PTS's decision on broadband competition will guarantee freedom of choice for consumers

24/05/2010

The Swedish Post and Telecom Agency (PTS) has made a decision today on obligations for TeliaSonera in the broadband market. The aim of these decisions is to create favourable conditions for investment and competition and more freedom of choice for Swedish broadband consumers in the long run.

These decisions mean that TeliaSonera will also continue to have a number of obligations in the broadband market. These obligations include other operators being able to offer broadband services to consumers by purchasing access to TeliaSonera's access network, comprising both copper and fibre. The inclusion of physical access to fibre networks represents an important difference in relation to previous obligations, which only encompassed copper networks. TeliaSonera will also continue to receive compensation, including a reasonable return, for the products that the company is obliged to sell to other operators.

"Sweden needs more investment in modern broadband networks to achieve the objectives of the Government's Broadband Strategy. Our rules for the broadband market will create security for all stakeholders that wish to invest, both TeliaSonera and others. This is a key issue to enable Swedish consumers to have good broadband services as well as a large number of operators from which to choose in the future", said Göran Marby, Director-General of PTS.

PTS's decision covers two sub-markets in the broadband sector and applies to the access network (i.e. the part of the network that connects the household or company to a telecommunications exchange or other connection point (the 'local loop')).

The market for network infrastructure access means that operators should be able to purchase access to TeliaSonera's network, by for instance establishing their own equipment at telecommunications exchanges. The market encompasses access to both the copper-based and fibre networks.

The market for bitstream access gives operators the opportunity to purchase a more pre-packaged wholesale product from TeliaSonera in order to be able to offer broadband services to consumers. In this case, the operators do not have to invest in their own equipment.

More information on bitstream access

More information on network infrastructure access

Fore more information please contact David Troëng, head of Competition Department, tel. 070-861 72 19 or PTS's Press Office, tel. 08-678 55 55.

Background to regulation of the broadband markets

Competition within broadband today is largely based on several stakeholders making investments in connection with existing networks. PTS and the other European regulatory authorities are working to promote competition by deciding on obligations that must be adhered to by operators with significant market power. The aim of these obligations is to create a level and predictable playing field for all stakeholders in the market in question.

In 2004, PTS decided on obligations that currently apply to the two sub-markets for broadband. PTS has now conducted another market analysis and has concluded that there are still problems related to competition in the broadband markets. For this reason, the Agency has decided on new obligations for TeliaSonera, which owns the nationwide Swedish access network.

These new decisions were remitted for two rounds of consultations with operators and public authorities in 2008 and 2009. TeliaSonera has also been notified in two rounds, when the company was given the opportunity to re-examine the proposed decisions and submit views. The EU Commission examined the proposed decisions during the spring of 2010.

 

The Swedish Post and Telecom Agency (PTS) monitors the electronic communications and postal sectors in Sweden. The term ‘electronic communications’ includes telephony, the Internet and radio. The Agency works with consumer and competition issues, efficient utilisation of resources and secure communications. Read more at www.pts.se.


 

The Swedish Post and Telecom Authority, Box 5398, SE-102 49 Stockholm, tel. +46 8 678 55 00 pts@pts.se Contact PTS About the website