEREC (CN (17),
August 2017
29 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Towards a more cost efficient network deployment …
Law 4463/2017
Directive 2014/61/EU has been implemented into Greek legislation by Law 4463/2017 OJ 42/A/30.3.2017, as amended by 4487/2017, art. 49
A central point of the Law, is the procedures relating to the submission of request for the granting of Rights of way/use.
Furthermore, the new Law, provides explicitly, that for any disputes arising from the application of the Law on Cost-Reduction, EETT will be the competent national body to resolve such disputes.
Namely, in the case of any disagreement arising between various bodies/legal entities, in the context of the law, any such body/entity may submit a written request to the EETT asking for EETT’s intervention for the purposes of resolving the dispute pursuant to ΕΕΤΤ’s existing ‘Dispute Resolution Procedure’ provided for in Article 34 of Law 4070/2012 “The Electronic Communications Act”.
30 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Towards a more cost efficient network deployment …
Law 4463/2017, as amended by 4487/2017, art. 49
According to Law 4463/2017, ΕΕΤΤ is the National Dispute Settlement body for any dispute regarding:
Access to existing physical infrastructure
Transparency of existing physical infrastructure
Negotiation of an agreement to coordinate civil work
Access to information regarding civil coordination
Access to in-building physical infrastructure or to the building access point
Refusal of rights of way
EETT also:
issues a Regulation regarding the fees payed for issuing and use of rights of way
Defines the fee payed by any party filling a dispute resolution petition before
EETT regarding access to existing physical infrastructure as well as coordination
of civil work
31 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Towards a more cost efficient network deployment …
Concluding Remarks…
• So far there has not been any relevant procedure before EETT…
• In EU level it seems that the electronic communications network
operators either reach in nearly all requests an agreement with the
infrastructure provider without the need to involve the DSB or they do not
have interest in their rights laid down in the BCRD to get access to
existing physical infrastructure, coordinate civil works and get access to
in-building physical infrastructure (or do not know that they have these
rights).
The BCRD is still in an initial phase and therefore its use by electronic
communications network operators may further increase in the future.
32 ISS on Regulation of Local Public Services 2017 - Turin School of Local Regulation
Thank you for your attention!
Any questions?