PUBLIC UTILITIES COMMISSION. Notification of a Draft Measure Pursuant to Article 7, para. 3, of the Framework Directive 2002/21/EC SUMMARY

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1 PUBLIC UTILITIES COMMISSION Notification of a Draft Measure Pursuant to Article 7, para. 3, of the Framework Directive 2002/21/EC SUMMARY of Public Utilities Commission Draft Decision concerning Call termination on individual public telephone networks provided at a fixed location ( Market 3 )

2 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 coverage area of each individual termination network. 1.3 Summary of the opinion of the Latvian Competition Authority National competition authority the Competition Council concludes that it fully supports the market definition (letter of Competition Council enclosed). 1.4 Results of the public consultation Public Utilities Commission received one comment from a fixed network operator (SIA Lattelecom ). The operator raised no objections to market definition. 1.5 Defined relevant markets different from those listed in the Recommendation on relevant markets as the defined relevant markets appear in the Recommendation.

3 Section 2. Designation of Undertakings with SMP 2.1 Undertaking(s) designated as having SMP SIA BALTKOM TV SIA SIA CSC TELECOM SIA D-COM SIA Datagrupa.lv SIA Finors Telekom SIA Lattelecom Valsts AS Latvijas dzelzceļš AS Latvenergo SIA OPTRON SIA SIGIS AS Telekom Baltija SIA UNISTARS SIA AUGSTCELTNE SIA TELENET SIA INTERNETA PASAULE SIA Telia Latvija SIA IZZI SIA Tivi SIA Telegrupa Baltijā SIA Master Telecom SIA IT Group SIA Embedded Systems SIA TELEFANT SIA Rigatta SIA Fastnets SIA HIG Serviss Baltija SIA ilink SIA TELECENTRS SIA Advem SIA ECO Solutions SIA MPE NETS

4 SIA TeleMedia SIA DATU TEHNOLOĢIJU GRUPA SIA Stream Networks AS BALTICOM SIA TG Transit SIA TELEGLOBAL SIA SOTUS SIA ESTERIA 79 SIA MWTV SIA 10 1/2 Three undertakings are no longer active in the relevant market: SIA DIRECT has been stricken from the electronic communications undertakings registry; SIA TELEKOMUNIKĀCIJU GRUPA has initiated a bankruptcy procedure; SIA TELENETS no longer provides call termination services. 2.2 Criteria for SMP designation Market shares Significant size of the undertaking Control of infrastructure not easily duplicated Lack of or low level of countervailing buying power Barriers to market entry or expansion Possession of all prerequisites necessary for immediate provision of services for undertakings net yet providing services 2.3 Main undertakings (competitors) present / active in the relevant market 2.4 Market shares of the undertakings 100 % for each undertaking each individual network is considered as a relevant market 2.5 Opinion of the National Competition Authority National competition authority the Competition Council concludes that it fully supports results of market analysis (letter of Competition Council enclosed) 2.6 Results of the public consultation Public Utilities Commission received one comment from a fixed network operator (SIA Lattelecom ). The operator raised no objections to market analysis.

5 Section 3. Regulatory obligations 3.1 Legal basis for the obligations The following obligations are proposed: a) SIA Lattelecom : No change in imposed obligation is proposed compared to round 1 analysis: Obligations of access to, and use of, specific network facilities (Art. 12, Access Directive) Transparency Obligation (Article 9, Access Directive): requirement to publish reference offers for interconnection and unbundled access Obligation of non-discrimination (Article 10, Access Directive) Price control and cost accounting obligations (Article 13, Access Directive) Obligation of accounting separation (Article 13, Access Directive) b) Other operators already designated as SMP In addition to obligations imposed on round 1 analysis Transparency Obligation (Article 9, Access Directive): requirement to publish price lists for interconnection services Public Utilities Commission further proposes to impose Price control obligation (Article 13, Access Directive) c) New entrants having SMP The imposition of the following obligation is proposed: Transparency Obligation (Article 9, Access Directive): requirement to publish price lists for interconnection services Price control obligation (Article 13, Access Directive) d) SIA DIRECT, SIA TELEKOMUNIKĀCIJU GRUPA, and SIA TELENETS The withdrawal of the imposed obligation is proposed: Transparency Obligation (Article 9, Access Directive): requirement to publish price lists for interconnection services 3.2 Reasons for the imposition, amendment or withdrawal of obligations See Chapter 8.3. of the draft decision 3.3 Exceptional circumstances

6 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 undertaking(s) concerned 4.3 International commitments that need to be respected