Future electronic communications product and service markets subject to ex-ante regulation © Photo Credit: lassedesignen - stock.adobe.com

Future electronic communications product and service markets subject to ex-ante regulation

WIK report on relevant markets for European Commission published.

The European Electronic Communications Code requires the Commission to review the 2014 Recommendation on Relevant Markets by 21 December 2020. This study provides an analysis of technological and market developments, as well as relevant cases, to assist in determining whether changes may be needed to the current Recommendation.

Key supply-side developments include the migration from copper to fibre and the deployment of 5G. Meanwhile, increased trends towards home working and the digitisation of industry and public services, are likely to drive the need for more performant infrastructure.

Infrastructure competition in broadband networks and/or entry by new players focused on VHC broadband deployment has developed in some areas. However, competition in many areas is dependent on SMP regulation.

Among others, WIK concludes that it may be justified to maintain the existing market for "Wholesale Local Access", and adapt the existing market for "High Quality Access" to focus on dedicated access including dark fibre for backhaul. These markets may be geographically differentiated based on a detailed analysis. The Wholesale Central Access market tends towards competition and could be removed from the list. Termination markets may also be removed from the list as Eurorate regulation should address the primary competition concerns in this market.

The study is available for download.

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