N.Gelvanovska Infrastructure sharing experience in Lithuania Natalija Gelvanovska Electronic Communications Department Access and Networks Section 2009, Vilnius

N.Gelvanovska2 psl Content Infrastructure sharing: –Legal framework; –Current issues: Duct sharing; Sharing of in-house facilities. Infrastructure construction: –Recent legislative developments. Infrastructure sharing experience

N.Gelvanovska3 psl Legal framework Infrastructure Sharing Infrastructure Sharing Symmetrical obligation: –Symmetrical infrastructure (facility) sharing obligation is established under the Law of Electronic Communications in place since 2004: Detailed regulation in place – since 2005; Main principles: −Applicable to all legal and natural persons owing infrastructure which is suitable for the construction of electronic communications networks; −Defined list of grounds for denial to share infrastructure; −Ex-post price regulation: cost orientation; −First instance for infrastructure sharing disputes – RRT. Infrastructure sharing experience Nida, September 2009

N.Gelvanovska 4 psl Duct Sharing –Commercial product which developed under the infrastructure sharing regulation: Without insistent regulatory pressure. –Reference offer from the incumbent is available (since 2005): Without explicit transparency regulation. –~ every second operator in Lithuania is using duct access service: 160 electronic network and service providers (Source: RRT, 1Q 2009); 78 of them use duct access service (Source: RRT). –Main provider of duct access is incumbent. Among other providers are : ISPs, Cable TV operators, providers of Dark fiber, Utility providers. Infrastructure Sharing Infrastructure Sharing Infrastructure sharing experience Nida, September 2009

N.Gelvanovska5 psl Duct Sharing – Current concerns Infrastructure Sharing Infrastructure Sharing In 2009: 2 disputes. Issues appealed: prices; technical feasibility to provide access; 2 complaints/inquires. Growing number of disputes and complaints indicates that following issues should be decided in near time: −Information about existing duct routes; −Absence of agreed Methodology to determine technical feasibility to provide access. 5 psl Infrastructure sharing experience Nida, September 2009

N.Gelvanovska6 psl Duct Sharing – Information Infrastructure Sharing Infrastructure Sharing information on existing duct routes –Stale information on existing duct routes: Operators in order to obtain duct access are required to provide a printed map indicating the duct routes which they intend to share; Information on duct routes is available from municipalities; Since 2009 new ducts are not registered within national register of real estate. –Electronic map –Electronic map of duct routes is required: Incumbent argues the development of e-map of duct routes would incur huge investments and therefore is not economically justified; Only few e-maps are available from incumbents across EU, i.e. Portugal, Spain: −Access to the e-map is usually quite expensive. RRT is considering possibility to develop common e-map of duct routes.

N.Gelvanovska7 psl determination of free space in the conduits −Significant number of complaints is related to determination of free space in the conduits: 75%Traditionally permission to thread the cable was granted in case occupied space in the conduit is not exceeding 75%: −At the moment no agreement among market players on calculation of 75%; −Legal framework is based on technical feasibility; −Incumbent has made methodology proposal: 16%-24%Up to 16%-24% of total conduit surface may be occupied; Proposal is not consistent with the practice applied. In September (2009) RRT launched a public consultation on the methodology to determine a technical feasibility to trench the cable: −Methodology should become a tool for market self-regulation and ensure transparency in case of disputes! −consultation will be closed in the end of October (2009); −public hearing is planned for the beginning of November. Infrastructure Sharing Infrastructure Sharing Duct Sharing – Methodology Infrastructure sharing experience

N.Gelvanovska8 psl Main principle: Methodology should not disimprove formed practice! −RRT proposed to apply following formula: where D V – duct’s internal diameter; d 1, d 2,..., d k – diameters of threaded cables; d p – diameter of planed cable; K – coefficient, assessing duct space which can’t be used; −RRT proposed to set different K values depending on internal diameter of the duct; −Link to public consultation: Infrastructure Sharing Infrastructure Sharing Duct Sharing – Methodology (2) D V (mm)2632, ,4 d 1, d 2,..., d k (mm) 2 x 7; 13 9,2; 3 x 10,3 15; 3 x 12 7 x 13,24 x 15,510 x 13,28 x 15,522 x 16 Calculated K value1,591,621,561,431,611,421,371,27 ProposedK value1,51,41,31,2

N.Gelvanovska9 psl Among the other concerns are in-house facility sharing issues: −4 complains/inquires and numerous inquires (via ) from both ECN providers (e.g. ISPs) and Communities of apartment houses; −RRT concluded that Communities usually abuse their power. Observed manifestation: a requirement of unjustified payments and (or) a discrimination among ECN providers (e.g. ISPs). −Under infrastructure sharing obligation Communities are obliged to provide access to in- house facilities for network construction: Risk of “Want to change provider – change the house” scenario; RRT works towards increase of transparency in this area. Infrastructure Sharing In-house facility sharing

N.Gelvanovska Recent legislative developments 10 psl Infrastructure Construction Intend to solve problems linked to construction of electronic communications networks in the areas of green field housing developments; Following legislative amendments were completed: –In April, 2009 Ministry of Environment updated Technical Regulation (TR) for construction of Housing Development. After the update TR: includes requirement, among systems of other utilities, to engineer electronic communications system in blocks of apartments; is linked with RRT regulation on construction of Electronic communications networks. –In May, 2009 RRT updated above regulation in order to explicitly cover infrastructure construction in blocks of apartments: focusing on inlets to the buildings, ducting and in-house wiring; Exact proportions and dimensions (e.g. of duct, inlet, etc.) were defined in close co-operation with the market; The aim of the adopted amendments is to avoid infrastructure sharing bottlenecks in the future! Infrastructure sharing experience

N.Gelvanovska11 psl Communications Regulatory Authority of the Republic of Lithuania Infrastructure sharing experience