Open access to communications networks Ensuring competition in the provision of services Anil Patel.

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Presentation transcript:

Open access to communications networks Ensuring competition in the provision of services Anil Patel

Topics Definition of open access Purpose of open access Three tests for opening access The tests applied to cable operators Conclusions

What is open access? An open access obligation allows companies which wish to offer communication services to consumers to do so via the network of another company For example, indirect access allows BT customers to obtain telephony services from a number of competing service providers

Purpose of open access Consumers are able to purchase communications services from a number of different service providers over the same communications network Can help promote greater competition Resulting benefits: choice, quality and value for money

Purpose of open access OFTEL is seeking the benefits of effective competition, not competition for its own sake “New regulation will only be introduced if it is absolutely necessary for the promotion of effective competition and for the protection of consumers, and if these aims cannot be achieved in any other way.”

Three tests for opening access (1) Does the operator of the network in question possess market power in the relevant market? (2) Are the expected benefits from mandating open access sufficient to justify the costs? (3) Is open access an effective and proportionate regulatory instrument to tackle the obstacle to effective competition which has been identified?

The tests applied to cable operators Regulation to require open access is not justified at present Cable operators do not have market power in the relevant markets Nor is there a sufficient competition distortion resulting from local-loop unbundling which would warrant a reciprocal right of access to cable networks

Conclusions No conclusions as yet….OFTEL is inviting comments on the tests for open access and their application to cable operators In a converging and fast-moving market the three tests are significant hurdles Quasi-open access may well emerge without regulation