RD392 - CMA ETNO response to Relevant markets review consultation

Electronic communications markets are undergoing profound changes. The revision of the Commission Recommendation on Relevant Markets (the Recommendation) presents a unique opportunity to adapt ex-ante regulation to the needs of electronic communications markets in the EU in the coming 6 – 8 years.

1. Electronic communications markets are undergoing profound changes. The revision of the Commission Recommendation on Relevant Markets (the Recommendation) presents a unique opportunity to adapt ex-ante regulation to the needs of electronic communications markets in the EU in the coming 6 – 8 years.
2. Two main market trends are profoundly changing the structure and functioning of ecommunications markets in the EU and impact on the need for future ex-ante regulation:
   1. Increasing platform competition in a converging NGA environment: Technology developments in both fixed and mobile NGA and investments by different players driven by local market conditions in fixed NGA mean that platform competition between copper, fibre (FTTP/FTTC), cable and LTE networks is much more relevant today than it was in 2007 and will become even more so in the time period for this review. At the same time, competition ‘for the market’ for ultra-high-speed broadband (in particular FTTH) may result in different operators covering different parts of a national territory, region or city.
   2. Disappearing entry barriers for service provision on the IP service layer: As the underlying platform become less relevant for providing IP-based services, entry barriers for competition on services markets are rapidly decreasing. Over The Top (OTT) players and manufacturers, often holding a strong position in adjacent markets, offer products such as VoIP, messaging and social networks, or media content directly to end-users.