RD288 - ETNO comments on the ERG draft common position on geographic aspects of market analysis

• ETNO welcomes the ERG consultation and the recognition of the fact that geographic aspects of market analysis have increased over the last years.
  
• Geographic segmentation should take into consideration the final goal of regulation to guarantee competition in retail markets. A too strong focus on competition in wholesale markets would ignore the competitive pressure exerted on consumer markets by the presence of cable operators for instance.
  
• Geographic differences should be properly studied and regulation has to reflect these realities, and allow the development of infrastructure competition where possible. Wholesale regulation of the SMP player should not weaken the business case for investing in next generation networks and /or upgrading existing infrastructures.
  
• In the ERG draft common position, ETNO is very concerned about the chapter on “possible implications” of sub-national markets or remedies. ETNO believes that if the market analysis is properly undertaken, the assessment of the possible implications has already been made in the market analysis.
  

ETNO welcomes the ERG consultation and the recognition of the fact that geographic aspects of market analysis have increased over the last years. A proper application of geographic segmentation is key in order to ensure proportionate and targeted regulation in the EU.

• A proper application of the geographic segmentation concept should take into consideration the final goal of regulation to guarantee competition in retail markets. A too strong focus on competition “per se” in wholesale markets would ignore the competitive pressure exerted on consumer markets by the presence of cable operators for instance. This is particularly relevant in view of delineating geographic markets according to defined criteria which are too restrictive today.

• Geographic differences should be properly studied in the context of the development of NGANs. Given that the prospects of replicating these networks vary from one geographic area to another, regulation has to reflect these realities, and allow the development of infrastructure competition where possible. It is key that wholesale regulation of the SMP player does not weaken the business case for investing in next generation networks and /or upgrading existing infrastructures. Studying socio economic factors related to demand is a prerequisite in this context.

• ETNO basically agrees with the sequential process laid down in the consultation document. However, the first step: “preliminary analysis” does not seem to be needed, as there are markets, such as market 5 or market 6 that present clear differences between geographic areas. The preliminary analysis should not lead to a lack of appropriate study of geographic differences.

• In the ERG draft common position, ETNO is very concerned about the chapter on “possible implications” of sub-national markets or remedies. ETNO believes that if the market analysis is properly undertaken, the assessment of the possible implications has already been made in the market analysis.