Ofcom has today published a final statement setting out its decisions in relation to the Fixed Narrowband Market Review, which covers the retail and wholesale markets for voice calls in the UK.
Ofcom’s decision is that the fixed retail call markets in the UK (excluding the Hull area) remain effectively competitive, as no company holds a position of ‘significant market power’ (SMP). However, Ofcom has concluded that BT has SMP in the market for wholesale call origination in the UK (excluding the Hull area) and in fixed call termination. We have therefore imposed remedies, including charge controls, on BT in these markets and in relation to interconnect circuits.
Ofcom has also found that KCOM has SMP in the market for wholesale call origination in the Hull Area, and we have imposed a series of remedies in this market and in relation to interconnect circuits.
In relation to providers of fixed call termination other than BT (including KCOM), Ofcom has concluded that each provider has SMP, and has imposed a requirement to provide network access on reasonable request and a requirement to notify charges. We have also set out guidance that the termination rates set by these other providers will be presumed to be fair and reasonable where the rate (24 hour average) is no higher than the rate set by BT compliant with its charge control in fixed call termination.
This final statement follows the draft statement that was notified to the European Commission on 20 August 2013. In the final statement, we have made a small adjustment to the charge control in relation to wholesale call origination rates. We have made this adjustment to reflect comments we have received in relation to the costs of providing emergency and non-emergency operator assistance services to communications providers using BT’s wholesale call origination services. We discuss this adjustment in Annex 6 of the statement.
This statement sets out decisions designed to promote competition in the supply of telephone calls from fixed lines for the next three years (from 1 October 2013 to 30 September 2016), under the European Framework for Electronic Communications. These decisions are important in furthering the interests of citizens and consumers.
Despite the growth of mobile and online services, millions of us still make and receive telephone calls from fixed lines at home or at work. As a result, promoting effective competition between communications providers (CPs) that offer fixed line calls remains an important part of Ofcom's work.
The services covered in this statement are "fixed narrowband telephony services", including retail services, in particular voice telephone calls, and wholesale services such as call origination and call termination, offered between CPs.
In this statement we present the conclusions of our review of the retail and wholesale markets for fixed narrowband telephony services in the United Kingdom. We explain how we are going to regulate these markets and the rules we are imposing on any company we have found to have significant market power (SMP).
These new rules will replace the existing rules and will take effect from the date of this statement, and, in the case of the charge controls, from 1 October 2013.
We have decided to impose controls on charges for wholesale call termination and wholesale call origination. We have concluded that wholesale call termination rates will be based on long run incremental costs (LRIC) and wholesale call origination rates on LRIC+ with effect from 1 January 2014.
Review of the fixed narrowband services markets - Final Statement (PDF, 3.4 MB)
Draft statement published 21|08|13
This statement sets out decisions designed to promote competition in the supply of telephone calls from fixed lines for the next three years (from 1 October 2013 to 30 September 2016), under the European Framework for Electronic Communications. These decisions are important in furthering the interests of citizens and consumers.
Despite the growth of mobile and online services, millions of us still make and receive telephone calls from fixed lines at home or at work. As a result, promoting effective competition between communications providers (CPs) that offer fixed line calls remains an important part of Ofcom's work.
The services covered in this statement are fixed narrowband telephony services, including retail services, in particular voice telephone calls, and wholesale services such as call origination and call termination, offered between CPs.
In this statement we present the conclusions of our review of the retail and wholesale markets for fixed narrowband telephony services in the United Kingdom. We explain how we are going to regulate these markets and the rules we are imposing on any company we have found to have significant market power (SMP).
These new rules will replace the existing rules and will take effect from the date of this statement, and, in the case of the charge controls, from 1 October 2013.
We have decided to impose controls on charges for wholesale call termination and wholesale call origination. We have concluded that wholesale call termination rates will be based on long run incremental costs (LRIC) and wholesale call origination rates on LRIC+ with effect from 1 January 2014.
Review of the fixed narrowband services markets - draft statement on the proposed markets, market power determinations and remedies (PDF, 3.5 MB)
