COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 19.11.2003 SEC(2003)1342

COMMISSION STAFF WORKING PAPER

Technical Annexes of the

Ninth Report on the Implementation of the Telecommunications Regulatory Package

{COM(2003) 715 final}

ANNEX 1

MARKET OVERVIEW

3 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

TABLE OF CONTENTS 1 PLAYERS IN THE FIXED MARKET...... 6 1.1. PLAYERS IN THE FIXED MARKET...... 6 1.2. INCUMBENTS MARKET SHARE ON THE FIXED VOICE TELEPHONY MARKET ...... 12 2 CONSUMER’S CHOICE OF FIXED OPERATORS ...... 16 2.1. PERCENTAGE OF SUBSCRIBERS ACTUALLY USING AN ALTERNATIVE PROVIDER OTHER THAN THE INCUMBENT...... 16 2.2. FACILITIES USED BY NEW ENTRANTS FOR THE PROVISION OF VOICE TELEPHONY ...... 19 3 PUBLIC NETWORK INTERCONNECTION AND INTERCONNECTION CHARGES ...... 22 3.1. FIXED-TO-FIXED INTERCONNECTION CHARGES...... 22 3.2. FIXED-TO-MOBILE INTERCONNECTION CHARGES ...... 25 3.3. LEASED LINES INTERCONNECTION CHARGES...... 29 4 MOBILE MARKET ...... 36 4.1. MOBILE PENETRATION ...... 36 4.2. PLAYERS IN THE MOBILE MARKET...... 38 4.3. OPERATORS’ MARKET SHARES...... 40 4.4. MOBILE BASKET ...... 42 5 BROADBAND ACCESS AND PRICING...... 46 5.1. BROADBAND ACCESS...... 46 5.2. PRICES FOR UNBUNDLED LOCAL LOOP...... 59 6 PUBLIC VOICE TELEPHONY TARIFFS...... 62 6.1. CHARGING SYSTEM ...... 63 6.2. MONTHLY RENTAL CHARGED BY THE INCUMBENT OPERATORS ...... 65 6.3. AVERAGE MONTHLY EXPENDITURE (COMPOSITE CALL BASKET)...... 67 6.4. FIXED NATIONAL CALLS ...... 68 6.5. TREND OF THE BASKET FOR FIXED NATIONAL CALLS (NATIONAL BASKET)...... 71 6.6. ALTERNATIVE NATIONAL OPERATORS...... 72 6.7. PRICE OF AN AVERAGE FIXED INTERNATIONAL CALL (INTERNATIONAL CALL BASKET) ...... 74 6.8. PRICE OF CALLS TO EU, JAPAN, USA ...... 76 6.9. ALTERNATIVE INTERNATIONAL OPERATORS ...... 78 7 LEASED LINES RETAIL TARIFFS...... 82 7.1. INCUMBENTS' NATIONAL LEASED LINES...... 82 7.2. NATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1 AUGUST 2003) ...... 88 7.3. INTERNATIONAL LEASED LINES PRICES...... 88 7.4. INTERNATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1 AUGUST 2003)...... 94 8 ...... 96 8.1. EU DIGITAL TELEVISION MARKET PENETRATION ...... 96 8.2. OPERATORS AND INTERACTIVE TV SERVICES...... 105 8.3. DTV EQUIPMENT...... 110 9 EXCHANGE RATES ...... 116 9.1. EXCHANGE RATE USED IN SECTION 6 ON INTERNET, SECTION 7 ON PUBLIC VOICE TELEPHONY TARIFFS AND SECTION 8 ON LEASED LINE TARIFFS...... 116 9.2. EXCHANGE RATE USED IN SECTION 3 ON INTERCONNECTION AND SECTION 5.2 ON PRICES FOR LOCAL LOOP...... 116 10 OECD TELECOMMUNICATIONS BASKET DEFINITIONS ...... 117 10.1. NATIONAL PSTN BASKET ...... 117 10.2. INTERNATIONAL PSTN BASKET...... 118 10.3. COMPOSITE NATIONAL – INTERNATIONAL BASKET ...... 119 10.4. NEW OECD MOBILE BASKETS ...... 119

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 4

5 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

1 PLAYERS IN THE FIXED MARKET

1.1.PLAYERS IN THE FIXED MARKET This section analyses the situation of the market players in the fixed telecommunications market (voice telephony and network services): the number of operators authorised to operate a network and to provide public fixed voice telephony, the number of players actually active in the market, incumbents’ market shares on the fixed voice telephony market. Data are based on the replies to the European Commission questionnaire, provided by the national regulatory authorities and give the situation as at August 2003. The figures include a great variety of operators: fixed network operators, service providers, cable operators as well as wireless local loop, mobile and satellite operators (for the fixed part of their networks and services). Depending on the national licensing scheme, for some countries data for both local and national operators are given. Local operators are operators authorised to offer telecommunications services only to users located in specific areas (to whom they provide local as well as long-distance and international services through interconnection agreements with other operators). National operators are operators authorised to offer telecommunications services without any geographical restriction. They may provide all types of telecom services (local, long-distance and international) to users located throughout the national territory. Local operators exist in Germany, Spain, France, Italy, Finland, United Kingdom. This does not mean that in the other countries all operators are national, but only that the licensing scheme does not provide for a licence limited as to its geographical scope. The number of local operators is not strictly comparable between Member States, since it varies considerably between countries depending on the division of the national territory into local areas. The figures in the following charts reflect the number of operators, rather than the number of licences, since some operators my have been granted several licence. This is particularly true for the large companies, whose subsidiaries can also have a separate licence. After the massive entry into the market that characterised the first stage of liberalisation (+113% between 1998 and 2001), the number of operators authorised 1 to offer public fixed tele- communication services in Europe has started to decrease. In August 2003 there were in the EU a total of 1202 operators authorised to offer public voice telephony (269 local and 933 national operators) and 1484 public network operators (555 local and 929 national operators). Since August 2002 the number of potential players has remained more or less stable (-2%) for the voice telephony market, while the number of public network operators has decreased by 6% 2.

1 In the sense that they have an individual licence/authorisation or they are subject to a notification/ registration procedure. 2 The peak in the number of authorised operators was reached in 2001 with 1 352 operators authorised to provide voice telephony services and 1 583 public network operators.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 6 Players in the fixed market Among the 1 202 operators legally authorised to provide voice telephony in the EU, less than half (around 500) have started operations, the majority only in some local areas or for business users. In particular, it should be noted that one third of operators effectively providing local calls are local operators only. The total number of the major competing operators 3 in the EU is around 59 and in the great majority of EU countries there are no more than 4 real competing players (see Figure 5).

Figure 1

Number of authorised fixed operators in EU

2000

1583 1561 1484 1500 1239

945 1237 1352 1231 1202 1000 900 635

500 526

0 Aug. 1998 Aug. 1999 Aug. 2000 Aug. 2001 Aug. 2002 Aug. 2003

Public voice telephony Public network

PUBLIC FIXED NETWORK OPERATORS

The following charts show the number of network operators with a public network licence and/or authorised to offer network services. Public network operators are defined as operators that install, manage and operate a telecommunications transmission network to provide public telephony services or public network services 4. Where applicable the distinction in the licence/authorisation between local and national public network operators concerns the geographical scope of the network, while the provision of network services could be subject to a different geographical limitation. In the following, “local operators” means operators whose authorisation for the deployment of the network does not cover the whole national territory, whatever the geographical scope of the service. Moreover, this does not exclude that in the other countries that do not impose any geographical distinction, national operators are not providing services only in local areas.

3 See section 1.2 on incumbents’ market share for more details. 4 Public fixed network services are defined as the conveyance of calls, messages and signals over a telecommunications network, including any necessary switching. They may be network interconnection services, which are provided to other network operators to enable calls and associated functions to be passed through interconnected networks, or basic retail network services, which are provided to customers such as end-users or service providers.

7 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Players in the fixed market It should be noted that a licence to operate a local/regional public network does not necessarily imply the existence of local network access to customers. The following chart shows that in the EU there are a total of 1484 authorised network operators, 63% of which are local operators. Only one third of the total authorised operators have effectively started commercial activities for local access (507 network operators, half of which are local operators) and only around 15% of the total authorised network operators are effectively active on the trunk-international network services market 5.

Figure 2

Number of operators authorised to operate a public network and to provide public network services Total EU 1484: 555 local op.; 929 national op. 250 442*

200 215

150 227

100 118

50 71 57 57 55 51 49 43 42 35 29 28 23 15 16 8 13 0 22 B DK D EL E F IRL I L NL A P FIN S UK Local operators National operators

* Figure not to scale. - The figure for Denmark is not strictly comparable with the others due to the fact that there is neither a licensing requirement nor a central register of operators and their activities (operators only apply for numbers). The data refer to the estimates of the network operators actually offering network services. - The figure for Spain does not include 74 cable operators, that have transformed their provisional cable concession into a definitive public network licence. - Data for Ireland include both basic and general licences. - Due to a different reporting method applied by the NRA, data for the Netherlands is not comparable with the previous reports, and do not represent actual market development. - In Finland , 39 of the 57 regional network operators are local incumbents and belong to the Finnet Group. 3 local and 4 national network operators belong to Elisa Group. - Data for Sweden include both licensed and notified operators. - In the United Kingdom , the local operators are 42 local cable franchise operators, owned by 2 companies 6.

5 In this case the number of local operators is negligible. 6 In the UK the 42 local cable franchise operators, owned by 2 companies, must hold (inter alia) a standard PTO licence for the provision of cable TV which, in turn, also gives the right to provide public voice telephony/network service. How many of these cable operators are also providing public voice telephony/network services is unknown. From January 2001 the geographical restriction on cable companies ceased to exist and any cable licensee was to operate outside the area laid down in its licence, but to maintain comparability with previous Reports we will continue to consider these operators as local. The big decrease in the number of local cable operators since 2001 (134 at that time) is due to intensive merger activities in the market.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 8 Players in the fixed market

PUBLIC FIXED VOICE TELEPHONY OPERATORS

Public fixed voice telephony is defined as a service available to the public for the direct transport on a commercial basis of real-time speech via the public switched network, such that any user can use equipment connected to a network termination point at a fixed location to communicate with another user of equipment connected to another termination point. Voice telephone could be provided by the operators on an own self-operated network or on a leased network. In the first case, the operator provides voice telephony over a network fully controlled, operated and (wholly or partially) owned by him; in the second case the operator operates, controls and manages the transmission capacity which is leased from other operators 7.

Figure 3

Number of EU operators authorised to offer public voice telephony Total EU 1202: 269 local op.; 933 national op.

180 160 166

140 158 120 100 103 89

80 87 80 60 75 65 40 43 42 38 32 30 29 29 20 28 26 26 23 21 0 12 B DK D EL E F IRL I L NL A P FIN S UK Local operators National operators

- The figure for Denmark is not strictly comparable with the others. Due to the registration system, the number of operators authorised to provide public fixed voice telephony figures for Denmark has been estimated using the number of operators that have been allocated geographical numbers and/or access codes. - In Finland , 39 of the 43 regional operators are local incumbents and belong to the Finnet Group. 7 national operators belong to Elisa Group. - Data for Sweden include both licensed and notified operators. - Due to a different reporting method applied by the NRA, data for the Netherlands is not comparable with the previous reports, and do not represent actual market development. - In the United Kingdom , the local operators are 42 local cable franchise operators, owned by 2 companies 6.

The number of operators authorized to offer public fixed telecoms services indicates only the potential for competition in the market rather than the current level of competition. For this reason, where possible, an estimate is given of the number of operators actually active on the market.

7 Simple call-back and calling card services and operators dealing only with marketing, billing, etc., are excluded. The definition of service provider may differ from that used in the national law of individual countries (in some countries non-self operated network operators engage exclusively in reselling activities).

9 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Players in the fixed market The following chart shows the estimate of the number of operators active in the voice telephony market at August 2003. Figures for local operators are available only for the countries in which the licence/authorisation system provide for this category. Moreover, this does not exclude that in the other countries that do not impose any geographical distinction, national operators are not providing services only in local areas. Where possible separate figure for local and long-distance/international call market are provided. In these cases, the two bars referring to the same country should be read separately on a service by service bases, since the same operator can be authorised to offer more than one type of service. The chart shows a significant presence of active local operators in the local calls market (around one third on the total number of active operators) while, apart from Germany, in the long- distance/international calls market their presence is negligible.

Figure 4

Number of operators actually offering public voice telephony

120

110 113 100

90 46 80

70 76 26 60

50 42 53 4 46

40 45 43 27 30 25 30

20 27 18 21 10 14 13 13 13 12 12 9 11 11 11 8

0 4 4 B DK D D EL EL E E F F IRL IRL I L NL A P FIN FIN S UK local LD/Int. local LD/Int. local LD/Int. local LD/Int. local LD/Int. local LD/Int. calls calls calls calls calls calls calls calls calls calls calls calls

Local operators National operators

- Figures for Denmark and the Netherlands are not strictly comparable with the others since they refer to the operators that have been allocated geographical numbers and/or access codes. - The figures for the Netherlands are not comparable with previous reports. - Figures for both Spain and Finland do not include 2 operators actually offering only international voice telephony. - In Finland , 37 of the 43 regional operators providing local calls are local incumbents and belong to the Finnet Group. 2 local and 2 national operators providing local calls belong to Elisa Group. - The figures for France refer to 31.3.2003 - The figures for Sweden refer to 31.12.2002 - DK, I, NL, A, P, S and UK do not provide separate figure for the types of calls. - In Belgium and Luxembourg local calls does not exist as a separate category from long-distance calls.

Figures in the previous chart do not show to what extent the operators are offering services. Many new entrants initially only provide services to business users in the main cities, even if they have a national license allowing them to offer all types of service throughout the country. To give an idea of the “real” number of effectively competing fixed operators, the following chart shows for each country the number of operators that have a combined market share of at least 90% on the global voice telephony market (including all types of calls 8). Generally speaking, very few

8 Local calls to internet, local phone calls, long-distance and international calls as well as calls to mobile.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 10 Players in the fixed market countries have more than 4 competing operators (including the incumbent) that have such a combined market share. These figures give an idea of the number of major competing operators, but is should be recalled that the competition is largely asymmetric, with a strong position of the incumbents.

Figure 5

Number of the major competing players in the fixed telephony market (*) 10

9 9 9 8

7 7 6

5 5 5 5 4 4 3 3 3 3 2 2 2 1 1 1 1 0 BDKDELEFIRLILNLAPFINSUK

(*) Number of operators that have a combined market share of at least 90% on the global voice telephony market.

11 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Players in the fixed market

1.2. INCUMBENTS MARKET SHARE ON THE FIXED VOICE TELEPHONY MARKET This section shows the incumbents’ market share on the fixed voice telephony markets on the basis of both retail revenues and outgoing minutes of traffic. Where possible, figures for local, long- distance, international call, calls to mobile and calls to internet are shown. Unfortunately, not all Member States collect both types of data, and differentiation between the various markets is not always available. DK, L and P do not provide data by revenues; NL, S, and I do not provide data by minutes of traffic. Data for A by revenues are confidential. Figures in this section have been provided by NRAs and give the situation as for December 2002, except for Netherlands , Austria (March 2002) and the United Kingdom (March 2003). The following chart shows the EU weighted average trend since 2001 of the incumbent’s market share in the major segment of the voice telephony market 9 based on retail revenues. Due to the non availability of data for all the countries and for all types of calls, the average EU data should be considered as indicative 10 .

Figure 6

EU average incumbents' market share by revenues

90%

86,9% 85%

79,4% 81,0% 80%

75% 74,6% 72,8%

69,6% 70% 71,3%

67,1% 68,8% 65%

64,9% 62,2% 60% Dec. 2000 Dec. 2001 Dec. 2002

Local calls Long-distance calls Calls to mobile International calls

The following two charts show the incumbents’ market share in the local, long-distance and international call market by retail revenues and by minutes of outgoing traffic. Local calls market include both local phone calls and local calls to internet.

9 Data are not comparable with the previous reports, due to several factors: (1) figures for the years 2000 and 2001 have sometimes been updated to reflect revised data received from Member States; (2) the EU average is now a weighted, rather than a simple average; (3) 2002 and 2001 data for non euro-zone countries have been recalculated on the basis of 2003 exchange rate. 10 Data for local call market is an average of countries that represent more than 90% of the EU population for both 2001 and 2002; data for call to mobile represent 96% of the EU population or the years 2002-2001 and 90% for the year 2000; data for international call represent more than 96% of the EU population or all the periods considered.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 12 Players in the fixed market

Figure 7

Incumbents' market share on national fixed voice telephony market (Retail revenues-Dec. 2002) 100% 90% 99.3% 97.4% 96.1% 95.4% 80% 95.0% 90.0% 83.0% 82.9%

70% 81.7% 79.2% 76.7% 76.6% 75.0% 60% 74.0% 69.9% 69.2% 69.0% 68.1% 68.0% 65.0% 65.0% 64.9% 64.5% 62.7% 62.0% 61.6% 50% 61.6% 59.0% 58.0% 40% 51.1%

30% 43.0% 20% 10% 0% B D EL E F IRL I NL FIN S UK

Local calls Long-distance calls International calls

- In Belgium “local calls” does not exist as a separate category from long-distance calls. - The figures for the Netherlands refer to March 2002, before the introduction of CPS for local calls on 1 st August 2002. Moreover, data for long distance market refer to the combined local and long-distance market. - In Finland , the figure for local calls is the combined market share of Sonera, Elisa and Finnet. The figures for the long- distance and international market includes Sonera only and not Finnet even if it is designated as SMP. - Data for the long-distance market in Sweden is not strictly comparable with the others since it refers to the global national call market (local, long-distance calls and calls to mobile ).

Figure 8

Incumbents' market share on national fixed voice telephony market (Minutes of traffic-Dec. 2002) 100% 90% 99.4% 95.1% 95.0% 93.9%

80% 92.0% 90.9% 70% 81.3% 80.2% 80.0% 78.0% 77.0% 75.7% 75.6% 75.6%

60% 72.9% 67.4% 66.0%

50% 63.4% 63.4% 61.3% 60.0% 59.6% 59.6% 55.7% 54.9% 54.1%

40% 51.9% 45.0% 44.6%

30% 42.0% 41.0%

20% 32.0% 10% 0% B DK D EL E F IRL L A P FIN UK

Local calls Long-distance calls International calls

- In Belgium and Luxembourg local phone calls does not exist as a separate category from long-distance calls. - Data for long-distance market share in Denmark is not strictly comparable with the others since it refers to the global national call market (local, long-distance calls and calls to mobile )

13 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Players in the fixed market

- In Finland , the figure for local calls is the combined market share of Sonera, Elisa and Finnet. The figure for the long- distance and international market includes Sonera only and not Finnet even if it is designated as SMP.

The following charts show the incumbents’ market share in the local calls market by retail revenues and by minutes of outgoing traffic. Where possible, separate figures for local phone calls and local calls to internet are provided.

Figure 9

Incumbents' market share on the local market (Retail revenues- Dec. 2002)

100% 90% 99.5% 99.3% 100.0% 97.0% 95.4% 95.4% 95.0% 80% 94.0% 90.0% 85.0% 84.8% 83.0% 82.9% 70% 82.5% 81.7% 79.8% 79.2% 60% 76.7% 69.3% 66.1%

50% 62.0% 40% 51.9%

30% 46.0% 20% 10% 0% B D EL E F IRL I NL FIN UK Local calls to Internet Local phone calls All local calls

- Columns with dotted border are not strictly comparable with the others. - In Belgium local calls does not exist as a separate category from long-distance calls. - In Germany calls to internet are not local calls. - In Ireland operators may classify internet calls differently. They may be included in other call categories such as local only, national as well as internet; therefore, market shares are varied. - The figures for the Netherlands refer to March 2002 before the introduction of CPS for local call on 1 st August 2002. Moreover, data for local calls to internet include also ISDN access.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 14 Players in the fixed market

Figure 10

Incumbents' market share on the local market (Minutes of traffic- Dec. 2002)

100% 90% 99.5% 99.4% 99.0% 100.0% 93.9%

80% 92.0% 92.0% 85.0% 85.0% 70% 84.2% 81.3% 80.2% 80.0% 75.7% 75.6% 75.6% 75.0%

60% 72.9% 69.0% 68.8% 66.9% 66.9% 50% 66.0% 40% 30%

20% 35.0% 10% 0% B D EL E F IRL L A FIN UK Local calls to Internet Local phone calls All local calls

- Columns with dotted border are not strictly comparable with the others. - In Belgium and Luxembourg local calls does not exist as a separate category from long-distance calls. - In Germany calls to internet are not local calls. - In Ireland operators may classify internet calls differently. They may be included in other call categories such as local only, national as well as internet, therefore market shares are varied. - In Finland , the figure for local calls is the combined market share of Sonera, Elisa and Finnet.

Figure 11

Incumbents' market share on the calls to mobile market (Dec. 2002)

100% 90% 97.7% 96.0%

80% 92.5%

70% 84.0% 75.9% 75.1% 74.9% 75.0% 74.6% 74.6%

60% 72.6% 71.7% 69.0% 68.0% 64.0%

50% 62.2% 60.8% 40% 57.0% 49.0% 30% 20% 10% 0% B D EL E F IRL I NL A FIN S UK by retail revenues by minutes of traffic

- The figure for Finland refers to Dec. 2001.

15 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

2 CONSUMERS’ CHOICE OF FIXED OPERATORS

This section analyses the fixed voice telephony market from the point of view of consumers. The data presented below have been provided by the national regulatory authorities and, unless otherwise indicated, report the position at August 2003. Figures for countries not included in the charts are not available. Figures are not always comparable with those published in previous Reports, due to changes in the methodologies and/or in the classification used by the Member States.

2.1.PERCENTAGE OF SUBSCRIBERS ACTUALLY USING AN ALTERNATIVE PROVIDER OTHER THAN THE INCUMBENT Traditional incumbents’ customers are more and more aware of the possibility of using a provider alternative to the incumbent, either by dialling a call-by-call prefix ( carrier selection ) or by choosing to route all calls by default to the network of an alternative operator ( carrier pre- selection ). The use of an alternative operator through carrier selection/carrier pre-selection does not exclude the possibility of using the incumbent too. Direct access is also available to users through alternative operators’ proprietary wire/wireless access or through unbundled local loops leased from the incumbent. As at August 2003, 33% of EU subscribers used an alternative provider to route long-distance and international calls, while only 25% were using alternative providers for local calls. At the same time, direct access from alternative providers was used by 6% of EU subscribers. Since last year, the percentage of subscribers using an alternative provider has grown by 16% for direct access, 12% for long-distance/international calls and 39% for local calls.

Figure 12

% of subscribers using an alternative provider

50%

40%

30% 33% 30% 25%

20% 18%

10% 5% 6%

0% 2002 2003 Local calls Long-dist./ Internat. Calls Direct access

16 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Consumers’ choice The following charts show for the 15 Member States the % of subscribers using an alternative provider for voice telephony services through carrier selection, carrier pre-selection and direct access. Where available, separate figures for local and long-distance/international calls are given. Figures refer to August 2003 except for Belgium and Sweden (31.12.02) and for France (31.3.2003). Data for Ireland , Netherlands and Austria are not available.

Figure 13

% of subscribers using an alternative provider for voice telephony services 70%

60% 65%

50% 50% 40% 40% 40% 40% 40% 30% 33.2% 33.2% 20% 27.8% 27.7% 24% 24% 23.2% 23.2% 21.6% 21.6%

10% 19.5% 19.5% 17.1% 14% 10% 0% 8.3% 6% 5% B DK D EL E F I L P FIN S UK Local calls Long-dist./ Internat. calls

- The figures for France, Spain , Sweden and Luxembourg should be read as minimum. - The figure for local calls in Luxembourg includes only carrier pre-selection customers, while for long- distance/international calls, it also includes carrier selection customers. - The figures for Denmark , Portugal , Sweden and United Kingdom do not distinguish between local and long- distance/international calls. In Belgium local calls does not exist as a separate category from long-distance calls.

17 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Consumers’ choice Figure 14

% of subscribers using an alternative provider for direct access

20% 19.0% 15% 14.0% 10% 9.4%

5% 5.3% 5.0% 5.0% 3.0% 0% 0.02% 0.4% 1.8% 0.1% 0.2% B DK D EL E F I L P FIN S UK

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 18 Consumers’ choice

2.2. FACILITIES USED BY NEW ENTRANTS FOR THE PROVISION OF VOICE TELEPHONY This section provides information on the facilities used by new entrant to offer voice telephony, particularly to residential users. Data have been provided by the national regulatory authorities and report the position at July 2003, except for Sweden and the United Kingdom (1.1.2003) and for France (31.3.2003). Alternative operators can ask users to be routed to their network either by carrier selection (CS) or by carrier pre-selection (CPS). Furthermore, new entrants can obtain direct access to users through proprietary wire/wireless access or through unbundled local loops leased from the incumbent. These facilities are not mutually exclusive and very often the same operator uses the three at the same time accordingly to category of customers (business or residential), type of services (local or long-distance/international calls), geographical area, availability of ULL, etc.. The following figures should therefore be read separately and not aggregate as country totals. At July 2003 we could broadly estimate that more than 2/3 of the new entrants that are operational in the European market offer voice telephony services though carrier selection and/or carrier pre- selection, and only 1/3 of them use direct access to customers. These values have remained virtually unchanged between 2002 and 2003 across the EU. The following two charts show the number of operators using carrier selection and/or carrier pre- selection by Member State at July 2003. Where possible and appropriate, separate figures for types of calls are given; in the other cases (DK, IRL, I, NL, A, P, S and UK), separate data was not available or the operators do not differentiate the facilities used by type of calls. In Belgium and Luxembourg local calls does not exist as a separate category from long-distance calls . The number of operators using carrier selection and/or carrier pre-selection depends on the number of authorised operators, which can vary widely between countries. This is due to the different size of the countries and to the existence, in only some of them, of the local operators category. For these reasons, an estimate of the number of operators using carrier selection and/or carrier pre- selection as a percentage of authorised operators is also shown. It should be recalled that less than half of authorised operators have started operations. Moreover, the figures do not show to what extent the operators are offering services: residential and/or business users; nation-wide or only in local areas; all types of calls or only local or long-distance or international calls, etc..

19 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Consumers’ choice Figure 15

Number of alternative operators using CS as a % of authorised operators 100 120% 90 96% 100% 80 70 80% 60

50 50% 60% 50% 48% 43% 42% 40 38% 33% 34% 40% 30 27% 23% 19% 19% 20 15% 14% 14% 6% 10% 11% 20% Number of op. using CS using op. of Number 10 0% Op. using CS as op. aauth. % of Op. CS using 0 11 15 12 29 10 11 12 13 8 11 4 45 4 78 22 7 0 13 37 105 0% I L S B A P NL UK DK IRL ELlocal F local calllocalF E local calllocalE D local calllocalD FINcalllocal D long dist/intD long calls F long dist/int F long calls E long dist/int E long calls EL long dist/intEL long calls FIN long dist/int FIN long calls Operators using CS Op.using CS as % auth. operators

- The figures for Belgium refer to national calls only and not to international calls. - The figures for Denmark should be considered as minimum. - In Germany , carrier pre-selection for local calls was not available until July 2003. - The figures for the Netherlands for CS are not strictly comparable with the others since the data refers to operators with an access code and not to operators effectively active. Figure 16

Number of alternative operators using CPS as a % of authorised operators 100 60%

90 50% 50% 80 44% 70 37% 40% 34% 60 33% 29% 28% 50 26% 26% 27% 30% 24%

40 19% 19% 20% 30 14% 10% 11% 20 10% 6% 10%

Number of op. using CPS using op. of Number 10 0% 0% 10 15 0 37 6 6 12 13 8 11 7 40 4 36 19 7 0 4 45 20

0 0% as op. aauth. % of Op. CPS using I L B A P S NL DK UK IRL EL local EL local F local calllocalF E local calllocalE D local calllocalD FINcalllocal D long long calls dist/intD E long dist/int E long calls F long calls dist/int EL long long calls dist/intEL FIN long dist/int FIN long calls Operators using CPS Op. using CPS as % auth. operators

- The figures for the Netherlands are not strictly comparable with the others.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 20 Interconnection

21 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Interconnection

3 PUBLIC NETWORK INTERCONNECTION AND INTERCONNECTION CHARGES

3.1. FIXED-TO-FIXED INTERCONNECTION CHARGES This section analyses the interconnection charges for call termination on the incumbent’s fixed network 11 . The figures may have been approved by the NRA or simply agreed between operators, where the legal framework does not require NRA approval. The following chart shows the EU weighted average interconnection charges since 2000 12 for local level, single and double transit. Since August 2000, the EU weighted average charge for call termination on fixed networks has decreased by 32% for single transit, by 22% at local level, and by 16% for double transit. This happened mostly in the period up to August 2002; during the past year the level of interconnection charges seems to have stabilised (they are around 5% less for the retail and single transit levels; 3% less for double transit). Price differences between countries are still significant, in particular at the double transit level, and even seem to have increased over the past three years.

Figure 17

Fixed-to-fixed interconnection charges EU weighted average (euro-cents)

2.5

2.0 1.97 1.89 1.72 1.66 1.5 1.41 1.25

1.02 1.0 0.96 0.80 0.75 0.65 0.62 0.5

0.0 2000 2001 2002 2003

Local level Single transit Double transit

11 The figures shown are per minute charges based on the first three minutes of a call. 12 The EU average is a weighted, rather than a simple average; this explains the difference with the data published in the previous reports. Furthermore, 2003 exchange rates have been applied to the years 2000-2002 for the non euro- zone countries.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 22 Interconnection The following three charts show the interconnection charges for local level, single and double transit as of 1 August 2003, in comparison to the values of August 2002. Charges for the Netherlands apply from 1 September 2003. The most notable changes since last year have been the significant decreases in Luxembourg (-29% for local and single transit and –20% for double transit), in Denmark (-17% for local transit and – 28% for double transit) and in Italy and Ireland , where there has been a decrease of 14% and 10% respectively at all levels of interconnection. The interconnection charge for double transit has significantly increased in Greece (+35%), which brought it up to the second highest position. In the case of France , in order to maintain consistency across Member States, the per minute charge indicated (based on the first 3 minutes) does not include the charge related to the cost of the 2 Mbit/s port which, however, according to ART, provides a better picture of the cost borne by the interconnecting party. By taking this additional charge into account, per minute average charges set by the NRA (peak/off-peak charge for a call of 200 seconds) would be 0.57€-cent and 1.01€- cent respectively at local and single transit interconnection levels. In Finland there are about 50 SMP operators who apply different interconnection charges. The charts refer to charges applied by the two major operators, Sonera (FIN) and Elisa (FIN2).

Figure 18

Interconnection charges for call termination on incumbents' fixed network Local level - EU weighted average: 0.62 €-cents 1.5

1.3

1.0

0.8

-cents per minute 0.5 €

0.3

0.0 0.45 0.44 0.53 0.56 0.58 0.65 0.66 0.67 0.71 0.71 0.76 0.79 0.82 0.85 0.96 1.43 DK UK F I IRL D EL S E NL P B L A FINFIN(2) 2002 2003 EU weighted avg. 2003

- In Luxembourg there is no distinction between local and long-distance domestic calls. - Figures for Denmark , Sweden and United Kingdom for 2002 have been recalculated using 2003 exchange rate.

23 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Interconnection Figure 19

Interconnection charges for call termination on incumbents' fixed network Single transit - EU average: 0.96 €-cents

1.5

1.3

1.0

0.8

0.5

0.3

0.0 0.68 0.66 0.82 0.90 0.89 0.90 0.90 0.96 1.05 1.07 1.09 1.12 1.17 1.18 1.30 1.43 DK UK L S IRL NL I F E D P B EL FIN A FIN(2) 2002 2003 EU weighted avg. 2003

- Interconnection charges for Spain refer to a standard single transit, but a different charge is applied in Barcelona and Madrid (0,95€-cents). - Figures for Denmark , Sweden and United Kingdom for 2002 have been recalculated using the 2003 exchange rates.

Figure 20

Interconnection charges for call termination on incumbents' fixed network Double transit - EU average: 1.66 € -cents 3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0 0.87 1.03 1.15 1.20 1.21 1.30 1.31 1.59 1.43 1.66 1.86 2.14 2.25 2.59 2.64 3.04 DK S NL IRL L B F UK I P D E A EL FINFIN(2)

2002 2003 EU weighted avg. 2003

- The figures for Finland consist of two charges: one paid to the local operator and one paid to the long-distance operator. - Figures for Denmark , Sweden and United Kingdom for 2002 have been recalculated using 2003 exchange rate. - Data for the United Kingdom refer to a connection of more than 200km. For lengths of less than 100km the interconnection charge at double transit is 1.013€-cents; and for 100-200km it is 1.26€-cents.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 24 Interconnection

3.2.FIXED-TO-MOBILE INTERCONNECTION CHARGES This section shows the per-minute interconnection charges for fixed call termination on the networks of mobile operators. In the following charts information is shown for 50 mobile operators in the EU (representing almost 100% of the EU mobile market). A total of 16 operators in the EU have been designated as having significant market power (SMP 13 ) in nine national markets for interconnection: Belgium, Denmark, Greece, Spain, France, Ireland, Italy, Finland and Sweden. SMP operators cover 45% of the EU mobile market (in terms of subscribers). 26 operators have been designated as SMP on the national mobile market (SMP-mobile) in 13 Member States: the 9 countries with SMP operators in the interconnection market plus Luxembourg, Netherlands, Portugal and the United Kingdom. In Germany and Austria there are no operators designated as SMP or as SMP-mobile either. Charges are for calls originating in the same countries, except for Finland , where charges for mobile termination of international fixed calls are considered . The per-minute interconnection charges are based on the first three minutes of a call at peak rate, except for the Netherlands , Finland and Sweden where the average peak/off-peak rate set by the NRA has been shown. Except for Germany, the figures have been collected by the NRA, and give the situation in August 2003. Data for Germany are not publicly disclosed by the NRA and the figure shown in the chart was provided by Cullen International. The following chart shows the evolution of the weighted average fixed-to-mobile interconnection charges for SMP and non SMP mobile operators, since August 2001 14 . The difference in charges between the two classes of operators has arisen mostly during the past year as a result of regulatory intervention by NRAs to bring about cost orientated charges for SMP operators. Since August 2002, the average interconnection charge for SMP operators has decreased by 15.3%, while for non-SMP operators they have remained more or less stable. The difference between the level of the charges for SMP and non-SMP operators can be explained by the increased number of SMP operators (which now account for 45% of EU subscribers com- pared to 41% in 2002), but mostly by the cost orientation requirement for interconnection charges on SMP operators. It should be noted that even for non-SMP operators in the national interconnection market, intercon- nection charges are sometimes set by the NRAs, for example as a result of intervention on the basis of a competition enquiry or to set price ceilings to avoid excessive of tariffs. Furthermore, in some countries NRAs intervene in setting the charges for non-SMP operators in order, for example, to resolve a dispute between market players. It should be noted that notwithstanding the decrease, the level of fixed-to-mobile interconnection charges remains on average more than 9 times higher than that of fixed-to-fixed interconnection charges (double transit).

13 In the following document, SMP operators means operators designated as having significant market power in the national markets for interconnection, while SMP-mobile operators means operators designated as SMP on the national mobile market. 14 Figures are not comparable with previous reports, due to the use of weighted averages instead of simple averages; furthermore, the 2003 exchange rates have been applied to the previos years 2000-2002 for the non euro-zone countries. Figures for 2001 for non-SMP operators are not available: the EU weighted average for non-SMP operators representing 36% of the subscribers of total non-SMP operators’ subscribers was 20.9€-cents.

25 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Interconnection The EU weighted average of fixed-to-mobile interconnection charges for 50 European operators is 17.45€-cents.

Figure 21

EU average fixed-to-mobile interconnection charges for SMP and non-SMP operators in the national interconnection market 22 20.54 21

20 18.81 19 18.60 18 18.73

17 Eurocentsper minute

16 15.93

15

14 2001 2002 2003

SMP operators Non-SMP operators

The following charts show the fixed-to-mobile interconnection charges for 50 mobile operators in the EU, the national weighted average 15 for SMP and non-SMP operators and the trend since August 2002. With the exception of all operators in France and Portugal, one operator in Spain and two in Greece, mobile termination charges do not vary according the type of network in which the call is originated (fixed or mobile). In France , mobile-to-mobile interconnection charges are based on the "bill and keep" principle, so mobile operators do not define termination charges. Data for Finland indicate the interconnection charges for an international fixed call to a mobile network (interconnection charges also apply to mobile-to-mobile calls). No mobile wholesale termination charges exist for calls originating on a national fixed network; instead, so-called “end- user” charges are levied. The originating fixed operator charges a customer a fixed network retail charge and a mobile network retail charge (to be forward to the mobile operator). Both fixed and mobile operators determine the charges for their own segments. An example of a fixed-to-mobile retail call charge (at peak rate including VAT) is 27€-cents for Sonera and 26€-cents for Radiolinja. The main decreases in the charges since August 2002 have been achieved in Italy (-25% for one SMP operator), in France and Spain (around –18% for both SMP operators), in Ireland -13% for the SMP operator Vodafone), in Belgium (-14% for one SMP operator) and in Greece , where charges have decreased on average by 9% for the four non-SMP operators, after intervention by the NRA. On the other hand, fixed-to-mobile interconnection charges have increased by 10% for one operator (SMP on the national mobile market) in the Netherlands . The figures for Portugal published in the 8 th report are not comparable with the 2003 figure; moreover, the NRA has estimated an average decrease of 8% since last year.

15 Average of the interconnection charges for the different national operators weighted on the basis of their subscribers.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 26 Interconnection

Figure 22

Interconnection charges for call termination on mobile networks (peak) EU weighted average: SMP operators (*): 15.93 €- cents non-SMP operators: 18.60€- cents

S-Telia(*) 9.58

A- Mobilkom 11.11

FIN-Sonera(*) 12.78

IRL-Vodafone(*) 12.90

FIN-Radiolinja(*) 13.21

L-EPT(+); Tele 2(+) 13.41

A- T-Mobile 13.49

A-One 13.80

D-T-Mobile; Vodafone 14.30

IRL-O2 (*) 14.50

F-Orange(*) 14.82

DK-TDC(*); Telia 14.89 I-TIM(*) 14.95

F-SFR(*) 15.06

B-Belgacom Mob.(*) 16.38

DK-Sonofon(+); Orange 16.51

E-Telefonica Mov.(*); Vodafone(*) 17.18

IRL-Meteor 17.80

I-Vodafone Omnitel(*) 17.89 D-Eplus; O2 17.90

EL-Cosmote(*) 18.00

UK-O2(+) 18.13

F-Bouygues Tlc 18.70

EL-Vodafone Panafone(*) 19.00

UK-Vodafone(+) 19.17

A-Tele.ring 19.62

B-Mobistar(*) 19.72

S-Tele2 Mobil(+) 20.14

UK-Orange 20.20

B-Base 20.27

S-Vodafone(+) 20.68

NL-KPN Mobile(+); O2 NL 21.00

EL-Info Quest 21.00

EL-Telestet Hellas(+) 21.00

E-Retevision Mov. (Amena) 21.60

NL-Ben 22.00

UK-T-Mobile 22.77

NL- Dutchtone;Vodafone 23.00

I-Wind 23.55

P-TMN(+) 25.77

P-Vodafone(+) 25.84

P-Optimus 31.67

0 5 10 15 20 25 30 €-cents per minute - The figures for Netherlands , Finland and Sweden are not strictly comparable with the others since they represent an average peak/off-peak rate. Legend: (*) SMP operators in the national interconnection market (+) SMP operators in the national mobile market

27 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Interconnection Figure 23

Fixed-to-mobile national average interconnection charges EU weighted average (all operators): 2003: 17.45 €-cents 2002: 18.92 € -cents 30

25

20

15

10 -cents per minute € 5 12.88 12.93 13.41 13.75 15.05 15.51 15.52 15.61 17.47 17.93 18.09 19.08 20.08 21.86 26.83 0 13.04 12.93 13.41 14.84 15.05 18.87 15.93 16.15 20.16 19.28 21.61 20.97 20.08 20.79 AFINLIRLDFSDKIBEELUKNLP 2002 2003 EU average 2003

- Figures for Denmark , Sweden and United Kingdom for 2002 have been recalculated using the 2003 exchange rates.

Figure 24

Interconnection mobile termination charges of SMP and non-SMP operators on the national interconnection market EU weighted average: SMP op. 15.93 - non-SMP op. 18.6 30

25

20

15

10

5 20.27 16.16 15.05 21.00 21.60 18.70 17.80 23.55 13.41 21.86 12.88 26.83 20.29 20.08 0 17.61 14.89 18.43 17.18 14.92 13.57 16.23 12.93 9.58 BDKDELEFIRLILNLAPFINSUK SMP operators non-SMP operators

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 28 Interconnection

3.3.LEASED LINES INTERCONNECTION CHARGES This section shows the monthly rental and the one-off charges for short-distance leased lines (local ends, excluding VAT) up to 2 and 5 km provided by the incumbent operator to other interconnected operators. An estimate of the total average monthly rental cost (based on the total cost for two years) is also presented. Deviations for the monthly rental from the “recommended price ceiling” set in Commission Recommendation 1999/3863 of 24 November 1999 are also shown. The recommended price ceilings 16 are: • € 80/month for a 64 Kbit/s leased line part circuit up to 5 km • € 350/month for a 2 Mbit/s leased line part circuit up to 5 km; • € 1 800/month for a 34 Mbit/s leased line part circuit up to 2 km; • € 2 600/month for a 34 Mbit/s leased line part circuit up to 5 km. National Regulatory Authorities have provided these figures through the questionnaire for the 9 th Implementation Report and the replies to the ONP COM02-18 Document. Figures indicate the position in August 2003. New prices with effect from September 2003 have been published in the Netherlands. In Finland the charges by SMP operators differ. Leased lines prices are averages based on the charges of Sonera, Elisa and Finnet. There is no 34 Mbit/s price offer in France. For the calculation of the EU 15 monthly rental average price, the 2002 price in France has been used in order to maintain consistency with previous years and plot the EU 15 average deviation from the price ceiling. 64 Kbit/s part circuit

Figure 25

Monthly rental for leased line IC of a 64 Kbit/s part circuit EU weighted average 2 Km: 90.12 € 5 Km: 116.06 € 225

200 200 175

150 157 150 150 146 125 144 120 120 100 118 €-month 111 111 103 100 100 100 100

75 89 82 82 66 65 65

50 59 57 56 49 49 43 43 25 42

0 B DK D EL E F IRL I L NL A P FIN S UK 2km 5km Recommended price ceiling 5km

16 Although the ceiling is not used anymore, it has been a very helpful tool to benchmark progress towards the reduction of leased lines wholesale interconnection prices. It is therefore used in this report in order to present progress.

29 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Interconnection Figure 26

One-off charge for leased line IC of a 64 Kbit/s part circuit

2.000

1.800

1.600

1.400

1.200 1.470 1.239 € 1.000

800 1.085 880 850

600 751 673 638 620

400 544 497 465 371 200 359 300 0 B DK D EL E F IRL I L NL A P FIN S UK one-off charge EU eighted average one-off charge

Figure 27

Average monthly total cost for leased line IC of a 64 Kbit/s part circuit 275

250 Average monthly total cost 2 km 252 225 Average monthly total cost 5 km 200 211 175 183 176 173 170 150 170 148 125 148 €-month 135 135 124 120 119 100 119 113 113 111 105 97 102 96 95 95

75 85 84 80 79 79 50 57

25

0 B DK D EL E F IRL I L NL A P FIN S UK

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 30 Interconnection

2 Mbit/s part circuit Figure 28

Monthly rental for leased line IC of a 2 Mbit/s part circuit EU average 2 Km: 299.37 € 5 Km: 375.54 € 700

600 614 611

500 543 525 503

400 465 408 392 392 384 362 €-month 350 300 350 313 313 300 300 295 291 255

200 246 225 220 207 169

100 154 134 134 82 82 0 B DK D EL E F IRL I L NL A P FIN S UK 2km 5 km Recommended price ceiling 5km

Figure 29

One-off charge for leased line IC of a2 Mbit/s part circuit

3.500

3.000

2.500 2.934 2.591 2.000 2.479 € 1.500 1.650 1.500 1.500 1.000 1.487 1.229 1.220 937 913

500 809 639 568 500 0 B DK D EL E F IRL I L NL A P FIN S UK one-off charge EU average one-off charge

31 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Interconnection

Figure 30

Average monthly total cost for leased line IC of a 2 Mbit/s part circuit 800

700 Average monthly total cost 2 km

600 647 638 628 Average monthly total cost 5 km 500 577 530 516 514 514 459

400 446 430 €-month 394 374 374 363 363 354

300 346 334 334 328 317 276

200 246 238 197 197 193 100 120 120

0 B DK D EL E F IRL I L NL A P FIN S UK

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 32 Interconnection

34 Mbit/s part circuit

Figure 31

Monthly rental for leased line IC of a 34 Mbit/s part circuit EU average 2 Km: 1636.45 € 5 Km: 2250.11 € 5,000

4,500 4,882 4,000

3,500 4,157

3,000

2,500 €-month 2,859

2,000 2,600 2,356 2,350 2,322 2,210

1,500 2,126 1,800 1,756 1,709 1,619

1,000 1,560 1,536 1,500 1,500 1,431 1,360 1,183 1,183 950 900 500 881 1,021 1,007 1,007 782 0 B DK D EL E IRL I L NL A P FIN S UK

2km 5km Recommended price ceiling 2km Recommended price ceiling 5km

- There is no 34 Mbit/s price offer in France - Price in the Netherlands is an average of 2 times 34 Mbit/s in a 155 Mbit/s fibre access service and a 155 Mbit/s broadband access group.

Figure 32

One-off charge for leased line IC of a 34 Mbit/s part circuit

8,000 DK not to scale Value: 23 152 7,000

6,000 7,044 6,438 5,000 5,000 € 4,000

3,000 3,400

2,000 3,000 2,721 2,705 2,479 2,000 1,000 1,928 1,500 1,406

0 1,085 B DK D EL E IRL I L NL A P FIN S UK one-off charge EU weighted average one-off charge

- There is no 34 Mbit/s price offer in France

33 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Interconnection

Figure 33

Average monthly total cost for leased line IC of a 34 Mbit/s part circuit 5,000

4,500 4,940

4,000 4,216 3,500

3,000 3,321 2,500 2,971 €-month 2,645 2,000 2,616 2,454 2,419 2,238

1,500 2,024 1,913 1,845 1,845 1,828 1,823 1,661 1,563 1,563 1,000 1,545 1,485 1,325 1,325 1,158 1,101 1,091 1,091 862

500 1,004

0 B DK D EL E IRL I L NL A P FIN S UK

Average monthly total cost 2 km Average monthly total cost 5 km

- There is no 34 Mbit/s price offer in France - Price in the Netherlands is an average of 2 times 34 Mbit/s in a 155 Mbit/s fibre access service and a 155 Mbit/s broadband access group.

Figure 34

EU average deviation from the 1999 price ceiling for leased lines interconnection

80,00% 75,10%

70,00%

60,00% 56,26%

50,00% 45,08% 46,50%

40,00%

30,00%

19,28% 20,00% 12,42% 12,82% 10,00% 7,30%

0,00% -1,30% -10,00% -5,05% -9,25% -13,46% -20,00% 64 Kbit/s 5km 2 Mbit/s 5km 34 Mbit/s 2km 34 Mbit/s 5km

2001 2002 2003

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 34 Interconnection

35 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

4 MOBILE MARKET

4.1. MOBILE PENETRATION

The following charts show the number of mobile subscribers and the penetration rate in 2003 for second generation mobile services (DCS-GSM) in each Member State. The growth in the penetration rate since August 2002 is also shown. Subscriber figures are taken from FT Mobile Communications (August 2003). The NRAs have had the opportunity to revise these data and, where necessary, have made corrections. In some cases the figures for August 2003 are estimates, since operators have not provided official figures. Data include both post-paid card and pre-paid subscribers and show the situation as at August 2003 with the following exceptions: For Denmark, Greece, Portugal, Sweden and the United Kingdom the reference date is 1st July 2003. For Spain the reference date is 1 st June. Data for Finland and Italy (estimated data) refer to the end of September. EU average is a weighted average. Figure 35 shows the absolute number of mobile subscribers in each Member State (columns) and the penetration rate (dots), measured as the number of subscribers per 100 population. Figures for Italy, Spain and Sweden include analogue subscribers.

Figure 35

Mobile subscribers and penetration rate, 2003 Total EU subscribers: 305,6 millions 70 140%

60 115% 120% 61,7 96% 50 91% 100% 87% 89% 84% 86% 85% 81% 83% 76% 40 73% 75% 74% 80% 66%

30 60% 35,3 54,8 50,2

20 40% Penetrationrate 39,3 Millions of subscribersMillions 10 20% 4,5 11,9 4,6 8,6 8,4 8,1 7,5 6,9 0 3,2 0,5 0% B DK D EL E F IRL I L NL A P FIN S UK

Subscribers 2003(millions) Penetration rate 2003

36 - Telecommunications Regulatory Package – 9th Implementation Report – Annex I Mobile Market Figure 36

Mobile penetration and growth 2002-2003 EU average penetration (2003): 80.9% EU av. penetration growth rate (2002-2003): 6%

120% 20% 18% 100% 16% 16% 14% 80% 12% 60% 12% 10% 10% 8% Growth 8% 40% 7% 7% 6% Penetration rate Penetration 7% 6% 6% 4% 20% 5% 5% 4% 4% 3% 2% 2% 0% 0% B DK D EL E F IRL I L NL A P FIN S UK

August 2002 August 2003 Growth rate 2002/2003

Figure 37

EU mobile subscribers and average penetration, 1998-2003 350 90%

80,9% 80% 300

74,9% 70% 250 70,4% 60%

200 50% 51,6% 150 40% 306 283 265 30%

Million of subscribers of Million 100 30,6% 194 20% 18,3% averageEU penetration rate

50 115 10% 69 0 0% 1998 1999 2000 2001 2002 2003 Subscribers Penetration rate

37 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Mobile Market Figure 38

EU average penetration rate

100%

90% 6,00% 5% 80% 80,91% 19%

70% 21% 74,91% 70,36% 60%

50% 12% 51,64%

40%

30%

EU averageEU penetration 30,60% 20% 18,26% 10%

0% 1998 1999 2000 2001 2002 2003

- EU average is a weighted average.

4.2. PLAYERS IN THE MOBILE MARKET This section shows the number of mobile licences granted in each Member State for the provision of analogue, GSM 900, DCS 1800 and UMTS services. The data on the number of licensed operators have been provided by the national regulatory authorities and indicate the position in August 2003. The following chart shows the number of operators licensed to provide digital mobile services (second-generation) rather than the number of licences issued in each country. The number of operators indicates the real magnitude of the choice of operators for customers of digital mobile services, since very often operators have licences for both GSM 900 and DCS 1800. Mobile network operators have been identified as having only GSM 900 or only DCS 1800 frequencies, or both (in which case they have usually been granted a GSM 900 licence which has subsequently been extended to the DCS 1800 band). Information on mobile service providers 17 has been included where available (without distinction between local and national coverage).

17 Mobile service providers are defined as entities authorised to offer mobile service under their own brand name (dealing with marketing, billing, etc.), using a third party’s mobile network.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 38 Mobile Market Figure 39

Operators authorised to provide digital mobile services Total EU: 52 network operators

124 mobile service providers 59* 25

20

15 21

16

10 12

10

1 5 3 2 3 3 3 2 2 4 4 2 2 3 3 3 3 3 1 1 2 2 2 1 2 0 1 B DK D EL E F IRL I L NL A P FIN S UK

Operators with DCS or GSM licence only Operators with GSM and DCS licences Service providers

* Values not to scale - Figures for Finland do not include 1 local GSM operator belonging to the Finnet Group (Alands). - The figure for France does not include 2 analogue, 6 GSM and DCS local licences granted to the subsidiaries of the licensed mobile operators for the overseas departments 18 .

There are 3 analogue licences for mobile services still active in EU: in Spain, in Italy and in Sweden. Their phase-out is scheduled for the 1st January 2007 for Sweden and Spain and for the end of 2005 for Italy. The following chart shows the number of UMTS licences granted in Europe. The great majority of licences have been granted to players active in the second generation market, and 14 licences have been granted to new entrants.

18 Département de la Réunion, Antilles Françaises, Guyane; Île de Saint Martin et Saint Barthélémy)

39 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Mobile Market Figure 40

UMTS licences Total EU: 62 licences 7

6

5 2 2 1 4 2 1 1 3 2 2 1 5 2 4 4 4 4 3 3 3 3 3 2 3 3 1 2 2

0 B DK D EL E F IRL I L NL A P FIN S UK

Operators with UMTS and GSM/DCS licences Operators with UMTS licence only

The figure for Finland does not include a local service provider.

4.3.OPERATORS ’ MARKET SHARES The following charts show the market shares, in terms of subscribers, of the leading operator and of the main competitors in the second generation mobile market. Operators’ market shares have been calculated on the overall mobile market (including analogue, DCS 1800 and GSM 900 subscribers). There are analogue subscribers in Spain, Italy and Sweden. Data concerning shares of the mobile market are based on estimates on the number of mobile subscribers, taken from FT Mobile Communications, and refer to August 2003. As already indicated, NRAs have checked these estimates. Apart from the United Kingdom, the leading operator is a subsidiary of the incumbent fixed network operator. Figure 41 shows the shares of the leading operator, the main competitor and the other competitors on the digital mobile market only (100%).

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 40 Mobile Market Figure 41

Digital mobile market share (GSM 900/DCS 1800)

100% 4

90% 12,0% 15,6% 15,9% 17,0% 17,6% 18,1% 20,5% 21,0% 22,7% 26,2% 27,2%

80% 33,1% 37,0% 40,9% 40,1% 70% 48,7% 32,4% 30,2% 29,3% 35,6% 26,0% 36,1% 60% 38,6% 32,2% 37,9% 29,4% 35,0%

50% 26,7%

40% 23,8% 30% 24,9% 63,0% 55,5% 55,6% 53,5% 52,6% 52,2% 48,7%

20% 46,9% 46,6% 45,4% 44,4% 41,1% 40,2% 37,8% 35,4%

10% 26,4% 0% B DK D EL E F IRL I L NL A P FIN S UKEU 15 Leading operator Main competitor Other competitors

The following chart shows the share of the overall mobile market held by the mobile subsidiary of the incumbent fixed operator. Where the incumbent still operates the analogue service, the shares of the overall mobile market of their analogue and of their digital services are indicated separately.

Figure 42

Overall mobile market share of the subsidiary of the incumbent fixed operator 70%

60% 0,1%

50% 1,5% 1,7%

40%

30% 63,0% 55,6% 55,5% 53,4% 52,6% 52,2% 48,7%

20% 45,4% 44,4% 43,8% 41,1% 40,2% 37,8% 35,4% 10% 24,5%

0% B DK D EL E F IRL I L NL A P FIN S UK GSM 900/DCS 1800 Analogue

41 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Mobile Market Figure 43

EU average mobile operators' market share 100%

80% 0,64 0,56 60% 0,52 0,53 0,53

0,50 40% 0,48 0,47 0,47 0,44 0,36 20%

0% 1998 1999 2000 2001 2002 2003 Leading operator Competitors

4.4.MOBILE BASKET The analysis of national (as opposed to roaming) mobile services is based on the OECD baskets for digital mobile services. Due to significant changes in usage patterns the OECD baskets have been redefined with effect from August 2002. The new baskets are not compatible with the “old” ones, in that they contain an SMS element, they include calls to several mobile networks, and they do not cover international calls. The new, revised baskets are used in this analysis. There are 3 different baskets, based on low, medium and high usage levels. All packages analysed in this study are Post-Paid packages. Some of the main properties of the new OECD baskets are: Low usage basket with: 25 outgoing calls per month + 30 SMS messages 42% of calls are to fixed line phones, 58% to mobile phones Medium usage basket with: 75 outgoing calls per month + 35 SMS messages 36% of calls are to fixed line phones, 64% to mobile phones High usage basket with: 150 outgoing calls per month + 42 SMS messages 40% of calls are to fixed line phones, 60% to mobile phones Each basket also has a unique definition of time of day distribution and call duration, and includes the monthly rental, and any registration charges distributed over 3 years. The two most prominent operators in each country are covered, based on available subscriber numbers. All relevant packages from each operator are considered, but the final results presented here only show the cheapest package for each basket. A full description of the methodology can be found at the end of this report.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 42 Mobile Market Figure 44

Low usage mobile basket

UK, T-Mobile, Everyone 25 * 27,11

UK, Orange, Any Network 30 Your Messages 30 * 25,61

Sweden, Teliamobile, Mobitel Classic Talk 21,26

Sweden, Comviq, Lokal 21,20

Spain, Vodafone, Contrato Tarde 16,61

Spain, MoviStar, Plus Eleccion 15,84

Portugal, Vodafone, Privado 60 18,31

Portugal, TMN, Spik in 60 * 19,68

Netherlands, Vodafone, Vodafone 60 26,06

Netherlands, KPN, Hi Profile 20 21,46

Luxembourg, , Hip Hop 11,12 2002 Luxembourg, LuxGSM, Liberty 15,37

Italy, TIM, Menu Family + Tutti Province 19,70 2003

Italy, Omnitel, Italy New * 19,01

Ireland, Vodafone, Light 27,03

Ireland, O2, five + weekender * 23,64

Greece, Vodafone, Vodafone 60 * 20,71

Greece, Cosmote, Cosmote 45 * 19,53

Germany, Vodafone, Sun 23,26

Germany, T-Mobile, TellySmile * 23,28

France, SFR, Formule Perso 1H +10 Texto * 24,00

France, Orange, Forfait 1h * 24,50

Finland, Sonera IN, Classic Duo * 13,83

Finland, Radiolinja, Tandem Aina 13,46

Denmark, TDC Mobil, MobilTalk 19,32

Denmark, Sonofon, Variant * 17,00

Belgium, Proximus, ProxiTime All Day 20,53

Belgium, Mobistar, Optimum For Me 2H * 28,85

Austria, T-Mobile, Lucky 7 * 11,76

Austria, Mobilkom, A1 Easy * 17,02

0 5 10 15 20 25 30 35 Euro per month

43 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Mobile Market Figure 45

Medium usage mobile basket

UK, T-Mobile, Everyone 25 * 43,74

UK, Orange, Any Network 30 Your Messages 30 * 47,09

Sweden, Teliamobile, Mobitel Classic Talk 56,21

Sweden, Comviq, Lokal 40,91

Spain, Vodafone, Contrato Tarde 49,13

Spain, MoviStar, Plus Eleccion 42,94

Portugal, Vodafone, Privado 60 29,15

Portugal, TMN, Spik in 60 * 36,36

Netherlands, Vodafone, Vodafone 60 43,16 Netherlands, KPN, Hi Profile 20 39,16 2002 Luxembourg, Tango, Hip Hop 30,88 2003 Luxembourg, LuxGSM, Liberty 33,32

Italy, TIM, Menu Family + Tutti Province 49,51

Italy, Omnitel, Italy New * 45,43

Ireland, Vodafone, Light 51,16

Ireland, O2, five + weekender * 54,31

Greece, Vodafone, Vodafone 60 * 32,45

Greece, Cosmote, Cosmote 45 * 30,92

Germany, Vodafone, Sun 64,47

Germany, T-Mobile, TellySmile * 48,75

France, SFR, Formule Perso 1H +10 Texto * 40,75

France, Orange, Forfait 1h * 48,12

Finland, Sonera IN, Classic Duo * 33,16

Finland, Radiolinja, Tandem Aina 32,89

Denmark, TDC Mobil, MobilTalk 39,23

Denmark, Sonofon, Variant * 31,42

Belgium, Proximus, ProxiTime All Day 48,56

Belgium, Mobistar, Optimum For Me 2H * 41,71

Austria, T-Mobile, Lucky 7 * 33,14

Austria, Mobilkom, A1 Easy * 33,55

0 10 20 30 40 50 60 70

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 44 Mobile Market Figure 46

High usage mobile basket

UK, T-Mobile, Everyone 25 * 68,23

UK, Orange, Any Network 30 Your Messages 30 * 72,33

Sweden, Teliamobile, Mobitel Classic Talk 102,01

Sweden, Comviq, Lokal 69,60

Spain, Vodafone, Contrato Tarde 97,55

Spain, MoviStar, Plus Eleccion 76,32

Portugal, Vodafone, Privado 60 47,15

Portugal, TMN, Spik in 60 * 64,93

Netherlands, Vodafone, Vodafone 60 64,61 Netherlands, KPN, Hi Profile 20 59,20 2002 Luxembourg, Tango, Hip Hop 48,50 2003 Luxembourg, LuxGSM, Liberty 54,14

Italy, TIM, Menu Family + Tutti Province 94,39

Italy, Omnitel, Italy New * 65,16

Ireland, Vodafone, Light 89,96

Ireland, O2, five + weekender * 91,96

Greece, Vodafone, Vodafone 60 * 56,01

Greece, Cosmote, Cosmote 45 * 48,74

Germany, Vodafone, Sun 100,39

Germany, T-Mobile, TellySmile * 100,48

France, SFR, Formule Perso 1H +10 Texto * 67,00

France, Orange, Forfait 1h * 69,21

Finland, Sonera IN, Classic Duo * 63,11

Finland, Radiolinja, Tandem Aina 62,09

Denmark, TDC Mobil, MobilTalk 69,16

Denmark, Sonofon, Variant * 50,94

Belgium, Proximus, ProxiTime All Day 72,09

Belgium, Mobistar, Optimum For Me 2H * 74,27

Austria, T-Mobile, Lucky 7 * 61,78

Austria, Mobilkom, A1 Easy * 59,62

0 20 40 60 80 100 120 Euro per month

45 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

5 BROADBAND ACCESS AND PRICING

5.1.BROADBAND ACCESS This section provides data on the number and type of broadband lines supplied in the EU by both incumbent operators and new entrants. It also contains information on access lines provided by means of alternative technologies such as wireless access (WLL), satellite and cable modems. Information have been collected from the national regulatory authorities though the ONP COM02- 18 questionnaire on data for local broadband access. Given the rapid developments in this sector, it has been agreed with NRAs to update the ONP questionnaire data on a regular basis in January, July and October. Unless otherwise stated data below refer to the situation as at 1st July 2003. For the collection of data the following concepts have been used: • “New entrants” refers not only to alternative telecommunications operators, but also include the internet service providers (ISPs); • In the case of full unbundling , the copper pair is rented to a third party for its exclusive use; • As fully unbundled lines (ULL) supplied by incumbent to new entrants could in principle be used for services other than broadband the total number of ULL for access to internet will be lower than the total number of ULL; • In the case of shared access , the incumbent continues to provide telephony service, while the new entrant delivers high speed data services over the same local loop; • Bitstream access refers to the situation where the incumbent installs a high-speed access link to the customer premises and then makes this access link available to third parties, to enable them to provide high-speed services to customers. Bitstream depends in part on the PSTN and may include other networks such as the ATM network, and bitstream access is a wholesale product that consists of the provision of transmission capacity in such a way as to allow new entrants to offer their own, value-added services to their clients. The incumbent may also provide transmission services to its competitor, to carry traffic to a 'higher' level in the network hierarchy where new entrants may already have a broadband point of presence.; • In contrast to bitstream access, simple resale occurs where the new entrant receives and sells on to end-users - with no possibility of value-added features to the DSL part of the service - a product that is commercially similar to the DSL product provided by the incumbent to its own retail customers, irrespective of the ISP service that may be packaged with it; • Retail broadband access refers to the access provided to the end users; • Incumbents’ DSL lines refers to the lines provided to end users by the incumbent, its subsidiaries or partners; • “Other means of accessing the internet” indicates connections by means of satellite, fibre optic, powerline communications, etc;

46 - Telecommunications Regulatory Package – 9th Implementation Report – Annex I Broadband access 5.1.1. Wholesale access This section shows the availability of wholesale access supplied by incumbents to new entrants. Separate figures are provided for full unbundled lines, shared access and bitstream access (wholesale DSL lines.

Table 1 Number of agreements for full ULL, shared access, bitstream access and resale, 2002- 2003.

N. of agreements on N. of agreements N. of agreements N. agreements fully unbundled lines on shared lines Wholesale DSL Wholesale DSL lines supplied. lines supplied. Bitstream access Simple resale 2002 2003 2002 2003 2002 2003 2002 2003 B 7 8 4 8 4 9 12 21 DK 16 13 5 4 5 7 1 0 D 91 74 3 5 2 0 52 0 EL 2 7 0 0 0 0 0 0 E 6 9 6 9 38 40 n.a. n.a. F 9 9 9 9 4 5 5 20 IRL 1 1 1 1 0 3 0 0 I 31 31 2 2 50 45 n.a. 0 L n.a. 2 n.a. 2 n.a. 0 n.a. 1 NL 10 12 10 12 n.a. 1 n.a. 0 A 12 17 0 0 24 24 0 0 P 4 4 n.a. n.a. 4 8 n.a. 0 FIN 180 n.a. 80 n.a. 60 n.a. 35 n.a. S 33 63 33 63 4 23 5 11 UK 53 57 5 7 309 n.a. 0 535 Tot. EU 455 307 158 122 504 165 110 588

Figure 47

Availability of wholesale access in the EU Incumbent's PSTN activated main lines (million): 185.5 million 2,500,000

2015068 2,000,000 1 635 454

1,500,000

1,000,000 795 071

500,000 171 477

0

Fully unbundled lines Shared lines Bitstream access Simple resale

47 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Broadband access Figure 48

E not to scale Value: 166413 Wholesale fully unbundled lines 100 000 D not to scale D not to scale I not to scale Value: 855 400 Value: 1 144 Value: 309 000 90 000 309 000 855 404 80 000

70 000 1 1441 000

60 000 82100

50 000 51091 61000 44061 40 000

30 000

20 000 35000 28752 10 000 749 9 7 300 7 5 308 5 3 567 3 3 057 3 4 143 4 2 659 2 18629 1 556 1 181 1 20 93 359 043 1 26 760 15640 303 509 1 209

B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

Figure 49

E not to scale Wholesale shared lines Value: 166413 30 000 F not to scale NL not to scale Value: 60274 Value: 64738 64 738 64 60 274 60 21 500 21

20 000 10 812 10

10 000 787 8 10 478 10 7 500 7 6 960 6 2 305 2 2 307 2 1 846 1 1 039 1 20 13 61 62 715

B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

19

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 48 Broadband access Figure 50

E not to scale Value: 166413 Wholesale bitstream lines 100 000 E not to scale E not to scale I not to scale Value: 166 614 Value: 308 Value: 400 000 90 000 400 000 105 217 166 413 80 000 308 514

70 000

60 000

50 000

40 000

30 000 40600 20 000 22100 9 000 9 10 000 10396 5 633 5 5 501 5 2 300 2 18526 38 000 8 000 2

1 200 1 140 196 250 B DK D EL E F IRL I L NL A P FIN S UK

oct-02 juil-03

49 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Broadband access 5.1.2. Retail broadband access to internet

This section shows the availability of broadband access to internet for end-users provided by incumbents (their subsidiary or partners) and by new entrants (alternative telecom operators or Internet Service Providers).

Internet broadband access can be provided through different means: DSL lines, wireless local loop (WLL), cable TV access (cable modem), dedicated leased lines and other access (like satellite, fibre optic, powerline communications, etc.)

New entrants’ DSL lines can be provided to end users by means of full unbundled, shared access, bitstream access or resale.

Figure 48 shows the total number of broadband access to internet for each Member States provided by both incumbents and new entrants and including all means of broadband connections.

Figure 51

EU broadband lines by Member State , July 2003

4.500.000

4.000.000 010 881 3

3.500.000

3.000.000 2 676 503 676 2

2.500.000 640 413 2

2.000.000 1 776 418 776 1 1 629 798 629 1

1.500.000 881 495 1 1 048 750 048 1 1.000.000 380 891 558 600 558 537 850 537 500.000 343 950 343 293 756 293 9 469 9 10 282 10 2 146 2 0 ELIRL L P FIN A DK S B NL I E F UK D

DSL lines Other technologies (cable, satellite, wireless local loop)

Figures 52, 53 and 54 present the number of broadband lines per Member State in October 2002 and July 2003. Chart 52 displays the total number of retail broadband lines, while chart 53 shows the DSL lines and chart 54 the lines using other means.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 50 Broadband access Figure 52

Total broadband access lines 4 500 000

4 000 000

3 500 000

3 000 000 881010 3

2 500 000 376013 3

2 000 000 2 676503 2

1 500 000 413640 2

1 000 000 773080 1 776418 1 1 629798 1 554650 1 495881 1 457589 375379 359876 500 000 343950 206500 1 226343 1 189843 1 126695 1 985339 1 050783 1 1 045867 1 753834 558600 146 2 469 9 740630 282 10 428750 686 476 3

B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

Figure 53

Total broadband lines on PSTN 4 500 000

4 000 000

3 500 000

3 000 000 830710 3

2 500 000 3 271013 3

2 000 000

1 500 000 2 099933 2 1 000 000 473395 1 434000 1

500 000 341189 1 297563 1 280000 224650 131500 139876 113040 1 099518 1 892104 440284 267271 389805 93 359 746316 897 1 369 5 622502 960 8 250783 399343 627970 595881 18 365 18

B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

51 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Broadband access Figure 54

Total broadband lines other means 1 800 000

1 600 000

1 400 000

1 200 000 576985 1

1 000 000

800 000

600 000 900000 827000 800000

400 000 330000 299685 262339 220000

200 000 171478 116400 478855 75 000 75 63 950 63 417897 50 300 50 313707 195798 313550 161479 168795 105000 593 787 1 239023 234591 579 1 100 4 118128 322 1

B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

Figure 55 displays the breakdown of broadband lines by technology in each Member State.

Figure 55

July 03 Total broadband access lines by technology

100% 1% 12% 13% 90% 13% 19% 27% 29% 80% 30% 39% 40% 43% 70% 59% 59% 60%

60% 70% 83% 50% 99% 88% 87% 40% 87% 81% 73% 71% 30% 70% 61% 60% 57% 20% 41% 41% 40%

10% 30% 17% 0% EL P NL A UKIRL B S DKEU E FIN F L I D DSL Other means

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 52 Broadband access Figure 56 displays the breakdown of broadband lines by operator in each Member State.

Figure 56

July 03 Total broadband access lines market share by operator 100% 7%

90% 16% 26% 32% 80% 33% 40% 41% 43% 45% 49% 55% 70% 55% 66% 67% 60% 69%

50% 100% 93%

40% 84% 74% 68% 30% 67% 60% 59% 57% 55% 51%

20% 45% 45% 34% 33% 10% 31%

0% 0% EL A UK NL S IRL B E F EU I DKFIN P L D Total broadband access lines market share: New entrants Total broadband access lines market share: Incumbents

Figure 57 displays the market share of DSL lines by operator in each Member State.

Figure 57

July 03 DSL Market share 100% 6% 7% 15% 90% 16% 17% 20% 21% 22% 23% 24% 26% 28% 80% 32% 37%

70% 49%

60%

50% 100% 94% 93% 85%

40% 84% 83% 80% 79% 78% 77% 76% 74% 72% 30% 68% 63%

20% 51%

10%

0% 0% EL UK F I S FIN E EU A IRL P DK NL B L D DSL Market share: New entrants DSL Market share: Incumbents

53 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Broadband access

The following chart shows the change in the percentage of broadband lines in the hands of the new entrants in the period from July 2002 to October 2003.

Figure 58

Total broadband access lines market share by operators: New entrants 100,00%

90,00% 100,00% 100,00% 80,00%

70,00% 78,90% 60,00% 68,57% 68,35% 68,03% 66,65% 66,42% 50,00% 55,24% 40,00% 55,13% 50,69% 50,66% 48,94% 44,55%

30,00% 42,55% 41,15% 40,16% 35,82% 34,45% 32,68% 32,70% 32,52%

20,00% 31,95% 29,63% 25,85% 23,78% 10,00% 23,02% 16,25% 0,00% 7,10% 0,00% B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

The following chart shows the change in the percentage of DSL lines in the hands of the incumbents in the same period.

Figure 59

DSL Market share by operators: Incumbents 100,00%

90,00% 93,98%

80,00% 92,72% 90,35% 88,39% 85,17% 85,04% 84,31% 84,20%

70,00% 82,51% 81,43% 80,82% 80,26% 79,14% 78,99% 78,87% 77,70% 77,59% 77,46% 77,38% 76,30% 75,92% 73,57%

60,00% 72,03% 67,99%

50,00% 62,86% 58,10% 40,00% 51,24%

30,00%

20,00%

10,00% 0,00% 0,00% 0,00% 0,00% B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 54 Broadband access

Figure 60 shows the evolution in the percentage of DSL lines over the total broadband lines.

Figure 60

DSL linesTotal as % broadband of total broadband market share lines, by October technologies: 2002-July DSL 2003 100,00%

90,00% 98,70% 96,89% 80,00% 87,99% 87,14% 87,00%

70,00% 84,05% 81,41% 79,18% 75,74% 74,56% 60,00% 73,04% 69,78% 63,68%

50,00% 62,34% 61,23% 60,04% 58,41% 56,70% 40,00% 54,57%

30,00% 41,08% 40,50% 39,83% 38,87%

20,00% 32,56% 30,11%

10,00% 23,87% 16,73% 13,56% 0,00% 0,00% 9,67% B DK D EL E F IRL I L NL A P FIN S UK oct-02 juil-03

55 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Broadband access

The following chart displays the penetration rate of broadband lines measured as the total number of broadband lines divided by the population.

Figure 61

Availability and penetration rate of retail broadband access in the EU. July 2003 4 500 000 12% 10.4% 10.2% 4 000 000 9.4% 10% 3 500 000 8.7%

3 000 000 8% 6.8% 6.6% 2 500 000 6% 4.7% 4.6% N° oflines N° 2 000 000 4.5%

1 500 000 4% 4.4% 4.1% 2.3% 1 000 000 3.7%

2.8% 2% ofpopulation% withaccess BB

500 000 0.2% 0.0% 0% B DK D EL E F IRL I L NL A P FIN S UKEU Total broadband access lines Broadband penetration

Chart 62 displays the number of DSL lines per 100 PSTN lines.

Figure 62

DSL lines as % of PSTN main lines. EU total DSL lines: 12 481 153

16

14 13.59 12.51 12 10.70 9.83 10 9.70

8 7.45 7.69 6.73 6.78 6.18

% of % lines PSTN 6 5.30

4 3.75 2.68 2 0.32 0.00 0.01 0 L ELIRL P UK I F A EU NL E D FIN S DK B

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 56

Availability of wholesale access at 1 July 03

Shared access lines supplied by the Wholesale DSL lines supplied Fully unbundled lines incumbent to new entrants Bitstream access Simple resale Incumbent's PSTN Unbundled Requested N. of Requested N. of No. of Resale No. of No. of Country activated main Shared lines No. of lines lines lines agreements lines agreements agreements lines agreements lines B 4.620.560 3.057 134 8 2.307 42 8 5.501 9 88.416 21 DK 3.115.303 51.091 n.a. 13 10.812 n.a. 4 10.396 7 0 0 D 39.500.000 1.144.000 0 74 20 0 5 0 0 0 0 EL 5.485.020 359 60 7 0 8 0 38 0 0 0 E 16.884.000 9.749 1.648 9 0 0 9 308.514 40 NA NA F 34.000.000 2.659 0 9 60.274 10.000 9 n.a. 5 717.000 20 IRL 1.700.000 209 366 1 715 1.267 1 196 3 0 0 I 27.079.000 309.000 437.000 31 19 19 2 400.000 45 0 0 L 247.000 760 51 2 0 0 2 0 0 6 1 NL 8.000.000 28.752 n.a. 12 64.738 n.a. 12 0 1 0 0 A 3.090.000 15.640 1.300 17 0 0 0 36.900 24 0 0 P 4.092.000 303 21 4 0 0 n.a. 18.526 8 0 0 FIN 2.848.000 61.000 n.a. n.a. 21.500 n.a. n.a. 9.000 n.a. 0 n.a. S 5.530.000 5.308 100 63 8.787 400 63 2.300 23 116.000 11 UK 29.300.000 3.567 188 57 2.305 101 7 N/A N/A 1.093.646 535

EU 185.490.883 1 635 454 440868 307 171 477 11837 122 791 371 165 2015068 588

Fully unbundled lines 1635454 Shared access lines 171 477 11855 118 Total unbundled lines 1 806 931 Total unbundled lines / PSTN lines 0,97% Wholesale DSL-Bitstream access 791 371 786203 160 Wholesale DSL-Simple resale 2015068 2006062 584 Wholesale DSL 2 806 439

57 - Telecommunications Regulatory Package - IX Implementation Report – Annex I Broadband access

Availability of incumbent's and new entrants' retail broadband access

July 03 New entrants' DSL lines on PSTN July 03 Incumbents' access lines by other means New entrants' access lines by other means Total number of new entrants Incumbent' Full ULL Shared Bitstream Resale Total WLL Cable Leased Other Tot. WLL Cable Leased Other Tot. s DSL lines access access modem lines modem lines B 534008 1491 2159 2769 87543 93962 6 0 44 0 50 1 415617 2178 51 417847 21 B DK 321645 47078 11986 9096 0 68160 0 50809 3604 0 54413 1211 106495 4656 2020 114382 19 DK D 3600000 230690 20 0 0 230710 38 n.a. n.a. 5262 5300 n.a. 45000 n.a. n.a. 45000 800 D EL 0 359 0 0 0 359 0 0 0 0 0 208 0 1577 2 1787 27 EL E 985053 3996 0 308514 0 312510 - - - - 0 56145 404473 5501 12736 478855 58 E F 1320000 2659 60274 n.a. 717000 779933 0 66704 n.a. n.a. 66704 1000 246003 n.a. n.a. 247003 16 F IRL 4249 209 715 196 0 1120 Trial 0 n.a. n.a. 0 100 4000 n.a. 0 4100 40 IRL I 975000 154000 0 305000 0 459000 0 0 283 n.a. 283 8 0 3300 192207 195515 15 I L 8308 652 0 0 0 652 0 188 115 0 303 25 883 106 5 1019 0 L NL 502391 28752 64738 0 0 93490 n.a. 0 n.a. n.a. 0 n.a. 900000 n.a. n.a. 900000 42 NL A 174300 9750 0 40600 0 50350 0 0 n.a. n.a. 0 0 330000 n.a. n.a. 330000 100 A 18760 P 90722 295 0 22023 0 22318 0 n.a. n.a. 187608 n.a. 74731 n.a. n.a. 74731 15 P 8 FIN 206000 43500 21500 9000 0 74000 50 28000 n.a. n.a. 28050 400 35000 n.a. 500 35900 50 FIN S 341000 5308 8787 2300 116000 132395 0 0 5000 0 5000 2900 156400 0 135385 294685 n.a. S UK 563348 3567 2305 0 530298 536170 0 0 327000 2185 329185 2500 1098000 144000 3300 1247800 63 UK

EU 9626024 2855129 676896 4388624 EU 15

Market share Incumbents' broadband 10302920 59% 8589137 Other operators’ broadband 7243753 41% Tot. Broadband on PSTN 12481153 71% Tot. Broadband other means 5065520 29% EU Tot. Broadband 17 546 673 100%

PSTN broadband lines/Total PSTN lines 6,73%

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 58 Broadband access

5.2.PRICES FOR UNBUNDLED LOCAL LOOP This section shows the charges per unbundled loop (monthly rental and connection) in case of full unbundled and shared access of the loop. Estimates of total average monthly rental cost (based on the total costs for the first year) are also presented. In the following we assume that the loop is active and will be used to provide DSL services. Belgium and Luxembourg charge a different price for the loop, depending on whether it is used for the voice telephony services or for DSL services. Furthermore, Belgium applied a different price for non-active loop and charges in some Member States are different in case of additional access.

5.2.1. PRICES FOR FULL UNBUNDLED LOCAL LOOP In Belgium a supplementary fee of € 28.33 for disconnection is also charged. It should be noted that a disconnection fee is not charged for the incumbent's own retail market. Data for the connection fee in Germany refer to a unique payment option. The price in Italy for full-unbundled local loop includes POTS and ADSL. Data for Finland refer to a weighted average of 44 SMP operators providing ULL. Prices vary between 8 and 29 € for the monthly rental and between 105 - 303 € for the connection fee. Data for the connection fee in Sweden refer to the first access. Charges for the following access up to 20 is 86€ and 70.75€ for additional access. Figures for the United Kingdom refer to an average based on a price of 177.81 € per annum for the monthly rental and on a price of 128.25 € per annum for connection fee.

Figure 63

Prices per full unbundled loop EU avg.: Monthly Rental: 11.5 € - Connection: 68.2 € 200,0 Finland not to scale Value: 218

180,0 218,0

160,0 185,6 167,6 140,0

120,0 128,3 121,5 € 100,0

80,0 84,1 60,0 78,7 56,6 54,9 40,0 54,5 44,8 36,1

20,0 33,9 32,0

0,0 11,9 8,3 11,8 10,6 12,3 20,0 10,5 16,8 8,3 15,8 9,9 10,9 12,0 14,1 11,4 14,8 B DK D EL E F IRL I L NL A P FIN S UK Monthly rental 2003 Connection 2003 EU avg. monthly rental EU avg. connection

59 - Telecommunications Regulatory Package – 9th Implementation Report – Annex I Broadband access Figure 64

Monthly average total cost per full unbundled loop, 2002 & 2003 35

30 32.7 32.3 31.3 31.3

25 26.9 26.9 25.5 25.5 25.4 25.0 20 21.8 20.7 € 20.1 19.9 19.5 19.0 15 18.4 17.2 17.1 17.1 16.5 16.4 15.4 15.4 15.3 14.3 14.0 13.6

10 12.7 12.1 12.0 11.0

5

0 I DK NL EL E A B D F EU P S UK IRL L FIN 2002 2003

- Estimates are based on the total cost of the loop for the first year.

5.2.2. PRICES FOR SHARED ACCESS LOCAL LOOP In Belgium a supplementary fee of €28.33for disconnection is also charged. It should be noted that a disconnection fee is not charged for the incumbent's own retail market. The connection fee in Denmark decreases to 35.3€, when taking over an existing shared access connection. Data for the connection fee in Germany refer to a unique payment option. Data for the monthly rental in Luxembourg do not include the price of the splitter. Data for Finland refer to a weighted average of 44 SMP operators providing shared access to local loop. Generally the monthly rental is 50 % of the monthly rental of the full ULL and the prices for the connection fee vary between 42 - 260 €. Data for Sweden for connection fee refer to the first access. Charges for the following access is 86€. Data for France includes the price of the splitter. Data for the United Kingdom refer to an average based on a price of 77.24 € per annum for the monthly rental and on a price of 170.5 € per annum for connection fee.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 60 Broadband access Figure 65

Prices per shared access EU avg: .Monthly Rental: 4,2 € - Connection: 80.6 € 200

175 196,2

150 170,5

125 123,4 € 100 119,7 109,0 105,0 75 104,4 88,2 78,7 74,9 50 54,9 47,0 44,5 25 44,1 9,0 6,7 6,4 5,5 5,4 5,3 4,8 4,1 27,0 3,5 2,9 3,0 2,8 2,3 2,3 0 7,5 B DK D EL E F IRL I L NL A P FIN S UK

Monthly rental Connection EU avg. monthly rental EU avg. connection

Figure 66

Monthly average total cost per shared access 25 23.89 23.89 22.59 22.59

20 22.40 20.33 19.28 19.28 19.01 18.71 15 15.45 15.42 15.20 € 14.53 14.53 13.03 12.85 10 12.74 11.01 11.01 10.98 10.43 10.30 9.42 9.42 9.22 8.04 7.03

5 6.89 6.51 5.92 5.74

0 E NL I B EL F P EU D DK A S FINIRLUK L

2002 2003

- Estimates are based on the total cost of the loop for the first year.

61 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

6 PUBLIC VOICE TELEPHONY TARIFFS

INCUMBENTS’ RETAIL TARIFFS FOR PUBLIC FIXED VOICE TELEPHONY

This section examines the charging system, the line rental charges and the main tariffs for public fixed voice telephony charged by the incumbent operators in each Member State 19 in August 2003 . The price trend over the past five years is also analysed. The incumbent operators still retain a large market share, but new entrants are increasingly gaining market shares by offering cheaper prices for certain types of calls (usually long-distance or international) or destinations. The prices charged by incumbents do not necessarily, therefore, represent the lowest prices available. A comparison between the rates charged by incumbents and alternative operators is shown at the end of this section. The figures and information are taken from a study carried out for the Commission by Teligen, HI Europe. The data were collected from primary sources (i.e. directly from the incumbent operators) and communicated to the National Regulatory Authorities (NRA), which checked the accuracy of these data before this report was produced. Different sets of charges for fixed national voice telephony services are shown in the following sections: - the minimum costs for different types of calls (local, long-distance, international calls and calls towards mobile networks), depending on the charging system adopted; - the monthly rentals charged by incumbent operators; - the charges for a composite basket of calls (local, long-distance, international fixed calls and calls to mobile), that gives an estimate of the average monthly spending by a typical “European business/residential user” for the whole range (national and international) of calls; - the charges for a basket of national calls , that gives an estimate of the average monthly spending by a typical “European business/residential user” for fixed national calls; - the basket of international calls for each country that indicates the average price of a single call from the originating country to all other OECD destinations. In addition, the price of individual calls to specific destinations are also shown. - the price of some individual calls (3- and 10-minute local, long-distance and international calls) at peak time, inclusive of any initial charge. For incumbents which apply unit-based charging, the price of a whole unit is calculated. For the various types of calls, a benchmark based on a comparison with US and Japan is also included. For the USA, the prices for national calls are those charged by Verizon,NY for local calls, Verizon,NY (1998/1999) and AT&T (2000/2003) for national (intra-state) calls and AT&T for international calls. For Japan, the national call prices are those charged by NTT and the international call prices are those charged by KDD.

19 The incumbent operators considered are the following: Belgacom for Belgium, Tele Denmark for Denmark, for Germany, OTE for Greece, Telefonica for Spain, France Telecom for France, Eircom for Ireland, Telecom Italia for Italy, P&T Luxembourg for Luxembourg, KPN for the Netherlands, Telekom Austria for Austria, Portugal Telecom for Portugal, Sonera for Finland, Telia for Sweden, British Telecom for the United Kingdom.

62 - Telecommunications Regulatory Package – 9th Implementation Report – Annex I Fixed voice telephony tariffs The EU average tariffs shown in the charts are weighted averages (by population of the Member States in 2003) rather than simple averages.

6.1. CHARGING SYSTEM The billing system for public voice telephony services usually comprises two components: an initial charge applied at the beginning of a call and a charge for the remainder of the call (that may not depend on the type of initial charge used).

6.1.1. Initial charges There are different types of charges applied at the beginning of a call, either alone or in combination. The charging method used for the remainder of the call may not depend on the type of initial charge used. The types of charges are: • Call set-up charge raised at the start of the call (when the call is answered). This charge does not offer any call time. • Initial charge that is used in the same way as call set-up, but in addition includes a certain number of seconds call time before normal time-based charging starts. • Unit charge does in effect work the same way as the initial charge. A full unit is charged at the beginning of the call, providing a certain number of seconds call time until the next unit is charged. Depending on the principle used by the operator (synchronous / asynchronous) the number of seconds call time in the first unit may be less than the specified unit duration. • Minimum charge is normally used with per second billing, to ensure the operator minimum revenue per call. If the call duration is short, the actual call charge may be less than the minimum charge. In such cases the minimum charge will be applied.

6.1.2. Charging system during the call There are in principle 3 ways of charging calls. The fact that most operators tend to publish the duration charges on a per minute basis does not itself indicate which system is used. The 3 principles are: • Real time charging (also known as per second billing) allows the cost of the call to be calculated to the exact duration of the call (normally nearest second). Call set-up charge, initial charge or minimum charge may be applied to this structure, in addition to the duration charge. • Unit based charging uses a fixed price unit. The duration of this unit will vary with the destination of the call and time of day. Call duration will always be raised to a multiple of whole units, so the user will nearly always pay for more time than is used. Call set-up charge may be applied to this structure, but is relatively rare. • Fixed period charging uses a variable price, but fixed duration unit. The call is normally charged on a per minute basis, or per 6 seconds. The price for the period will vary with destination and time of day. The charged duration of the call will be raised to a multiple of whole periods. A call set-up charge or initial charge is often implemented in the form of a higher charge for the first minute or period. This initial charge may vary with destination and time of day. In August 2003 only the incumbents in Greece, Luxembourg, Austria and Germany still use a unit- based charging system for some types of calls. No changes are reported since the situation in August 2002.

63 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs The following charts show the minimum cost, due to initial charges, for local, long-distance and international calls and calls to mobile charged by the incumbent operators. The free call time (i.e. the number of seconds of call time before normal time-based charging starts) is shown in brackets. Values are expressed in €, including VAT.

Figure 67

Minimum cost of local and long-distance calls 14

12 12.61 10 10.36 9.66

8 sec.) (6012.20 11.24 (39 sec.) (3911.24 7.87 7.56 9.5 (10 sec.) (10 9.5

6 7.05 9.09 (60 sec.) (609.09 6.35 6.19 8.78 (60 sec.) (608.78

4 5.18 5.00 7.59 (45 sec.) (457.59 7.95 (160sec.) 7.95 4.87 4.27 €-cents, VAT €-cents, included 6.45 (180sec.) 6.45 3.36 2 sec.) (906.00 3.07 (25 sec.) (253.07 sec.) (603.09 sec.) (303.35 3.07 (60 sec.) (603.07 0 sec.) (302.80 B DK D EL E F IRL I L NL A P FIN S UKUSAJAP Local calls 2003 Long distance calls 2003

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 64 Fixed voice telephony tariffs

Figure 68

Minimum cost of a call to a mobile phone

30

25 24.60

20 22.96 22.57

15 18.60 16.60 15.34 10 12.00 10.36 9.60 €-cents, VAT €-cents, included 10.00 7.59 7.56

5 7.05 6.35 5.18 4.87 3.36 0 B DK D EL E F IRL I L NL A P FIN S UKUSAJAP

Figure 69

Minimum cost of an international call 30 D not to scale Value: 68.10 25 25.82 20 22.85 21.12

15 15.70 10 12.49 11.87 10.3 9.98 10.66 10.60 9.40 €-cents, VAT €-cents, included 8.40 5 8.26 7.11 6.20 6.00 5.24 4.42 3.89

0 2.69 B DK D E F IRL I L NL A P FIN S UKUSAJAP Min Max

- Data for EL not available

6.2. MONTHLY RENTAL CHARGED BY THE INCUMBENT OPERATORS The following charts show the incumbent’s monthly line rental charges for residential and business users in each Member State in August 2003 and August 2002 and the variation in nominal terms of the EU average since August 1998. In order to reflect the real charges actually paid by users, values are expressed in €, including VAT for residential users and excluding VAT for business users. The incumbent operators in Italy , Sweden, United Kingdom , USA and Japan apply different monthly line rental charges for residential and business users. In Austria two different packages have been chosen for residential and business users, hence different charges. In Finland the monthly

65 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs rental depends on where in the country the line is connected. In the other countries the differences between the types of users are due only to the exclusion of VAT for business users.

Figure 70

Residential monthly rental 24 22 Aug 2002 20 Aug 2003 22.49 18 EU 15 Aug 2003 19.60

16 18.40 18.40 17.79 17.20

14 16.20 15.75 16.50 16.02 12 15.98 15.98 14.10 14.64 14.88 14.57 13.56 13.56 13.54 13.52 13.52 13.72 13.46 13.46 14.64 13.33 13.00 10 13.00 11.78 11.78 8 €, VAT included 6 4 2 0 B DK D EL E F IRL I L NL A P FIN S UK

Figure 71

Business monthly rental 20 Aug 2002 18 19.58

Aug 2003 19.40 18.59 16 EU 15 Aug 2003 17.44 17.44 16.00 16.20 14 16.00 15.73 14.95 15.20 15.20

12 13.64 13.39 13.10 13.10 12.81 12.62 12.55 12.60 12.55 12.30

10 11.83 11.85 11.68 11.49 11.03 11.03 9.98 8 9.98

€, VAT excluded 6

4

2

0 B DK D EL E F IRL I L NL A P FIN S UK

The following charts show the EU weighted average variation in nominal terms of the residential and business monthly line rental charge.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 66 Fixed voice telephony tariffs

Figure 72 Figure 73

Residential rental per month Business rental per month EU15 weighted average EU15 weighted average 14.5 14.5

14.0 14.0 14.20 14.19 13.96 13.97 13.5 13.5

13.0 13.26 13.0 13.01 12.5 12.5 12.71 12.61 12.40 €, VAT excluded €, €, VAT included 12.0 12.0 12.18 11.96 11.5 11.5 11.63 11.0 11.0 Aug 98 Aug 99 Aug 00 Aug 01 Aug 02 Aug 03 Aug 98 Aug 99 Aug 00 Aug 01 Aug 02 Aug 03

6.3. AVERAGE MONTHLY EXPENDITURE (composite call basket) The figures presented in this section are intended to provide an estimate of the average monthly expenditure of a “standard” European consumer (business and residential). The Basket Methodology for Telecommunications Cost Comparison has been devised by the OECD and accepted in most countries as the most stable and neutral method of comparison. The user is assumed to have a contract for the provision of voice telephony services with the incumbent operator, and to use only this operator for all types of calls (local, long-distance, international, calls to mobile). Since consumers are making increasing use of call-by-call carrier selection, in particular for specific highly discounted types of calls (i.e. international and long- distance), the figures given below are purely indicative, and do not necessarily reflect the cheapest solution available. The charts below show the average monthly expenditure for standard residential and business users as of August 2003, expressed in €, based on the standard tariffs charged by the incumbent operators (i.e. excluding any discount packages). This means that lower costs can be achieved if the user subscribes to one or more discounted packages. The basket of calls used to estimate average monthly expenditure is the new “composite OECD basket” 20 , which includes not only fixed national calls (as did the old basket), but also fixed international calls and calls to mobile networks. A full description of the methodology can be found at the end of this report.

20 The revised OECD baskets were adopted in May 2000.

67 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs Figure 74

Average monthly expenditure (composite basket) Residential users 60

50 Usage 35

Fixed 32 31 30 25 40 20 28 27 29 25 24 21 20 24 20 21 14 30 18

20 24 19 19 €/ month, incl. VAT 18 18 18 16 16 16 16 16 15 15 15 14 14 14

10 12

0 S L E A UK NL DK I EU15EL D F IRL B FINUSA P JAP

Figure 75

Average monthly expenditure (composite basket) Business users 140 Usage 120 Fixed 105 100 90 81 84 82 78 75 77 73 71

80 66 64 67 60 59 60 56 50 43

40 €/month, excl. VAT

20 21 21 20 20 19 17 17 16 16 16 15 15 14 14 13 13 12 0 10 L S DK E NL EL USAIRL F I FINEU15 B P D AUT UK JAP

6.4. FIXED NATIONAL CALLS

6.4.1. Prices charged by the incumbent operators for individual fixed national calls

This section shows the prices charged by the incumbent operators for individual fixed calls. Where the incumbent operator uses a unit-based charging system, the price of calls of different duration and/or distances may in some cases be identical, where both calls are charged the same number of units. Any call set-up charges, minimum charges and/or call specific duration allowances have been taken into account.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 68 Fixed voice telephony tariffs Prices refer to peak hours (weekdays 11.00) and are expressed in € including VAT. Except where otherwise specified, the figures refer to August 2003. Prices are indicated for three-minute and ten-minute calls over two distances: 3 km (equivalent to a local call) and 200 km (equivalent to a national call). In several countries the tariff changes at exactly one of these distances: in these cases, the rates for the lower distance band are used. The price of a three-minute call is more affected by the magnitude of the call set-up charge than the price of a ten-minute call. With the exception of Austria and the Netherlands, the standard tariff is used for this analysis. In the Netherlands the basic, residential package is selected. In Austria the Tik-Tak package has been selected for residential users and the Business 1 package for business users. No discount packages are taken into account. The EU average value is the average of the EU countries weighted according to population in 1999.

Figure 76

Local call charge, 3 min 25

Aug. 2002 20 Aug. 2003 20.4

EU 15 Aug. 2003 19.8 16.9 16.9 16.8 15 16.8 15.7 15.7 15.8 15.8 13.5 13.5 14.3 15.2 14.3 15.2 12.9 12.4 12.3 12.3 12.0 12.0 10 11.9 11.9 9.3 9.3 9.2 9.2 8.9 8.9 €-cents, VAT €-cents, included 5

0 E EL L I D S NL DK P IRLFIN F A UK B

69 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs Figure 77

Local call charge, 10 min 70 Aug. 2002 60 Aug. 2003 EU 15 Aug. 2003 56.4 56.4 56.1 56.0 50 56.0 54.4 50.7 50.7 40 42.0 42.0 39.2 39.2

30 37.0 37.0 33.2 31.5 30.9 30.9 30.9 30.9 30.7 30.7 29.7 29.7 28.4 28.4

20 25.2 25.2 22.7 22.7 €-cents, VAT €-cents, included

10

0 FIN I E S EL P L NL DK F D IRL A B UK

Figure 78

National call charge, 3 min 45.0 Aug. 2002 40.0 Aug. 2003 42.3 42.3

35.0 EU 15 Aug. 2003 39.8 36.9 36.6 33.3 34.4 35.4 33.9

30.0 33.9 32.6 32.6 31.6 31.6

25.0 28.1 24.5 24.5 20.0 24.5 20.4 20.1 20.1 19.8

15.0 18.4 17.9 €-cents, VAT €-cents, included

10.0 13.5 13.5 12.3 12.3 9.3 9.3 5.0

0.0 L S DK NL A B IRL ELFIN F E UK P D I

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 70 Fixed voice telephony tariffs Figure 79

National call charge, 10 min 140 Aug. 2002 120 Aug. 2003 123.0 122.5 122.5

EU15 Aug. 2003 121.9

100 114.6 112.9 112.9 96.2 96.2 95.9 95.6 80 93.7 88.3 87.6 87.6 81.7 76.7 76.7 60 67.0 67.0 56.1 54.4

40 49.1 47.8 €-cents, VAT €-cents, included 37.0 37.0 30.9 30.9 29.7 20 29.7

0 S L DK NL B A EL IRLFIN E P F UK D I

Figure 80 Figure 81

Local and national call charge, 3 min Local and national call charge, 10 min EU 15 weighted average EU 15 weighted average 70 250

60 66.0 52.5 200 214.0 166.8 50 41.5 36.6 150 131.9 40 33.4 32.9 112.9 102.0 30 100 100.4 20

€-cents, VAT included €-cents, 50 €-cents, VAT included €-cents, 10 13.7 13.5 39.8 12.5 12.3 12.7 13.4 39.7 39.4 39.5 38.8 38.9 0 0 1998 1999 2000 2001 2003 2002 1998 1999 2000 2001 2002 2003 Local call charge, 3 min National call charge, 3 min Local call charge, 10 min National call charge, 10 min

6.5. TREND OF THE BASKET FOR FIXED NATIONAL CALLS (NATIONAL BASKET ) The following chart shows the variation of the monthly expenditure of residential and business users on fixed national calls in each Member State between August 2001 and 2003 (in order to maintain consistency over time, the “old” OECD basket is used, which, unlike the “composite”, does not include international calls). Figure 83 displays the change in the EU average national basket for residential and business users in the period from August 1998 to August 2003. The change in the international basket is shown in section 7. A full description of the methodology can be found at the end of this report.

71 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs Figure 82

Variation in average monthly expenditure of national calls (national basket) 15%

10%

5% UK A I E EL EU15 S DK P L 0% FIN F B D NL IRL -5%

-10% Residential, EURO, Incl. VAT -15% Business, EURO, Excl. VAT

-20%

-25%

Figure 83

National Basket development 90 78.5 80 70.3

70 64.0 62.7 61.0 60.7 60

50

40 34.0 31.5 30.0 29.8 29.5 29.4 € € per month 30

20 Residential, Incl. VAT 10 Business, Excl. VAT

0 1998 1999 2000 2001 2002 2003

6.6. ALTERNATIVE NATIONAL OPERATORS This section compares the prices charged for public voice telephony services by the incumbent operator by one competitor in each Member State.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 72 Fixed voice telephony tariffs Figure 84

3 min local calls , incumbent and competitor's price 25 Incumbent Competitor

20 21.3 20.4 19.9 16.9 16.8 15 16.8 15.8 15.7 15.6 15.2 15.0 14.4 14.3 13.5 13.5 13.2 12.9 12.3 12.2 12.0 10 11.9 11.4 11.4 9.7 9.3 9.2 8.9 8.7 8.5 7.4

€-cents,VAT Including 5

0 B DK D EL E F IRL I L NL A P FIN S UK

Figure 85

10 min local calls, incumbent and competitor's price 80 Incumbent Competitor 70 71.00 60

50 56.38 56.10 56.00 56.00 50.70 49.84

40 48.00 45.01 41.98

30 39.23 37.01 33.17 32.97 30.94 30.92 30.68 29.75 28.98 28.90 28.36 28.32

20 27.50 26.50 25.35 25.15 24.81 €-cents,VAT Including 22.74 22.00 21.95 10

0 B DK D EL E F IRL I L NL A P FIN S UK

73 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs Figure 86

3 min. national calls , incumbent and competitor's price 45 Incumbent Competitor 40 42.25 35 36.57 35.64

30 34.38 33.88 33.90 33.26 32.60 31.57

25 29.45 28.73 27.60 24.54 20 24.50 23.13 20.40 20.10 15 19.85 18.35 17.70 16.80 16.30

10 14.40 €-cents,VAT Including 13.46 12.33 12.25 11.36 9.28 5 8.69 7.44

0 B DK D EL E F IRL I L NL A P FIN S UK

Figure 87

10 min. national calls , incumbent and competitor's price 1.4 Incumbent Competitor 1.2 1.22 1.22 1.19

1 1.13 1.05 0.96 0.96

0.8 0.92 0.92 0.88 0.88 0.82 0.77 0.6 0.73 0.67 0.59 0.56 0.56 0.52 €, Including VAT Including €, 0.50

0.4 0.49 0.48 0.43 0.37 0.33 0.31

0.2 0.30 0.29 0.27 0.25

0 B DK D EL E F IRL I L NL A P FIN S UK

FIXED INTERNATIONAL CALLS The following charts show the prices of the international call basket (an estimate of the average cost of an international call in each country) and the actual price of a 10-minute call to specified destinations (within the EU, to Japan and to the USA).

6.7. PRICE OF AN AVERAGE FIXED INTERNATIONAL CALL (international call basket) The basket of international calls for each country provides an estimate of the average cost of an international call.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 74 Fixed voice telephony tariffs For the basket comparison of international PSTN call charges, the OECD Traffic weight basket methodology is used. The basket calculates an average charge for calls to all OECD destination countries. The EU average value is the average of the EU countries weighted according to population in 2003. A full description of the methodology can be found at the end of this report.

Figure 88

Average price for an international call , residential users 1.75 2.56 2.56

1.50 Aug. 2002 1.63 1.63 Aug. 2003 1.25 EU 15 Aug. 2003 1.34 1.32 1.27 1.21 1.16 1.15

1.00 1.11 1.11 1.01 1.01 1.10 0.91 Japan not ot scale

0.75 0.86 0.85 0.84 Value: 2.56 0.80 0.80 0.75 0.75 0.71 0.71 €, VAT included 0.68 0.67 0.62

0.50 0.61 0.58 0.56 0.56 0.51 0.51 0.25

0.00 S L NLUSA B D F IRL E DK A FIN P I EL UKJAP Figure 89

Average price for an international call , business users 1.20 2.54 2.54 1.19 1.19 1.05 Aug. 2002 Japan not ot scale Aug. 2003 Value: 2.54 0.90 EU 15 Aug. 2003 0.89 0.88 0.88 0.87 0.87 0.87 0.86

0.75 0.84 0.81 0.81 0.80

0.60 0.59 0.58 0.58 0.58 0.57 0.57

0.45 0.54 0.48 0.47 0.47 €, VAT excluded 0.46 0.42 0.42 0.40 0.39

0.30 0.38 0.38 0.35 0.33 0.15

0.00 S F NL L USA D DK B IRL E P I FIN EL A UKJAP

75 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs Figure 90

International basket development 2.0

1.8 1.68

1.6 1.43

1.4 1.22 1.31

1.2 1.03 1.08 1.03

€ 1.0 0.98

0.8 0.93 0.70 0.67 0.6 0.73

0.4 Residential, Incl. VAT 0.2 Business, Excl. VAT 0.0 1998 1999 2000 2001 2002 2003

6.8. PRICE OF CALLS TO EU , JAPAN , USA The following two charts show the prices of a 10-minute international call (including VAT) during peak hours (weekday 11.00) to four different destinations: neighbouring country 21 (near EU), more distant country 22 (far EU), Japan and the USA. Figures are expressed in € at August 2003 values and they refer to the European incumbent operators and the EU weighted average.

21 The neighbouring countries are defined as: France for Belgium (and vice-versa ), Germany and the United Kingdom; Sweden for Denmark and Finland; Italy for Greece (and vice-versa ); Portugal for Spain (and vice- versa ); the United Kingdom for Ireland, the USA and Japan; Germany for Luxembourg, the Netherlands and Austria. 22 The more distant countries are defined as: Greece for Belgium, Denmark, Germany, France, Ireland, Luxembourg, the Netherlands, Austria, Finland, Sweden, the United Kingdom, the USA and Japan; Denmark for Greece, Spain, Italy and Portugal.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 76 Fixed voice telephony tariffs Figure 91

10 min. call to near EU country 4.5

4.0 Aug 2002

Aug 2003 4.06 4.06 3.5 EU 15 Aug. 20003 3.0

2.5 2.95 2.95 2.65 2.65 2.47 2.47 2.0 2.12 2.20 2.24 2.34 2.34 €, including VAT 1.94 1.84 1.84 1.5 1.83 1.54 1.54 1.53 1.0 1.44 1.44 1.23 1.23 1.08

0.5 0.85 0.77 0.77 0.76 0.59 0.0 S DK NL D L E IRLFIN B I F A P EL UK

Figure 92

10 min. call to distant EU country 6.0 5.5 Aug 2002 5.0 Aug 2003 5.64

4.5 EU 15 Aug. 20003 5.07 5.07 4.84 4.83 4.83 4.41 4.0 4.41 3.5 3.84 3.84 3.77 3.77 3.0 2.95 2.95 2.94 2.94

2.5 2.92 2.78 2.65 2.58 2.50 2.50 2.46 2.46 2.43 2.0 2.43 €, including VAT 2.24 2.20 1.5 2.12

1.0 1.53 0.5 0.0 E I L D F B NL P EL A S DKIREFINUK

77 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs Figure 93

10 min. call to USA 5.5

5.0 Aug 2002 4.5 Aug 2003 4.84 4.84 4.0 EU 15 Aug. 20003 3.5 3.77 3.77

3.0 3.37 3.37 2.95 2.95 2.5 2.94 2.94 2.73 2.0 €, including VAT 2.20 2.24 2.34 2.12 2.39 2.34 1.94 1.5 1.90 1.90 1.83 1.53

1.0 1.44 1.44 1.23 1.23 0.5 1.12 1.12 0.85 0.76 0.0 NL S D L E IRE B I F DK P EL UK A FIN

Figure 94

10 min. call to Japan 14

12 Aug 2002 Aug 2003 12.36 12.36 10 EU 15 Aug. 20003 11.02 9.63 9.63 9.45 9.12

8 8.96 8.78 7.97 8.58 8.58 8.19 7.34 6 7.90 5.64 €, including VAT 5.09 4.95 4.95

4 4.93 3.84 3.84 3.77 3.77 3.50 3.38 2.95 2 2.95 2.43 2.43

0 L EL NL A S F B FIN D E IRE I DK UK P

6.9. ALTERNATIVE OPERATORS. TARIFFS FOR INTERNATIONAL CALLS The equivalent prices for competitor providers in the EU countries are shown in the charts below. One competitor per country has been analysed. The prices are shown for a 10 minute call, at peak time weekdays. Prices include VAT and are applicable for August 2003.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 78 Fixed voice telephony tariffs Figure 95

10 min international call to near EU country , incumbent and competitor's price 4.5

4.0 Competitor Incumbent 4.06 3.5

3.0 3.36 2.95 2.5 2.93 2.65 2.47

2.0 2.34 2.18 2.12 2.12 1.94 1.94

1.5 1.84 1.80 €, Including VAT 1.54 1.53 1.48 1.46 1.44 1.0 1.38 1.23 1.23 1.19 1.11 1.00 0.95

0.5 0.85 0.77 0.71 0.65 0.59 0.0 0.51 P I A L E S Oni UK D IRL NTL NL FIN DK UTA F B Esat Elisa Wind Auna EU15 Tele2 Tele2 Tele2 Tele2 Arcor EL Cegetel Forthnet

Figure 96

10 min international call to distant EU country , incumbent and competitor's price

6 Competitor Incumbent 5 5.07 4.84 4.83

4 4.41 4.18 4.06 3.84 3.77 3 3.73 2.95 2.94 2.92 2.92 2.93 2.79 2.65 2.65 2.50 2.54 2.46 2.43

2 2.45 2.40 €, Including VAT 2.25 2.18 2.12 2.09 1.81 1.53 1.55 1.49 1 1.46

0 P I A E L S Oni D UK IRL FIN NL NTL DK UTA B F Esat Elisa Wind Auna EU15 Tele2 Tele2 Tele2 Tele2 EL Arcor Telenet Cegetel Forthnet

79 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Fixed voice telephony tariffs Figure 97

10 min international call to USA , incumbent and competitor's price 5.0 4.5 Competitor Incumbent 4.84 4.0 3.5 3.77

3.0 3.37 3.18 2.95 2.5 2.94 2.39 2.0 2.39 2.34 2.18 2.13 2.13 2.12 1.94 1.94 1.90

€, Including VAT 1.5 1.81 1.53 1.50 1.46 1.44 1.42

1.0 1.38 1.23 1.23 1.20 1.12 1.11 1.00 0.5 0.95 0.85

0.0 0.55 P I A E L S Oni UK D IRL FIN NTL NL DK UTA B F Esat Elisa Wind EU15 Auna Tele2 Tele2 Tele2 Tele2 EL Arcor Telenet Cegetel Forthnet Figure 98

10 min international call to Japan , incumbent and competitor's price

14

12 Competitor Incumbent 12.36 10 9.63 9.12

8 9.05 8.78 8.58 8.19 7.98 7.90 7.79 7.39

6 7.21 6.88 6.18 5.85 5.64 5.50 €, Including VAT 5.10 4 5.09 4.95 4.65 2.18 3.84 3.77 3.73 3.50 3.49

2 3.26 2.95 2.81 1.11 2.43 0 P I A E L S D Oni UK IRL NL NTL DK FIN UTA B Esat F Elisa Wind EU15 Auna Tele2 Tele2 Tele2 Tele2 Arcor EL Telenet Cegetel Forthnet

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 80 Fixed voice telephony tariffs

81 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

7 LEASED LINES RETAIL TARIFFS

This section contains an overview of prices charged by incumbent operators in each Member State for national and international leased line services as at 1 August 2003 to end users. Figures do not cover wholesale prices. Price developments are also analysed over the period August 1998-2003. The figures and the information are taken from a study carried out by Teligen, HI Europe for the Commission. Data on standard retail prices charged by incumbent operators have been collected from the incumbent operators and communicated to the National regulatory Authorities (NRA), which checked the accuracy of these data before this report was produced.

7.1. INCUMBENTS ' NATIONAL LEASED LINES National leased line data are provided from 1998 onwards. 2 distances are covered: 2 km (local circuits), and 200 km. Tariffs are taken from the incumbent operator in each country. Other operators may offer other prices. In order to properly reflect the tariff structures used in some countries the circuits may be considered in one of two different ways, depending on tariff structure. The one to apply will differ from carrier to carrier. The principles used in this report for calculating the price of a full circuit are:

1: When tariff specifies local tail prices 2: When tariff specifies a single price for the separately, in addition to main circuit. circuit, end to end, including local tails. Local tail length Main circuit length Local tail length Main circuit length 2 km circuit 1 km 0 0 2 km 200 km circuit 2 km 196 km 0 200 km Note: The local tail length is per tail, i.e. there will be 2 such tails with each circuit.

Where several tariff options exist depending on type of location, the criteria for choice is as follows: • 2 km circuits are always within a major city (usually the Capital) • 200 km circuits are between a major city and a “minor” city As the definitions vary between countries, the type of tariff option chosen will also vary. The countries where the price may vary with location or other non-distance related definitions, are: Belgium, France, Austria, Finland, Sweden and the UK. Some operators apply termination charges per local end, without necessarily covering the local tail circuit within that charge. 4 types of circuits are covered: 64 kb/s, 2 Mb/s, 34 Mb/s and 155 Mbit/s. As not all carriers publish tariffs for all these bitrates and all years, there may be some gaps in the information, especially for higher bitrates. Some carriers offer 2 Mb/s circuits as both structured and unstructured. In this analysis only unstructured circuits are included.

82 - Telecommunications Regulatory Package – 9th Implementation Report – Annex I Leased lines retail tariffs Also, some carriers offer different types of leased lines, often in the form of “basic circuits” and circuits in a managed network. Only “basic circuits” are included in this analysis, as the managed network services are not comparable between carriers. Lately a few carriers have decided not to publish their prices for some or all types of leased lines. This makes it increasingly difficult to present a full overview of the prices in all 15 EU countries. For the USA the prices of Verizon intra-LATA circuits for New York state have been used. The bitrates of leased lines offered in some countries may be different from the ones found in most EU member States. Some operators may offer 56 kb/s instead of 64 kb/s, 1.5 Mb/s instead of 2 Mb/s, 45 or 50 Mb/s instead of 34 Mb/s, and 140 or 150 Mb/s instead of 155 Mb/s. Prices shown in the tables and graphs in this section of the report have been adjusted according to the difference in capacity. All prices are presented in EURO per month, excluding VAT. The validity dates of the tariffs used in this section are: Austria 01/09-01 Belgium 01/07-01 Denmark 01/01-03 Finland France 01/07-03 Germany 17/04-02 Greece 01/04-03 Ireland 18/06-03 Italy 01/11-00 Luxembourg 01/01-02 Netherlands 01/05-03 Portugal 01/03-03 Spain 01/01-03 Sweden 01/04-00 UK 01/12-02 USA, Verizon 13/05-02 USA, PacBell 08/08-02

83 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Leased lines retail tariffs

7.1.1. 64 Kbit/s

Figure 99

Price for 64kb/s , 2 km circuits 4 000

3 500

3 000 3,384

2 500 2,830 2,766 2,685

2 000 2,519 2,445 2,479 1 500 2,374 1,825 1,728 1,544

1 000 1,440 € per year, VAT € per year, excluded 1,188 1,200 1,104 1,155 500 1,043

B DK D EL E F IRL I L NL A P S UKUSA USA JAP -NY -CA 2002 2003 EU14 2003

- Data for Finland not available.

Figure 100

Price for 64kb/s , 200 km circuits 10 000

9 000 9,556

8 000 9,036

7 000

6 000 6,627 6,466 6,792

5 000 6,677 6,829 5,831 5,736 5,488 5,400 4 000 5,256 4,535 4,456 3 000 3,261

2 000 3,072 € per year, VAT € per year, excluded 1 000

B DK D EL E F IRL I NL A P S UKUSA USA JAP 2002 2003 EU13 2003 -NY -CA

- Data for Finland not available. - Distances at 200 Km not possible in Luxembourg.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 84 Leased lines retail tariffs

7.1.2. 2 Mbit/s

Figure 101

Price for 2 Mb/s , 2 km circuits 18 000

16 000 17,925

14 000

12 000 13,920

10 000

8 000 9,791

6 000 6,720 6,559 7,772 7,500 6,397 4 000 6,072 5,427 € per year, VAT € per year, excluded 4,718 4,571 4,336 2 000 4,080 3,600 3,223 1,960

B DK D EL E F IRL I L NL A P S UKUSA- USA- JAP 2002 2003 EU14 2003 NY CA

- Data for Finland not available.

Figure 102

Price for 2 Mb/s , 200 km circuits 80 000

70 000

60 000 68,161

50 000 60,770 54,576 54,363 40 000 47,859

30 000 33,924 39,504 30,922 35,345 42,281 20 000 30,048 28,663 27,120 € per year, VAT € per year, excluded 10,034 10 000 22,560 8,793

B DK D EL E F IRL I NL A P S UKUSA- USA- JAP NY CA 2002 2003 EU13 2003

- Data for Finland not available. - Distances at 200 Km not possible in Luxembourg.

85 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Leased lines retail tariffs

7.1.3. 34 Mbit/s

Figure 103

Price for 34 Mb/s , 2 km circuits 50 000

45 000 49,580 47,340 40 000 46,844 44,919 35 000 37,076 43,200 30 000 36,370 33,948

25 000 30,672 28,261 20 000 24,174 15 000 20,302 18,000 18,000 € per year, VAT € per year, excluded 10 000

5 000 10,567

B DK D EL E F IRL I L A P S UKUSA- USA- JAP 2002 2003 EU12 2003 NY CA

- Data for NL, S and FIN not available.

Figure 104

Price for 34 Mb/s , 200 km circuits 450 000

400 000

350 000 419,255

300 000 380,699

250 000 311,190 294,202 200 000 231,720 150 000 306,942 214,974 194,400 194,494 177,358

100 000 170,748 € per year, VAT € per year, excluded 138,250 50 000 136,332 96,628

B DK D EL E F IRL I A P S UKUSA- USA- JAP NY CA 2002 2003 EU11 2003

- Data for NL, S and FIN not available. - Distances at 200 Km not possible in Luxembourg.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 86 Leased lines retail tariffs

7.1.4. 155 Mbit/s

Figure 105

Price for 140/155 Mb/s , 2 km circuits 140 000

120 000 140,029 136,345

100 000 120,000 110,585 80 000

60 000 108,000 76,200 40 000 56,412 € per year, VAT € per year, excluded 43,226 41,096 20 000 19,200 36,000 12,325

B DK D EL F IRL I L A P S UKJAP

2002 2003 EU11 2003

- Data for E, NL, FIN and S not available.

Figure 106

Price for 140/155 Mb/s , 200 km circuits 1 000 000

900 000

800 000 1,462,275

700 000 840,311 796,006 600 000

500 000

400 000 460,800

300 000 450,720 485,700 388,800 370,573 365,456

200 000 145,932 € per year, VAT € per year, excluded 294,351 100 000

B DK D EL F IRL I A P S UKJAP

2002 2003 EU10 2003

- Data for E, NL, FIN and S not available. - Distances at 200 Km not possible in Luxembourg.

87 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Leased lines retail tariffs

7.2. NATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1 AUGUST 2003)

Figure 107

EU average price variation since 1998, 64Kb

0%

-5% -10% -10% -10%

-15% -18% -18% -14% -17% -20% -19%

% change since 1998 % 1998 since change -25% -23% -24% -27% -30% 1998 1999 2000 2001 2002 2003

EU 14, 2 km EU 13, 200 km

Figure 108

EU average price variation since 1998, 2 Mb/s 0%

-5% -12% -10% -18% -15%

-20% -19% -25% -30% -29% -26% -30% -32% -35% % change since 1998 % 1998 since change -40% -36% -39% -42% -45% 1998 1999 2000 2001 2002 2003 EU 14, 2 km EU 13, 200 km

7.3. INTERNATIONAL LEASED LINES PRICES This section examines the standard retail prices (annual rental) for international leased line services (half-circuits in each country) charged by the incumbent operators in each Member State. The corresponding half-circuit into the other country has not been taken into account, as it would severely distort the comparison.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 88 Leased lines retail tariffs An analysis of the price development over the period from August 1998 to August 2003 is also included. Three destinations are covered: international half circuits to the nearest EU country (hereafter “near EU”), to the most distant EU country (“far EU”) and to the USA.

Three types of circuits are considered: digital 64 Kbit/s, 2 Mbit/s and 34 Mbit/s. Given that price information on 155 Mbit/s international lines is only available for a few Member States, the analysis of these circuits is omitted. The data is presented with the following parameters: • All charges in Euro per month • Excluding VAT • Germany is not included in the analysis because Deutsche Telekom does not publish prices for international half circuits. • The years from 1998 are covered • Variable / 1 year contract (shortest term available). • AT&T prices are used for USA The validity of the tariffs is summarised below: Valid date Confirmed Belgium 01/04/2002 08/08/2003 Denmark 01/01/2003 08/08/2003 Germany 01/01/2000 - Greece 31/03/2003 08/08/2003 Spain 01/01/2003 08/08/2003 France 01/10/2002 08/08/2003 Ireland 29/12/2001 08/08/2003 Italy 01/11/2001 08/08/2003 Luxembourg 01/01/2002 08/08/2003 Netherlands 01/01/2001 08/08/2003 Austria 01/07/1999 08/08/2003 Portugal 02/06/2002 08/08/2003 Finland 01/02/2003 01/08/2003 Sweden 01/01/1999 08/08/2003 UK 18/11/2002 08/08/2003 Japan 01/10/2000 08/08/2003

89 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Leased lines retail tariffs

7.3.1. 64 Kbit/s

Figure 109

64 kb/s half-circuit prices to near EU country 40 000

35 000 68,102 37,315 37,241 30 000

25 000

20 000

15 000

10 000 € € per year, VAT excluded 10,920 4,393 4,176 9,600 4,404 5 000 9,096 12,982 12,354 11,448 10,827 6,769 5,142 5,020

B DK EL E F IRL I L NL A P FIN S UKUSAJAP

2002 2003 EU13 2003

- Data for D not available. - BT in the UK has stopped providing actual prices, and instead publishes the so-called “Baseline prices”, which are used as a basis for any discounts applied. This is the reason for the seemingly sharp increase in 2003. 2002 prices are therefore not displayed.

Figure 110

64 kb/s half-circuit prices to distant EU country 60 000

50 000 68,102 52,454 40 000

30 000 37,241

20 000 22,800

€ € per year, VAT excluded 10 000 14,352 13,777 13,740 20,489 17,280 13,049 16,361 17,442 12,000 11,148 8,415 8,304

B DK EL E F IRL I L NL A P FIN S UKUSAJAP 2002 2003 EU13 2003

- Data for D not available. - BT in the UK has stopped providing actual prices, and instead publishes the so-called “Baseline prices”, which are used as a basis for any discounts applied. This is the reason for the seemingly sharp increase in 2003. 2002 prices are therefore not displayed.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 90 Leased lines retail tariffs

Figure 111

64 kb/s half-circuit prices to USA 60 000

50 000 56,351 52,182 40 000

30 000

20 000 26,298 26,162

€ € per year, VAT excluded 10 000 16,361 16,020 15,816 15,600 21,997 14,400 12,661 12,126 11,244 8,781 8,808

B DK EL E F IRL I L NL A P FIN S UKJAP

2002 2003 EU13 2003

- Data for D not available. - BT in the UK has stopped providing actual prices, and instead publishes the so-called “Baseline prices”, which are used as a basis for any discounts applied. This is the reason for the seemingly sharp increase in 2003. 2002 prices are therefore not displayed.

7.3.2. 2 Mbit/s

Figure 112

2 Mb/s half-circuit prices to near EU country 500 000

450 000 500,593 400 000

350 000 426,458 421,827 300 000 250 000

200 000

150 000

100 000 € per year, VAT € per year, excluded 44,441 55,215 59,976 132,448 38,424

50 000 30,749 117,492 159,880 180,304 150,120 110,400 81,276

B DK EL E F IRL I L NL A P FIN S UKUSAJAP

2002 2003 EU13 2003

- Data for D not available. - BT in the UK has stopped providing actual prices, and instead publishes the so-called “Baseline prices”, which are used as a basis for any discounts applied. This is the reason for the seemingly sharp increase in 2003. 2002 prices are therefore not displayed.

91 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Leased lines retail tariffs

Figure 113

2 Mb/s half-circuit prices to distant EU country 600 000

500 000 611,541

400 000 500,593 421,827 300 000

200 000

€ € per year, VAT excluded 100 000 178,047 218,019 211,200 251,349 206,628 240,000 163,796 142,326 144,240 133,584 117,442 109,236

B DK EL E F IRL I L NL A P FIN S UKUSAJAP

2002 2003 EU13 2003

- Data for D not available. - BT in the UK has stopped providing actual prices, and instead publishes the so-called “Baseline prices”, which are used as a basis for any discounts applied. This is the reason for the seemingly sharp increase in 2003. 2002 prices are therefore not displayed.

Figure 114

2 Mb/s half-circuit prices to USA 700 000

600 000

500 000 627,508

400 000

300 000 384,732

200 000 334,295

€ € per year, VAT excluded 100 000 214,356 252,425 302,270 178,047 216,000 160,620 145,200 148,032 127,164 116,976 113,953

B DK EL E F IRL I L NL A P FIN S UKJAP

2002 2003 EU13 2003

- Data for D not available. - BT in the UK has stopped providing actual prices, and instead publishes the so-called “Baseline prices”, which are used as a basis for any discounts applied. This is the reason for the seemingly sharp increase in 2003. 2002 prices are therefore not displayed.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 92 Leased lines retail tariffs 7.3.3. 34 Mbit/s

Figure 115

34 Mb/s half-circuit prices to near EU country 2 000 000

1 800 000

1 600 000 3,604,979

1 400 000

1 200 000

1 000 000

800 000 1,262,125 1,154,400 954,084

600 000 919,488

400 000 704,933 € € per year, VAT excluded 285,108 279,342 263,566

200 000 184,440

B DK EL E IRL I L NL FIN UK JAP

2002 2003

- Data for D, EL, F, A, P and S not available.

Figure 116

34 Mb/s half-circuit prices to distant EU country

5,000,000 4,500,000 4,000,000 3,500,000 3,000,000

2,500,000 3,604,979 2,000,000 1,500,000 1,000,000 € € per year, VAT excluded

500,000 1,481,304 1,438,823 1,187,385 0 1,068,297 803,052 E I NL FIN UK JAP

2002 2003

93 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Leased lines retail tariffs

7.4. INTERNATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1 AUGUST 2003)

Figure 117

EU weighted average price variation since 1998, 64 Kb/s

0%

-10% -20% -20% -20% -27% -22% -31% -30% -26% -38%

-34% -43% -40% -43% -46%

% change since 1998 -36% -50% -48% -53%

-51% -60% 1998 1999 2000 2001 2002 2003

to near EU to far EU to USA

Figure 118

EU average price variation since 1998, 2 Mb/s

0% 0%

-10% -16% -17% -20% -21% -32% -30% -36% -35% -41% -40% -40% -38% -45% % change since 1998 -50% -50% -48% -51% -60% -55% 1998 1999 2000 2001 2002 2003

to near EU to far EU to USA

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 94 Leased lines retail tariffs

95 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

8 DIGITAL TELEVISION

This chapter provides information on the EU market for digital television . The following areas are covered:

Market penetration. Operators and interactive TV services. DTV equipment.

As it was the case last year, the services of the European Commission sent a questionnaire to Member States requesting relevant information. The quality of the replies received varies, for instance, whereas three MS did not reply, some others provided detailed information. In addition, information from different MS is not always consistent, so that data provided in reply to one particular question may reflect different assumptions and timing. It was therefore difficult to present data received in reply to the questionnaire in a standard format that would facilitate comparison between MS.

As a result of these statistical shortcomings, the EC services decided to prepare certain of the tables and charts on the basis of data from another source .23 Data received from MS, which in some cases diverge from those in the tables and charts, are reported in footnotes.

The following abbreviations are used in this chapter: digital television (DTV), European Commission (EC), free-to-air (FTA) or “free-to-view” (FTV) 24 , households (HH), integrated digital television receiver (iDTV), interactive television (iTV), Member States (MS), set-top-box (STB), digital subscriber line (DSL).

8.1. EU DIGITAL TELEVISION MARKET PENETRATION General considerations

No consistent information was obtained as to the market share of premium digital pay TV, received against payment of a subscription fee, and FTA DTV. Consequently, market penetration data presented here cover both pay and FTV services and comments are provided where additional information is available. In general, it can be assumed that pay-TV operators still account for most of EU DTV penetration. 25 This being said, some MS provided data on the share between pay and FTV DTV for the different delivery networks. 26

23 Namely data from a report by independent consultant Strategy Analytics : “Digital TV Devices: European Market Forecast, July 2003” . Whereas 2003 figures provided by MS reflect the market status when those data were collected, 2003 figures by Strategy Analytics are an estimation for the whole year. In addition, information from Strategy Analytics does not cover Luxembourg, where data provided by the Member State have been used. 24 Whereas the two concepts FTA/FTV are used here interchangeably, that is not always the case in other contexts, where they are understood as follows: free-to-view services are normally on satellite and encrypted for rights purposes, but there is no subscription payment, only a once-off payment for the card. Free-to-air services are normally terrestrial, non-encrypted, non-pay. 25 It was indicated in the 7 th implementation report that consultancy firm ‘IDATE’ estimated that in 2000 only 5% of DTV households received exclusively FTA services. However, in many cases, DTV subscribers receive certain FTA channels in addition to pay channels 26 Figures are given in millions of HH.

96 - Telecommunications Regulatory Package – 9th Implementation Report – Annex I Digital television In addition, some MS provided data on the number of households within TV networks coverage. 27

Unless otherwise specified, percentages of DTV HH are expressed as a percentage of TV HH.

Market penetration data are broken down by TV delivery mechanism (cable, satellite, terrestrial). 28 There should be no overlaps in the market data if the statistics provided correspond to one single TV set (the main TV set in the home). However, this approach may not always have been respected so that there may be some overlapping corresponding to those HH which receive services from different TV networks on secondary TV sets. 29

Germany : cable pay-DTV (1.5), satellite pay-DTV (1.1), satellite FTV DTV (1.0), terrestrial pay-DTV (0), terrestrial FTV DTV (0.12) Italy : cable pay-DTV (>0.1), satellite pay-DTV (3.2), satellite FTV DTV (0), Netherlands : cable pay-DTV (0.1), cable FTV DTV (0), satellite pay-DTV (0.4), satellite FTV DTV (0.07). Spain : satellite pay-DTV (2.2). Sweden : cable pay-DTV (0.16), satellite pay-DTV (0.475), terrestrial pay-DTV (0.17). UK : cable pay-DTV (2.1), satellite pay-DTV (6.4), satellite FTV DTV (0.6), terrestrial FTV DTV (1.6), DSL pay-DTV (0.012) France : cable pay-DTV (0.82), satellite pay-DTV (3.2). Greece : satellite pay-DTV (0.2), satellite FTV DTV (0.5) 27 Figures are given in millions of HH. Denmark : satellite DTV (2.3), terrestrial DTV (0.23). Finland : cable DTV (0.9), satellite DTV (2.32), terrestrial DTV (1.7). France : cable DTV (7.5), satellite DTV (25.2). Germany : cable DTV (20.6), satellite DTV (37.0), DSL (4.0). Greece : satellite DTV (3.8). Italy : cable DTV (1.3), satellite DTV (22.2), DSL (1.2). Netherlands : cable DTV (5.73). Portugal : satellite DTV (5.02). Spain : cable DTV (3.83), satellite DTV (7.46), terrestrial DTV (1.79). Sweden : cable DTV (1.9), satellite DTV (4.0), terrestrial DTV (3.6), DSL (1.1). UK : cable DTV (12.4), satellite DTV (24.0), terrestrial DTV (18.6). 28 Although satellite, cable and terrestrial are the main platforms for the delivery of digital television, new technologies are evolving, such as digital television over ADSL, which has already been introduced in some Member States. However, the penetration rates for DSL TV are still very low and do not exceed 1% of total EU TV households. 29 It was not possible to obtain reliable data on secondary TV reception in the EU. However some MS indicated the percentage of HH with more then one TV set. For instance in France there are 59.4% of HH with only one TV set, 30.3% HH with two TV sets, 7.9% HH with three TV sets and 2.4% with four or more TV sets.

97 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television 1. Market data

Table 1: TV households (analogue and digital) in 2003 (in millions and in percentage of national households) Total TV HH Cable TV Satellite TV Terrestrial TV - only TV HH % TV HH % TV HH % Austria 3,2 1,32 40,8% 1,6 49,6% 0,31 9,6% Belgium 4,2 3,9 93,0% 0,1 2,0% 0,21 5,0% Denmark 2,3 1,1 46,4% 0,6 26,5% 0,61 27,1% Finland 2,3 1,0 43,9% 0,24 10,5% 1,04 45,6% France 24,4 2,9 11,9% 5,0 20,5% 16,51 67,6% Germany 36,6 20,6 56,3% 14,0 38,3% 1,96 5,4% Greece 3,0 0,00 0,0% 0,25 8,6% 2,72 91,4% Ireland 1,31 0,47 35,8% 0,38 28,7% 0,47 35,5% Italy 20,9 0,06 0,3% 3,2 15,5% 17,59 84,2% Luxembourg 0,2 0,16 91,7% 0,01 5,8% 0,00 2,4% Netherlands 7,1 6,3 89,0% 0,27 3,8% 0,51 7,2% Portugal 3,1 0,90 28,7% 0,42 13,2% 1,82 58,1% Spain 12,6 0,9 7,1% 1,8 14,3% 9,89 78,5% Sweden 4,5 2,10 47,1% 0,8 17,9% 1,56 35,0% UK 24,4 3,8 15,6% 7,6 31,3% 12,98 53,2% TOTAL EU 149,94 45,4 30,3% 36,3 24,2% 68,2 45,5%

Figures in this table come from Strategy Analytics: “Digital TV Devices: European Market Forecast, July 2003” , except for Luxembourg, where figures provided by national authorities for 2002 were used. No reliable data were available for HH with only terrestrial TV reception. This has been estimated as follows: total TV HH minus satellite and cable HH.

Figure 119

Chart 1: TV households (analogue and digital) per platform in 2003

100% 90% 80% 70% 60% 50% 40% 30% 20% Percentage of households Percentage 10% 0% A B DKFIN F D ELIRL I L NL P E S UKEU

Cable TV % Satellite TV % Terrestrial TV - only %

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 98 Digital television

Table 2: Digital TV households in 2003 (in millions and in percentage of national households) Total TV Total Digital TV HH Cable DTV Satellite DTV Terrestrial DTV HH TV HH % TV HH % TV HH % TV HH % Austria 3,2 0,55 17,1% 0,05 1,6% 0,50 15,5% 0,00 0,0% Belgium 4,2 0,18 4,3% 0,16 3,8% 0,02 0,5% 0,00 0,0% Denmark 2,3 0,35 15,5% 0,08 3,5% 0,27 11,9% 0,00 0,0% Finland 2,3 0,21 9,2% 0,02 0,9% 0,10 4,4% 0,09 3,9% France 24,4 4,62 18,9% 0,92 3,8% 3,70 15,2% 0,00 0,0% Germany 36,6 5,16 14,1% 1,63 4,5% 3,15 8,6% 0,38 1,0% Greece 3,0 0,25 8,4% 0,00 0,0% 0,25 8,4% 0,00 0,0% Ireland 1,3 0,46 35,1% 0,10 7,6% 0,36 27,4% 0,00 0,0% Italy 20,9 2,85 13,6% 0,00 0,0% 2,85 13,6% 0,00 0,0% Luxembourg 0,2 0,01 5,3% 0,00 1,0% 0,01 4,2% 0,00 0,0% Netherlands 7,1 0,69 9,7% 0,11 1,6% 0,55 7,8% 0,03 0,4% Portugal 3,1 0,51 16,2% 0,02 0,6% 0,49 15,6% 0,00 0,0% Spain 12,6 2,38 18,9% 0,15 1,2% 2,06 16,4% 0,17 1,3% Sweden 4,5 1,25 28,0% 0,17 3,8% 0,88 19,7% 0,20 4,5% UK 24,4 13,14 53,8% 2,29 9,4% 8,04 32,9% 2,81 11,5% TOTAL EU 149,94 32,6 21,7% 5,7 3,8% 23,2 15,5% 3,7 2,5% Figures in this table come from Strategy Analytics: “Digital TV Devices: European Market Forecast, July 2003” , except for Luxembourg, where figures provided by national authorities for 2002 were used. Figures provided by other national authorities are indicated in footnote. 30

30 Figures are given in million HH. Finland : satellite DTV (0.045), cable and terrestrial DTV (0.097). France : cable DTV (0.82), satellite DTV (3.2). Germany : cable DTV (1.62), satellite DTV (2.1), terrestrial DTV (0.12). Greece : satellite DTV (0.7). Italy : cable DTV (>0.1), satellite DTV (3.2). Netherlands : cable DTV (0.107), satellite DTV (0.47). Spain : satellite DTV (2.2). Sweden : cable DTV (0.16), satellite DTV (0.475), terrestrial DTV (0.17). UK : cable DTV (2.1), satellite DTV (7.2), terrestrial DTV (1.6), DSL TV (0.012).

99 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television Figure 120

Chart 2: Percentage of digital TV households over total TV households in 2003 60%

50%

40%

30%

20%

Percentage of households Percentage 10%

0% A B DKFIN F D ELIRL I L NL P E S UKEU

Cable DTV % Satellite DTV % Terrestrial DTV %

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 100 Digital television

Figure 121

Chart 2a: Digital TV hauseholds per platform in EU in 2003

Terrestrial DTV Cable DTV 11% 17%

Satellite DTV 72%

Charts 120 to 127: Percentage of EU digital TV households over total EU TV households in 2002 and 2003 for total TV, cable TV, satellite TV and terrestrial TV

Figure 122 Figure 124

Chart 3b: Total TV in the EU in 2002 Chart 3a: Total TV in the EU in 2003

Digital Digital 18% 22%

Analogue Analogue 82% 78%

Figure 123 Figure 125

Chart 4b: Cable TV in the EU in 2002 Chart 4a: Cable TV in the EU in 2003

Digital Digital 11% 13%

Analogue Analogue 89% 87%

101 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television

Figure 126 Figure 128

Chart 5b: SatelliteTV in the EU in 2002 Chart 5a: SatelliteTV in the EU in 2003

Analogue Analogue 35% 41%

Digital 59% Digital 65%

Figure 127 Figure 129

Chart 6b: Terrestrial TV in the EU in 2002 Chart 6a: Terrestrial TV in the EU in 2003

Digital Digital 5% 3%

Analogue 97% Analogue 95%

2003 charts were calculated with data from tables 1 and 2. 2003 charts were calculated using data from Strategy Analytics: “Digital TV Devices: European Market Forecast, July 2003”

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 102 Digital television

(in millions and in percentage of national HH) Total Digital TV HH Cable DTV Satellite DTV Terrestrial DTV Total HH TV HH % TV HH % TV HH % TV HH % 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 Austria 3,2 3,2 0,34 0,55 10,628% 17,060% 0,03 0,05 0,938% 1,551% 0,31 0,50 9,691% 15,509% 0,00 0,00 0,000% 0,000%

Belgium 4,2 4,2 0,13 0,18 3,118% 4,317% 0,12 0,16 2,878% 3,837% 0,01 0,02 0,240% 0,480% 0,00 0,00 0,000% 0,000%

Denmark 2,3 2,3 0,28 0,35 12,385% 15,468% 0,06 0,08 2,654% 3,536% 0,22 0,27 9,731% 11,933% 0,00 0,00 0,000% 0,000%

Finland 2,3 2,3 0,14 0,21 6,208% 9,216% 0,01 0,02 0,443% 0,878% 0,09 0,10 3,991% 4,389% 0,04 0,09 1,774% 3,950%

France 24,1 24,4 4,29 4,62 17,777% 18,928% 0,80 0,92 3,315% 3,769% 3,49 3,70 14,462% 15,159% 0,00 0,00 0,000% 0,000%

Germany 36,4 36,6 3,75 5,16 10,311% 14,114% 1,62 1,63 4,455% 4,458% 2,10 3,15 5,774% 8,616% 0,03 0,38 0,082% 1,039%

Greece 3,0 3,0 0,16 0,25 5,387% 8,418% 0,00 0,00 0,000% 0,000% 0,16 0,25 5,387% 8,418% 0,00 0,00 0,000% 0,000%

Ireland 1,2 1,3 0,35 0,46 28,226% 35,068% 0,06 0,10 4,839% 7,623% 0,29 0,36 23,387% 27,444% 0,00 0,00 0,000% 0,000%

Italy 20,8 20,9 2,76 2,85 13,276% 13,644% 0,00 0,00 0,000% 0,000% 2,76 2,85 13,276% 13,644% 0,00 0,00 0,000% 0,000%

Luxembourg 0,2 0,2 0,01 0,01 5,256% 5,256% 0,00 0,00 1,048% 1,048% 0,01 0,01 4,208% 4,208% 0,00 0,00 0,000% 0,000%

Netherlands 7,0 7,1 0,55 0,69 7,871% 9,748% 0,10 0,11 1,431% 1,554% 0,45 0,55 6,440% 7,770% 0,00 0,03 0,000% 0,424%

Portugal 3,1 3,1 0,32 0,51 10,191% 16,242% 0,01 0,02 0,318% 0,637% 0,31 0,49 9,873% 15,605% 0,00 0,00 0,000% 0,000%

Spain 12,5 12,6 2,26 2,38 18,074% 18,894% 0,07 0,15 0,560% 1,191% 2,06 2,06 16,475% 16,353% 0,13 0,17 1,040% 1,350%

Sweden 4,4 4,5 1,03 1,25 23,597% 28,014% 0,15 0,17 3,436% 3,810% 0,74 0,88 16,953% 19,722% 0,14 0,20 3,207% 4,482%

UK 24,4 24,4 10,65 13,14 43,612% 53,808% 2,05 2,29 8,395% 9,378% 7,03 8,04 28,788% 32,924% 1,57 2,81 6,429% 11,507%

TOTAL EU 148,97 149,94 27,02 32,61 18,137% 21,748% 5,08 5,70 3,411% 3,803% 20,0 23,23 13,444% 15,491% 1,91 3,68 1,282% 2,454%

103 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television Figures in this table come from Strategy Analytics : “Digital TV Devices: European Market Forecast, July 2003” , except for Luxembourg, where figures provided by national authorities for 2002 were used. In some cases data from both sources differ. However, it has to be remembered that the period covered by both sets of data is different. 31

Chart : Evolution in the percentage of digital TV households from 2002 to 2003

Figure 130

60

50

40

30

20

10

0 UK Italy Spain Ireland Austria France Finland Greece Sweden Belgium Portugal Denmark Germany TOTAL EU Netherlands Luxembourg %CDTV 2002 %SDTV 2002 %TDTV 2002 %CDTV 2003 %SDTV 2003 %TDTV 2003

31 Whereas Strategy Analytics made estimations for the whole year 2003, MS provided the most up-to-date data available when replying to the questionnaire, i.e. in some cases some months before august 2003. It is therefore normal that the former are bigger than the latter. In addition, as it was mentioned in the last year’s report, it seems that data in the 8 th Implementation report did not take into account 2002 bankruptcies of terrestrial digital pay-TV operators in the UK and Spain. As a result, the numbers of DTV households have been over-estimated. For that reason the data for 2002 have also been taken from Strategy Analytics and not the last year’s report.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 104 Digital television

8.2.OPERATORS AND INTERACTIVE TV SERVICES .

TABLE 2: DIGITAL TV OPERATORS AND INTERACTIVE SERVICES

DTV operators Transmissi Network (cable, business model (pay, conditional access application interactive TV services on starting satellite, free-to-air, hybrid) technology (CAS) programme date terrestrial, DSL) interface technology (API) Denmark Finland Yleisradio Oy 8/2001 Terrestrial Free-to-air MHP EPG, supertext tv (news, weather, etc.) traffic information, games MTV Oy 8/2001 Terrestrial Free-to-air Conax MHP EPG, MTV3 supertext tv, lottery, banking services, special services related to individual programmes Oy 8/2001 Terrestrial Free-to-air Conax MHP EPG, supertext tv Ruutunelonen Ab Sub TV Oy 8/2001 Terrestrial Free-to-air Conax MHP EPG, MTV3 supertext tv, lottery, banking services, special services related to individual programmes Suomen 8/2001 Terrestrial Free-to-air Conax MHP EPG, MTV3 Textchannel, lottery, banking Urheilutelevisio services Oy Canal+ Finland 4/2004 Terrestrial Pay Conax MHP Oy Janton Oyj 4/2004 Terrestrial Free-to-air Conax MHP Turun 4/2004 Terrestrial Free-to-air Conax MHP Kaapelitelevisio Oy Vizor Oy 4/2004 Terrestrial Free-to-air Conax MHP

105 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television

Digita Oy 4/2004 Terrestrial Free-to-air Conax MHP Cable - Cable - - - - operators 32 Satellite ------operators 33 France TPS 1996 Satellite Pay Viaccess Open TV - Canal satellite 1996 Satellite Pay Mediaguard MediaHighway games AB Sat 1995 Satellite Pay Viaccess - France Telecom 1997 Cable Pay Viaccess Open TV Cable NC 1996 Cable Pay Mediaguard MediaHighway Noos - Cable Pay Viaccess Open TV UPC France - Cable Pay Viaccess Valvision 1991 Cable Pay Viaccess Vialis 1998 Cable Pay EST- 1999 Cable Pay Viaccess videocommunic ation Terrestrial 2005 Terrestrial Pay/free-to-air operators 34 Germany Satellite Since Satellite Hybrid None/Beta crypt/ None/ MHP/ EPG, Online Channel; News Tickers; operators 35 1997 Nagravision OpenTV content related additional information Cable Since Cable Hybrid None None/ MHP/ Internet; Betting; operators 36 1994 Betanova F1 Interactive

32 In addition to the authorised dtv operators mentioned above there are about 50 cable tv service and/or network operators and most of them provide also digital tv channels. 33 There are also some satellite tv service operators (DTH 2, SMATV >2) providing foreign digital satellite channels. 34 It is envisaged that 23 terrestrial operators will start transmission in 2005 – 8 FTA (Bollore Media, MCM, NRJ TV, NT1, Tele Monte Carlo, EDI TV, France Television 1, Metropole Television) and 15 pay-TV (Canal +, AB1, Canal J, Cine-Cinema Cable, S.E.C.C., Cuisine.TV, Eurosport France, SESI, La chaine info, Match TV, Paris Premiere, Planete Cable, Sport +, TF6, TPS Star) 35 More than 100 TV channels.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 106 Digital television

Terrestrial 2002/ Terrestrial Free-to-air None MHP EPG; Digitext; News-Ticker operators 37 2003 Greece NOVA 1999 Satellite Pay Irdeto OpenTV Enhanced TV, selection of viewpoint (selection of different coverage cameras), games, teletext, stock market on-line Italy 38 8/2003 Satellite Pay Irdeto, Mediaguard, OpenTV, PPV (pay-per-view) Videguard MediaHighway RTI 1997 Satellite Free-to-air RAI 1997 Satellite Free-to-air TV 1997 Satellite Free-to-air Internazionale Fastweb 2001 39 Fiber optic, Pay IP-based PPV, VOD (Video-on-demand), web DVD xDSL Other operatos Satellite, Free-to-air/Pay xDSL Netherla UPC 1999 Cable Pay Cryptoworks Liberate Games, enhanced TV nds Essent TV 1999 Cable Pay Viaccess OpenTV Games, enhanced TV Home 1999 Cable Pay Viaccess OpenTV enhanced TV Multikabel 1999 Cable Pay Viaccess OpenTV Games, enhanced TV Kabelfoon 11/2003 Cable Pay 4/2003 Terrestrial Hybrid Mediaguard MHP NOS 4/2003 Terrestrial Hybrid Mediaguard MHP 1998 Satellite Pay Irdeto, Mediaguard Proprietary API Sweden Boxer-TV- 1999 Terrestrial Hybrid Viaccess OpenTV EPG Access AB

36 Up to 50 TV channels. 37 28 TV channels in the Berlin/Potsdam area. 38 Sky Italia is a merger of Telepiu and Stream. 39 Refereed to digital TV services based on fiber optic.

107 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television

Viasat 2000 Satellite Pay Viaccess, NDS OpenTV PPV, EPG Videoguard Canal Digital 1998 Satellite Pay Conax MediaHighway PPV, EPG, games, news, weather UPC 2001 Cable Pay Cryptoworks Liberate No itv services Com heb ab 1997 Cable Pay Conax OpenTV PPV, EPG, games, subscription management, news, etc. Canal Digital 1999 Cable Pay Conax MediaHighway PPV, EPG, games, news, weather (SOL) Spain TVE 4/2002 Terrestrial Free-to-air Antena 3 4/2002 Terrestrial Free-to-air Telecinco 4/2002 Terrestrial Free-to-air Canal + 4/2002 Terrestrial Hybrid Mediaguard Net TV 6/2002 Terrestrial Free-to-air Veo TV 6/2002 Terrestrial Free-to-air Quiero TV 10/2000 Terrestrial Free-to-air Onda Seis TV 10/2000 Terrestrial Free-to-air Rioja TV 2004 Terrestrial Free-to-air Cope TV 2004 Terrestrial Free-to-air Digital + 1997 Satellite Pay Mediguard/ Nagra MediaHighway/ Games, assisted navigation, t-commerce, OpenTV transaction services ONO 7/2003 Cable Pay Motorola Mediacipher Auna Cable 12/1999 Cable Pay NDS Videguard NDS Core, Open TV, Core V1.0 Telefonica DSL Pay Cable Portugal CATVP Cable/satellite EPG, VOD, T-commerce, news, selection of different cameras Cabovisao Cable TVTEL Cable Gransde Porto Pluricanal Cable

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 108 Digital television

Gondomar Pluricanal Cable santerem Pluricanal Leiria Cable UK BSkyB 10/198 Satellite Pay NDS Videguard OpenTV Enhanced TV and interactive 40 NTL 1999 Cable Pay Nagravision Liberate 1.2 Enhanced TV and interactive 41 Telewest 1999 Cable Pay Nagravision Liberate 1.2 Enhanced TV and interactive 42 BBC 11/1998 Terrestrial Free-to-air N/a MHEG 5.1 Enhanced TV Crown Castle 10/2002 Terrestrial Free-to-air N/a MHEG 5.1 Enhanced TV D3&4 11/1998 Terrestrial Free-to-air N/a MHEG 5.1 Enhanced TV SDN 11/1998 Terrestrial Free-to-air N/a MHEG 5.1 Enhanced TV Freeview 43 10/2002 Kingston 9/2000 DSL Pay N/k iMagic TV Enhanced TV, interactive and VoD Interactive Television Homechoice 9/2000 DSL Pay N/k N/k None (VOD only) Wightcable N/k Cable Pay N/k N/k None Omne N/k N/k N/k N/k N/k N/k This table contains information provided by certain MS in reply to the questionnaire sent by the EC services, which included a working definition of iTV. 44

40 “red button” services, near VOD, EPG, online games, shopping, banking, e-mail, eGovernment (UK online) 41 “red button” services, near VOD, EPG, online games, shopping, e-mail, limited T-commerce. 42 “red button” services, near VOD, EPG, online games, shopping, e-mail, limited T-commerce. 43 ‘Freeview’ was launched on 30 October 2002, as an umbrella brand for UK DTT. It is promoted by DTV Services Ltd, a joint venture between the BBC, Crown Castle International, and BSkyB. It is not, however, a licensed multiplex operator in its own right. 44 “interactive TV services here refer to services and contents other than traditional linear broadcasting programmes available through the TV set. These services can be either "true" interactive TV services (where the user requests the service through a return channel) or "enhanced" services (where no return channel is involved), and delivered within or outside the main video/audio stream. Examples of these services are: can be online games, enhancements to TV programmes, transactional services, internet services such as web access and e-mail, etc. This definition is indicative and carry no legal value whatsoever. In particular, it does not prejudge in any way the approach of the Commission regarding TV markets segmentation.

109 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television

8.3.DTV EQUIPMENT .

DTV equipment in 2003 (in millions of units and millions of dollars) Installed base (M) Annual sales (M) Retail market value ($M) STB iDTV Total STB iDTV Total STB iDTV Total Austria 0,56 0,00 0,56 0,22 0,00 0,22 48,61 0,00 48,61 Belgium 0,19 0,00 0,19 0,06 0,00 0,06 13,65 0,00 13,65 Denmark 0,38 0,00 0,38 0,11 0,00 0,11 24,45 0,00 24,45 Finland 0,21 0,01 0,22 0,07 0,01 0,07 12,05 7,50 19,55 France 4,92 0,00 4,92 0,81 0,00 0,81 178,10 0,00 178,10 Germany 5,34 0,03 5,37 1,82 0,02 1,84 374,45 30,00 404,45 Greece 0,26 0,00 0,26 0,10 0,00 0,10 22,00 0,00 22,00 Ireland 0,49 0,00 0,49 0,15 0,00 0,15 36,00 0,00 36,00 Italy 3,06 0,00 3,06 0,48 0,00 0,48 105,10 0,00 105,10 Luxembourg n/a n/a n/a n/a n/a n/a n/a n/a n/a Netherlands 0,73 0,00 0,73 0,24 0,00 0,24 49,55 0,00 49,55 Portugal 0,51 0,00 0,51 0,21 0,00 0,21 45,60 0,00 45,60 Spain 2,49 0,00 2,49 0,38 0,00 0,38 79,80 0,00 79,80 Sweden 1,32 0,02 1,34 0,33 0,01 0,34 68,20 15,00 83,20 UK 13,51 0,45 13,96 3,57 0,15 3,72 752,10 112,50 864,60 TOTAL EU 33,98 0,51 34,49 8,53 0,19 8,71 #### #### ####

All Figures in this table come from Strategy Analytics. 45

Moreover, some MS provided details on DTV equipment installed in HH. For details see footnote. 46

45 “Digital TV Devices: European Market Forecast, July 2003” , and “iDTV (Integrated DTV Receivers): European Market Forecast, July 2003” . No data are available on Luxembourg. 46 Figures are given in units. Denmark : Installed base: STB – n/a, iDTV - 0 Finland : Installed base: STB – 134,000, iDTV – 4,000; Sales over the last months (Jan – June 03) 71,000; Average price: STB – 260 € France : Installed base: STB – 4,013,555. Germany : Sales over the last months (2002) – 48,000; Average price: STB – 230 € Greece : Installed base: STB – 700,000; Sales over the last months (?) 50,000; Average price: STB – 200 € (100 € for FTA, 300 € for Pay-TV) Italy : Installed base: STB – 3,500,000 Netherlands : n/a Portugal : n/a Spain : n/a Sweden : Sales over the last months – app. 7,000 per month UK : Installed base: STB – 1.23 million, iDTV – 0.37 million; Sales over the last 12 months (to 31/03/2003) STB - 874,000, iDTV – 103,400; Average price: STB – 92 £, iDTV – 896 £

110 - Telecommunications Regulatory Package – 9th Implementation Report – Annex I Digital television Charts 12 to 14: Digital TV equipment in 2003

Figure 131

Chart 12: DTV equipment - installed base - 2003

40

35

30

25 iDTV 20 STB 15 millions of units 10

5

0 A B DKFIN F D ELIRL I L NL P E S UKEU

Figure 132

Chart 13: DTV equipment - annual sales - 2003

10

8

6 iDTV STB 4 millions of units

2

0 A B DKFIN F D ELIRL I L NL P E S UKEU

111 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television Figure 133

Chart 14: DTV equipment - retail market value - 2003

2000

1800

1600

1400

1200 iDTV 1000 STB

millions ($) 800

600

400

200

0 A B DKFIN F D ELIRL I L NL P E S UKEU

Table: DTV equipment (STB + iDTV)- evolution 2001/2003

Table 7: DTV equipment (STB + iDTV) – evolution 2001-2003 (in millions of units and millions of dollars) 2001 Installed base Annual sales (M) Retail market value ($M) STB iDVT STB iDVT STB iDVT 24,2 0,2 6,6 0,1 2137,3 108,0 Total 24.47 6.67 2245.25 2002 Installed base Annual sales (M) Retail market value ($M) STB iDVT STB iDVT STB iDVT 27.6 0.3 4.6 0.1 1218.4 114.0 Total 27.93 4.76 1332.40 2003 Installed base Annual sales (M) Retail market value ($M) STB iDVT STB iDVT STB iDVT 34.0 0.5 8.5 0.2 1809.7 165.0 Total 34.49 8.71 1974.66

All figures in this table come from Strategy Analytics. 47

47 “Digital TV Devices: European Market Forecast, July 2003” , and “iDTV (Integrated DTV Receivers): European Market Forecast, July 2003” . No data are available on Luxembourg.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 112 Digital television Figure 134

Chart 15: Installed base - evolution 2001-2003

40,0 34,5 35,0 34,0

30,0 27,6 27,9 24,2 24,5 25,0 2001 20,0 2002 2003 15,0 millions of units 10,0

5,0 0,2 0,3 0,5 0,0 STB iDTV Total

Figure 135

Chart 16: Annual sales - evolution 2001-2003

10,0

9,0 8,5 8,7

8,0

7,0 6,6 6,7

6,0 2001 4,8 5,0 4,6 2002 2003 4,0

millions of units 3,0

2,0

1,0 0,1 0,1 0,2 0,0 STB iDTV Total

113 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 Digital television Figure 136

Chart 17: Retail market value - evolution 2001-2003

2500 2245 2137 1975 2000 1810

1500 1332 2001 1218 2002 2003

$ $ millions 1000

500

165 108 114 0 STB iDTV Total

The STB retail market value in year 2003 is smaller than in 2001, although the annual sales in the same period have increased. This indicates the decrease in prices for set-top-boxes in EU.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 114

115 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

9 EXCHANGE RATES

This section explains the exchange rates used in Annex I.

9.1.EXCHANGE RATE USED IN SECTION 6 ON PUBLIC VOICE TELEPHONY TARIFFS AND SECTION 7 ON LEASED LINE TARIFFS. Exchange rates, national currency to Euro Exchange rate to Exchange rate to euro <= 2001 euro => 2002 EURO EURO Austria 0.07267 1 Belgium 0.02479 1 Denmark 0.13458 0.13458 Finland 0.16819 1 France 0.15245 1 Germany 0.51129 1 Greece 0.00293 1 Ireland 1.26974 1 Italy 0.00052 1 Japan 0.00737 0.00737 Luxembourg 0.02479 1 Netherlands 0.45378 1 Portugal 0.00499 1 Spain 0.00601 1.00000 Sweden 0.10818 0.10818 UK 1.42816 1.42816 USA 0.88845 0.88845

9.2.EXCHANGE RATE USED IN SECTION 3 ON INTERCONNECTION AND SECTION 5.2 ON PRICES FOR LOCAL LOOP The exchange rate to Euro used in section 3 on interconnection and section 5.2 on price for local loop are the same in table 5, except for the following: EURO Denmark 0.13457 Sweden 0.108838 UK 1.457433

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 116

10 OECD TELECOMMUNICATIONS BASKET DEFINITIONS

10.1. NATIONAL PSTN BASKET Business basket results exclude VAT. Residential basket results include VAT. The nonrecurring charge is calculated as an average between the charge for a new line installation, and the charge for “same day takeover”, i.e. when there is a direct transfer from the previous to the new customer. Valid for both Business and Residential baskets. Nonrecurring charge calculation Weight New line connection charge 50% Same day takeover connection charge 50%

The nonrecurring charge is depreciated over 5 years. An exception is made for countries where the connection charge has a lifetime value (e.g. Japan, where the connection is a tradable asset). Valid for both Business and Residential baskets. Nonrecurring charge depreciation Weight With normal one-off charge 5 Where connection is a tradable asset 20

Annual rental for the service is included in the basket. Any additional recurring charges (per year) shall also be included (e.g. charges related to the use of specific calling plans). Where the service (or tariff plan) includes a number of “free” calls or minutes, or any other call- related allowance, the value of this allowance is deducted from the usage. The value of the deducted allowance cannot be higher than the usage. Where the tariff clearly specifies that the allowance is related to specific types of calls (e.g. local, international), the usage in question shall only cover the defined type(s) of calls. The number of calls to fixed line phones (i.e. excluding calls to mobile phones) is defined as: Number of national fixed line calls Calls per year Business basket 3600 Residential basket 1200

The national usage will have a weighted distribution over 14 distances. Call charges relevant at each of these distances shall be used. Km 3 7 12 17 22 27 40 75 110 135 175 250 350 490 Bus 53 11 7 4 2.5 3 3.5 3.5 2.5 2 1.5 1.5 1 4 Res 60 14 5 3 1.5 2.5 2.5 2.5 1.5 1.25 1 1 0.75 3.5 Bus = Business basket, Res = Residential basket. All weights in percent of total number of fixed line calls.

Telecommunications Regulatory Package – 9th Implementation Report – Annex I - 117 OECD Telecommunications Basket Definitons The national usage will have a weighted distribution over six time and day points. Call charges relevant at each of these time and day points shall be used. Day/Time We 11:00 We 15:00 We 20:00 We 03:00 Sa 11:00 Su 15:00 Bus 45.4 40.6 7 0.8 5.7 0.5 Res 14.3 22.1 31.6 3 13 16 Bus = Business basket, Res = Residential basket. All weights in percent of total number of fixed line calls. We = Weekdays, Sa = Saturdays, Su = Sundays.

National call duration will vary with distance and time of day. The charge for each call shall reflect the actual charge for the duration in question, as defined by the tariff. Call setup and minimum charges shall be included. Day/Time Weekday daytime Weekday evenings, nights and weekends Distance 3-12 Km 17-40 Km 75-490 km 3-12 km 17-40 Km 75-490 Km Bus 3.5 3.5 3.5 3.5 3.5 3.5 Res 2.5 3.5 3.5 3.5 6 7 Bus = Business basket, Res = Residential basket. Duration in minutes per call.

Calls to mobile phones may be added to the basket. This is optional, and the presentation of the results must clearly state whether such calls are included or not. The number of calls shall be 10% of the number of national fixed line calls, in addition to the fixed line calls. Calls to mobile phones Calls per year Call duration Business basket 360 2 Residential basket 120 2 Call duration in minutes per call.

10.2. INTERNATIONAL PSTN BASKET The international PSTN basket, when used separately, shall reflect the cost of a single call, calculated according to the weighting method described below. No fixed charges are included. Business basket results exclude VAT. Residential basket results include VAT. Call charges for calls to all other OECD Member States shall be used. Peak and off-peak time call charges are used, defined as the highest (most expensive) charge and the lowest (least expensive) charge. Call cost is based on average per minute charge. Call setup charges and/or different charges for first and additional minutes are included. The charges to different destinations are weighted according to the ITU call volume statistics. An average over the latest 5 years of available traffic statistics is used. As there may be gaps in the ITU statistics for certain destinations from some countries, calls on such routes are excluded from the calculation. Call charges are weighted between peak and off-peak: Peak time weight Off-peak time weight Business basket 75.0 % 25.0 % Residential Basket 25.0 % 75.0 % Call duration differ between peak and off-peak time:

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 118 OECD Telecommunications Basket Definitons

Peak time Off-peak time Business basket 3 minutes 5 minutes Residential Basket 3 minutes 5 minutes

10.3. COMPOSITE NATIONAL – INTERNATIONAL BASKET This basket is based on a combination of the national and international baskets, as described above. The national basket remains unchanged, and the international basket is scaled using a fixed number of international calls. Business basket results exclude VAT. Residential basket results include VAT. The international portion of the basket shall have a number of calls equal to 6% of the national fixed line calls, in addition to the calls defined in the national portion of the basket. International calls per year Business basket 216 Residential basket 72

10.4. NEW OECD MOBILE BASKETS

All baskets will include: • Registration or installation charges with 1/3 of the charges, i.e. distributed over 3 years. • Monthly rental charges, and any option charges that may apply to the package, or package combination. The three new baskets are: • Low user basket. The usage level of this basket is low, with a call volume less than half of that in the Medium user basket. • Medium user basket. This basket will have 75 outgoing calls per month. • High user basket. The usage level is about twice the Medium user basket. The usage profiles will also include a number of SMS messages per month. Call and message volumes for each basket are:

Outgoing calls /month SMS per month

Low user 25 30

Medium user 75 35

High user 150 42

The information received showed that there is little difference between the average pre-paid usage and the low user post-paid usage. The low user basket can therefore be used for both pre- and post- paid tariffs, allowing a simple comparison also between the two types. Only national calls are included in the profiles, with 4 different destinations: • Local area fixed line calls. This is used to accommodate the tariffs that have separate charges for the local area. When such charges are not available, this proportion of calls is included in the National.

119 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 OECD Telecommunications Basket Definitons • National fixed line calls. This covers all fixed line calls outside the local area, except in cases as noted above. • Same network mobile calls (On-net). This includes all calls made to mobiles in the same mobile network as the caller. • Other network mobile calls (Off-net). This includes calls to all other mobile networks in the caller’s country. When the charges are different depending on destination network, the market shares based on subscriber numbers are used for weighting the charges. Up to 3 other networks will be considered in each country. Distributions per destination for each basket are:

% of total number of Fixed Local area Fixed National area On-net mobile Off-net mobile calls

Low user 28.0% 14.0% 40.0% 18.0%

Medium user 24.0% 12.0% 43.0% 21.0%

High user 26.0% 14.0% 42.0% 18.0%

As the information received produced little evidence on the split between local and national fixed line calls, the assumption has been used that the ratio would be 2:1 for local:national, i.e. 67% local and 33% national. This assumption is taken from the averages in fixed baskets, and the scarce information received. Instead of splitting time and day into distinct times and days the following approach will be used: • Peak time calls at weekdays, most expensive time during daytime. • Off-peak time calls at weekdays, cheapest time before midnight. • Weekend time calls, at daytime Sundays. Distributions over time and day for each basket are:

% of total number of ToD ToD ToD Weekend calls Peak Off-peak

Low user 38.0% 35.0% 27.0%

Medium user 47.0% 30.0% 23.0%

High user 63.0% 22.0% 15.0%

There will be 3 separate call durations: • Local and national fixed line calls • Same network mobile calls (On-net) • Other network mobile calls (Off-net) Call durations for each basket are:

Minutes per call Dur Dur Mobile Dur Mobile Fixed National On-net Off-net

Low user 1.6 1.4 1.4

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1 - 120 OECD Telecommunications Basket Definitons

Medium user 2.1 1.9 1.9

High user 2.2 2.0 2.1

Any call allowance value included in the monthly rental will be deducted from the usage value once the basket is calculated. The deduction cannot be larger than the actual usage value, i.e. negative usage is not allowed. No transfer of unused value to next month is taken into account. Any inclusive minutes will be deducted from the basket usage before starting the calculation of usage cost. The inclusive minutes are assumed to be used up with the same calling pattern that is described in the basket, i.e. the same peak/off-peak ratio and the same distribution across destinations. Where the inclusive minutes are clearly limited to specific destinations or times of day this will be taken into account. No transfer of unused minutes is taken into account. Any inclusive SMS-messages will be deducted from the basket before starting the calculation of the SMS message cost, up to the number of messages in the basket. For each of the operators covered a set of packages shall be included so that the cheapest package offered by that operator can be calculated for each of the 3 baskets. Multiple operators in each country shall be included, with at least the two operators with highest number of subscribers in each country. The operators included shall have a total market share of at least 50% based on subscriber numbers. Basket results are calculated for a period of one year.

121 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 1

ANNEX 2

REGULATORY DATA

2003

123 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2

TABLE OF CONTENTS

1. TARIFFS...... 127 2. COST ACCOUNTING AND ACCOUNTING SEPARATION...... 130 3. UNIVERSAL SERVICE SCHEME ...... 134 4. DIRECTORY AND DIRECTORY ENQUIRY SERVICES...... 137 5. ITEMISED BILLING AND CALL BARRING ...... 142 6. DATA PROTECTION...... 151 7. NATIONAL REGULATORY AUTHORITIES...... 159 8. QUALITY OF SERVICE...... 163

List of tables

Table 1: Fixed public voice telephony tariffs of SMP operators: rebalancing, regulation and report on the evolution of tariffs...... 127 Table 2: Current and planned cost methodologies for calculating interconnection and unbundling charges ...... 130 Table 3: Verification of compliance with the cost accounting system ...... 132 Table 4: Financing schemes for universal service obligations (USO)...... 134 Table 5: Provision of directory and directory enquiry services ...... 137 Table 6 : Competition in the market of directory services...... 140 Table 7: Availability of itemised billing...... 142 Table 8: Availability of call barring...... 148 Table 9: Unsolicited calls, faxes and electronic mails (part I)...... 151 Table 10: Unsolicited calls, faxes and electronic mails (part II) ...... 152 Table 11: Storage of data and other provisions of the Data Protection Directive ...... 155 Table 12: Calling line identification (CLI) ...... 157 Table 13: Powers of the National regulatory Authorities ...... 160 Table 14: Quality of service...... 164

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 125

1 TARIFFS

Table 1: Fixed public voice telephony tariffs of SMP operators: rebalancing, regulation and report on the evolution of tariffs

Tariff rebalancing Type of regulation of end-user voice Date and reference of publication of the last report on

completed telephony tariffs of SMP operators the evolution of tariffs48 B No Price cap + cost oriented 49 July 2003 ( www.ibpt.be )50 Price ceiling only regarding subscription and call setup, while 26.3.2003, Tele Yearbok 2002 (published on DK Yes the earlier price cap regulation is 51 www.itst.dk ) lifted as regards the per minute charge

52 Price ceiling (Price-cap)/approval Communication N 225/2003; Reg TP-Journal D Yes 53 by the NRA N 16/2003 of 13. August 2003 EETT Annual report 2002 (published on EL Yes NRA approval www.eett.gr) 16.7.2003, CMT annual report E Yes Price-cap 54 (www.cmt.es ) Report 2000: "Le service public de Prior approval of the Ministry télécommunications", publication every 4 (following opinion of ART) in F Yes years accordance with the ONP Opinion ART 01-475, conditions 18.5. 2001 Retail Price Cap amended February 2003. Review of Price Cap on Certain All sub caps, IRL Price cap Telecommunications Services – ComReg including one Document 03/14, February 2003 on retail access, removed 30.6.2003, AGCOM Annual report I Yes Price cap/NRA approval (www.agcom.it )

48 Article 3.2, Dir. 98/10/EC. 49 The Incumbent has the obligation to reflect the terminating tariffs from the OLO’s into his retail tariffs 50 www.ibpt.be/Telecoms/ServiceUniversel/rapport2002.pdf 51 Please see http://www.itst.dk/wimpdoc.asp?page=tema&objno=9502404 , http://www.itst.dk/wimpblob.asp?objno=97331904 52 See Communication N°. 75/2002 in Reg TP-Journal N°. 2/2002 of 06. February 2002 amended by Communication N 201/2003 in Reg TP-Journal N 15/2003 of 30 July 2003. 53 Examination of evidence of anticompetitive rebates and discrimination. 54 A comparison of fixed tariff is available on the NRA’s website.

127 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Tariffs

Tariff rebalancing Type of regulation of end-user voice Date and reference of publication of the last report on

completed telephony tariffs of SMP operators the evolution of tariffs48 Tariffs set freely by the operator Proof of cost orientation requested according to Luxembourg legislation: - Règlement grand-ducal of 18 April 2001 amending règlement grand- L No ducal of 22 December 1997 None establishing conditions to deploy and operate fixed telecommunications networks and telephony services, - Règlement grand-ducal of 2 July 1998 establishing conditions to operate telephony services A. Safeguard price cap for the period 1 July 2002 till 1 July 2006. Tariffs may increase at the same level as the rate of inflation. Safeguard price cap applies to: – subscription – local calls NL 55 Yes – national calls Several documents published – fixed to mobile calls. B. Price squeeze C. Ex ante approval by the NRA under ONP conditions (cost orientation) Ex ante approval by the NRA under A permanent comparison of the prices of all A Yes ONP conditions fixed operators is available at www.rtr.at A study on the evolution of tariffs (1998-2001) 56 57 is available since July 2002, at P No Price cap 58 www.anacom.pt . An update will shortly be available A study of telecommunications prices in FIN Yes Freely set by operator 59 2002 60 can be requested from the Ministry of Transport and Communications Set by operator, tariffs must be S No 19.03.2003 cost-oriented

55 A: Memorandum of findings “Integral tariff regulation for end-user and interconnection services” of OPTA, 26 April 2002, OPTA/EGM-IBT/2002/201084. Policy framework: The assessment of the upper limit on the cost- orientation of end user tariffs for fixed telephony of KPN for the period of 1 July 2002 until 1 July 2006, 27.6.2002, OPTA/EGM/2002/201218. B: “Guidelines Price squeeze OPTA and the NMa”, 28 February 2001, OPTA/EGM/2000/200494; “Decision price squeeze”, 28 June 2001, OPTA/EGM/2001/201632; “Actualisatie van constanten in de prijssqueezetoets, OPTA and the NMa”, 19.7.2002, OPTA/EGM/2002/201877. 56 According to data from PTC, the prices are not yet fully rebalanced. However, there are no restrictions to the elimination of the access deficit. 57 In accordance with the agreement reached between the Directorate-General of Trade and Competition, ANACOM and Portugal Telecom, concerning fixed telephony services provided in the context of universal service. Prices for fixed telephony services other than the Universal Service are set by the operators, in accordance with the applicable regulatory principles (art. 34/ 1 and 4 of Regulations for the Operation of the Fixed Telephone Service - http://www.anacom.pt/template20.jsp?categoryId=5188&contentId=16901). 58 http://www.anacom.pt/template15.jsp?categoryId=38416. 59 Subject to the obligation of cost orientation for local calls. 60 Price level of the Finnish telecommunications charges in 2002.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 128 Tariffs

Tariff rebalancing Type of regulation of end-user voice Date and reference of publication of the last report on

completed telephony tariffs of SMP operators the evolution of tariffs48

61 Several documents published up to UK Yes Price cap 62 17.3.2003

61 Residential line rental income is not yet sufficient to cover fully allocated costs. However, the NRA believes that BT’s residential line rental charge now covers the incremental cost of providing the line. There are no regulatory constraints preventing BT from further rebalancing of its tariffs. 62 These include: an annual statistical note (to be published at the end of August 2002) on the median bill of BT’s residential consumers; Oftel's Consultative Documents "Competition in the provision of fixed telephony services", 31 July 2001 and 31 January 2002, and Statement 20 June 2002, on the impact of price changes for different customer groups. Furthermore, typical bills payable by residential consumers with different leading suppliers can be compared through a free, industry-funded web-site, endorsed by Oftel at www.phonebills.org.uk.

129 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2

2 COST ACCOUNTING AND ACCOUNTING SEPARATION

Table 2: Current and planned cost methodologies for calculating interconnection and unbundling charges

Deadline for Cost accounting system actually in place for Cost accounting system actually in implementation of a interconnection by SMP operators place for unbundling by SMP operators system based on current costs Cost base Cost standard Cost base Cost standard

Historic/Current 63 Retail minus FDC Implemented for B Forward- Historic for full 64 LRIC network assets looking unbundling Forward LRAIC implemented DK Forward looking LRAIC LRAIC looking 01.01.2003 Forward D Forward looking LRAIC LRAIC Implemented looking

LRAIC+ mark- 66 EL Current LRAIC+ mark-up Current 65 Implemented up

67 E Multistandard Multistandard (67 ) (see note ) Implemented LRIC + mark Already LRIC + mark up for up for common implemented in the F LRIC common costs + LRIC costs + 2003 price list (done specific costs specific costs in 2002) Subject to Judicial IRL LRAIC LRIC + mark up Current LRIC + mark up Review Challenge by incumbent Implemented (1st part December I Current FDC Historic FDC 2002; 2nd part August 2003) LRIC in principle for L Historic FDC the RIO 2001 and 2002

Legend: Cost base: historic, current, forward-looking

63 With regard to network assets, historic costs are converted into current costs. 64 Under development 65 The current monthly rental and connection fees for LLU are based on the LRAIC methodology implemented with those PSTN cost components which are common with LLU 66 EETT has issued Decision 266/95/1-11-2002 regarding the LRAIC/CCA methodology ordering the OTE to implement certain amendments to its LRAIC/CCA cost accounting system. 67 The prices of the unbundled local loops have been set by the Comisión Delegada del Gobierno in December 2001. The collocation prices have been established by CMT, taking into account average costs, on the basis of a study carried out by independent consultants with a specific expertise on the subject, who gave to the CMT the market value of a cost. The associated services and the peak rate (modified by CMT by Resolution of 29 April 2002), have been determined taking as a basis a study of an independent consultant applying the “bottom-up” methodology.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 130 Cost accounting and accounting separation

Cost standard: LRIC: long-run incremental costs FDC: fully distributed costs LRAIC: long-run average incremental costs EDC: embedded direct costs Cost standard: Deadline for implementation Cost accounting system actually in place for Cost accounting system actually in of a system based on interconnection by SMP operators place for unbundling by SMP operators current costs Cost base Cost standard Cost base Cost standard EDC for originating i/c NL Current Bottom-up LRIC for Current EDC Implemented terminating i/c A Current LRAIC Current LRAIC Implemented Historic, forward- P looking and FDC (69) (69) No deadline fixed 70 current 68 Historic/Curr Company FIN Historic/Current Company specific 71 Implemented ent specific Planned for January 2004 in the fixed S Historic FDC Historic FDC network. Planned for July 2004 in the mobile network.

BT: Forward BT: LRIC + FDC BT: Forward BT: LRIC + BT: Implemented looking/ current looking/current FDC

Concert: Concert: LRIC + FDC Concert: N/A Concert: N/A Concert: Implemented Forward

looking/current UK Kingston Kingston Kingston Kingston Com.: Kingston Communications : Communications: CCA Com.: CCA + FDC Communications: Forward + FDC Forward Implemented for looking/current looking/current interconnection. For unbundling, to be implemented within the next 12 months

68 The interconnection prices were approved taking into account the following elements: i) expected costs: evolution and revision of traffic volumes for the current year; ii) expected efficiency gains; iii) practices in the EU. 69 When establishing costs/prices for a new service, ANACOM identifies in the accounting system of PTC (ABC), the resources used and the activities necessary to supply the new service. The actual expenses and budget are also used to determine a cost for the local loop. 70 Without prejudice to footnotes 68 and 69, it should be noted that ANACOM assesses the situation taking into consideration the expected impact generated by the application of systems based on current costs on price variations. 71 The NRA does not set charges for SMP organisations. Operators set their own prices. There are more than 50 SMP operators in Finland and their interconnection and ULL prices must be cost-based. Cost structures, prices and accounting systems vary between operators. The NRA uses both FDC top down models based on historic costs and a current costs methodology when evaluating the cost orientation of charges.

131 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Cost accounting and accounting separation

Table 3: Verification of compliance with the cost accounting system

Verification of compliance with the CAS Statement concerning compliance by a competent and independent body Last accounts Date of last Reference in the national Official Voice telephony Interconnection verified (accounting publication Journal or other year) B Yes Yes 2001 December 2002 72 www.ibpt.be 73

2001 (VT)/ 74 DK Yes Yes August 2003 www.itst.dk 2002 (IC) Journal of the RegTP N°. 14 D Yes 75 Yes 2002 July 2003 76 /2003 of 16.07.2003, Provision N°. 29 EETT Decision 266/96/1-11-2002 (voice telephony) 77 OJ. 1440/B/15-11-2002 EL Yes Yes 2000 EETT Decision OJ. 1531/B/9-12-2002 267/123/15-11- 2002 (interconnection) E Yes Yes 2001 78 13.02.2003 www.cmt.es 15.06.2001 (financial year 1998) 4.07.2001 (financial Decision 02-1043 published in F Yes Yes 2000 79 year 1999) the OJ on 25.01.2003 12.11.2002 (financial year 2000) Year ended www.eircom.ie in the regulatory IRL Yes Yes 30.9.02 31.3.02 section Decision no.48/03/CONS o f 6 March 2003 I Yes Yes 2000 06.03.2003 www.agcom.it (Year 2000)

72 For voice telephony for accounting year 1998; for interconnection: an update of the public description of the “top- down model 2000” is foreseen. 73 For interconnection: news – communications – 01/12/2002 Description of the BIPT cost model for the calculation of the interconnection tariffs for the year 2003 (Dutch or French). 74 See http://www.itst.dk/wimpdoc.asp?page=tema&objno=111258557 (VT) and http://www.itst.dk/tema.asp?page=tema&objno=132298676 (IC). 75 The voice telephony is regulated in Germany within the Price Cap procedure. Within the framework given thereby, the final customer tariffs are approved within specific procedures. 76 See Communication N°. 120/2001 in the Journal of the Reg TP N. 5 of 14. March 2001, pp. 647 and 648. 77 On going auditing by independent auditors (appointed by EETT) of both cost-accounting systems of OTE (FDC for voice telephony and leased lines / LRAIC for interconnection and LLU), based on the accounting year 2001. 78 The verification for the year 2002 is under way. 79 The 2001 accounts have been audited but they have not been published yet.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 132 Cost accounting and accounting separation

Verification of compliance with the CAS Statement concerning compliance by a competent and independent body Last accounts Date of last Reference in the national Official Voice telephony Interconnection verified (accounting publication Journal or other year) The decision to publish the audit report on the cost orientation can be consulted on the web ww.etat.lu/ILR/tele/decis/index.ht m Decision 02/50/ILR of 6 May 2002 Guidelines on accounting separation

Planned for yearly The obligation is also included in report 2002 - but L No No None the telecom law: not published in the Règlement grand-ducal of 18 April annual 2002 report 2001 amending règlement grand- ducal of 22 December 1997 establishing conditions to deploy and operate fixed telecommunications networks and telephony services, And règlement grand-ducal of 2 July 1998 establishing conditions to operate telephony services 80 Decision OPTA/IBT/2003/202395, NL Yes Yes 2000 2003 also at www.opta.nl A Yes Yes 2001 81 RASR 3/02, www.rtr.at

Diário da República nº209, P Yes Yes 2000 82 10.09.02 Série III, de 10.09.02 www.anacom.pt /83 Summary Report 385/014/2002 to the Ministry of Transport and Communications. Ficora has 84 also published on its website FIN Yes Yes 2002 31.12.2002 all company specific decisions made on the verification of SMP operators´ cost accounting systems. S Yes Yes 2001 19.03.2003

Concert: Yes Concert: Yes Concert: 31.12.01 Concert: 30.06.02 Concert / Kingston Kingston Kingston Com.: Kingston Kingston Communications / BT: The UK Com.: Yes Yes Communications: Communications: audit report is contained within 31.03.02 31.07.02 the regulatory accounts BT: Yes BT: Yes BT: 31.03.02 BT: 20.12.02

80 However, no public verification took place. 81 The exact date will be reported within the next two weeks (2002 will be also finished in 2003). 82 The accounting system of notified operators is audited yearly by independent bodies, selected yearly by ANACOM, via a public tender. Auditors which work for the notified operators are excluded from the tender. The verification of compliance with the CAS referring to 2001 will be completed on short term 83 http://www.anacom.pt/template13.jsp?categoryld=42910 84 Finland does require cost orientation for local calls, interconnection and ULL. International and long-distance voice telephony calls are not regulated, because there is considered to be effective competition on those markets. In 2002 Ficora carried out 14 economic inspections and in the first half of 2003 8 inspections targeted at operators with SMP. When the new Communications Market Act entered into force on July 25, powers to carry out these inspections will be transferred to independent auditors.

133 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2

3 UNIVERSAL SERVICE SCHEME

Table 4: Financing schemes for universal service obligations (USO)

Has an annual report Have the Does the national Has an assessment of Has the funding been published giving organisation(s) in framework allow the USO net cost taken scheme the calculated cost of charge of USO Year setting up of a place? been activated? USO, and identifying requested funding? funding scheme for If yes, please, specify If not, specify the the contributions made (Specify for every 85 Member StateMember USO? the net cost reason by all the parties annual exercise) involved? 1999 Yes No 2000 Yes No B 2001 Yes Yes Still pending No (negotiations have 2002 Yes Yes Still pending No not taken place yet) No, because the USO provider has not requested funding according to Section 20 of Act on Competitive 1999 Yes No No N.a. Conditions and DK Consumer Interests in the Telecommunications Market. 2000 Yes No No See above N.a. 2001 Yes No No See above N.a. 1999 Yes No D 2000 Yes No 2001 Yes No 1999 Yes No 2000 Yes No EL 2001 Yes No 2002 Yes No Yes. The net cost calculation 1999 Yes Yes presented by the No No E incumbent was not approved. It was found that the net Yes 2000 Yes Yes cost did not represent € 268 M an unfair burden

85 NRAs may decide not to establish a universal service shared funding mechanism, even when the universal service obligations result in a net cost, when (i) this net cost does not represent an unfair burden for the operators concerned or (ii) it does not justify the administrative costs involved in the funding mechanism.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 134 Universal service scheme

Has an annual report Have the Does the national Has an assessment of Has the funding been published giving organisation(s) in framework allow the USO net cost taken scheme the calculated cost of charge of USO Year setting up of a place? been activated? USO, and identifying requested funding? funding scheme for If yes, please, specify If not, specify the the contributions made (Specify for every 85

Member State USO? the net cost reason by all the parties annual exercise) involved? The incumbent operator has not experienced an appreciable advantage in its competing E 2001 Yes Yes 181.95 M capacity during 2001 in n.a. the corresponding services market due to the bearing of such a burden Yes = 104,9 million euros (final evaluation Yes: ruling of ART after integrating Yes 1999 Yes Yes without publishing intangible benefits and operators‘ contributions without the social tariff, not in operation) Yes = 128,7 million euros (final evaluation Yes: ruling of ART with after integrating 2000 Yes Yes Yes annex including intangible benefits and operators‘ contributions the social tariff, which had a small impact) Yes Décret 2003-338 of F 10 April 2003 on US financing was Yes = 142,1 million Yes = publication of final published. It takes euros (final evaluation evaluation on 20/07/2003 2001 into account the Yes integrating intangible Yes with annex including ECJ‘s ruling and benefits and social operators‘ contributions suppresses obsolete tariffs) elements like the additional remuneration. Yes=296,6 million euros (provisional evaluation,

integrating intangible 2002 yes yes yes no benefits and estimating

the impact of social tariffs) 1999 Yes Yes (6 months only) Still pending IRL 2000 Yes Yes Still pending 2001 Yes No Yes 1999 Yes Yes Yes Yes € 62,40 M Yes I 2000 Yes Yes Yes Yes € 58,90 Mro Yes 2001 Yes Yes Yes Yes € 40,52 Mio 1999 Yes No L 2000 Yes No 2001 Yes No No (request has later 1999 Yes been withdrawn by no no no USP) A 2000 Yes No 2001 Yes No 2002 Yes No

135 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Universal service scheme

Has an annual report Have the Does the national Has an assessment of Has the funding been published giving organisation(s) in framework allow the USO net cost taken scheme the calculated cost of charge of USO Year setting up of a place? been activated? USO, and identifying requested funding? funding scheme for If yes, please, specify If not, specify the the contributions made (Specify for every 85

Member State USO? the net cost reason by all the parties annual exercise) involved? 1999 Yes No 2000 Yes No NL 2001 Yes No 2002 Yes No 2003 Yes No No. The NRA does not admit to evaluate the Yes cost of the provision of 1999 Yes Yes No USO incurred before the full liberalization of the telecommunications market. No. The assessment of P 2000 Yes Yes Pending analysis USO net cost is No pending. No, because the organization in charge of USO has not required funding and 2001 Yes No No No consequently an assessment of USO net cost has not taken place yet. 1999 No No FIN 2000 No No 2001 No No 1999 No No S 2000 No No 2001 No No Yes. No. Between net cost of 1999 Yes Yes An unfair burden does No £12M and net benefit of not exist. £8M. Yes. No. Between net cost of 2000 Yes Yes An unfair burden does No £12M and net benefit of not exist. £8M. UK Yes. No. Between net cost of 2001 Yes Yes An unfair burden does No £12M and net benefit of not exist. £8M. Yes. No. Between net cost of 2002 Yes Yes An unfair burden does No £12M and net benefit of not exist. £8M.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 136

4 DIRECTORY AND DIRECTORY ENQUIRY SERVICES

Table 5: Provision of directory and directory enquiry services

Is there at least one directory Is there at least one directory Have any specific measures been taken in including all subscribers86 (of enquiry service including all order to guarantee the provision of these all operators) available to all subscribers86 ( for all services to disabled users and users with users? operators) available to all special social needs? If not, which type of users? Please, specify. subscribers are excluded? If not, which type of MemberState (Article 6.2.b, Dir. 98/10/EC) subscribers are excluded? (Article 6.2.c, Dir. 98/10/EC) 87 B Yes Yes87 Directory enquiry service by SMS The universal service obligation shall also include provision of a nation-wide directory enquiry service for numbers in the Danish numbering plan, as well as call completion to the numbers in question at a DK Yes Yes reduced rate, for blind persons, deaf-and-blind persons, visually impaired persons, persons with reading disabilities, and certain groups of physically disabled persons, who, via the service in question, may be compensated significantly for their handicap88. There are some provisions for disabled users and D Yes89 Yes90 users with special social needs91. Blind/visually impaired are entitled to make 20 calls/month to the phone enquiry service free of 92 EL Not yet in practice92 Not yet in practice charge. US provider is obliged to make a text-only version of his electronic directory available for the use of blind/visually impaired persons

86 I.e. for subscribers of fixed telephony services, mobile contracts, mobile pre-paid services and personal numbers, except for those who have expressed opposition to being listed. 87 Except for mobile pre-paid services (there is no legal obligation, so subscriber´s data are only included according to the operator’s and the client’s preference.) 88 Cf. Section 6 of Executive Order No. 665 of 10 July 2003 on USO Services. 89 According to TUDLV § 1.2b, the incumbent must provide a printed directory service, which is, in principle, yearly updated, including all the available subscribers´ data provided that they have not opposed completely or partially their inclusion. 90 According to TUDLV § 1.2a, the incumbent must provide a printed directory enquiry service, including all the available subscribers data provided that they have not opposed completely or partially their inclusion. This also applies for foreign numbers. 91 Cf. § 29 Sozialgesetzbuch I (SGB I). 92 Provided by EETT Decision 255/83 14.06.02 on U.S.O content. Apart from having proceeded to hearing concerning the breach of the telecommunications regulations and especially EETT USO Regulation, the EETT attends all the meetings among telecoms providers and the USO provider, and intervenes in case of dispute. According to EETT Decision 276/39/2003, “Regulation concerning the administrying-supervision of short codes of the National Numbering plan for the provision of directory enquiry services”, the number series 118 has been allocated for the provision of directory enquiry services.

137 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Directory and directory enquiry services

Is there at least one directory Is there at least one directory Have any specific measures been taken in including all subscribers86 (of enquiry service including all order to guarantee the provision of these all operators) available to all subscribers86 ( for all services to disabled users and users with users? operators) available to all special social needs? If not, which type of users? Please, specify. subscribers are excluded? If not, which type of Member State (Article 6.2.b, Dir. 98/10/EC) subscribers are excluded? (Article 6.2.c, Dir. 98/10/EC) Blind or those living with them are entitled to make 10 phone calls per month to Telefonica´s directory E Not yet in practice93 Yes, in the applicable rules 94 enquiry service free of charge in the context of USO95. No = mobile subscribers missing Specific measures are mentioned, but there is no (mobile operators do not transmit data financial compensation foreseen for possible to the incumbent; however, 30% of actions. There are, in practice, no specific measures Orange subscribers have voluntarily Among those benefiting from the telephone social transmitted their data which are now discount (known as « tarifs sociaux ») are disabled included in the directory) as well as war veterans who are entitled to an extra discount F No subscribers of new entrants‘ which (+4,56 euros compared to others) have not signed an agreement with France Télécom

The Décret on universal directory was published in the OJ on 6 August 2003 Yes œ e.g specific measures for those with visual and hearing impairments (braille bills, specific IRL Yes Yes directory enquiry services for the blind free of charge). Yes, operators report annually to the NRA about the I Yes96 Yes96 measures taken to provide these services to disabled users and users with special needs L Yes Yes Yes

NL Yes since sept 2002 Yes No

A Yes97 Yes No Blind people or visually impaired are entitled to P Yes Yes make 20 phone calls per month to the incumbent´s directory enquriy service free of charge.

Yes, a special service financed by the Ministry of FIN Yes Yes Social Affairs and Health.

Yes. The Swedish NRA has procured a service for S No98 Yes free directory enquiries for people with specific functional disabilities.

93 O.M of 21 December 2001 on USO identifies criteria for the production and updating of directory services within US and identifies the data which are to be included. For mobile subscribers and those to whom special network numbers have been assigned, an opt-in approach applies, while an opt-out approach applies for fixed subscribers. The Spanish regulation, and specifically the Ministerial Order of 21 December 2001, deliberately guarantee subscribers’ right (both fixed and mobile) to be included in the directories. 94 The Spanish regulation guarantees the existence of telephone enquiry service available to all users. The CTE/711/2002 Ministerial Order of 26 March sets the conditions ruling the provision of such a service, allocating the corresponding numbers. 95 C.f. OM 68/2002. 96 Provisions have been introduced by regulation 36/02/CONS and 180/02/CONS. As from October 2002 directory and directory enquiry services are available for subscribers of all fixed telephony services. Users and subscribers of mobile services are being included in directory enquiry services. Procedures for collection of data subject consent are already compliant with 2002/58/EC Directive. 97 Subscriber data are included according to the operator’s and the client’s preference. 98 The printed directory provided by a sub-contractor to Telia includes mobile numbers only on subscriber's request and for an extra fee.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 138 Directory and directory enquiry services

Is there at least one directory Is there at least one directory Have any specific measures been taken in including all subscribers86 (of enquiry service including all order to guarantee the provision of these all operators) available to all subscribers86 ( for all services to disabled users and users with users? operators) available to all special social needs? If not, which type of users? Please, specify. subscribers are excluded? If not, which type of Member State (Article 6.2.b, Dir. 98/10/EC) subscribers are excluded? (Article 6.2.c, Dir. 98/10/EC)

A free directory service is available for those users UK No99 No100 unable to use a paper directory.

99 Although no subscribers are formally excluded from the core database, there have been difficulties in ensuring all mobile data is available. Oftel expects that mobile data will be more generally available in the core database towards the end of 2003. 100 All subscribers have access to a directory enquiry service listing all available numbers. However, there have been difficulties in ensuring mobile subscriber data is available and this data is not comprehensively provided at present. As above, Oftel expects that mobile data will be more generally available in the core database towards the end of 2003.

139 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Directory and directory enquiry services

Table 6: Competition in the market of directory services

How are the relevant subscribers‘ data provided to all organisations willing to provide directory services/directory enquiry services? (Please, specify) Database set up Database set up Other. How are prices for the provision of by the NRA or by the Please, specify. subscribers‘ data fixed? independent incumbent MemberState body ( Please, specify) Operators have to put their data at the directory services Fixed between the operators under IBPT‘s B No Yes101 providers‘ disposal on a cost- control oriented price Providers of tele- communications networks or Yes services who reassign The payment for delivering number information The incumbent‘s DK No subscriber numbers to end- data shall not exceed the costs of delivering it directory enquiry users shall deliver number (the marginal costs). service. information data to any parties who wish so. The price for the provision of subscribers‘ data, if any, must be cost-oriented102. D No Yes The Federal Competition Authority has noted that this is not a tariff of a telecommunications service. The procedure of collecting subscribers‘ data is described The provision of subscribers‘ data to the U.S.O EL No103 in EETT Decision 255/83 provider must be cost oriented104. 14.06.02 on U.S.O content. E By the NRA105 For free Up to now, the tariff was agreed after commercial negotiation. Yes and F No The Ordonnance and Décret on universal commercialised. service foresee that these tariffs are cost- oriented. Must be fair, cost-orientated and non- IRL Yes discriminatory. Database set up jointly by all operators (included the incumbent) under a specific For the database set up jointly by operators, No agreement, which specifies I No prices are defined on a fair and non how subscriber data shall be discriminatory basis. provided to all organisations operating in directory/directory enquiry services. Direct provision from operators to L No By comparison directory service providers.

101 The Incumbent set up the data base used by the universal directory enquiry service and the universal directory service. Operators have to put their data at the USO provider’s disposal on a cost-oriented price 102 C.f. TKG § 12 Abs. 1. 103 Competition in directory services/directory enquiry services does not exist yet. However relevant provisions have been included in EETT Decision 255/83 14.06.02 on U.S.O content. 104 C.f. EETT Decision 255/83 14.06.02 on U.S.O content. 105 Although it has been foreseen that telephone service providers must provide CMT with their subscribers’ data and CMT must provide the entitled entities with them, no provision have been included as regards how to do it. (Art. 14 RSUThe CMT, by resolution of 27 June 2.002, has set up a manual mechanism for the provision of subscribers’ data to the directory services providers which will be applied transitorily until an automatic mechanism is set up by CMT.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 140 Directory and directory enquiry services

How are the relevant subscribers‘ data provided to all organisations willing to provide directory services/directory enquiry services? (Please, specify) Database set up Database set up Other. How are prices for the provision of by the NRA or by the Please, specify. subscribers‘ data fixed? independent incumbent Member State body ( Please, specify) The incumbent buys data from new entrants at cost oriented tariffs. Tariffs are unknown. Incumbent has Other publishers must get New entrants do not contribute to publication NL No database for own information from incumbent costs. directory services and new entrants separately. Other publishers deal with operators at same terms, as provision of data is legal matter Request of data can be made A No Yes By contract between the parties to all operators. Price is fixed by the incumbent according to the principles of transparency and equality. This P No Yes price is under analysis by the Directorate- General for Fair Trade and Commerce (DGCC). No, database is set All operators shall submit Prices shall be reasonably proportional to the FIN No up jointly by all information in a format costs operators appropriate for publication. All notified operators are liable to provide available relevant The Electronic Communications Act, which S subscribers' data to any party entered into force 25th of July 2003, prescribes who requests it for the purpose cost-oriented pricing. of providing enquiry services. The overall framework is one of cost-orientation and non-discrimination. The actual detail of the charges is worked out in cross-industry UK N/A Yes N/A negotiations. Should a formal dispute arise, Oftel would seek to investigate further but does not determine charges at this stage.

141 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2

5 ITEMISED BILLING AND CALL BARRING

Table 7: Availability of itemised billing

Which of the following details are shown in the basic Have any specific measures been level of itemised billing provided at no extra charge? Are additional 106 implemented for (Please, specify in every cell for each type of calls ) details provided at MS Operator disabled users and extra charge? Partial/full Duration users with special Date of Price of (Please specify) number of each Other (specify) social needs? call each call called call (Please specify) Incumbent (fixed Yes107 Yes Yes Yes Yes107 Yes107 Yes107 voice telephony) Main new 108 B entrant (fixed Yes107 Yes Yes Yes Yes107 Yes107 Yes107 voice telephony) Main mobile 108 Yes107 Yes Yes Yes Yes107 Yes107 Yes107 operator No additional Incumbent (fixed Yes, operators may Yes Yes Yes Yes mandatory voice telephony) charge for additional No requirements details etc. Main new No additional Yes, operators may DK entrant108 (fixed Yes Yes Yes Yes mandatory charge for additional No voice telephony) requirements details etc. Main mobile No additional Yes, operators may 108 Yes Yes Yes Yes mandatory operator charge for additional No requirements details etc.

Incumbent (fixed Client option Yes Yes Yes Yes 109 voice telephony) Yes Yes

D Main new 108 109 entrant (fixed Client option Yes Yes Yes Yes Yes Yes voice telephony) Main mobile 108 Client option Yes Yes Yes Yes Yes109 operator Yes

106 I.e. for local, national and international calls, as well as for calls to internet, to mobile number, to premium rate services and any other relevant category. Please specify if a different level of detail is provided depending on the category of call. 107 No details have been provided by the Belgian authorities. 108 In case it is not possible to identify one single operator to be considered as "main" operator in the market, please fill in the table for all the leading operators. 109 Operators offer, on a voluntary basis, an electronic proof of each individual call. This proof is sent by e-mail or can be accessed through the operator’s web page. This makes it possible for visually impaired people to enhance the font size of this proof. Blind people can also print the proof on Braille paper or convert it into linguistic signals. The purchase price of the such devices is refunded –depending on the special circumstances of each individual case- by the health insurance companies or by the responsible social security services.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 142 Itemised billing and call barring

Which of the following details are shown in the basic Have any specific level of itemised billing provided at no extra charge? measures been Are additional (Please, specify in every cell for each type of calls106) implemented for details provided at MS Operator disabled users and extra charge? Partial/full Duration users with special Date of Price of (Please specify) number of each Other (specify) social needs? call each call called call (Please specify) Yes Basic level of itemised billing to blind / visually Incumbent (fixed Yes Yes Yes Yes Yes110 No impaired persons, voice telephony) including called number, date of call, charge of each call111.

EL Main new 110 108 Yes entrant (fixed Yes Yes Yes Yes

voice telephony)

110 Main mobile Yes 108 Yes112 Yes Yes Yes operator

Braille bills or bills with Yes. large characters are Incumbent (fixed Average duration of the Yes Yes Yes Yes No provided on request. voice telephony) call//starting time/ Braille bills are provided ending time in the context of US113 E Main new 108 entrant (fixed Yes Yes Yes Yes No - - voice telephony) Main mobile 108 Yes Yes Yes Yes No operator - - Time of the call/ Yes, being a Destination or choice to the category of the subscriber communication/ Incumbent (fixed the inclusion F114 Yes115 Yes Yes options, No voice telephony) of the No reductions or complete or eventual partial promotions. Type number of tariff116

110 Starting time of the call, Detailed analysis such as the total number of calls to mobile operators, to fixed operators, to internet etc. 111 C.f. art. 6 EETT Decision 255/83 14.06.02 on U.S.O content. 112 However it is not required by the law 113 O.M. 68/1992. 114 Provisions regarding telephone bills have been approved by « arrêté » of 1 February 2002 (Official Journal of 8 February 2002). Regarding itemised billing, art. 11 of this ordinance provides that the itemised billing must include, among others, the full list of telephone communications and, regarding each of them, the following details : date; beginning time, identified in hours and minutes ; telephone number called, provided that provisions in Act 78-17 of 6 January 1978 have been modified ; destination or category of the communication ; quantity consumed within a certain unit of reference -in case this quantity refers to a duration, the bill must identify the actual duration and the duration to be paid for when both values are different ; (…) ; options, reductions and promotions, if applicable ; the bill including taxes. The itemised billing is to be provided free of charge on request. A second part of this arrêté will be applied from 1 September 2003 : it will enable to have on the itemised bill a comparison between billed airtime and actual airtime used 115 For local calls which duration is less than 1 minute, only the total of calls is to be identified: duration, number of calls and price. For the commandes or calls of particular services for forfaitares tariffs, only the total number of calls and the global price have to be identified. 116 To be applied since 1 September 2002, HT and TTC.

143 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Itemised billing and call barring

Which of the following details are shown in the basic Have any specific level of itemised billing provided at no extra charge? measures been Are additional (Please, specify in every cell for each type of calls106) implemented for details provided at MS Operator disabled users and extra charge? Partial/full Duration users with special Date of Price of (Please specify) number of each Other (specify) social needs? call each call called call (Please specify)

Time of the Yes, being a call/destination or choice to the category of the subscriber Main new communication/ 108 the inclusion 115 entrant (fixed Yes Yes Yes options, No of the No reductions or voice telephony) complete or eventual partial promotions. Type number of tariff116 F time of the Yes, being a call/destination or choice to the cathegory of the subscriber communication/ Main mobile the inclusion 108 Yes Yes Yes options, No of the No operator reductions or complete or eventual partial promotions. Type number of tariff116

Time of call, call Incumbent (fixed Yes117 Yes Yes Yes category, Braille bills are available voice telephony) - discount applied to visually impaired

Main new IRL 108 Time of call, call Yes Yes Yes Yes entrant (fixed category No - voice telephony)

Main mobile Time of call, Braille bills are available 108 Yes Yes Yes Yes - operator network called to visually impaired

Incumbent (fixed City, Type of Yes Yes Yes Yes voice telephony) Tariff or Discount No No Main new 108 City, Type of Yes Yes Yes Yes 118 I entrant (fixed Tariff or Discount Yes No voice telephony)

Main mobile City, Type of 108 Yes Yes Yes Yes operator Tariff or Discount No No

Incumbent (fixed Yes Yes Yes Yes voice telephony) Main new 108 entrant (fixed Yes Yes Yes Yes voice telephony) L Main mobile 108 Yes Yes Yes Yes operator Other operators normally offer Yes Yes Yes this service to their customers

117 With the exception of calls under EUR0.05244 (ex VAT), which are banded together, and freephone numbers, which are not detailed. 118 For business users, bills are itemised for each company’s location and for each service.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 144 Itemised billing and call barring

Which of the following details are shown in the basic Have any specific level of itemised billing provided at no extra charge? measures been Are additional (Please, specify in every cell for each type of calls106) implemented for details provided at MS Operator disabled users and extra charge? Partial/full Duration users with special Date of Price of (Please specify) number of each Other (specify) social needs? call each call called call (Please specify) Yes119. Time of the call, Partial/full number Incumbent (fixed type of tariff No No No No called, duration of each voice telephony) charged, country No call, date of call, price of of destination each call It is not possible to identify one operator as Main new the main new NL 108 entrant (fixed entrant for voice telephony) fixed telephony as there are so many in the market.

Main mobile Differs per 108 Yes Yes Yes Yes operator operator120 Differs per operator No

Subscribers can get itemised billing for all calls or for each type of Incumbent (fixed call on request at extra No No No No No voice telephony) charge. Itemised billing No contains the partial number called, the duration, the date and the price of each call. Two leading carrier network operators A offer Main new itemized partial 108 entrant (fixed billing at no number Yes Yes Yes No No voice telephony) extra charge, called while other leading operators do, but only at extra charge. Subscribers can get itemized billing for all Main mobile calls with the mentioned 108 No No No No No No operator details (number, duration etc.) including SMS at extra charge. Yes. Incumbent (fixed P Yes Yes Yes Yes voice telephony) Braille bills and mails for blinds

119 0,02 Euro are charged per itemised call. 120 We have assumed KPN as the main mobile operator as it is the only operator with SMP designation. This information for KPN is not known by OPTA. However, other operators, notably Vodafone, also have significant markets shares. If more than one operator is to be considered we note that the requested information differs per operator.

145 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Itemised billing and call barring

Which of the following details are shown in the basic Have any specific level of itemised billing provided at no extra charge? measures been Are additional (Please, specify in every cell for each type of calls106) implemented for details provided at MS Operator disabled users and extra charge? Partial/full Duration users with special Date of Price of (Please specify) number of each Other (specify) social needs? call each call called call (Please specify) Main new 108 entrant (fixed Yes Yes Yes Yes n.d. voice telephony) P Main mobile Yes. 108 operator Braille bills and mails for blinds Yes

121 Partial or full numbers Incumbent (fixed No and the date of each voice telephony) individual call can be itemised on request at extra charge. Yes Main new Partial or full numbers 108 FIN entrant (fixed No121 and the date of each voice telephony) individual call can be itemised on request at extra charge. Yes Partial or full numbers Main mobile 108 No121 and the date of each operator individual call can be itemised on request at extra charge. Incumbent (fixed Yes122 Yes Yes Yes - voice telephony) - - Main new 108 S Yes entrant (fixed Yes Yes Yes voice telephony) Main mobile 108 No123 No No No operator Yes but on Incumbent (fixed request Yes, but Yes, Yes, Large print, Braille, Time of day call voice telephony) (Freephone on but on but on computer disk, talking was made No BT Group numbers request request request bills, call my bill and excluded) light user scheme. UK Yes ,date, called Main new number (Freephone 108 entrant (fixed No No No No N/a numbers excluded), Yes, Braille or large voice telephony) time of call, duration print Ntl and price at a cost of £1 per month

121 Calls are not itemised individually but the basic itemised bill shows the total amount of calls (total minutes and total prices) divided into local, long distance, mobile, international and premium rate calls. 122 With the exception of local calls 123 Itemised billing provided by main mobile operator (Telia Mobile) but only at extra charge.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 146 Itemised billing and call barring

Which of the following details are shown in the basic Have any specific level of itemised billing provided at no extra charge? measures been Are additional (Please, specify in every cell for each type of calls106) implemented for details provided at MS Operator disabled users and extra charge? Partial/full Duration users with special Date of Price of (Please specify) number of each Other (specify) social needs? call each call called call (Please specify) Main mobile 108 operator

Vodafone (Vf) Vf No - Vf n/a O2, O2 Yes* Vf No Vf No Vodafone Yes, Braille & large Vf No O2 # Orange (Or) Or Yes* O2 Yes O2 Yes (£1.50/month), date, print, audio format, UK O2 Yes Or # T-Mobile (T-M) T-M Yes* Or Yes Or Yes called number Speaking Phone, Pre Or Yes T-M # These operators (*Freephone T-M T-M (Freephone numbers Pay special top up T-M Yes #Time of day the have an numbers Yes Yeso excluded), time of call, arrangements, on line call was made approximately excluded) duration and price. bills & Text Bureau equal share of the UK market.

147 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Itemised billing and call barring

Table 8: Availability of call barring

Which of the following call categories can be barred selectively125? Is selective call barring MS Operator generally International Premium National calls Calls to mobile Other (specify) available on calls rate calls request124?

Incumbent (fixed Yes Yes Yes Yes Yes voice telephony) Main new B entrant126 (fixed Yes Yes Yes Yes Yes voice telephony) Main mobile 126 Yes Yes Yes Yes Yes operator Incumbent (fixed Yes No Yes127 No Yes All calls voice telephony) Main new 126 127 DK entrant (fixed Yes No Yes No Yes All calls voice telephony) Main mobile 127 126 Yes No Yes No Yes All calls operator Incumbent (fixed Yes Yes Yes Yes Yes Yes128 voice telephony) Main new 126 128 D entrant (fixed Yes Yes Yes Yes Yes Yes voice telephony) Main mobile 126 Yes Yes Yes No Yes operator Incumbent (fixed Yes voice telephony) Yes No Yes Yes Yes Dial up to internet Main new 126 entrant (fixed Yes Yes Yes Yes Yes EL voice telephony) Main mobile All outgoing 126 operator calls, incoming Yes No Yes No No calls, outgoing / incoming calls in case of roaming Incumbent (fixed 129 129 Yes129 Yes Yes Yes Yes voice telephony) E Main new 126 130 entrant (fixed Yes130 Yes Yes No Yes voice telephony)

124 I.e. the facility whereby the subscriber can, on request to the telephone service provider, bar outgoing calls of defined types or to defined types of numbers (Annex I, Part 1, Dir. 98/10/EC). 125 I.e. can the user bar only the outgoing calls of a defined type or to defined types of numbers?. 126 In case it is not possible to identify one single operator to be considered as "main" operator in the market, please fill in the table for all the leading operators. 127 Some operators offer barring of calls to specific countries. Calls to these countries are expensive, and the calls are often generated in connection to visits at certain web-pages (auto-dialers). 128 No specification has been given by the German authorities. 129 The Ministerial Order of 21 December 2001 provides that operators with universal service obligations must give the possibility to bar national, international, mobile and premium rate calls. 130 The Ordinance OM 361/2002, of 14 February 2002, provides that at least it must be posible to bar calls to premium rate numbers and international calls, either for the incumbent or for any other operator.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 148 Itemised billing and call barring

Which of the following call categories can be barred selectively125? Is selective call barring MS Operator generally International Premium National calls Calls to mobile Other (specify) available on calls rate calls request124?

Main mobile 130 130 E 126 Yes Yes Yes No Yes operator Incumbent (fixed Yes for fixed voice telephony) (permanently Yes Yes Yes Yes Local calls and call by call) Main new F 126 entrant (fixed No No No No No No voice telephony) Main mobile 126 Yes Yes Yes Yes Yes All calls131 operator Incumbent (fixed Yes but only with Yes but only with voice telephony) Yes Mobile calls Yes Yes National calls too too132. Main new IRL 126 entrant (fixed No voice telephony) Main mobile 126 Yes N/A Yes Yes operator Incumbent (fixed Yes Yes Yes Yes Yes voice telephony) Main new 126 I entrant (fixed Yes No Yes No Yes voice telephony) Main mobile 126 No - - - - operator Incumbent (fixed Yes Yes Yes Yes Yes voice telephony) Main new L entrant126 (fixed Not regulated Not regulated Not regulated Not regulated Not regulated voice telephony) Main mobile 126 Not regulated Not regulated Not regulated Not regulated Not regulated operator Incumbent (fixed Yes No Yes No Yes voice telephony) Main new 126 NL entrant (fixed Yes No Yes No Yes voice telephony) Main mobile Barring all 126 Yes133 No Yes No Yes operator outgoing calls

131 The option “only on-going calls” is mentioned in the ‘fiche tarifaire’. 132 Due to conflict with 3 digit local access codes. 133 The Dutch authorities have assumed KPN as the main mobile operator as it is the only operator with SMP designation. This information for KPN is not known by OPTA. However, other operators, notably Vodafone, also have significant markets shares. If more than one operator is to be considered they note that the requested information differs per operator.

149 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Itemised billing and call barring

Which of the following call categories can be barred selectively125? Is selective call barring MS Operator generally International Premium National calls Calls to mobile Other (specify) available on calls rate calls request124?

Incumbent (fixed Barring all active voice telephony) and/or passive calls Yes Yes134 Yes135 Yes Yes Selective barring of individual A mobile prefix Main new 126 entrant (fixed No information No information No information No information No information No information voice telephony) Main mobile 126 Yes No information No information No information Yes No information operator Incumbent (fixed Audiotext Yes136 Yes Yes Yes voice telephony) services137 Main new 126 Audiotext P entrant (fixed services137 voice telephony) Main mobile Audiotext 126 operator services137 Incumbent (fixed Yes No 138 No138 No138 Yes voice telephony) Main new 126 FIN entrant (fixed Yes No138 No138 No138 Yes voice telephony) Main mobile 126 Yes n.a. No138 Yes operator Incumbent (fixed Yes Yes Yes Yes Yes voice telephony) Main new 126 S entrant (fixed Yes Yes Yes Yes No voice telephony) Main mobile 126 Yes Yes Yes No Yes operator Incumbent (fixed Yes Yes Yes Yes Yes voice telephony) Main new 126 UK entrant (fixed Yes Yes Yes Yes Yes voice telephony) Main mobile 126 Yes Yes Yes Yes Yes operator

134 National calls can only be barred with premium rate calls and international calls or within the barring of all active and/or passive calls. 135 (Expensive) international calls can only be barred with premium rate calls. 136 Selective call barring is available, free of charge, for the calls to other telecommunication services provided to the public and for audiotext services. C.f. art. 13º, nº 1, al. f) of RESFT. 137 Since the Act nº 95/2001, of 20 August, came into force, service providers must ensure that access to audiotext services –except for “tele-voting” services- is barred. This access will only be provided, generally or selectively, following express request by the user. 138 According to regulation FICORA 35 H/2003 M, the user can have barring to these services only in combination with barring to other (more expensive) services, such as premium rate calls. Operators are free to provide selective barring for these services if they want to, but this is not common.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 150

6 DATA PROTECTION

Table 9: Unsolicited calls, faxes and electronic mails (part I)

Which approach (opt-in/opt-out/none) has been implemented for the following categories139?

Unsolicited phone CALLS Unsolicited E-MAILS Unsolicited FAXES B Opt-out Opt-In Opt-in140 Regarding consumers: opt-in141. DK Regarding others than consumers: opt- Modified Opt-in142 Opt-in out D Opt-in143 Opt-in143 Opt-in143 Opt-in for unsolicited calls for Opt-in for unsolicited e-mails for Opt-in for unsolicited faxes for EL advertising purposes advertising purposes advertising purposes E Opt-in Opt-in Opt-in Opt-in (Ordonnances of 23 F Opt-out None August 2001 and 25 July 2001) Opt-out for business and opt-in IRL Opt-out Currently being decided for individuals I144 Opt-in Opt-in Opt-in Opt in draft law (document Opt in draft law (document Opt in draft law (document L parlementaire 5181) parlementaire 5181) parlementaire 5181( NL Opt-in Opt-out Opt-in A Opt-in145 Opt-in145 Opt-in145 P None Opt-out146 Opt-in147 FIN Opt-out Opt-in Opt-in

139 According to Article 12 (97/66/EC), for the purposes of direct marketing, Member States can choose between an “opt-in” or “opt-out” approach for unsolicited calls and unsolicited e-mails. An “opt-in” approach is required for unsolicited faxes. 140 In case of distance selling contracts. 141 As regards book -, paper – and magazine – and insurance sales, opt-out has been implemented. 142 Denmark has adopted an opt-in model with modifications. The Danish Marketing Practices Act (section 6a, para. 1) requires that the customer, prior to receiving the “call using mail”, has requested the call. A new section 6a, para.2, effective from 25 July 2003, modifies the rule in para. 1, allowing unsolicited e-mail without the customer actively requesting it, when a number of clearly defined conditions are met. The customer must be able to opt-out easily and free of charge at any time. The new para 2 only applies to e-mail. 143 Based on case law under unfair competition law. There is a principle of consent for unsolicited e–mails in case law, but it has not yet been confirmed by the highest court. 144 The new personal Data Protection Code published on 29 July 2003 will also transpose Directive 2002/58/EC. Most new provisions will come into force on 1 January 2004. 145 For calls and faxes the opt-in scheme will not be changed by the new Telecommunications Act 2003. For e-mails and SMS the old law (which was in force until August 1) had an opt-in scheme and the new Telecommunications Act 2003 will have an opt-in scheme for consumers and an opt-out scheme for other recipients. 146 The called party has the right to refuse, free of charge, the reception of direct marketing unsolicited calls by means different from automatic calling machines or fax. 147 Also applicable to direct marketing actions using automatic calling machines.

151 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Data protection

Which approach (opt-in/opt-out/none) has been implemented for the following categories139?

Unsolicited phone CALLS Unsolicited E-MAILS Unsolicited FAXES S Opt-out148 Opt-out Opt-out148 UK Opt-out Opt-out149 Opt-in150

Table 10: Unsolicited calls, faxes and electronic mails (part II)

Is the —opt-in/”opt-out“ approach applicable to Is consultation of opt- Which institutions natural and legal Requirements for out lists required prior manage opt-out lists for e- persons151? consent152 to sending unsolicited mails? (only natural/natural and e-mails? legal) Legal: opt-out B Not regulated Not regulated Not regulated Natural: opt-in Natural and legal (requirements concerning Central Office of Civil DK Oral or Written (active) Not relevant legal persons only Registration regarding emails and faxes) Private associations or No, consultation of D Natural and legal Oral or written (active) other private third parties opt-out lists is voluntary Only natural unless the legal representative of a EL legal person states that they Written (passive) N.A. No do not wish to have unsolicited calls (opt-out) No, unsolicited electronic communications are prohibited, unless deliberately authorised or Federación de Comercio requested by the E Natural and legal Unequivocal consent Electrónico y Marketing addressees (Ley 34/2002, Directo de 11 de julio, de Servicios de la Sociedad de la Información y de Comercio Electrónico)

148 This applies to unsolicited calls made by sales representatives of the calling company. For unsolicited automatic calls to natural persons, Sweden has adopted an opt-in model. 149 Where e-mail addresses constitute personal data because they incorporate an individual’s name, any processing must be done in accordance with the requirements of the Data Protection Act 1998. Any business that continues to process an e-mail address that constitutes personal data, in order to send unsolicited marketing communications, after being instructed by the individual concerned to stop, will be in breach of the Act’s fair processing requirements. New opt-in rules to be introduced later in 2003. 150 Corporate subscribers are not entitled to register with the Telephone Preference Service although they have the right to opt-out on a case-by-case basis by instructing particular callers not to ring. Corporate subscribers are entitled to opt-out of unsolicited faxes both on a case by case basis or by registering with the Fax Preference Service. 151 According to the directive, NRA is requested to specify whether the chosen approach is limited to natural persons only of extended to natural and legal persons. 152 In this column, NRAs are requested to specify if the consent to be obtained from the user is to be written or oral and, if written, to specify if consent can be passive (e.g. the user does not delete a pre-ticked box corresponding to the declaration of consent) or is to be active (e.g. the user must tick the box corresponding to the declaration of consent).

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 152 Data protection

Is the —opt-in/”opt-out“ approach applicable to Is consultation of opt- Which institutions natural and legal Requirements for out lists required prior manage opt-out lists for e- persons151? consent152 to sending unsolicited mails? (only natural/natural and e-mails? legal) Not yet determined at this F153 Natural and legal Written (active) No stage Opt-out for business and Irish Direct Marketing IRL Simple notification No opt-in for individuals Association (IDMA)154 Oral or Written I Natural and legal None156 No157 (active)155 Prior consent(oral or Natural and legal (draft law written (active)(draft law L document parlementaire none Not relevant document 5181 parlementaire 5181) Yes, applicable to the DMSA Nederlandse « subscriber » in Associatie voor Direct NL Not regulated Self-regulation applies158 accordance to the definition Marketing, Distance Selling of Article 2 of the directive/ en Sales Promotion Oral160 or written Unsolicited e-mails are A Natural and legal159 RTR-GmbH (passive161) forbidden162 P Natural and legal Written (active) Not available No146 Natural / natural and SSML (The Finnish Direct FIN Oral or written164 No legal163 Marketing Association) S Only natural persons Not regulated Not regulated Yes

153 P&T Code (Title I), amended by ordonnance n°2001-670 of 25/07/01, now foresees that direct marketing is forbidden unless the subscriber has given his agreement. (art. L. 34-4-1.) 154 Lists managed on their behalf by the DMA based in the US. The IDMA is affiliated to the DMA. 155 Consent is written if the type of message received allows getting information on sensitive data concerning the recipient. In the remaining cases, it will be sufficient for the entity obtaining the data subject’s consent to write it down. 156 The Italian Data Protection Authority (Garante per la protezione dei dati personali) started the procedure leading to adoption of a Code concerning processing of personal data on electronic networks, which may include specific provisions on opt-out list – e.g. as regards ads sent to customers in connection with products or services that are similar to those already being supplied (see Article 13(2) of Directive 2002/58/EC). This will be without prejudice to the general opt-in principle. 157 Parties that adhered to the Stitching Reclame Code commit themselves to the application of codes of conduct concerning unsolicited mails and sms. 158 Parties that adhered to the Stichting Reclame Code commit themselves to the application of codes of conduct concerning unsolicited mails and SMS. 159 The provisions of the old Telecommunications Act (which was in force until August 1) do not differentiate between natural and legal persons. The new Telecommunications Act has an opt-in scheme for unsolicited calls and faxes (no distinction between natural and legal persons) and it differs between consumers (opt-in) and other recipients (opt-out) for unsolicited e-mails and SMS. 160 However, even oral consent must have been provided before the reception of the unsolicited call. This will not be changed by the Telecommunications Act 2003. 161 The law does not explicitly require “active” consent, so therefore generally the inclusion of a declaration of consent in a document to be signed by the user (in such a way that the latter would have to delete the passage if he wishes to refuse consent) is accepted. This is not changed by the Telecommunications Act 2003. 162 Consultation of the opt-out list managed by RTR-GmbH is required by the E-Commerce Act, but was not important, because unsolicited e-mails were generally prohibited by the old Telecommunications Act (which was still in force on August 1). According to the new Telecommunications Act unsolicited e-mails to non-consumers are legal and consultation of the opt-out list becomes relevant. 163 For natural persons, an “opt-in” regime applies, except for unsolicited phone calls to which an “opt-out” regime applies. The “opt-out” regime also applies to legal persons. 164 No specific form is prescribed by law for written consensus, which is normally passive.

153 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Data protection

Is the —opt-in/”opt-out“ approach applicable to Is consultation of opt- Which institutions natural and legal Requirements for out lists required prior manage opt-out lists for e- persons151? consent152 to sending unsolicited mails? (only natural/natural and e-mails? legal) The Direct Marketing Self regulationœ Legal persons have opt-out Association (e-Mail consultation required UK Not regulated rights in some cases150 Preference Service or e- under industry codes of mps) practice

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 154 Data protection

Table 11: Storage of data and other provisions of the Data Protection Directive

Maximum period permitted for the Itemised billing storage of data for: Charge for Availability and cost of Possibility subscribers to be stopping automatic Number of MS to receive omitted from the forwarding by a third digits from the Other non- Billing directory party called number purposes165 itemised deleted bills Min. 1 year (secondary To the end of the legislation still B 2,6 € /month Free of charge Yes No rules exist dispute period needed to determine exact period) Max. 1 year No deletion for (secondary private legislation still DK 5 years166 Free of charge Free of charge Yes customers, two needed to for business determine exact customers period) Three last 6 months after Free of charge, where digits/complete D -- Free of charge Yes sending of bill technically possible itemisation on request The period during which the bill may be lawfully Three last digits EL -- 0.96 € /month167 Free of charge Yes challenged or upon request payment may be pursued Max. 1 year (for information society services, secondary Defined E 5 years legislation is still Free of charge Free of charge Yes number168 needed to determine the exact period) F 1 year Free of charge Available169 Yes Last four Currently being Free of charge if IRL -- Free of charge Yes No deletion looked at170 available Last three/complete I 5 years171 --172 Free of charge N/A173 Yes itemisation in certain cases174

165 Article 14(1) of Directive 97/66/EC. 166 The end of the period during which the bill may be lawfully challenged or payment may be pursued. 167 ETT is entitled to express its opinion on the level of the charge. 168 To be specified in secondary legislation. 169 Information given for France Télécom. 170 Operators are obliged to comply with the requirements of Article 6 of the Directive. The general rules of the statute of limitations in case a bill is challenged is maximum 6 years. 171 According to Civil Code, which provides that the bill may be lawfully challenged or payment may be pursued within five years. As of 1 January 2004, it will only be possible to retain the data for no longer than 6 months, subject to such additional retention period as may be necessary in connection with a judicial claim. 172 As of January 2004, it will be possible to store the data for thirty months with a view to detecting and suppressing criminal offences. 173 Under section 8 of legislative decree no. 171/1998, the provider must allow subscribers, free of charge, to stop automatic call forwarding by third parties. 174 In case of complaints for specific calls as well as if a subject requests access to the data concerning him/her. As of 1 January 2004, the Italian Data Protection Authority (Garante per la protezione dei dati personali) may authorise a provider to report the full numbers in a bill if it is established that alternative payments methods are fully available – including anonymous methods – such as credit cards, debit cards or pre-paid cards, this being an obligation applying to all operators. .

155 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Data protection

Maximum period permitted for the Itemised billing storage of data for: Charge for Availability and cost of Possibility subscribers to be stopping automatic Number of MS to receive omitted from the forwarding by a third digits from the Other non- Billing directory party called number purposes165 itemised deleted bills until the end of the dispute period No deletion; Max 1 year (draft (draft law draft law doc L law document Free of charge Not available Yes document parlementaire parlementaire 5181) parlementaire 5181 5181) Three months for Not specified in NL ISPS and pre-paid Free of charge Free of charge Yes No deletion the law175 cards As long as the data Company Company A is needed for the Free of charge Free of charge177 Yes specific176 specific178 relevant purpose P 6 months -- Free of charge Free of charge Yes Four Min. 3 months Three last after maturity date digits/complete FIN of the bill; max 3 -- Free of charge Free of charge Yes itemisation in years after bill has certain cases been paid in full The period during which the bill may As long as the data Not regulated (free of Not regulated be lawfully S is needed for the charge with incumbent Free of charge Yes (generally no challenged or relevant purpose operator) deletion) payment may be pursued Under discussion UK 6 years179 (between 6-12 Free of charge Free of charge Yes No deletion months)

175 The forthcoming legislation regarding traffic and billing data states that the period for which the billing information may be stored is the period in which the bill can be lawfully challenged or the payment may be pursued. 176 According to the conditions stipulated in the contracts with the operators, but a maximum of 3 years is fixed by law. 177 Information given for Telekom Austria 178 Legislation does not set the precise number of digits to be deleted, which could be two or more. Many companies, including Telekom Austria, delete the last three digits. 179 Limitation period for contractual disputes.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 156 Data protection

Table 12: Calling line identification (CLI)

Availability to Availability and cost Availability and cost for the called subscriber to: and cost for the organisation For the dealing with calling user For the subscriber to Eliminate the To reject incoming emergency calls

to eliminate request the service presentation of Prevent the calls where the of overriding the provider to (temporarily) the connected presentation presentation of the the elimination presentation override the elimination line of the CLI of CLI has been of the of the CLI of the presentation of identification to incoming calls eliminated by the 180 presentation of on a per-call the CLI the calling user calling user the CLI basis Free of Free of Free of charge for a Free of B Available Available charge charge reasonable charge use Free of Free of Free of Free of DK Not available Free of charge charge charge charge charge Free of charge, (in mobile Free of Available, cost not Free of Free of Free of D telephony based charge regulated charge charge charge on terminal equipment) Available for limited Available Free of Free of time period and for Free of with simple Available with EL 181 charge charge specific reasons, costs charge means , free simple means 181 . not yet regulated of charge

Free of Free of 182 E Free of charge Not available Available Available charge charge

Free of Answer from Answer from Yes, but not free of Free of F Answer from FT 183 charge FT FT charge charge

Free of Free of Free of Free of IRL Not available Not available charge charge charge charge Available (€ 77.46 for 1- 5 days, € 103.29 for 6- Free of Free of Available by 186 Free of I 10 days, € 129.11 for 185 Not available charge charge default charge 11-15 days, excluding tax) ) 184 Available Available free Available free of Available free free of Foreseen in the draft of charge draft charge draft law of charge draft Free of charge draft L law doc parlementaire law doc doc law doc charge law doc 5181 parlementaire parlementaire parlementaire parlementair 5181 5181 5181 e 5181 Available for Available, Available ISDN only Free of NL free of Not available Not available No standard (part of CLI charge charge tariff applies service)

180 For tracing malicious or nuisance calls. 181 Facility mandated by the law, but not yet implemented. 182 Paragraphs 1 and 2, article 75 of Royal Decree 1736/1998, of 31 July. 183 France Telecom offers a service enabling its subscribers to reject calls where the presentation of the CLI has been eliminated or calls marked with an (calls from a list established by the subscriber). 184 As of 1 January 2004, operators may charge amounts not exceeding the costs actually incurred by them. 185 Telecom Italia only offers CLI upon subscription 186 This service is available free of charge from mobile telephony service providers.

157 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Data protection

Availability to Availability and cost Availability and cost for the called subscriber to: and cost for the organisation For the dealing with calling user For the subscriber to Eliminate the To reject incoming emergency calls

to eliminate request the service presentation of Prevent the calls where the of overriding the provider to (temporarily) the connected presentation presentation of the the elimination presentation override the elimination line of the CLI of CLI has been of the of the CLI of the presentation of identification to incoming calls eliminated by the 180 presentation of on a per-call the CLI the calling user calling user the CLI basis Available (€ 6.54 + Available: Available: Free of Free of 188 A € 0.73 per day+€1.45 €6.54 (single Free of charge €4.36 (single charge 187 charge per identification) payment) payment)

Free of 189 Free of Free of P Available Available Available charge charge charge

Free of 190 Free of Free of 191 FIN Free of charge Available Available charge charge charge

Free of 192 Free of Free of S Not regulated Available Not regulated charge charge charge Available on analogue Available free of Provided free 193 services (BT Available , Free of charge when calls are of charge on charges £ 9.99 a Free of UK free of charge subject to formal ISDN quarter, some charge 190 charge investigation networks other operators provide it free of charge) 194

187 Information given for Telekom Austria 188 Available since 1 st quarter of 2001. 189 Although this facility is foreseen by the law, there is no information on its actual availability. 190 Calling line identification available to law enforcement authorities. 191 Override category available, but organisation pays installation costs. 192 The charge of the incumbent operator (TeliaSonera) for malicious call identification is SEK 500 including 5 successful tracings for a two-week period. Extra tracings: SEK 50 each. 193 If specifically requested from service provider. 194 Not available on digital services (GSM, ISDN) because there is ambiguity as to whether this facility must be provided as a network service as opposed to being delivered through a terminal equipment solution. Hopefully the situation will change when 2002/58/EC is implemented.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 158

7 NATIONAL REGULATORY AUTHORITIES

159 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 National regulatory authorities

Table 13: Powers of the National Regulatory Authorities

Market monitoring Frequency allocation and spectrum Price Access and Monitoring Dispute Application of and enforcing management MS Licensing Numbering Broadcasting Rights of way controls (end Interconnectio USO resolution competition law compliance with user tariffs) n regulations BIPT BIPT Communities Communities BIPT / NCA BIPT, BIPT BIPT / NCA NCA BIPT Allocation: BIPT B Government Assignment: BIPT

NITA195 NITA NITA, Ministry of NITA, Local authorities NITA NITA NITA NITA NCA NITA Allocation: NITA195 DK Culture Assignment : NITA RegTP196 RegTP RegTP, Regional RegTP, other RegTP RegTP RegTP RegTP RegTP: sector specific RegTP Allocation: Federal Government: Table of Broadcasting authorities197 rules in the frequency allocations indicating the frequency Institutions telecommunications bands to be allocated to individual radio sector services and other electromagnetic wave D Bundeskartellamt applications. (national competition Assignment: RegTP ( further allocation of the authority): competition frequency bands to individual frequency uses law and determinations on such uses). EETT EETT EETT, Local and other EETT EETT EETT EETT EETT EETT Allocation: Ministry of Transport and Ministry (Ministry of authorities198 Communications Transport and EL Communications Assignment: EETT and Ministry of Press)

195 Within the framework of the frequency policy mandate given to NITA. 196 See also Communication N. 189/2003 in the Reg TP-Journal N°. 14/2003 of 16.July 2003, Page 764. 197 Consent to the exercise of the right of way transferred/assigned by RegTP on a case by case basis. 198 Office of Town and Country Planning, Office for Nuclear Energy

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 160 National regulatory authorities

Market monitoring Frequency allocation and spectrum Price Access and Monitoring Dispute Application of and enforcing management MS Licensing Numbering Broadcasting Rights of way controls (end Interconnectio USO resolution competition law compliance with user tariffs) n regulations SETSI and MCYT/SETSI: MCYT/SETSI: MCYSETSI, /SETSI, Ministry /SETSI and CMT and CMT, Competition CMT SETSI 202 CMT: CMT Administration Preparation and Regulation and of Economy, CMT SETSI Disputes Authority 199 proposal of the rules management of consultation CMT between on audio-visual matters related to operators CMT: services, inspection rights of way 200 MCYT/SETSI: E Management and regulation CMT: Disputes CMT: Dispute resolution between users Competition between operators on and operators safeguard on shared use of conditional access infrastructures.201 services Ministry on ART CSA and Ministry of Local authorities Ministry on basis ART ART ART Conseil de la ART Allocation: ANFR203 F proposal of Culture of Avis of ART Concurrence Assignment:: ART ART ComReg ComReg Minister for Local authorities ComReg ComReg ComReg ComReg Competition Authority ComReg Allocation: ComReg and Minister for Communications, Communications, Marine and Natural Marine and Natural Resources Resources. Assignment: ComReg and Minister for Broadcasting Communications, Marine and Natural IRL Commission of Resources Ireland. ComReg (transmission and distribution networks) Ministry AGCOM AGCOM Local authorities AGCOM AGCOM AGCOM AGCOM NCA AGCOM Allocation: Ministry I Ministry AGCOM Assignment: Ministry, AGCOM Ministre ILR Service des Média ILR ILR ILR et tribunaux Ministère de ILR Allocation: Ministry délégué aux et des luxembourgeois l'Economie - Direction Assignment: ILR L Communications Communications de la Concurrence et de la Protection du consommateur

199 Administration of the national numbering plan, as the establishment and change of: The national numbering plan; Types of usage for designated number ranges; Rules for administration of the national numbering plan; Rules for management of the national numbering plan 200 Management of the national numbering plan as the whole of: assignment of numbers for designated ranges; surveillance of usage of assigned ranges; withdrawal of assigned numbers 201 The NRA issuing the license is also the authority granting the associated rights of way 202 Generally the powers with regard to universal service obligations correspond to the SETSI. The powers of the CMT are limited to the funding of the USO in accordance with Article 39 of the General Law of Telecommunications. 203 Agence National Francaise pour Radiofrequence

161 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 National regulatory authorities

Market monitoring Frequency allocation and spectrum Price Access and Monitoring Dispute Application of and enforcing management MS Licensing Numbering Broadcasting Rights of way controls (end Interconnectio USO resolution competition law compliance with user tariffs) n regulations OPTA OPTA, Two Ministries Ministry (DGTP) OPTA Ministry OPTA OPTA National Competition OPTA Allocation: DGTP (registration) Ministry (DGTP204, Education (DGTP) Authority (NMA) Assignment: DGTP NL and Culture), OPTA, Broadcasting Authority TKK Allocation: Komm Austria TKK TKK TKK TKK TKK Competition TKK Allocation: TKK RTR, Authorities, TKK Assignment: BMVIT A Management: BMVIT ANACOM ANACOM ANACOM Local authorities ANACOM ANACOM ANACOM ANACOM Competition Authority ANACOM Allocation: ANACOM (Exception: (Network licencing) Assignment: ANACOM Ministry, in AACS case of the (Access to the P granting of activity) radiofrequencie s by public tender) MINTC FICORA FICORA FICORA FICORA FICORA FICORA Competition Authority FICORA Allocation: FICORA FIN Assignment: FICORA PTS PTS Radio and TV PTS, local authorities PTS PTS PTS PTS Competition Authority PTS Allocation: PTS S Agency Assignment: PTS DTI OFTEL ITC and OFTEL Secretary of State OFTEL OFTEL OFTEL OFTEL OFTEL and OFT OF TEL Allocation: RA UK (DTI) Assignment: RA

204 Director General for Telecommunications and Post in the Ministry of Transport

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 162

8 QUALITY OF SERVICE

163 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Quality of service

Table 14: Quality of service

Do SMP/US operators measure QoS Have measurements of Are independent Does the NRA set QoS pursuant to the following standards? QoS for year 2002 been Which measures are taken in audits of Date of latest publication and performance targets for: (yes/no) published by case of persistent failure to performance data reference in the national Official meet performance targets? carried out? State

Member SMP/US205 Other fixed ETSI ETSI SMP/US Journal or other Other the NRA? (Article 12.3, Dir. 98/10/EC) (Article 12.4, Dir. operators? operators? ETR 138 EG 201 operator? 98/10/EC) Compensation: max. 1% of the To be Report on the Universal Service annual turnover concerning the B Yes No Yes N/A No Yes No studied July 2003 (www.ibpt.be) universal service (art. 17 of annex of act of 21/03/1991)

Sanctions according to Section 22- No, but possible 23 of Act on Competitive Conditions accordring to Section 15 DK Yes No Yes206 207 No No. No. None Yes and Consumer Interests in the (6) of Executive Order on Telecommunications Market. USO. Official Publications of the RegTP D Yes208 No No Yes209 Yes210 No Yes See footnote211 No N°. 17 of 27.08.2003 EL Yes Yes N/A Yes212 N/A - - None Disciplinary measures included www.setsi.mcyt/sgcinfor/calidad/inf E Yes No No Yes No Yes213 Yes214 in the General Law of Yes orme.htm Telecommunications

205 Operators having significant market power in the provision of fixed telephone networks and/or voice telephony services or having been designated in accordance with Article 5 of Directive 98/10/EC. 206 Measurements carried out before 1 March 2002. 207 Measurements carried out After 1 March 2002 208 According to Paragraph 2 of the USO Ordinance, quality of the voice telephony services within US is based on the standards achieved by 31 December 1997. There is no description or characterisation of this standard. 209 RegTP´s ordinance 169/1999 provides for the adaptation of ETSI EG 201 769 to the special conditions of services and networks of the nation-wide telephone service providers. 210 New parameters in Annex III of the Voice telephony Directive 98/10/EC will be measured on the basis of the definitions provided in ordinance 9/1999 and in ordinance 169/1999. 211 If a universal service is performed insufficiently or inadequately, the regulatory authority can initiate a proceeding according Article 18 and the followings of TKG to dermine an operator to perform the universal service. 212 In the course of implementation. 213 www.telefonica.es/telefoniafija/popup_parametros.htm 214 Measurements for third and forth quarters have been published.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 164 Quality of service

Do SMP/US operators measure QoS Have measurements of Are independent Does the NRA set QoS pursuant to the following standards? QoS for year 2002 been Which measures are taken in audits of Date of latest publication and performance targets for: (yes/no) published by case of persistent failure to performance data reference in the national Official meet performance targets? carried out? State

Member SMP/US205 Other fixed ETSI ETSI SMP/US Journal or other Other the NRA? (Article 12.3, Dir. 98/10/EC) (Article 12.4, Dir. operators? operators? ETR 138 EG 201 operator? 98/10/EC) OJ of 13 November 2002 amending the obligations imposed F Yes No No Yes215 n.a. No No on France Telecom to implement None Yes 185 the modifications of annex III of Directive 98/10/EC. Yes 13/6/2003 - Fixed Telephony Each participating Operator Performance Data for July operator submits their to Dec 2002 QoS data to an http://www.comreg.ie/publications/d independent accuracy efault.asp?nid=101011&ctype=5 No performance targets are set, auditor who is however, where an operator fails appointed to by the to comply with the MLOP QoS operator. IRL No No Partially216 N/A MLOP216 No Yes definitions then this addressed 13/6/03 œ SMP to OLO and USO with the individual operator with On completion of the operator performance data for July a view to ensuring compliance accuracy audit, data is to December 2002 then submitted to MLOP forum http://www.comreg.ie/publications/d comparability auditor efault.asp?S=&NavID=&ctype=5&N who assesses the ID=101013 comparability of operator returns. Published by SMP operator in its AGCOM may adopt specific I Yes217 Yes217 Yes No218 N/A No No semestral report (up to 1st half measures, in accordance to No 2001) individual licence conditions

215 According to Commission’s Decision of 22 December 2000 amending annex III to Directive 98/10/CE 216 The Measuring Licence Operator programme establishes a framework for measuring the quality of service provided by fixed line telecommunications operators to their customers. ODTR’s MLOP programme has set parameters which are partially based upon ETR 138. 217 As for 2004, operators are asked to identify quality parameters, to freely choose the corresponding performance targets, to commit themselves to these targets and to publish the result yearly. 218 As from 24 July 2003 ETSI EG 201.769 –1 will replace ETR 138

165 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 Quality of service

Do SMP/US operators measure QoS Have measurements of Are independent Does the NRA set QoS pursuant to the following standards? QoS for year 2002 been Which measures are taken in audits of Date of latest publication and performance targets for: (yes/no) published by case of persistent failure to performance data reference in the national Official meet performance targets? carried out? State

Member SMP/US205 Other fixed ETSI ETSI SMP/US Journal or other Other the NRA? (Article 12.3, Dir. 98/10/EC) (Article 12.4, Dir. operators? operators? ETR 138 EG 201 operator? 98/10/EC) The regulatory authority can 5th May 2003 Consultation make arrangements to perform document on the quality of service their rights and obligations NL Yes Yes Yes219 Yes219 No No No for public fixed telephony; arising from international No www.opta.nl under ”nieuws en regulations and this Law. These publicaties‘ arrangements must then be followed. According to § 83 3 TKG, the regulatory authority can make arrangements to perform their (to be published in September A Yes220 No Yes Yes Yes221 No No rights and obligations arising No 2003) www.rtr.at from international regulations and this Law. These arrangements must be followed. Specific sanctions are foreseen in case of non compliance with P Yes No222 Yes223 n.a. n.a. No No Not available performance targets. Yes Suspension or derogation of the licence might also be imposed. A summary is available: Available FIN No No Yes224 Yes224 N/A No Telecommunications statistics (Aug. on request 2003)

S No225 No No Yes No No Yes None None None

219 ETSI ETR 138 was implemented by end of 2000. ETSI EG 201 has been used since the beginning of 2001. 220 Ordinances on Universal Service: BGBI.II N. 192/1999 and BGBI. II N. 173/2000. 221 Ordinances on Universal Service: BGBI.II N. 192/1999 and BGBI. II N. 173/2000 222 According to Art. 5º of “Deceeto.Lei” 474/99, of 8 November 1999, ANACOM can define QoS parameters, but no provision targets. 223 Nowadays, PTC sends QoS information following ETR 138 standard. In the future, PTC and other operators will have to make this information available following EG 201 standard. 224 ETSI ETR 138 was implemented by end of 2000. ETSI EG 201 has been used since the beginning of 2001. 225 No QoS targets are specified in legislation or licence conditions. However, the SMP-operator's measurements of QoS are carried out pursuant to the ETSI EG 201 standard.

Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2 - 166 Quality of service

Do SMP/US operators measure QoS Have measurements of Are independent Does the NRA set QoS pursuant to the following standards? QoS for year 2002 been Which measures are taken in audits of Date of latest publication and performance targets for: (yes/no) published by case of persistent failure to performance data reference in the national Official meet performance targets? carried out? State

Member SMP/US205 Other fixed ETSI ETSI SMP/US Journal or other Other the NRA? (Article 12.3, Dir. 98/10/EC) (Article 12.4, Dir. operators? operators? ETR 138 EG 201 operator? 98/10/EC) SMP operators‘ indicators are Yes, via the Yes, via the available at www. Btplc.com. Latest Telecommu Telecommu publication is for period Oct.00 œ No set performance targets and UK No No Partially226 Yes226 Yes226 niations nications Mar. 02 Yes no pressing need to take action Industry Industry CPIs are available at Forum Forum www.cpi.org.uk. Latest publication is for period Jul.-Dec.-02

226 Comparable Performance Indicators used ETR138 as a starting point. However, the parameters are tailored to reflect the demands of UK users on quality of service. Any deviation from ETR138/EG202 is a result of evidence based decision making in the interest of consumers and business users.

167 - Telecommunications Regulatory Package – 9 th Implementation Report – Annex 2