16 Rev2b NGA Opinion Supplementary doc - IRG

ERG (07) 16rev2b NGA Opinion Supplementary Doc 5 / 69
ERG Considerations
The ERG is aware that NGA deployment is at an early stage in many Member States. Therefore,
the ERG considers this phase of gaining momentum the right moment for prospectively
analysing the developments ongoing. Regulation needs to reflect these developments. This
requires a careful analysis of whether NGA networks fundamentally change the economics.
The pro-active approach is required as it increases regulatory clarity and predictability (see
below). Tackling the NGA issues at an early stage may also help to improve transparency on
planned NGA deployments which was requested in many comments (see also ad 4.1 Transparency).
Need for stable/predictable regulatory conditions
Consultation Comments
Many comments consider stable and predictable regulatory conditions very important. Nevertheless
they have a different focus when calling for this predictability.
For some comments, in particular from the incumbents’ side, such regulatory clarity and predictability
is a prerequisite for investment in NGA networks (DTAG, ETNO, KPN, PT). Regulatory
uncertainty surround FttH deployments is seen as a reason for the fact that the discussion
in Europe is limited to VDSL (FTTH Council Europe).
A well-balanced regulatory framework could alleviate the risky nature of NGA investments,
but too strong or early regulatory intervention should be avoided (Alcatel-Lucent). The ERG
should provide a “roadmap” (KPN) with a clear set of principles for remedies. Some even
more clearly call for a “guideline with clear priority for investments and innovations” (DTAG,
similar FTTH Council Europe). Sun-set clauses are also advocated (PT).
Slightly different from these views in another comment the challenges for the Framework is
seen in finding the balance between “appropriate regulation to maintain competitiveness” and
“encouraging investment” (Corning). Another comment considers timely and effective application
of regulatory rules as paramount. It could be observed that in those countries where
this is the case investment increases and broadband take-up and innovation are greater
(EuroISPA).
Pointing out that is critical that potential builders and buyers of NGA have a clear understanding
of the legal situation, one comment sees an opportunity for the ERG to assist the
sector by “adopting best practice procedures and guidelines for incumbent NGA builders to
smooth interaction with competitors / buyer stakeholders” (C&W, similar ECTA).
“Matter of fact situations” should be avoided by involving all operators at the planning stage
(Sonaecom). Another comment requests “clear guidelines on required lead-times on
changes in dominant operators’ wholesale access portfolio” (Tele2).
A alternative network operator points out that clear regulation provides certainty to market
players (QSC). In Japan, an early signal to the incumbent that fibre access lines will be regulated
did not deter but rather may have encouraged investments.
ERG Considerations
The ERG agrees that stable and predictable regulatory conditions are an important asset for
all market players, competitors as well as incumbents. Regulatory certainty may improve the