Positive market development allows easing of broadband regulation

17/02/2015

The Swedish Post and Telecom Authority (PTS) has adopted new decisions today on the regulation of the broadband market. The decisions will result in an easing of market regulation.

This easing of regulation is primarily due to positive trends in the markets, but also because PTS now has been given new tools through changes in legislation and new EU recommendations. Regulation has been lifted on the market for central access (3b) and price regulation for fibre-optic cable on the market for local access (3a) will be eased in the future.

"Sweden is undergoing strong developments in its expansion of fibre-optic networks, and several operators are making investments. We want to stimulate competition in the market with these new rules, as well as giving more choices for customers and better conditions for continued investments," comments Göran Marby, Director General of the Post and Telecom Authority.

Reinforced non-discrimination and easing of price regulation for fibre-optics (market 3 a) 

PTS is introducing stronger requirements for non-discrimination in the market for local access (EOI - Equivalence of Input). This means that the dominant operator, Telia Sonera, must provide the same services and information both externally and internally, on the same terms and conditions, in the same timeframe, using the same systems and processes.

By 1 December 2016, Telia Sonera must have implemented the reinforced obligation of non-discrimination, and price regulation of fiber-optics will then be eased. Cost-oriented pricing will be replaced with an obligation for economic replicability. This means that TeliaSonera may not discriminate with prices on the wholesale market or under-charge on the retail market. Other players can then offer end-users similar products to TeliaSonera on commercially reasonable terms.

Price levels in the decision 

PTS has established price levels directly in the decision, in accordance with the freedom that PTS was given through changes to the Electronic Communications Act on 1 July 2014. In its calculation of price levels, PTS has applied the current version of the PTS calculation model for the fixed network.

Market for central access (3b)

PTS will not continue to regulate the market for central access. PTS states that there is competition in the market and that TeliaSonera is no longer the dominant operator.

 

The decision about the Market for central access (only in Swedish)
The decision about  the Market for central acces (only in Swedish)

 

For more information:

Peter von Wowern, Competition Department, phone: 073-644 56 26
or PTS press office, phone: +46 8 678 55 55

The decisions are adapted to new market definitions

PTS has adapted its decisions to the EU Commission's new recommendation on relevant markets, i.e. markets that may need regulating, which was adopted in October 2014. This means that the previous market for network infrastructure access (market 4) now corresponds to the market for local access (3a). The market for bitstream access (5) corresponds to the market for central access (3b).