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

BoR (11) 06b
� Tariff obligations: access tariffs must be reasonable and comply with the principles of
non-discriminations, relevance and effectiveness. They take into account a rate of
return on capital that reflects the risk and gives a bonus to the initial investors.
Specific obligations only apply to very high-density areas: in those areas, the building
operator has to grant reasonable requests to roll-out dedicated fibre lines and installing
specific equipments. In this case, the building operator is entitled to require the third
operator to contribute and help finance the installation in the building, up to the sum of the
costs specifically incurred by its requests and a fair share of costs to be shared between
operators.
e) The terms and conditions governing the price of access must be reasonable and comply
with the principles of non-discrimination, objectivity, relevance and efficiency. The rate of
return on investment used to determine these pricing terms and conditions will take
account of the risk incurred and will extend a risk premium to the building operator
(resulting in a WACC of 10.4% and a risk premium of 4.6%).
In accordance with these principles, when the operator benefitting from this access
contributes at the outset to financing the installation of the lines in the building, its
contribution will be composed of financing the costs that are attributable to installations
made on its behalf, along with an equal portion of the costs that are to be shared by all of
the operators.
f) Not applicable.
3.2 Concentration point/ manhole unbundling
Included in relevant market definition but no remedies Market 4 (no obligation ).
3.3 Cabinet unbundling
France plans to regulate sub-loop copper line unbundling.
a) Obligations for SMP to provide regulated offers for access and sub-loop copper line
unbundling.
b) Copper line sub loop unbundling based on two different technical solutions:
� "mono-injection": all the lines are activated near the cabinet impacted,
� "bi-injection”: the lines of the cabinet impacted could be activated near the cabinet or
in the MDF.
c) The sub-loop copper line unbundling access products are included in the M4.
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