WIK-Consult published the NGA Progress Report, which has been carried out for ECTA. The report examines the importance of access to NGA networks for promoting competition, roll-out and take-up of very high speed broadband.
The report addresses the following issues:
- How has the NGA Recommendation of the European Commission been applied, and in which countries have NGA networks of incumbent telecoms operators been opened up to competition?
- How has the application of the NGA Recommendation affected competition, NGA roll-out and take-up?
- Which regulatory measures should be taken to promote competition in NGA and increase penetration of very high speed broadband connections?
The report is based on an examination of NGA regulation and market outcomes in 17 countries (15 EU countries as well as Switzerland and Turkey).
Key results
The report shows that the NGA Recommendation has been applied to varying degrees. There are substantial differences across the countries examined regarding access to fibre networks. With rare exceptions have regulators imposed access at all relevant levels (including physical access and wholesale broadband access).
In most countries assessed there is no effective wholesale access to fibre and VDSL networks, which is in stark contrast to legacy broadband. This puts at stake the competition intensity that has already been achieved in broadband.
The lack of access based competition in NGA seems to have had a negative impact on take-up of very high speed broadband connections. It should be noted that access based competition has substantially promoted up-take of legacy broadband connections.
The report recommends a more rigorous application of the NGA Recommendation, which would benefit competition and take-up in very high speed connections. Where physical unbundling is technically not (yet) feasible for incumbent telecom operators, and/or financially not a viable approach for alternative operators, regulators should impose on obligation to provide a substitute (VULA, virtual unbundled local access).
The study is available for download.
See also presentation "NGA Progress Report" of Dr. Ulrich Stumpf and Stefano Lucidi from 6 March 2012 at Brussels.
