Page 97 - SAMENA Trends - April-May 2021

WHOLESALE UPDATES SAMENA TRENDS

CNMC Reduces Indirect FTTH Wholesale Charge

Spain’s National Commission for Markets and Competition million active fiber-optic broadband lines in Spain, 2.7 million are
(Comision Nacional de los Mercados y la Competencia, CNMC) attributed to wholesale services currently regulated by the CNMC
has reduced the indirect access point (punto de acceso indirecto, via the Ethernet de Banda Ancha (NEBA) classification. According
PAI) charge that alternative operators are obliged to pay to TeleGeography’s GlobalComms Database, NEBA was a new
Telefonica Espana (Movistar) in order to access its fiber-to-the- reference offer for wholesale broadband access that was unveiled
home (FTTH) network. The 2020 PAI price of EUR2.83 (USD3.46)/ in November 2011; it was conceived to allow alternative operators
Mbps has been reduced to EUR2.23/Mbps and will drop to greater customization in the wholesale services they could offer
EUR1.97/Mbps in 2022. The watchdog notes that of the 11.8 to end users.

Telefonica, 1&1 Drillisch Conclude National Roaming Contract

Drillisch Online, a wholly-owned subsidiary of 1&1 Drillisch,
has announced it has concluded a long-term national roaming
agreement with Telefonica Deutschland, as it seeks to become
Germany’s fourth mobile network operator. The agreement, which
goes back to a commitment by Telefonica as part of the EU
antitrust approval of its merger with E-Plus in 2014, follows the
signing of a letter agreement between 1&1 Drillisch and Telefonica
in February. The start date for national roaming will be set by 1&1
Drillisch in parallel with the launch of its mobile network. From this
date, all new and existing customers migrated to 1&1 Drillisch’s
network will have access to the 5G network, and automatically
non-discriminatory access to Telefonica’s 2G and 4G mobile
network via national roaming in areas not yet rolled out by 1&1
Drillisch. From 1 January 2026, access to 4G national roaming
in Telefonica’s mobile network will be limited to some extent in
certain urban areas which will then be covered by 1&1 Drillisch’s
5G network. However, in these areas a minimum coverage of
national roaming of up to 50Mbps is always ensured. 1&1 Drillisch prices, which are lower than the prices currently charged by
customers, who are currently activated on Telefonica’s network, Telefonica under the MBA MVNO agreement. 1&1 Drillisch has
will be migrated within a contractually agreed transition period the right to extend the initial term until 30 June 2029, and at
following the launch of 1&1 Drillisch’s 5G network and will continue 1&1 Drillisch’s request an additional contract extension up to 30
to have 2G, 4G and 5G access to Telefonica’s mobile network until June 2034 is possible. The prices for the first extension option
then. The national roaming agreement has an initial term of five until June 2029 are determined by specific rules, following which
years, retrospectively from 1 July 2020 until 30 June 2025, and Telefonica continues to be obliged to offer non-discriminatory
is based on the pricing mechanisms of the first five years of the prices. As part of the overall agreement, the ongoing price review
pair’s MBA MVNO agreement. It provides for annually decreasing proceedings initiated by 1&1 Drillisch will also be terminated.

The Post and Telecom Authority Proposes Revision of Mila’s Wholesale

Tariff for Trunk Segments of Leased Lines

The Post and Telecom Administration of leased lines should be changed in that in the next revision of the tariffs in the
(PTA) has sent a draft decision regarding its entirety in accordance with changes market, the cost model will be reviewed in
the revision of Mila’s wholesale tariff for in the underlying costs for the trunk its entirety. The tariff increase only applies
trunk segments of leased lines to the network, instead of updating cost models to monthly fees, which will increase by
EFTA Surveillance Authority (ESA), with for different services. The PTA says that 2.59%, while one-time fees, monthly fees
the regulatory body given one month to this does not disrupt the structure of for Sync-Ethernet and connections remain
submit its comments. In the submitted tariffs that are currently in force and the unchanged. Mila will be required to submit
draft legislation, the PTA agrees to Mila’s consistency between tariffs in this market. a revised cost model to the PTA in 2022.
request that the tariff for trunk segments However, the PTA considers it appropriate
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