27 Case AT-2009-0970 - IRG

IRG (09) 27
The IRG Expert Group’s view is that, in the light of the evidence brought forward by RTR, the
Commission’s serious doubts relating to the inclusion of mobile broadband connections are
not justified.
In the view of the Expert Group RTR has produced sufficient evidence that shows that a
significant amount of Austrian households view mobile and fixed broadband as substitutes as
opposed to the more normally accepted complementary use seen in other Member States.
With regard to the issues brought forward by the Commission the Expert Group considers
that RTR has shown that Austrian consumers use mobile broadband connections in an
almost identical manner that they use fixed ones. Analysis of the extent to which mobile
broadband connections are secure and are used for internet banking and analysis of contract
terms and the ability of consumers to move their connections with them from address to
address would not change this picture.
RTR also brought forward evidence that bundling is not a particular feature of the Austrian
market that would inhibit switching. However, the Expert Group believes that such a situation
should be monitored as a move towards more bundled offers may change the analysis.
Definition of the relevant wholesale market for broadband access
The Commission expressed serious doubts as to whether the market delineation by RTR at
the wholesale level is based on a sufficiently detailed and robust forward looking analysis.
Although the Expert Group initially had some difficulties in understanding the precise nature
of these two explicit areas of concern and how they add to the serious doubts, the Expert
Group’s view is that the Commission’s concerns regarding RTR’s wholesale market definition
are justified.
In particular, the Expert Group is of the view that RTR has not conducted a thorough analysis
of the potential supply-side substitution from self-supplied bit-stream for the subsequent use
of residential customers. Moreover, the evidence on substitutability that has been provided
by RTR does not in itself appear to justify the difference in treatment between self-supplied
and externally provided bit-stream for the subsequent use of residential customers.
The Expert Group recommends RTR to conduct a full and detailed substitutability analysis. In
particular, this should analyse the potential for effective supply-side substitution from self
provided bit-stream for residential services.
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