BEREC REPORT ON IMPACT OF FIXED-MOBILE ... - berec - Europa

BoR (11) 54
present a generic analysis on the potential impact of FMS on traditional fixed
markets failures.
2.1. Structure of the report
The key concepts relevant for market definition and an analysis of FMS are covered in
section 3.
Voice, data and, in some cases, TV were traditionally predominantly provided through
fixed networks (DSL, cable…). Voice and data (and also, to some extent TV) also
became accessible through mobile networks due to the development of 2G and 3G
mobile networks. Over time voice and broadband services provided via mobile
networks may have become more similar in terms of characteristics and functionalities
to fixed services, which can lead to a higher degree of substitution. Evidence of such
FMS patterns is considered in section 4 of this document, based on available
quantitative indicators.
Some NRAs have already analysed FMS (or non-substitution) while defining both retail
and wholesale markets. Based on the answers collected from the questionnaire, a
general snapshot of these initiatives is discussed in section 5. One of the most
important examples of such a substitution analysis was performed by the Austrian
regulator (RTR) who looked at broadband retail access for both residential and
business users. The serious doubts expressed by the European Commission towards
the retail market definition carried out by RTR (cf. box hereafter) highlight how complex
such an analysis can be. Based on the information collected from NRAs through the
questionnaire answers, section 6 of this report will provide guidance on the information
that may be used by NRAs carrying out FMS analysis.
The potential impact of FMS on traditional fixed market failures will be discussed in the
last section of this document.
Broadband retail access FMS – the Austrian case 4
In order to define the wholesale broadband access market within the third review of the
market analysis, RTR started its analysis by examining the corresponding retail market.
RTR differentiated between retail DSL products for business customers on the one
hand, and retail DSL products for residential customers on the other hand. RTR then
concluded that, for the residential retail market in Austria, cable was a sufficiently close
substitute to DSL and mobile broadband connections were sufficiently close substitutes
for DSL and cable connections to include all of them in the same retail market. As a
4 AT-2009-0970.
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