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BoR (11) 06b BEREC report NGA Country Cases - IRG

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<strong>BoR</strong> (<strong>11</strong>) <strong>06b</strong><br />

interconnection”; “Separation of accounts for specific activities”; “Price control and cost<br />

accounting” (e.g. set cost oriented prices and retail-minus) and “Financial Reporting”.<br />

e) To date, prices of bitstream and associated resources have been regulated according to<br />

the principle of cost orientation of prices and retail-minus. As with LLU, ANACOM has<br />

based its estimates of costs on the analytical accounting system of PTC and the budgeted<br />

costs and the current costs of resources consumed and activities needed for the provision<br />

of services; and also with reference to practices in the European Union.<br />

f) The prices are cost oriented (and retail minus for specific offers). No upfront payments or<br />

volume discounts exists.<br />

g) In the “<strong>NGA</strong> consultation”, ANACOM concluded that in non-competitive areas it is not likely<br />

that access to the local sub-loops will be a viable solution, as neither was access to the<br />

local loop. In these cases the most appropriate and priority solution appears to be virtual<br />

access to the network, i.e., advanced bitstream.<br />

Regarding the “technical evolution” (of the SMP‟s network), ANACOM noted in the same<br />

document that “a possible first step towards the adaptation and preparation of [the<br />

bitstream offer] with respect to the evolution seen in networks and services over the short<br />

and medium term may be:<br />

� Extension and flexibility of Ethernet aggregation with respect to the entire offer, i.e., an<br />

extension of coverage with Ethernet technology to all exchange areas, with particular<br />

relevance for those areas not currently covered by the LLU beneficiary operators and<br />

whose coverage in the future by <strong>NGA</strong> will probably see (most) delay.<br />

� Addition of flexibility to the offer of local access and logical Ethernet connections, in<br />

particular in terms of establishing classes of service/VLAN and QoS mechanisms, or<br />

others.”<br />

Below, some additional questions on bitstream:<br />

� Please describe the different points of access available (e.g. at the broadband PoP, MDF)<br />

and the layers (layer 2, 3 )<br />

See b) above.<br />

� Is quality differentiation possible and how is it implemented? Please mention the relevant<br />

quality parameters and state whether guaranteed bandwidth is available.<br />

Yes, if the traffic aggregation is done at Level 2, i.e., using ATM or Ethernet aggregation.<br />

For example, using different VLANs with different QoS. Guaranteed bandwidth is also<br />

available in the cases of using ATM (CBR).<br />

247

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