Title: Competition in the Danish Telecom Sector Status and perspectives
1 Competition in the Danish Telecom Sector -
Status and perspectives
- Danske Equities, 9 May 2005
- Director General Jørgen Abild Andersen
- National IT and Telecom Agency
2Agenda
- The Danish telecom sector stakeholders and
opinions - Carrying out the Market Analyses
- Status on the Competition in the Danish telecom
sector - status - International comparisons how is Denmark doing?
- Important challenges
3Danish Newspapers
- Prices are too high!
- It is not possible to make money in the Danish
telecom sector! - Cheap broadband will ruin the competition!
- Longer maximum period on subscriber commitment
will promote innovation and competition! - Longer maximum period of subscriber commitment
will prevent freedom of choice and have a
negative impact on market transparency and
competition! - The regulation of the Danish telecom sector is
too tight! - It is necessary to strengthen the regulation
even more! - ? Many stakeholders and many opinions!
4Agenda
- Stakeholders and opinions in the Danish telecom
sector - Carrying out the Market Analyses
- Competition in the Danish telecom sector - status
- International comparisons how is Denmark doing?
- Important challenges
5Conducting the market surveys
- Definition of relevant markets
- Data collection
- Data processing
- Analyses of effective competition and designation
of SMPs - Consultation of the industry and Danish
Competition Agency - Draft decision
- Consultation of the industry, Danish Competition
Agency and EU Commission - Final decision
6Market surveys Status (I)
Expected initiation of consultations for retail
markets
7Market surveys Status (II)
Expected initiation of consultations for
wholesale markets
8Market analyses Conclusions (I)
Retail markets
9Market analyses Conclusions (II)
Wholesale markets
10Agenda
- Stakeholders and opinions in the Danish telecom
sector - Carrying out the Market Analyses
- Competition in the Danish telecom sector - status
- International comparisons how is Denmark doing?
- Important challenges
11Several pipes to the home
- DSL - PSTN
- Cable modem - CATV
- FWA/WiMAX
- Optical fibres Fiber/LAN, FTTH
- Mobile - GPRS/EDGE/3G
- WLAN - Public Hot-spots
- Power Line Communications
- Satellite
- Terrestrial Digital Broadcasting
12Availability of broadband services mid-2004-
ADSL, Cable Modem and FWA
Source National IT and Telecom Agency, October
2004.
13Penetration of ADSL, cable modem and
LANmid-2004Percent of the number of households
and enterprises
Source National IT and Telecom Agency,October
2004.
14Broadband Subscribers, 2001-2004
Source National IT and Telecom Agency, 2005
15Price development - the lowest price
Kilde National IT and Telecom Agency, January
2005
16Market Shares of the Incumbent 2001-2004
Source National IT and Telecom Agency,
February 2005
17Electricity distributors entry into the
broadband market
Source Dansk Bredbånd and electricity
distributors web-sites
18Agenda
- Stakeholders and opinions in the Danish telecom
sector - Carrying out the Market Analyses
- Competition in the Danish telecom sector - status
- International comparisons how is Denmark doing?
- Important challenges
19 ULL-Prices- Rent per month EURO ex. VAT
August 2004
20Broadband competition in EU15
Source European Commission, March 2005
21Broadband Mapping of EuropeDecember 2004
22Broadband in the World
23Agenda
- Stakeholders and opinions in the Danish telecom
sector - Carrying out the Market Analyses
- Competition in the Danish telecom sector - status
- International comparisons how is Denmark doing?
- Important challenges
24A competition driven market
- Access-based competition - Wholesale broadband
access - Facility-based competition - Competition between
alternative platforms
25Broadband prices focus areas
- Pricing raw copper LRAIC price method versus
historical costs method. Survey on pros and cons
by choice of method. - 50/50 allocation principle PSTN and ADSL.
Survey on pros and cons if the current principle
is changes. - Double recovery of costs Survey will show
whether TDC get economical recovery on raw
copper more than once? - TDCs bearer service Bitstream-access without
PSTN (Market 12 issue)
26ERG 2005 Important focus areas
- Wholesale Broadband Markets (Naked DSL, NGN)
- VoIP ERG Common Statement for VoIP regulatory
approaches (Februar 2005) - ERG Common Positions on wholesale international
roaming - Further development of the ERG Common Position on
Remedies