SUMMARY OF PTS DECISIONS CONCERNING CALL TERMINATION ON INDIVIDUAL PUBLIC TELEPHONE NETWORKS PROVIDED AT A FIXED LOCATION

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1 SUMMARY OFFICER, DEPT, TELEPHONE, DATE 10th of May 2004 Market Affairs Department smp@pts.se SUMMARY OF PTS DECISIONS CONCERNING CALL TERMINATION ON INDIVIDUAL PUBLIC TELEPHONE NETWORKS PROVIDED AT A FIXED LOCATION Section 1 Market definition 1.1 Relevant product/service market. Call termination on individual public telephone networks provided at a fixed location. This market is included in the Commission s Recommendation on relevant markets as market no Relevant geographic market. The national territory of Sweden 1.3 Summary of the opinion of the Swedish Competition Authority. The Swedish Competition Authority has not objected to the conclusions drawn by PTS concerning this market. However, it has made a remark of principle on the product definition of the market. Since each operator has a 100 per cent market share (the individual network constitutes a market), the Competition Authority holds that there is per definition no possibility for an effective market to evolve. The Competition Authority is therefore of the opinion that it is necessary to analyse the relevance of the market definitions for the next market revision. It also holds that an analysis should include possible effects on the end user market related to price changes. POSTADRESS Box 5398, Stockholm BESÖKSADRESS Birger Jarlsgatan 16 TELEFON FAX E-POST pts@pts.se WEBBADRESS

2 1.4 Results of the public consultation PTS received totally 13 opinions concerning market definitions. Most respondents mainly agreed with the definition or had no comments. For comments received see enclosed appendix. All opinions have also been published on PTS website. 1.5 Differences from the Commission s Recommendation on relevant markets as the defined relevant market appears in the Recommendation. Section 2 Designation of undertakings with significant market power 2.1 Undertaking(s) designated as having significant market power (SMP). TeliaSonera AB Tele2 Sverige AB Telenor AB Infonet Broadband Service Corporation B2 Bredband AB Balder Tech AB Callmedia Telecom CMT AB Citylink AB Colt Telecom AB Consorte Sverige AB First New Media Scandinavia AB Equant Sweden AB Götalandsnätet/Koncernen Leisnerdata IP-Only Telecommunication AB QuickNet AB Rabbta AB Rix Telecom AB

3 RSLCOM Sweden AB Song Networks Holding AB Unicorn Telecom AB Ventelo Sverige WorldCom AB 2.2 Criteria for SMP designation Market share Barriers to entry Control of infrastructure Lack of countervailing buyer power 2.3 Main undertakings in the relevant market. TeliaSonera AB Tele2 Sverige AB Telenor AB Infonet Broadband Service Corporation B2 Bredband AB Balder Tech AB Callmedia Telecom CMT AB Citylink AB Colt Telecom AB Consorte Sverige AB First New Media Scandinavia AB Equant Sweden AB Götalandsnätet/Koncernen Leisnerdata

4 IP-Only Telecommunication AB QuickNet AB Rabbta AB Rix Telecom AB RSLCOM Sweden AB Song Networks Holding AB Unicorn Telecom AB Ventelo Sverige WorldCom AB 2.4 Market shares 100 per cent each each individual network is considered a relevant market. 2.5 Summary of the opinion of the Swedish competition authority The Swedish Competition Authority mainly agrees on the designation of undertakings with significant market power. See comment under Results of the public consultation PTS received totally 15 opinions concerning designation of undertakings with significant market power. Most respondents mainly agreed with the SMP designation or had no comments. For comments received see enclosed appendix ( remissammanställning ). All opinions have also been published on PTS website. Section 3 Regulatory obligations 3.1 Legal basis for the obligations The following obligations are proposed Requirement to provide network access on reasonable request, interconnection obligation (art 12) (All) Requirement to publish a reference offer (art 9) (TeliaSonera) Obligations relating to transparency (art 9) (All)

5 Requirement not to unduly discriminate (art 10) (All) Accounting separation obligation (art 11) (All) Obligations concerning pricing and cost-accounting procedures (art 13) (TeliaSonera - cost-orientation LRIC, All others - fair and reasonable prices) 3.2 Reasons for the imposition, maintenance or amendment of obligations See chapter 4 of the draft decisions. 3.3 Exceptional circumstances Section 4 Compliance with international obligations 4.1 Imposition, amendment or withdrawal of obligations provided for in Article 8(5) of Directive 2002/19/EC (Access Directive) 4.2 Name(s) of the undertaking(s) concerned 4.3 International commitments that need to be respected. Responses to this consultation are invited and may be sent to Post- och telestyrelsen at consultations@pts.se by 7 June 2004.