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PUBLIC INQUIRY PAPER Review of Access List and Mandatory

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PUBLIC INQUIRY PAPER Review of Access List and Mandatory PUBLIC INQUIRY PAPER Review of Access List and Mandatory Standard on Access 25 September 2008 This Public Inquiry Paper was prepared in fulfilment of Sections 55(2), 55(4), 59 and 61 of the Communications and Multimedia Act 1998. CONTENTS PREFACE 1 ABBREVIATIONS AND GLOSSARY 3 SUMMARY OF ISSUES FOR COMMENT 9 PART A: BACKGROUND 23 1 OVERVIEW 23 1.1 Structure of this PI Paper 23 1.2 Purpose 24 1.3 Role of this Public Inquiry 24 1.4 Public Inquiry scope 24 1.5 Outputs of this Public Inquiry 25 1.6 Matters outside scope 25 1.7 Public Inquiry process 25 1.8 PI on Access List in 2005 26 1.9 The current Public Inquiry 27 1.10 Process informing this PI Paper 30 1.11 Relevance to high speed broadband services 33 1.12 Ministerial Direction on HSBB and Access List 36 1.13 Issues for comment and preliminary views 37 2 LEGISLATIVE CONTEXT 39 2.1 Current Access List Determination 39 2.2 Legislative powers and requirements 40 2.3 Amendment to Mandatory Standard on Access 41 2.4 Public Inquiry Process and Determination 42 2.5 Objects of the CMA and NPOs 43 2.6 Overall regulatory approach 44 Page i 3 ACCESS REGULATION AND THE SKMM’S METHODOLOGY 45 3.1 Regulatory approach 45 3.2 Access concepts 46 3.3 Access in the Malaysian context 47 3.4 Implications and limitations of access 49 3.5 Regulating for the long-term benefit of the end user (LTBE) 50 3.6 Interpretation of other criteria 55 3.7 The bottleneck test 55 3.8 Conclusion 57 PART B: REVIEW OF EXISTING MARKETS 58 4 RELEVANT MARKETS AND STATE OF COMPETITION 58 4.1 Market definition 58 4.2 State of competition 58 4.3 Steps in the SKMM’s assessment 61 4.4 Alternatives to market-based approach 63 5 FIXED TELEPHONY 64 5.1 Market definition 64 5.2 Access List facilities and services 64 5.3 State of competition 66 5.4 Existing facilities and services on the Access List 68 5.5 Potential facilities and services on the Access List 80 6 MOBILE TELEPHONY 90 6.1 Market definition 90 6.2 Access List facilities and services 91 6.3 State of competition 92 6.4 Existing facilities and services on the Access List 98 Page ii 6.5 Potential facilities and services on the Access List 111 7 UPSTREAM NETWORK ELEMENTS 123 7.1 Market definition 123 7.2 Access List facilities and services 123 7.3 State of competition 124 7.4 Application of LTBE criteria 127 8 INTERCONNECTION 131 8.1 Market definition 131 8.2 Access List facilities and services 132 8.3 State of competition 132 8.4 Application of LTBE criteria 134 9 LEASED LINES 144 9.1 Market definition 144 9.2 Access List Facilities and Services 145 9.3 State of competition 146 9.4 Application of LTBE criteria 149 10 BROADCASTING TRANSMISSION 159 10.1 Market definition 159 10.2 Access List facilities and services 159 10.3 State of Competition 160 10.4 Application of LTBE criteria 162 11 EXISTING BROADBAND SERVICES 169 11.1 Market Definition 169 11.2 Access List Facilities and Services 170 11.3 State of competition 171 11.4 Current developments 174 11.5 Existing facilities and services on the Access List 178 Page iii 11.6 Potential facilities and services on the Access List 182 PART C: REGULATION OF HIGH SPEED BROADBAND SERVICES 184 12 REGULATION OF HIGH SPEED BROADBAND SERVICES 184 12.1 Introduction 184 12.2 NGN technology overview 186 12.3 Initiatives to rollout high speed broadband services 191 12.4 Importance of Broadband 192 12.5 Access Issues 195 12.6 Regulation of high speed broadband services 196 12.7 Elements and definition of regulated high speed broadband services 209 12.8 Regulation of ANE and existing broadband services in a high speed broadband environment 221 PART D: REGULATION OF WIRELESS BROADBAND SERVICES 239 13 REGULATION OF WIRELESS BROADBAND SERVICES 239 13.1 Introduction 239 13.2 Forms of wireless broadband technologies 240 13.3 WiMAX assignments 241 13.4 Market definition 241 13.5 International developments in WiMAX access regulation 245 13.6 Potential access issues 245 13.7 Regulatory options 247 13.8 SKMM preliminary view 251 PART E: ACCESS LIST RATIONALISATION 252 14 ACCESS LIST RATIONALISATION 252 14.1 Network Origination Service and Network Termination Service 254 Page iv 14.2 Transmission Service 255 PART F: MANDATORY STANDARD ON ACCESS 256 15 MANDATORY STANDARD ON ACCESS 256 15.1 Amendments to the Mandatory Standard 256 15.2 Overview of Mandatory Standard (Access) 256 15.3 Previous amendments to MS (Access) 258 15.4 General comments on MS (Access) 259 15.5 General comments on access agreements 262 15.6 Disclosure obligations (subsection 5.3) 264 15.7 Negotiation obligations (subsection 5.4) 265 15.8 Forecasting obligations (subsection 5.6) 265 15.9 Ordering and provisioning obligations (subsection 5.7) 266 15.10 Point of interface procedures (subsection 5.9) 267 15.11 Network facilities access and co-location (subsection 5.13) 267 15.12 Billing and settlement obligations (subsection 5.14) 268 15.13 Technical obligations (subsection 5.16) 269 15.14 Term, suspension and termination obligations (subsection 5.17) 270 15.15 Churn obligations (subsection 5.18) 271 15.16 Legal boilerplate obligations (subsection 5.19) 271 15.17 Digital Terrestrial Broadcasting (DTB) Multiplexing Service (subsection 5.23) 272 15.18 Access to Network Elements (subsection 5.24) 272 15.19 Implementation of the Standard (subsection 6.2) 273 15.20 Annexure A: Dispute Resolution Procedures 273 15.21 Consequential amendments to MS (Access) as a result of amendments to the Access List 273 Page v ANNEXURE 1 - SUMMARY OF CONSULTATIONS WITH LICENSEES TO DATE ANNEXURE 2 - DRAFT DESCRIPTIONS OF ACCESS LIST FACILITIES AND SERVICES ANNEXURE 3 – DRAFT ACCESS LIST DETERMINATION Page vi PREFACE The Malaysian Communications and Multimedia Commission ( SKMM ) invites submissions from industry participants, other interested parties and members of the public on the questions and issues raised in this PI Paper concerning the Review of Access List and Mandatory Standard on Access . Submissions are welcome on the specific matters on which comment is sought and the SKMM’s preliminary views. Submissions are also welcome on the rationale and analysis in this PI Paper where no specific questions have been raised. Such submissions should be substantiated with reasons and, where appropriate, evidence or source references. Written submissions, in both hard copy and electronic form, should be provided to the SKMM in full by 12 noon, 21 November 2008 . Submissions should be addressed to: The Chairman Malaysian Communications and Multimedia Commission 63000 Cyberjaya Selangor Attention: Ms Karen Woo Email: [email protected] Telephone: +603 8688 8000 Facsimile: +603 8688 1001 In the interest of fostering an informed and robust consultative process, the SKMM proposes to make submissions received available to interested parties upon request. The SKMM also reserves the right to publish extracts or entire submissions received. Any commercially sensitive information should be provided under a separate cover clearly marked ‘ CONFIDENTIAL ’. However, for any party who wishes to make a confidential submission, it would be of assistance if a “public” version of the submission were also provided (if possible). The SKMM also proposes to conduct public hearings at which stakeholders may make oral submissions to the SKMM and seek clarification on the issues raised in this paper. All the public hearing sessions will be held at the Auditorium of the SKMM, Cyberjaya. Page 1 The SKMM proposes to hold separate hearings on the following subject areas: 2pm, Monday 20 October 2008 Session 1: Non-broadband services 9am, Tuesday 21 October 2008 Session 2: Broadband services Members of the public who wish to attend the public hearings should register with the SKMM on the above contact details by 12 noon on Wednesday 8 October 2008 . Parties who wish to address questions to the SKMM during the public hearings should also notify the SKMM of those questions in advance to the above contact details by 12 noon on Wednesday 8 October 2008 . The SKMM thanks interested parties for their participation in this consultative process and looks forward to receiving written submissions. Page 2 ABBREVIATIONS AND GLOSSARY AAG Asia-America Gateway submarine cable system ACMA Australian Communications and Media Authority ACCC Australian Competition and Consumer Commission access agreement An agreement entered into between licensees whereby the Access Provider provides access to an Access Seeker in accordance with the terms contained in such an agreement and which is to be registered with the SKMM in accordance with the CMA. Access List The list of facilities and services determined by the SKMM under Chapter 3 of Part VI of the CMA, in respect of which the Standard Access Obligations apply Access Provider In relation to the Access List is: (a) a network facilities provider who owns or operates facilities on the Access List; and/or (b) a network service provider who provides services on the Access List; and (c) includes a holder of a registered licence under section 278 of the CMA; and in relation to the MSA is: (a) a network facilities provider who owns or operates facilities on the Access List; or (b) a network service provider who provides services on the Access List; and (c) who is a licensee as defined in the CMA. Access Seeker A network facilities provider, a network service provider, an applications service provider, or a content applications service provider who is a licensee as defined in the CMA and who makes a written request for access to network facilities or network services on the Access List.
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